A wholly-owned subsidiary of Emami Ltd Emami Realty has put on hold all projects and would look for financing primarily from banks and private equities once the market situation improves, a company official said.
The official said although the company had set aside Rs 100 crore for entering the real estate segment more funds would be required once the projects started to roll.
He said the company would primarily seek finance from banks and institutions.
"We will be also talking to private equity firms. But our first priority is bank finance," the official said.
Emami Realty has land in places like Kolkata, Hyderabad, Coimbatore, Chennai, Ranchi and Jamshedpur.
In the present market conditions, no bank or institution would come forward to finance real estate projects, the official said, adding that what was more distressing was that there were no sales in the market.
Asked about the future outlook of the real estate development market, he said it was very difficult to predict at the moment. "Things will not improve immediately. It will take another 36 months."
The official said the company was watching the market closely, at least for the next six months.
To a query relating to the future of real estate business of the Emami group, he no alternate plan had been chalked out so far.
The Emami group had been setting up IT parks, residential and commercial complexes at various locations where Emami Realty has land.
In Kolkata, the company has already set up the South City Mall and several premium residential complexes.
