Lohia Global, a prominent player in exports, energy, manufacturing, and automobiles, is embarking on a new journey in the real estate sector through its entity Lohia Developers. With a vision to achieve a revenue of Rs 4,000 crore from its real estate projects by 2030, the company aims to make this segment a significant contributor to its overall revenue.
To kickstart its venture, Lohia Developers plans to invest Rs 1,000 crore in five residential projects spread across 30 lakh sq ft in Moradabad, Lucknow, and Delhi-NCR. These Lohia Developers real estate projects are slated for development over the next five years.
According to Pyush Lohia, director of Lohia Developers, the decision to venture into the real estate sector stems from the growing demand for modern and high-quality housing in India’s urban and tier-II markets. Initially focusing on tier-II cities and later expanding to the NCR region, the company intends to finance most of its investments through internal accruals, supplemented by bank finance.
Lohia Developers real estate projects will cater to the upper-mid and premium segments of the market. This strategic move is in response to the 40% increase in land prices over the last 3-4 years, which has made it financially challenging to operate in the affordable housing segment.
The company currently owns over 100 acres of land in Moradabad, with plans to commence development on 3-4 land parcels in the next 2-3 years. The first phase of development will involve the construction of approximately 175 villas on 10 acres of land in Moradabad, with an investment of Rs 150 crore. These villas, priced at around Rs 1 crore each, target the growing demand for upscale properties in tier-II cities.
In addition to the Lohia Developers real estate projects in Moradabad, it intends to develop group housing projects in Kirti Nagar, Delhi, and Lucknow. The Delhi project, situated on 2.5 acres of land, has a development potential of one million sq ft. The Lucknow project, spanning 12 acres, is expected to be launched next year.
Looking ahead, Lohia Developers plans to expand its presence in Jaipur, Bikaner, Ayodhya, and Bareilly. The company remains open to joint development models in areas where land prices are high.
In FY23, Lohia Global reported a revenue of Rs 1,200 crore across all its business segments. The company anticipates a 15% revenue growth in FY24 and aims for a 30% year-on-year growth, reaching $1 billion in revenue by 2030.
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