GODREJ TO FREE PRIME LAND FOR REALTY VENTURE

To Develop 10 lakh sqft In Delhi, Bangalore, Mumbai & Mohali
The $2.5-billion Godrej Group has embarked on a strategy aimed at leveraging its strength in three verticals — consumer products, property development and foods. Its property division, which is poised for an IPO by year-end, is trying to cash in on the affordable housing segment.
By moving its manufacturing facilities from prime business locations to Himachal Pradesh and the North East, the group is gearing up to use the now available land banks for property development, its chairman Adi Godrej told reporters here on Friday.
The vacated space would be used to develop both residential and commercial properties. It is developing around 10 lakh sqft in these two segments which are coming up in places like Delhi, Bangalore, Mumbai and Mohali. Mr Godrej said Chennai too was on its radar, where the group is seriously evaluating the joint development route.
Anticipating a 20 to 25% growth year on year for his company, Mr Godrej said the group is confident of doubling its turnover every three to four years.
During the last two years, the group has already started re-organizing its business by consolidating some of its businesses and acquisitions. He also sounded upbeat about the economy showing rapid recovery signs.
The Godrej group is also looking at making deeper inroads into the rural market by using technology and introduction of new products in the consumer durable space. It is test-marketing a Rs 3,500 refrigerator (45 l) which would operate on pettier technology compared to the regular compressor. This fridge is capable of keeping products cool though it cannot make ice cubes. The initiative is the second test marketing venture for the product, Mr Godrej said.
Courtesy:- ET dt:- 19-09-2009