Pune: Bangalore based real estate player Sobha Limited is eying to double its size by adding new sales of 7 million sq feet. Also, with its unique backward integration model, Sobha is strengthening its position material suppliers market.
J C Sharma, vice chairman and managing director, Sobha said, "We have seen an improvement in the market sentiments post the formation of the new government. Despite this, the real estate sector is yet to be benefited by the positive change in the economic conditions. Given the current scenario, we are of the opinion that recovery is not far away for the real estate sector."
The company is currently developing 50 projects covering 24 million sq ft of saleable area. It has presence in 24 cities across 13 states.
He added, "We have a healthy pipeline of about 15 million square feet of new project launches planned in the next few quarters in our existing geographies. In addition to this, we have about 50 ongoing residential projects aggregating to 31.14 million square feet of developing area and 23.96 million square feet of sales area. On the contractual front, we have 31 ongoing projects covering 9.35 million square feet under various stages of construction. This is a mere indication of our delivery capabilities and we are hopeful that we will continue to cater to the emerging needs of the realty industry."
In Pune Sobha is expanding its footprints in Pune by developing new projects and tie ups with smaller developers here. The company has targeted to develop over one million square feet of area primarily in residential space.
Recently, it has announced a Rs 250 crore project in the city which will consist of three and four BHK apartments, duplex and a commercial lifestyle club.
Sobha Developers claims to be India's largest and the only real estate company to have a backward integration model which enables the company to manufacture all the key components used in construction in house; from concrete blocks to aluminum windows.
It includes an interiors division, a metal works and glazing factory, and a concrete products factory.
The companies include in backward integration processes are Sobha Glazing and Metal Works, Sobha Interiors, Sobha Restoplus (Spring Mattress) and Sobha Concrete Products.
It supplies the material to other real estate players as well.
The factories provide materials not just to meet the organisation's internal demands, but also to some of the real estate players, making them self-sufficient revenue generating entities for the company.
The company earns revenue of Rs 400 crore with these units.
Sobha Group has a presence in the UAE, Saudi Arabia and Oman.
Sobha Limited is Rs 2400 crore company with primary focus on residential and contractual projects.
Sobha is expected to grow to $1bn by 2020. Outside India, it is in excess of $1.5 of revenues.