Photo by AdalbertopOne of the leading apparels brand in India Provogue India announced to enter Real Estate on Friday. Provogue India with it’s joint venture Prozone enterprises has planned to build 300,000 sq. feet of Real estate property in Aurangabad. The project is stated to go on floor in October 2010.
The Managing Director Mr. Nikhil Chaturvedi said that the mega project will be a mix of residential projects and malls.
Also they are planning to launch three residential projects in Coimbatore, Nagpur and Indore by the end of this year.
Provogue also plans to construct 75 stores across the country in financial year 2011 with an investment of 35 cr.
Similarily Century textiles, Alok Industries and Bombay Dying are some other firms planning to develop or sell Real Estate as land rates rise in the buoyant economy.
Since the land rate are rising and realty seems to be the most profitable market, many of the top textile firms are also attracted to this business and are thus generating additional revenue streams by developing or selling precious real estate.
Some of such firms are Provogue India, Century Textiles & Industries, Bombay Dyeing & Manufacturing and Alok Industries. These all aim at boosting the cash flow and reducing debts.
In the last year, the cities like Mumbai and Delhi have gone through a big hike in property prices. Across the whole world, Mumbai is rated as the most expensive office location.
The chairman of brokerage CNI Research, Kishor P Ostwal said that a lot of companies own huge land banks but the valuations in the market are given only to those who aim to develop these land banks and not just own them.
Thus, Century and Bombay Dyeing are both rated as a ‘buy’ by Ostwal since they have premium large tracts in central Mumbai.