JULY 14, 2019 • THE WEEK 57ject will have 2,800 units
on 14 acres. This project
will provide a huge
upside for Raymond’s
turnover in the next five
years. “The first phase
is three million square-
feet. It could be 0 4,000
crore to 0 4,500 crore in
the first phase and then
we will build up on that,”
said Singhania.
Usually, companies
with huge landholdings
monetise it by selling it
to real estate develop-
ers. Why did Raymond
choose to go ahead on
its own, despite not
having any experience
in the realty business?
“If you have a small plot
of land, then it does not
make sense for you to
set up the infrastructure.
But, if you have a large
parcel like we do, it is
significantly better to
do it yourself, because
you do not leave too
much on the table. Your
value maximisation is
maximum if you do it
yourself. So, we looked
at 20 acres as the first
land parcel, which we
want to do ourselves and we have
started the construction work on
that,” said Singhania.
The residential real estate mar-
ket has been slow of late, owing to
the introduction of the goods and
services tax and the Real Estate Reg-
ulation and Development Act. But,
Singhania is unperturbed. “If you are
in the luxury part of the sector, it is
always going to be under challenge,
because luxury is discretionary and
discretion can get deferred. We are
in the affordable housing segment,
600 square-feet apartments. So, right
product, right price, right location,
right amenities and there is alwaysper cent, to 0 6,708 crore. “Market is
what it is, the environment is what it
is, we have got to find growth in that,”
said Singhania.
Sensing more opportunities in
smaller towns, the company is now
opening mini outlets of The Ray-
mond Shop. Currently it has 300 such
stores in 190 towns and has identi-
fied some 800 towns to open new
ones. The company plans a capital
expenditure of around 0 200 crore
this year.
Raymond shut down its Thane fac-
tory in 2010 and is now focusing on
its maiden real estate project there.
The first phase of the residential pro-
The first phase of
Raymond’s residen-
tial project will have
2,800 units on 14
acres. It will provide a
huge upside for Ray-
mond’s turnover.AMEY MANSABDAR