This surge followed the announcement that the company’s real estate division had been selected as the “Preferred Developer” for the redevelopment of MIG VI CHS Ltd. in Bandra East. Spanning 2 acres, the project is anticipated to generate revenue exceeding ₹2,000 crores over the project period.
This project marks Raymond’s fourth venture in Mumbai, underscoring the company’s strategic expansion efforts in the real estate sector. Strategically located in one of Mumbai’s prime residential areas, the project holds significant promise for Raymond’s real estate business.
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“The company will pursue this project after internal and external approvals, as required. This is in line with the company’s growth plans for real estate development in the Mumbai Metropolitan Region, the company said in its Sunday exchange filing.
Key focus on real estate division
In 2019, Real Estate Business began operations by developing a prime land parcel in Thane, Maharashtra.
The revenue from the company’s real estate has been growing steadily with each passing quarter. For the March ending quarter, the company reported a revenue of ₹677 crore from the real estate division, which is a 50% gain as compared to a revenue of ₹289 crore reported in the same period last year.
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The company delivered stellar performance, with the total value of the bookings for the projects amounting to ₹2,249 crore during the year. The company aims to expand its real estate footprint beyond Thane into the Mumbai Metropolitan Region (MMR) through an asset-light joint development model.
The two new joint ventures that it has secured in Mahim and Sion, along with its existing project in Bandra, position it to generate over ₹5,000 crore in revenue apart from its Thane holdings.
Its portfolio includes affordable luxury apartments ranging from 1 to 4 BHK, catering to diverse segments of society.
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Strategic outlook
During FY24, Raymond Group sold its FMCG business and has now identified the core three businesses of lifestyle, real estate, and engineering as future growth pillars.
With the demerger of the lifestyle business into a separate entity, the parent company, Raymond Limited, will now have real estate and engineering businesses. The group has divested its FMCG business, with the trademarks Park Avenue (FMCG category), Premium, KS, and Kamasutra, to Godrej Consumer Products Ltd. (GCPL).
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The transaction was an all-cash deal at an attractive valuation of ₹2,825 crore. Post this transaction, the Raymond Group has become net debt-free two years ahead of its stated guidance, with surplus cash available for future growth.
The company forayed into sunrise sectors of aerospace, defence and EV components by acquiring a 59.25% stake in the business of MPPL. The company aims to enhance the scale of the auto component business to better serve Tier 1 manufacturers across the aerospace, Defence, auto, and industrial sectors by leveraging its comprehensive product offerings and expertise.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 10 Jun 2024, 11:38 AM IST