Raymond Group, India's branded fabric and fashion retailer, has announced its foray into the real estate sector through Raymond Realty.
The textile major will be entering into the realty sector by launching a residential project in Mumbai Metropolitan Region's Thane area.
Raymond Realty is looking to invest Rs 250 crore in its maiden project until FY2020.
A certain amount of this budget has already been utilised for planning and regulatory approvals.
Apart from announcing the residential project plans, Gautam Hari Singhania, chairman and managing director of Raymond also shared that the land bank with them will be monetised.
"In our continued efforts to enhance value for stakeholders, Raymond has forayed into real estate development in order to monetise the land at Thane," said Singhania.
India's latest real estate venture will build 3,000 two-bedroom apartments on 14 acres of land at Mumbai's extended suburb Thane. These many homes will be constructed in a duration of five years as part of the company's first phase of the project.
As per the announcement, under the first phase, it will be looking at a profit margin of 25% with potential revenue of over Rs 3,500 crore.
In the last few weeks, Raymond Realty through a soft launch has already received over 500 'Expression of Interest' for the same project.
Raymond is among the oldest textile ventures of India. It is a diversified group with majority business interests in textile and apparel sectors as well as presence across diverse segments such as FMCG, engineering and prophylactics in national and global markets.
Raymond has one of the largest exclusive retail networks in the country with over 1,000 stores across 400 towns.
DIVERSIFYING BUSINESS
- Rs 3500 cr – Expecting a potential revenue in the first phase
- 3000 – two-bedroom apartments to be built on 14 acres of land
- 500 – expression of interest the company received through a soft launch
