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You took over as CEO in February, Tell me, what is the big vision? What are going to be your key priorities and focus areas for the business?
Amit Kumar Sinha: Thank you for having me. I just want to clarify that I joined in May last year, so it is almost nine months. There are three things: vision, aspiration etc. The first is we have a strong brand name in the market and Mahindra & Mahindra has highlighted us as one of the growth gems. We used to be, I would say, a sleepy little smaller company, but given the support and aspiration that we have, we are going to be investing big time behind our brand and trying to scale Mahindra Lifespaces to a different level altogether.
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Number two, the aspiration is to be five times in five years. In FY23, the residential pre-sales were roughly Rs 1,800 crore and on the industrial side, roughly Rs 250 crore. We want to take that Rs 1,800 crore to somewhere between Rs 8,000 crore and 10,000 crore by FY28. So we have very aggressive aspirations. Hopefully we will get there with a lot of execution focus.
The third thing is we are investing a lot in terms of our portfolio of projects. We are focused on three markets; Mumbai, Pune, and Bangalore. But given we are a little bit smaller than some of our competitors, we have a unique differentiation for our consumers, and one of that is our focus on net zero building sustainability. I can talk more about it. We are getting a lot of interest from our customers. Some projects are getting sold out within a few days of launch. So hope to continue the momentum across these.
Let us talk about the projects that are in the pipeline and in the works to be kick-started soon. I want to talk about the Pune project as well. What is the revenue potential from this one in particular?
Amit Kumar Sinha: Let me answer your question in two parts. We carry a healthy portfolio of Rs 5,000 to 5,500 GDP which is like the sales potential of these projects. And they are across Mumbai, Pune, and Bangalore. This excludes a large project land bank that we have in Thane, which is 65 acres, which has a revenue potential of another 8,000 to 10,000, and in the process of getting some specific approval after the new policy was announced last, this current financial year. So that is the project pipeline that we keep across the market.
There are some additions, subtractions, deletions that happen based on due diligence and learning that we get. We are very careful given market is going through a very up cycle. We want to sign the deals for the future that means when you sign a deal today, you will get to realize the revenue and profits three, four, five years later. So you want to be very cautious in terms of your deal discipline to make sure that it meets your financial commitments to the shareholders. Second part is the Pune project that you talked about.
We got our RERA approval just 10 days back. It is called Codename Crown. It is in Vagholi area. It is a very exciting project. It has a GDP value, sales value of 1,400. We are going to be launching that into two parts. The first part has two premium towers and an exclusive 4BHK super premium tower that we are launching. It is an exciting project because this is, we have traditionally been focused on the western part of Pune. Now it is coming to the eastern part of Pune. We are already seeing significant momentum given the design and the layout that we are giving, special balconies, etc. which is hopefully going to excite our customers as much as possible.
Given that you are talking about the Pune project, take us through the revenue potential there and your overall revenue target?
Amit Kumar Sinha: Revenue accounting is slightly different. The way we look at the real estate market is pre-sales. We have given an external guidance of Rs 2,500 crore for FY25. This excludes our industrial business which is a healthy portfolio. We are in the process of monetising it. Industrial will be relatively flat. We are in the process of monetising, so 400 to 500 crore per year for the next four to five years, given the land bank that we have in Chennai, Jaipur and other places. So not necessarily revenue because its accounting method is slightly different. It is based on OC and 100% completion. The pre-sales target we have given is 2500 for our next financial year and additional 2500 for our industrial business.What about your launch pipeline? What exactly is in store?
Amit Kumar Sinha: I am glad you asked the question. We are going through a lot of significant momentum across our market. We just had a very successful launch of Mahindra Vista in Mumbai, which is in Kandivali East. In three days, we sold more than Rs 800 crore of inventory. We had launched just over Rs 1,000 crore of inventory. It is a stupendous success by any means. We are, as I talked about, Codename Crown in Pune is already in the launch, and we will have another launch in Bangalore in the next week or so. We are just waiting for the RERA approval.
We also had our plotted launch four weeks back in Chennai which is going through its own process of the launch progress and all the collection but the excitement will continue in the following year. We have exciting launches planned in Mumbai. We had two society redevelopment projects that we launched in the current financial year. They are likely to be launched in the next financial year.
We have a whole host of other projects coming up in Bengaluru; a project called Malgudi, which is again a net zero-based energy project that will be launched any time now. And then a few projects in Pune and Mumbai, which are going through the final stages of design and approval. Hopefully, they will be brought to market in the next financial year.
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