Shriram Properties to focus on mid-segments; eyes doubling annual sales, tripling revenues

Shriram Properties Ltd, the real estate division of the diversified conglomerate Shriram Group, would focus predominantly on medium housing segments as it aims to double sales volume, triple revenues over the next three years, a top official said on Friday. The company has rolled out a new brand identity SPLNxT (referring to Shriram Properties Ltd Next) which aims to transform the perception of Shriram Properties Ltd, elevating brand image, Executive Director and Group CEO Gopalakrishnan said here. The year 2024 also marks the silver jubilee year for the real estate entity which has completed over 42 projects across key cities. It has another 42 new projects in the pipeline, he said. Gopalakrishnan along with Shriram Properties Ltd Chairman and Managing Director Murali M and senior officials were here to announce the company's plans over the next three years.

"As an integral part of SPLNxT, we are embarking on a mission that looks to double (sales) volume, triple income, and quadruple profits in the next three years. This is not just a target, it is our destiny," he told reporters. The success of the vision plan would result in doubling of annual sales to Rs 5,000 crore by FY 2027, tripling of revenues (income from handing over of house key) to Rs 3,000 crore, and quadrupling of profits by FY2027, he said. Gopalakrishnan noted that his company turned profitable last financial year and reported a profit of Rs 75 crore. Going forward, he said, the company would predominantly focus on mid-segments, both mid-market (Rs 50 lakh to Rs 1 crore worth of projects) and mid-market premium (projects worth Rs 1 crore and above up to Rs 1.50 crore).

Detailing the upcoming projects, Gopalakrishnan said the company would scale up annual sales from 4.5 million square feet in FY24 to 8-9 million square feet by 2027. Responding to a query, he said the company would foray into the Pune real estate market this year. Currently, Shriram Properties Ltd has a presence in Chennai, Bengaluru, Kolkata, Visakhapatnam, and Coimbatore. The company's Chairman and Managing Director Murali M said Shriram Properties executed its first project in Chennai in 2006, the "Shriram Gateway" at Perungalathur, and claimed that it is the largest project for the real estate industry in Tamil Nadu. "We are moving towards the goal of doubling the volumes, triple our income, and quadruple our projects in the next three years," he said.

To another query, Gopalakrishnan said the company would be committing investments of Rs 2,000 crore for the upcoming projects which would take the overall project inventory to 62 million sq ft from the current 42 million sq ft. On the Chennai market, he said, Shriram Properties Ltd has had a strong presence for over two decades and completed six projects with more than 7 million sq ft of development in the last 10 years. "In Chennai, we expect to add 6-8 million sq ft of projects in the pipeline over the next two years, involving capital commitment of Rs 800-Rs 1,000 crores. This would mean Shriram's own investment of over Rs 200 crore and the rest coming from partners.." he said. Responding to a query, Murali said the company would also explore opportunities for projects for senior retirement homes.

For Chennai, Shriram Properties was launching three new projects -- 'Pudiya Chennai' near Thirumazhisai, 'Jackpot' near Shriram OneCity at Valarpuram and "24 Carat". "We will invest Rs 400 crore on construction of these projects over the next three years and expect construction spending of over Rs 750 crore across all our projects in Chennai," he added.