Business Standard

‘Quite a design rethink done to stay relevant’

- VENKAT K NARAYANA CEO, Prestige Group More on

Real estate major Prestige Group reported a sales milestone of ~21,040 crore for FY24, marking growth rate of 63 per cent year-on-year (Y-O-Y), as it declared its operationa­l results for the financial year and fourth quarter on Monday. Its sales for the March quarter touched ~4,707 crore, up 21 per cent Y-O-Y. It also sold the highest number of units in FY24 totalling 10,068 units. VENKAT K NARAYANA, CEO of Prestige Group, talks about the company’s growth drivers and vision, in an interview with Aneeka Chatterjee in Bengaluru. Edited excerpts:

Which of Prestige’s business segments are poised to drive growth in the coming quarters?

All the segments. In all the segments where we are present, there is great growth potential, including in geographic­al markets. We are now in residentia­l, office, retail, hospitalit­y, property management, maintenanc­e division, and to some extent, warehousin­g and data centres. Together these make the backbone of economic growth. As the gross domestic product (GDP) of the country is growing, there is a need for enough infrastruc­ture to support industries. And we have the infrastruc­ture capability.

Is there a shift in consumer behaviour to premiumisa­tion and how are you catering to it?

There has been a huge shift. Consumer needs and requiremen­ts have changed, and differ from city to city. We need to take into considerat­ion what the people of a particular city need and deliver it accordingl­y. Additional­ly, postcovid, there has been a significan­t shift wherein people are willing to pay a premium for facilities and amenities. Consumers prefer larger homes now. Even in terms of amenities, we provide rooms and working spaces in the clubhouses. Hence, quite an amount of design rethinking happened to stay relevant and cater to the changing needs of the customers.

Recently, you partnered with Abu Dhabi Investment Trust and Kotak AIF to develop projects in India. Can we expect similar collaborat­ions in FY25?

No, we just started with this and are happy about the collaborat­ion. This is only the beginning. We partnered for four residentia­l projects. Once we launch these projects and get going, we will strengthen this relationsh­ip with more projects. We keep signing quite a few deals every year. Either we buy lands or we do partnershi­ps. Let’s see how it goes.

What are your investment plans for FY25?

Our residentia­l sector has done extremely well for FY24. As of December, we have done over ~16,000 crore, and have crossed the first nine months of FY23 limit by almost ~3,000 crore. Now we must sustain what we have done for FY24 and grow on that. Therefore, we need to do land acquisitio­ns in different regions and cities to ensure we maintain the momentum and growth. However, we have an adequate land bank for FY25. Our focus is on converting lands into projects. That’s where the core strength of the company lies.

There are close to a hundred ongoing projects across segments, cumulative of 180 million square feet. But acquiring lands and making strategic investment­s is part and parcel of our business. Whenever there are opportunit­ies, we have been buying land and taking over projects from asset reconstruc­tion firms. This process will continue for some more time. The kind of investment­s needed for land acquisitio­n would be about ~6,000 crore.

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