As inventory levels are reducing, turnaround is expected to happen soon: Pirojsha Godrej
BENGALURU: Real estate firm Godrej Properties Ltd (GPL) plans to use the ongoing struggle and slowdown in the real estate sector as an opportunity to scale up its business and consolidate market share.
The last financial year was a breakout year for the Mumbaibased developer, in terms of sales booking volume. Earlier this year, it raised ₹2100 crore through a qualified institutional placement (QIP). In a telephonic interview, Pirojsha Godrej, executive chairman of Godrej Properties, spoke about the impact of the liquidity stress in non-banking financial companies (NBFC), the company’s growth and investment strategy, the iconic RK Studios project launch and affordable housing. Edited excerpts: way, the NBFC crisis also further pushed consolidation in the sector, for anyone who doesn’t have the ability to raise money or a strong balance sheet and no access to capital. Companies who are well-placed are therefore at an advantage over the others. other developers. We see a big opportunity in the current situation to gain market share, take on new projects and scale up. through the QIP was well-timed to take advantage of a countercyclical investment strategy and strengthen our business development pipeline. We intend to invest ₹5000 crore in the next two years, through a combination of equity and debt, in new projects. and can profitably operate both (affordable and premium). But for truly affordable housing, which is building homes for the bottom of the pyramid, we don’t have any plans because scaling would be a challenge. For us, the focus will be on mid-income housing.