MUMBAI: Betting big on the increasing demand for affordable housing, realty firm Poddar Developers expects to double its revenues to Rs 500 crore over the next three years, a top company official has said.
"Whatever the definition of affordable housing, there is a huge shortage of such housing stock. Our business is focused on catering to this unmet demand and we expect our revenue to touch nearly Rs 500 crore by FY17," company's Managing Director Rohit Poddar told PTI.
The publicly traded Poddar DevelopersBSE 4.20 % had posted a turnover of Rs 270 crore in 2012-13, up 64 per cent from Rs 164 crore in 2011-12.
The company, which is focused on providing affordable housing with apartments in the Rs 7.5-15 lakh range, currently has projects on the outskirts of Mumbai like Karjat, Badlapur, Shahapur, Kalyan, Palghar, Vasai and Panvel.
"While our projects in Karjat, Badlapur and Shahapur are completed, the other projects are under execution and are expected to be completed this fiscal," Poddar said, adding that the company will continue to expand its presence in these regions.
"We will continue to buy land in these and adjoining areas, as the demand for affordable housing is growing in these regions," he said.
He also said the company has some land parcels in Goregaon and Vidyavihar in Mumbai, and plans to launch projects in the coming years.
"But we are not much keen on Mumbai. Our focus will be the outskirts of the metropolis," he added.
Apart from Maharashtra, the company also plans to expand its presence in Gujarat and Bangalore where it has land parcels, he said.
"We have bought land in Gujarat and Bangalore, where we plan to launch pilot projects for the economically-weaker sections. We may do this some time next year," Poddar said.
When asked about the company's investment plans for achieving its target, he said, "We have tie-ups with leading banks and housing finance companies. Besides, we will fund the expansion through internal accruals. We are not keen on raising funds through debt or equity, mainly because of high interest rate and higher cost of valuation."
"With these plans in place, we are confident of achieving our target of Rs 500 crore revenue," Poddar added.