NEW DELHI: Hyderabad-based Navanaami Projects plans to invest Rs 350 crore in the financial year 2024-25 and aims to achieve about 15% profit. It registered revenue of Rs 200 crore in in FY24 and profit was about 12%. In 4-5 years, it wants to achieve Rs 1,000 crore turnover, informed Naveen Gadde, founder & managing director of the company.
In FY23 and FY24, the company had invested about Rs 150 crore in commercial and residential projects and plans to invest around Rs 200 crore in FY25 mostly to be utilised for completion of the projects.
The company recently launched a luxury residential project -The Megaleio in Hyderabad having 1.5 million sq ft development potential. Spread over 4.1 acres, the project will offer 150 residences divided in three units: Skyline tower flats with an area of 11,111 sq ft, Unity tower flats with an area of 9,999 sq ft and 8,888 sq ft.
The project is being constructed in collaboration with DesignHaaus, Tierra, Arup and Optimisation Consultants.
Navanaami Projects will invest about Rs 800-900 crore on the project during the four years of lifecyle. It has taken loan of Rs 250 crore from Union Bank of India and rest will be funded through internal accruals. The company expects a topline of Rs 1,200 crore from the project.
In Hyderabad, the company holds about 20 acres land parcel. In 2023, it was working on a commercial project in Hyderabad. It has invested Rs 100 crore in equity and took loan of Rs 150 crore from a bank. For this, the company has tied up with Pune-based Panchshil Realty, for designing and leasing the entire building.
“By December-2024, we will complete the 2.45 million sq ft commercial project in Nanakramguda. Since this was our first time working on a commercial project, hence we found it prudent to tie-up with a company which has experience in delivering and leasing out such projects. We will be partly selling and partly retaining the office spaces,” said Gadde.
It plans to launch another project in Hyderabad in October 2024 with a development potential of one million sq ft with 300 apartments ranging from 2,400-3,000 sq ft.
According to him, there is a good market for Global Capability Centers (GCCs) in Hyderabad and as of now grade A supply is very less, which is where the opportunity lies. Average property price of the company’s residential projects in Hyderabad is Rs 10,000 per sq ft, which was around Rs 7,000-8,000 per sq ft in 2022. This is expected to increase by 5-10% in FY25.
Expansion in Bengaluru
The company is planning a mixed-use project on 25 acres land in TC Halli, along the Sarjapur Road, Bengaluru and plans to launch it by January 2025. This is a joint venture project and about 10 acres of this will be commercial and retail and rest 15 acres will be residential.
It is planning a villa project on 44 acres land in Ramanayakanhalli and plans to launch it in 2025. This is also a joint venture project.
It started another residential project in April 2024 on 3.5 acres land with 0.2 million sq ft development potential along Sarjapur Road.
The company is also in talks to construct, execute and lease 2.5 lakh sq ft shopping mall in Bengaluru. This will be joint venture project.
Moving beyond residential
Gadde said that if we want to grow, focusing on just the residential segment is not enough, “we want to be present in commercial and retail segments as well.”
Of the total land parcels the company is developing, about 30-40% is outright purchase while the rest are joint ventures. “If the cost of land parcels are high, we prefer the joint venture model, otherwise we go for outright purchase,” said Gadde.
The company also wants to venture into tier-II cities like Bhubaneswar, Raipur and Indore in the future with an investment of about Rs 100-200 crore.
