Hero Realty to launch real estate projects spanning 4 million sq ft this financial year
By siliconindia | Wednesday, 05 July 2023, 02:29:21 PM IST
Hero Realty Pvt Ltd plans to launch real estate projects spanning around 4 million square feet in this financial year, with an estimated revenue potential of Rs 3,500 crore, said its CEO Dharmesh Shah. The company, backed by Sunil Kant Munjal's Hero Enterprise, is also considering an initial public offering (IPO) in the next three-four years. With a focus on residential development, Hero Realty aims to invest Rs 1,000-1,200 crore in this fiscal, he said. “We want to touch the sales figure of close to Rs 5,000-6,000 crore in the next two years. Post that, we plan to list the company on bourses," Shah said.
After successfully launching real estate projects spanning around 450,000 sq feet in Mohali in 2022-23, Hero Realty is set to continue aggressive expansion this year. The company recently ventured into a joint venture project on Dwarka Expressway, with a development potential of 2.2-2.3 million sq feet and an anticipated turnover of Rs 2,000 crore. It has introduced a new business vertical, Hero Earth, which will specialize in plotted developments across Delhi-National Capital Region (NCR). The first project under this vertical is located in Gurgaon's Sector 85.
“The plotted development is part of the DDJAY (Deen Dayal Jan Awas Yojana) scheme of the Haryana government. Hero Earth will be a separate business vertical focusing on plotted developments across Delhi-NCR as and when we get a good opportunity. This project in Gurgaon Sec-85 will be our first in residential plots in Gurgaon," said Shah. The company’s plotted development in Haridwar, on about 90 acres of land, is nearly sold out. The company is also trying to sell the plots through the metaverse. “We have built a platform which will be launched soon and wherein customers can visit the sites, their plots, check the Vastu, see the entry, exit, size, and then the customers get to decide on inventory,” Shah said. The company might also enter Noida, as it focuses on Gurgaon, Delhi and NCR.
“We have a project in Mohali and we are looking for an expansion in Mohali. In Ludhiana also, we have 20 lakh square feet,” Shah said. The company’s group housing project in Gurgaon’s Sector 104 will be launched in January 2024. “We plan to launch it in phases. The market has witnessed an uptick after Dwarka Expressway and now there is visibility that one portion might start. We are hoping to earn more by being a brand and having that credibility. We are also acquiring some nearby patches to make it more efficient,” said Shah.
Hero Realty wants to clock annual sales of Rs 5,000 crore to become the second or third-largest real estate company in northern India and among the top 10 players in India. “Post this, we can go for an IPO. So, the current sentiment is to keep the process and everything as aligned as a listed entity. We have always had financial leverage and we are a trusted legacy brand with credibility and we give good services to the customers,” Shah said. Hero Earth is aggressively focusing on large-scale developments in plotted development projects in residential segments and will expand the projects to major cities in northern India.
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