The business had a good start to the year with an 11% rise in profits during Q1. The company plans to spread its operations across Ahmedabad, Bengaluru, and MMR.
Ahmedabad: Arvind Smartspaces, a real estate developer based in Ahmedabad, is looking to expand into the Mumbai Metropolitan Region (MMR) market by the end of the current fiscal year. The company plans to take on one or two projects, which may include second homes and expects to make at least Rs 400-500 crore in sales for each project. Kamal Singal, the Managing Director and CEO of Arvind SmartSpaces, shared this information with Moneycontrol.
We are targeting signing one or two projects in MMR by the end of the ongoing 23-24 fiscal. One project will be horizontal in nature and one will be vertical. Horizontal will be second homes, which turn into first homes in the long term. We are exploring locations like Karjat, Khopoli, Panvel, Bhiwandi etc. The periphery of Mumbai. Vertical will be somewhere in suburban Mumbai (Goregaon to Dahisar, Mulund, Thane) where the per sqft residential market rate is Rs 15,000 to Rs 30,000.
Kamal Singal, Managing Director and CEO of Arvind SmartSpaces
The company is open to teaming up with others for building projects, like joint ventures and joint development. They’re also interested in renovating old buildings. For building layouts, they’re aiming for an average size of around 1,500 square feet per unit.
Singal stated that our goal is to achieve a minimum topline sales of Rs 400-500 crore each, with an EBITDA of 25% and a PAT of 12%. In the future, we strive to have 40% of our business coming from Ahmedabad, 40% from Bengaluru, and 20% from MMR.
When asked about the company’s plans for entering the Delhi region, Singal responded, “At this time, we do not have any plans to enter the National Capital Region (NCR) real estate market or Hyderabad. We are keeping an eye on Hyderabad, but we have no immediate plans for the short or medium term. Our focus in Maharashtra is on the MMR region, with a particular interest in Pune. We have no plans to enter any areas above that in Maharashtra, nor are we currently monitoring them.”
On August 1, the company declared that it had signed two horizontal projects in Ahmedabad, covering an estimated area of 704 acres and with a potential revenue of up to Rs 2,300 crore. A portion of this, around 200 acres, will be launched in the near future as a joint development project. The company’s main focus will be on Ahmedabad and Gandhinagar in Gujarat, while also consolidating in Bengaluru. The market will be closely monitored to determine future plans. Singal provided this information.
