The Hindu Business Line : Prajay Engg eyes Rs 1,000-cr topline by 2008-09

Expansion drive
The company plans to construct industrial, IT parks.
To foray into tier-II cities of AP; expand presence in Karnataka, Maharashtra and Goa.
The hospitality division taking up expansion, new projects to take total capacity to 1,000 rooms.

Hyderabad , May 15

Riding high on the real estate and infrastructure boom, Prajay Engineers Syndicate Ltd (PESL) has set a target of reaching Rs 1,000-crore turnover by 2008-09.

Towards this, the company has embarked upon several major property development projects involving an investment of over Rs 800 crore spread over the next two years.

The infrastructure development company is currently sitting on a land bank with a current market value of close to Rs 950 crore in the city and outskirts.

Industrial, IT parks

"We are entering into the construction of industrial and information technology parks. Apart from aggressively foraying into tier-II cities of Andhra Pradesh, we are expanding our presence in Karnataka, Maharashtra and Goa," the PESL Director, Mr N. Ravinder Reddy, told Business Line. While the Construction Division of Prajay is into developing farmhouses, townships, housing, office spaces, IT parks and malls; the Hospitality Division is focussing on developing clubs, hotels and resorts.

According to Mr Reddy, the company is currently working on over 35 projects involving construction on more than one-crore square feet.

New projects

Having around 100 rooms capacity in its hospitality division now, the company is taking up several expansion and new projects aimed at taking the total capacity to around 1,000 rooms in the next three years.

"We are currently negotiating with few global hospitality majors for management tie-ups. These majors include Carlson group, which owns brands such as Radisson, Park Inn, Regent and Country Inn, Leela Group and Hyatt Group," Mr Reddy said.

Apart from adding 85 rooms to the city hotel at around Rs 25 crore, the company is adding 144 rooms to its resort hotel at Shamirpet at an investment of Rs 19 crore. It is also developing a 210-acre golf course at a cost of Rs 60 crore in the city outskirts. A five-star hotel with a 300-room capacity is coming up over 80 acres in the city outskirts. This hotel, targeted as the destination hotel and golf tourism with huge convention centre, is estimated to cost around Rs 200 crore.

In the city centre at Abids, the company has bought the land of Surya theatre for construction of a major shopping mall of 45,000 sq ft, two multiplex screens and eight-floor tower comprising 145-room business class hotel at an investment of around Rs 60 crore. Having acquired 7,600 square yards of prime property near Ranga Reddy Courts at Saroornagar, the company has embarked upon Rs 145 crore project. The 4.5-lakh square feet complex would have 2-lakh-sq. ft. retail shopping space, 1 lakh sq. ft of food courts and six multiplex screens and 1.5 lakh sq. ft of three-star hotel with around 200 rooms, Mr Reddy said.

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