Diversified group Raymond Wednesday announced foray into the real estate sector and launched its first housing project in Mumbai with expected revenue of Rs 3,500 crore.
Raymond Realty, the new division of the group, will develop a 14-acre housing project at Thane in Mumbai. The company will construct 3,000 apartments in the first phase.
Several Indian big corporate houses including Tata, Godrej, Mahindra, Bombay Dyeing and Emami group have entered the real estate sector over the last decade.
Raymond group, the country's leading fashion and textile retailer, is foraying into the real estate development business, the company said in a statement.
"In our continued efforts to enhance value for stakeholders, Raymond has forayed into real estate development in order to monetise the land at Thane," Raymond Chairman and MD Gautam Hari Singhania said.
The land parcel is in the heart of Thane and offers a good potential for venturing into the real estate sector, he added.
Raymond group said this project is expected to be cash positive and would not require significant debt funding.
"The peak funding till 2019-20 is expected to be Rs 250 crore only and a major part of this has already been spent in the planning phase and obtaining statutory approvals," it added.
In phase 1, Raymond Realty expects to achieve a top line of over Rs 3,500 crore with a profit margin of over 25 per cent during the period of 5 years.
Raymond is a diversified group with majority business interests in textile and apparel sectors as well as presence across diverse segments such as FMCG, Engineering and Prophylactics in national and global markets.
Raymond has one of the largest exclusive retail networks in the country with over 1,000 stores across 400 towns. The leading brands within its portfolio are -- Raymond Ready to Wear, Park Avenue, Color Plus, Parx, Raymond Made to Measure, among others.