Macrotech Developers, also known as Lodha, which is active in Mumbai, Pune and Bengaluru, may enter a fourth city as it expands operations.
The company, which made inroads into the Bengaluru real estate market in November 2023, said its business strategy, including geographical expansion, is largely a step-by-step conservative approach.
Bengaluru started well for the company and the second project launch in the city is likely in the next three months, Abhishek Lodha, managing director of Macrotech Developers, told investors during the company’s earnings call.
"As that happens, we'll start reviewing whether we start taking baby steps into a fourth city of operations. So probably something that we will think about and evaluate over the next three to six months, but don't have a definitive answer at this stage," Lodha said during the company’s earnings call on January 29.
According to the company, the residential market in Bengaluru is currently estimated at Rs 60,000 crore to Rs 65,000 crore and it has grown at about 18 percent over the past four years. The market size has doubled in the past four to five years.
Prices have gone up substantially, increasing by about 40 percent over the most recent five-year period compared with about 10 percent in the previous five years, company officials said on the call.
Also read: Can become net-zero carbon company before 2035: Abhishek Lodha of Macrotech Developers
Bengaluru build-up
"We launched our first project next to Manyata Tech Park in North Bengaluru in November… In the first weekend itself, we were able to sell about Rs 600 crore in presales, about 80 percent of the inventory," said Rajendra Joshi, CEO (Bengaluru) at Macrotech Developers.
"We intend to build a strong organisation with local capabilities in the areas of sales, construction, marketing, and customer service so that we can build up this business in Bengaluru to about Rs 3,000 crore run rate in the next three to four years," he added.
Apart from Mumbai, Pune and Bengaluru in India, Lodha has also done project in the UK. However, the company wants to focus on its growth in India.
The company said on January 4, it had finalised agreements for the acquisition of a 100 percent stake in Goel Ganga Ventures India, a real estate developer.
Also read: MahaRERA dismisses complaint against Lodha for New Cuffe Parade project in Mumbai
“We are in years three or four of a long cycle, perhaps 15 years long, for the housing industry in India as India transitions from a low-income to a mid-income country. And as we have seen in many instances where such transitions happen, the housing cycle tends to be much longer," Lodha said on the call.
The company posted a 17.6 percent drop in net profit to Rs 313.20 crore in the third quarter of FY24 from a year earlier, while net sales climbed 67 percent to Rs 2,793.90 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
