NEW DELHI: Lohia Global having presence in sectors like exports, energy, manufacturing, and automobiles, is venturing into the real estate sectors under its entity Lohia Developers. The company expects its real estate business to reach Rs 4,000 crore revenue by 2030 and constitute a significant portion of the group’s revenue.
The company plans to invest Rs 1,000 crore in five residential projects spread across 30 lakh sq ft area in Moradabad, Lucknow, and Delhi-NCR. These projects will be developer in the next five years.
“We recognize the rising demand for modern and high-quality housing in India’s urban areas and tier-II markets. We want to first concentrate on projects in the tier-II cities and then expand to NCR. Most of our investment will be through internal accruals and some will be bank finance”, said Pyush Lohia, director, Lohia Developers.
As to why the company wants to venture in upper mid and premium segment, he said that the land prices have increased by about 40% in the last 3-4 years, it is not financially viable to be present in affordable segment.”
The company currently holds over 100 acres land parcel in Moradabad, of which it plans to start development on 3-4 land parcels in the next 2-3 years. “In 2024, we will launch two projects and focus on mid and upper-mid residential segment,” said Lohia.
In the first phase, the company proposes to construct about 175 villas on 10 acres land in Moradabad with an investment of Rs 150 crore. It hopes to get Uttar Pradesh Real Estate Regulatory (UP-RERA) approval soon. Average ticket size of these villas will be about Rs 1 crore. “I think there is enough demand for such properties in tier-II cities. Buyers’ profile have improved in the last few years and people are sitting on enough money to spend.”
The next two projects will developed on 18 acres and 42 acres land parcels in Moradabad.
Apart from this, the company plans to construct group housing projects in Kirti Nagar, Delhi and Lucknow. In Delhi, it has 2.5 acres land and the project has a development potential of a million sq ft and is in discussion with companies for development management model.
In Lucknow, the company holds 12 acres land parcel. Both these projects are expected to be launched by the next year.
The company also holds land parcels in Jaipur, Bikaner and hopes to expand in Ayodhya and Bareilly in future. It is open to joint development model if the land prices are high.
Lohia Global reported revenue of Rs 1,200 crore across all four business segments in FY23. It expects a 15% growth in revenue in FY24 and anticipates a growth of around 30% year-on-year by 2030 and reach $1 billion revenue.
