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 "Shriram Properties")
Shriram Properties | Source: www.shriramproperties.com
Bengaluru-based realty developer Shriram Properties has announced plans to double its annual sales to Rs 5,000 crore by FY27. The real estate player has set a target to double its future project inventory from 18 million square feet to over 35-36 million square feet in the next 18-24 months, the company said at a conference here on Wednesday.
The realtor aims to achieve cumulative sales exceeding 20 million square feet over the next three years, with a projected land value of Rs 2,000 crore. Of this, Rs 500 crore will come from SPL’s contributions, while the remainder will be generated through joint developments and development management, adhering to an asset-light model.
Bengaluru will account for 7-8 million square feet, Chennai will add 5-6 million square feet, and Kolkata will contribute 3-4 million square feet in three years, according to the company. Pune would contribute around 2 million square feet over the same period.
Furthermore, Shriram Properties has rebranded its logo with the 25th-year celebration, while embarking on a mission called SPLNxT. This mission is focused on accelerating growth, repositioning the brand, and renewing focus on the mid-market and mid-premium segments in Bengaluru, Chennai, Kolkata, and Pune, where the company plans to enter soon.
“We are embarking on a mission with a brand-new identity. It will allow us to create our own identity and elevate and re-position the trusted Shriram brand among NextGen buyers. We will leverage technology for enhanced customer delight going forward. We envision SPL as a dominant force not only in South India but across our key markets,” said Murali Malayappan, Chairman and Managing Director of Shriram Properties Limited.
Under the SPLNxT strategy, the company expects to achieve significant growth over the next three years, targeting a doubling of sales, a tripling of revenue, and a fourfold increase in profits. The company is focused on achieving cumulative sales of over 20 million square feet, with key markets being Bengaluru, Chennai, and Pune, while Kolkata remains a crucial contributor. SPL will leverage its time-tested operating platform for accelerated sales and expedited execution.
Furthermore, to fuel this growth, Shriram Properties intends to ramp up new project additions in its core markets, aiming to more than double its project inventory. Currently, SPL has a pipeline of 42 projects with a total development potential of 42 million square feet.
“The residential sector outlook remains robust, driven by rising income, home ownership aspirations, low interest rates, and demographic shifts like the surge in millennial home buyers. Mid-market segments have shown resilience and growth in recent years, driven by urbanisation, changing preferences, work-from-home influence, and favourable interest rates,” said Gopalakrishnan, ED and Group CEO, Shriram Properties.
Additionally, the company claims it will add more than 20,000 new customers in three years. It currently has about 28,000 customers, including 11,000 customers in ongoing projects.
Since the introduction of RERA in the last seven years, Shriram Properties has achieved remarkable scale expansion, with its sales volume growing close to three times to 4.6 million square feet, sales value growing five times to Rs 2,362 crore, and annual handovers jumping quadruple to over 3,000 units in FY24.
First Published: Aug 22 2024 | 1:32 AM IST
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