Puravankara to set up chain of hotels in S India

Bangalore-based real estate company Puravankara Projects Ltd (PPL) is in talks with major local and global hotel players to set up a chain of hotels in South India.

The company intends to set up either 5-star or business hotels in cities like Bangalore, Chennai, Kochi and Hyderabad where it has its operations at present.

However, Ashish Puravankara, Director, PPL refused to divulge details of the talks.

"We are in talks with all the major hotel operators to set up either a 5-star or a business hotels in some of the cities where we are operating currently. We would like to set up a chain of them but will also depend on the feasibility factors of such business in each of these cities. If the economies of scale do not permit, then we might set up only one or two," said Puravankara.

He further added that the company will be signing the deals in near future.

The company is also in talks with major cement manufacturers in China, Ukraine and Pakistan to import cement.

"The Centre has given its nod and with the scarcity in the Indian market, we are planning to import cement. We have also begun talks with players in China, Ukraine, Pakistan and some other countries," said Puravankara.

Lately, PDL has been experimenting with the latest technology for construction. The company recently imported the Miwan technology from Malaysia which involves using aluminium panels in construction and results in speedy work.

PDL has used the technology for two of its residential projects in the south. The company also claims to be the only real estate company to be using end-to-end ERP system for its business.

Puravankara informed that the company has been acquiring land for its upcoming residential and commercial projects in Chennai. It has identified 43.56 million sq ft of land worth Rs 363 crore.

To fund these acquisitions and to repay certain loans, PDL will be entering the capital market on July 31, with a public issue of 21,467,610 equity shares of Rs 5 each at a price band of Rs 500 per equity share to Rs 525 per equity share. The issue will be closing on August 3.

PDL has been into property development, real estate and construction sector since 1975 and has a land asset of approximately 95.60 million sq.ft. of saleable area. It earned a topline of Rs 417 crore and a bottomline of Rs 130 crore in FY 2006-07.