Parsvnath lines up Rs 60,000cr investment

Realty major to diversify into SEZs, airports, expressways and retail businesses in 5 years.

Aiming to turn a 'conglomerate' from being a real estate major, Parsvnath Developers has announced an investment of Rs 60,000 crore in next five years in diversified areas such as SEZs, airports, express ways and retails business.

BUILDING GROWTH

The group will bid for upcoming airports in Udaipur, Greater Noida and Maharashtra

Parsvnath will focus on development of SEZs, hotels, highways, retail and telecom

The company plans to leverage its huge land bank

"We shall be bidding for upcoming airports such as Udaipur, Greater Noida, Maharashtra and other states. Besides, SEZs will be another major investment area in the coming three to five years," Pradeep Jain, chairman of Parsvnath Developers, said.

Asked about the source of funding, Jain, who started as a broker about 15 years back grew to become India's leading real estate developer, said: "Funding for new businesses will not be an issue... We shall leverage our huge large land bank".

Among the major projects, Parsvnath would be focusing on development of SEZs, hotels, highways, retail and telecom, he said adding the company has 191 million square feet of developable area, including six SEZs.

Though it has been denied an entry into telecom business as Parsvnath's application for the unified license was rejected by the Department of Telecom (DoT) last week, Jain said: "We will get into the telecom sector and our investment will be in the range of up to Rs 20,000 crore".

He, however, declined to elaborate on telecom business plans, saying the company was watching the situation.

On other businesses, Jain said the company would enter the retail business in a big way and would soon announce its roadmap. The company is in talks with some of the major international retailers.

Parsvnath is also believed to be in talks with two French majors Carrefour and Club Casino to set up retail chains in India. Jain said that "we are sure to open our first retail store in 2008 and possibly will start with Delhi".

Although he did not name the suitor, Jain said that the roll out of the retail outlets would start from this calendar year itself.

Jain, who has been included in the list of billionaires by Forbes, is hoping to grow at the rate of 102-140 per cent year-on-year basis to become a Rs 15,000 company in next five years from about Rs 1,500 crore turnover now.

About the types of retail stores and branding, Jain said the details were being worked out but the stores would be in large formats such as complete food bazaar and as far as branding was concerned, the company would take a decision after finalising the overseas partner.

The company owns over 14 million square feet of land for retail business in 48 cities and that would be an advantage for Parsvnath as all other prospective retailers would have to bank upon them for space.