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Under the name Lohia Developers, Lohia Global, which is active in the manufacturing, energy, export, and automotive industries, is entering the real estate market. By 2030, the firm hopes that its real estate division would generate Rs 4,000 crore in revenue, or a sizable amount of the group’s total income.
The business intends to invest Rs 1,000 crore in five residential projects in Moradabad, Lucknow, and Delhi-NCR, totaling 30 lakh square feet. Within the following five years, these projects will be developed.
Lohia Global To Develop 5 Residential Projects In Upcoming Years
We acknowledge that tier-II markets and metropolitan locations in India are seeing a growing demand for contemporary, high-quality homes. Prioritizing initiatives in Tier-II cities is our initial goal, followed by the NCR.
“We will fund the majority of our investment through internal accruals, with a portion coming from bank financing,” stated Pyush Lohia, director of Lohia Developers.
When asked why the firm wants to enter the upper mid and premium segments, he said that it is not financially feasible to be present in the cheap category since land costs have climbed by around 40% in the previous three to four years.”
Lohia Global Will Launch 2 Residential Projects In The Year 2024
The firm already owns more than 100 acres of property in Moradabad, and over the next two to three years, it intends to begin construction on three or four of those properties. “In 2024, we will launch two projects and focus on mid and upper- mid residential segment,” stated Lohia.
With an initial investment of Rs 150 crore, the business plans to build around 175 villas on 10 acres of land in Moradabad. It anticipates receiving Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) permission shortly.
These villas would have average ticket sizes of about Rs 1 crore. “In tier-II cities, I believe there is a sufficient market for such houses. The demographics of buyers have changed in recent years, and more individuals have extra cash on hand.”
Lohia Global Will Launch Group Housing Projects In In Lucknow, And Delhi
The following two projects will be built on Moradabad land lots measuring 18 and 42 acres. In addition, the business intends to build group housing developments in Lucknow, Delhi, and Kirti Nagar.
The project, which is being discussed with corporations for a development management model, is situated on 2.5 acres of land in Delhi and has the capacity to construct one million square feet.
The corporation has a 12-acre plot of property in Lucknow. It is anticipated that both of these projects will begin by the following year.
The business also has land parcels in Jaipur and Bikaner, with plans to grow in the future to include Ayodhya and Bareilly. If the cost of land is high, a cooperative development approach is acceptable.
In FY23, Lohia Global recorded revenue of Rs 1,200 crore for each of its four business divisions. It projects that revenue will increase by 15% in FY24 and by about 30% annually by 2030, when it will have reached $1 billion.
