Bengaluru's Shriram Properties has unveiled a bold strategy to increase its annual sales to ₹5,000 crore by FY27. The company revealed its strategy at a recent conference, highlighting its goal to expand its project inventory from the current 18 million square feet to over 35-36 million square feet within the next 18 to 24 months.
Shriram Properties aims to achieve cumulative sales exceeding 20 million square feet over the next three years, generating an estimated land value of ₹2,000 crore. The company will contribute ₹500 crore directly, with the remaining funds sourced through joint developments and development management, following an asset-light model.
Geographically, the expansion will see Bengaluru contributing 7-8 million square feet, Chennai 5-6 million square feet, and Kolkata 3-4 million square feet. Pune is expected to add around 2 million square feet during the same period.
In conjunction with these expansion plans, Shriram Properties has rebranded its logo to mark its 25th anniversary and launched the SPLNxT mission. This initiative is focused on accelerating growth, repositioning the brand, and renewing its focus on the mid-market and mid-premium segments in Bengaluru, Chennai, Kolkata, and Pune.
“We are embarking on a mission with a brand-new identity, aimed at creating our own identity and elevating the trusted Shriram brand among NextGen buyers. We will leverage technology to enhance customer experience and delight. We envision SPL as a dominant force, not only in South India but across all our key markets,” said Murali Malayappan, Chairman and Managing Director of Shriram Properties Limited.
Under the SPLNxT strategy, the company is targeting a doubling of sales, a tripling of revenue, and a fourfold increase in profits over the next three years. The company plans to leverage its proven operating platform for accelerated sales and expedited execution, with a particular focus on Bengaluru, Chennai, and Pune, while Kolkata remains a crucial contributor.
To support this growth, Shriram Properties is set to ramp up new project additions in its core markets, aiming to more than double its project inventory. Currently, the company has a pipeline of 42 projects with a total development potential of 42 million square feet.
“The residential sector outlook remains robust, driven by rising income levels, increasing home ownership aspirations, low interest rates, and demographic shifts such as the surge in millennial home buyers. Mid-market segments have shown resilience and growth in recent years, influenced by urbanization, changing preferences, work-from-home trends, and favorable interest rates,” said Gopalakrishnan, Executive Director and Group CEO of Shriram Properties.
Additionally, Shriram Properties aims to add more than 20,000 new customers over the next three years. The company currently has around 28,000 customers, including 11,000 associated with ongoing projects.
Since the implementation of the Real Estate (Regulation and Development) Act (RERA) seven years ago, Shriram Properties has seen significant expansion, with its sales volume nearly tripling to 4.6 million square feet, sales value increasing fivefold to ₹2,362 crore, and annual handovers quadrupling to over 3,000 units in FY24.
© 2023 Rera News. All rights reserved.