Ashwin Sheth eyes over 10 housing projects, sales to approach Rs 30,000 cr by 2025

Real estate developer Ashwin Sheth Group is gearing up to launch over 10 housing projects in Bengaluru by 2025, as it aims to tap the public market to fund its expansion plans.

The Mumbai-headquartered group’s share of the total development value of the project, including joint ventures, is estimated to be up to $300 billion rupees. Ashwin Sheth Group chief sales and marketing officer Bhavik Bhandari said that while most of these projects will be launched in Mumbai, the company is entering the fast-growing Bengaluru market for the first time with two projects. Mint.

To fund these developments, the group plans to launch an initial public offering (IPO) within the next 12 to 18 months.

“We aim to expand our footprint across cities and capture a leadership position in the high-end luxury real estate market across India,” said Ashwin N. Sheth, Chairman and Managing Director, Ashwin Sheth Group. “We will do this by leveraging strategic partnerships and aggressive growth from the upcoming IPO to fund our expansion plans and clear any small debt that may have been outstanding at the time of the IPO over the next 12 to 18 months.”

The group’s upcoming projects include a 1 million sq ft residential project in Kandivali East with an income potential of $Rs 1,400-1,600 crore, 1 million sq ft project in Borivali West $Goregaon development worth Rs 3,000 crore and 1.1 million sq. ft. $This includes Rs 3,400 crore.

In Sewree, it will launch a mega project spread over 3 million sq ft, with the group’s potential revenue share estimated at $12,000 – $140 billion rupees. They also have projects lined up at Nepean Sea Road and Malabar Hill.

In Bengaluru, a 500,000 sq ft project is expected to generate $600– $800 crore revenue while another farmhouse project in the city will have revenue potential of Rs 800 crore $800- $10 billion rupees.

Currently, the group has five ongoing projects in central Mumbai, including two in the west of the city and one in Marine Drive in south Mumbai. Three of the projects are likely to be completed this financial year.

The 4-year-old company, formerly known as Sheth Group, recently launched a new logo and vision in a rebranding exercise in July 2024.

“We’ve made progress in every aspect of how we do business, whether it’s the organizational structure, the scale of growth we’re looking for, entering new segments, entering new cities or looking to go public,” Bhandari said. “As we speak, the review is ongoing so that we can be ready for a listing within the next 12 to 18 months.”

The company currently aims to have a pan-India presence and hopes to become one of the top 10 real estate companies in India within the next five years.

With an ambitious upcoming product portfolio, the company is eyeing $10,000 crore revenue in five years. In fiscal 2024, the company’s revenue was $1,486 Crores.

“In the next three years, turnover will be approx. $6,000 to $7,000 crore and around 12-14 ongoing projects,” Bhandari said.

Group development strategy

Most of the group’s upcoming projects will be in the high-end to luxury segment. “Going forward, in the next 3-4 years, we don’t see ourselves entering the affordable segment,” Bhandari said. “We see ourselves as doing high-end, luxury and ultra-luxury projects.”

He said the company’s portfolio will consist of 90-95% residential projects and the remainder will be a mix of boutique plus commercial products. While the company is ready to test the waters in Bengaluru, it has also set its sights on Chennai, Pune and Delhi.

This time the plan is asset light.

“We want to ensure that the debt is almost negligible,” Bhandari said. “We do a lot of joint ventures, social redevelopment, slum rehabilitation projects, MHADA developments etc. We are not investing much in land acquisition but more in construction and having multiple projects at the same time”.

The company’s current net debt is $4 billion rupees.

Bhandari said the focus is on entering areas that are already developed, i.e. prime locations. They will not enter untapped markets such as urban suburbs.

Developers across India are rushing into Mumbai to redevelop dilapidated housing communities and slums in the wake of the coronavirus pandemic to expand their footprint in the country’s land-starved financial capital.