The Kishore Biyani-led Future Group is going into the real estate business through a 50:50 joint venture with Kolkata-based developer Sumit Dabriwal, for building affordable, branded, ready-to-move-in homes.
This is part of the company’s plan for a turnover of Rs 13,000 crore by July 2011, a growth of 35 per cent over last year.
At a press conference here today, Kishore Biyani, CEO, said FH Residencies, part of the Future Group (it is a 100 per cent subsidiary of Home Solutions Services, also part of the Group) had formed the 50:50 venture with Dabriwal for ‘branded apartments’ that would be ‘affordable’. Biyani declined to comment on the pricing policy. Dabriwal could not be spoken to.
“We intend to be a Rs 13,000 crore company by 2011 and the foray into real estate business for building ready-to-move-in houses is part of the plan. We are yet to work out the pricing strategies, but it would be affordable. This is a national tie-up with Sumit Dabriwal and movement could be seen this year. The target buyers would be young, working class, who are pressed for time, so we would take care of everything needed for a home,” Biyani said.
IPO plans
Biyani said their venture capital company, Future Venture, is in the final stages of announcing its initial public offering (IPO) within the next 30 days. “We had deferred the IPO plans because the economy did not look suitable. But now that consumer sentiment is improving, we are ready to go ahead with it,” he said.
Retail plans
Pantaloon Retail India (PRIL) will invest close to Rs 250 crore within the next year-and a half for setting up 10 malls in the country. With this, India’s largest listed retailer will add close to 1.7 million sq ft to its existing retail space of 14 million sq ft.
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“Our target is to have a total of 30 million sq ft by 2013, which would entail an investment of Rs 4,000 crore. There will be 9-10 Central (a brand name) malls in the country within the next 12-18 months. The average cost of setting up a Central is about Rs 25 crore,” Biyani said.
Fund raising plans
The company also plans to raise additional long term funds of up to Rs 1,000 crore in one or more tranches through issuance of securities to various investors.
The company today opened its largest HomeTown store, spread over 200,000 sq ft, at Rajarhat, a Kolkata suburb.