Shriram Properties eyes annual sales worth ₹5,000 crore in the next three years driven by mid-income housing sales
Bengaluru real estate news: Shriram Properties unveils new brand identity SPLNxT; announces foray into Pune market
Bengaluru-headquartered real estate developer Shriram Properties is looking to double its sales to ₹5,000 crore, triple revenue to ₹3,000 crore and quadruple profits to more than ₹250 crore in the next three years driven by mid-income housing sales and consolidation in the real estate sector, the company's top official said on August 21.
“We will scale up our annual sales from 4.5 million square feet last year to 8-9 mn sq ft. We would have sold close to 20 million square feet cumulatively (in 3 years). Of this, Bengaluru alone will account for 7-8 mn sq ft, Chennai will account for about 5-6 mn sq ft, Kolkata about 3-4 mn sq ft, cumulatively in three years,” said Gopalakrishnan J, Executive Director and Group CEO, Shriram Properties.
During the 2023-24 fiscal year, Shriram Properties clocked a net profit of ₹75 crore, while the company's total income came in at ₹987.35 crore. Sales value during the 12-month period touched ₹2,362 crore.
As the company enters its 25th year of operations, Shriram Properties also unveiled a new brand identity - SPLNxT - with enhanced focus on the mid-market and mid-premium segments. Going forward, over 90% of the brand’s portfolio (from 67% earlier) will comprise mid-market and mid-premium projects. Simultaneously, the brand will continue to focus on luxury projects.
Also Read: Shriram Properties posts modest 5% growth in net profit, touches ₹17.5 crore in Q1 FY25
Shriram Properties defines the mid segment as comprising homes ranging between ₹50 lakh - 1.5 crore. Meanwhile the mid-premium bracket spans between ₹1.5 - 2 crore.
“Competition has become more intense. To thrive in this environment, we must change. SPLNxT therefore represents the essence of this transformation that we’re embarking on,” Gopalakrishnan said.
Shriram Properties plans to foray into Pune market
Since inception, Shriram Properties has expanded its presence to five cities, delivering about 44 projects spanning 24.4 million square feet. The company is now looking to foray into the western market with the first project slated to be launched in Pune. “Our new addition to the portfolio, Pune should account for about 2 mn sq ft of sales over the next three years,” Gopalakrishnan said.
Also Read: Shriram Properties Limited signs joint development agreement for a 4-acre land parcel in Bengaluru
Amongst the slew of announcements, the company also shared plans to launch two mobile applications, namely Shriram Parivaar and Shriram Synergy for the company’s customers and channel partners, respectively. According to Akash Murali, AVP Strategy, Shriram Properties, the apps are expected to be launched within the ongoing quarter.
Project pipeline comprising 42 projects
Presently, Shriram Properties has a pipeline of 42 projects with a development potential of 42 million square feet. Of this, 24 million square feet is under various stages of development. “We’re targeting to double our future project inventory from 18 mn sq ft now to over 35 mn sq ft in the next 18-24 months,” Gopalakrishnan underscored.
Also Read: Prestige Estates plans to launch 43 real estate projects across segments in seven cities
The company estimates a capital requirement of ₹300-500 crore for its three-year growth plan and believes that internal funds shall adequately meet the demand. The joint development model could account for 50% of the company’s portfolio during this time, a company spokesperson said.
Shriram Properties is on track to launch three projects in Bengaluru in the ongoing quarter.
