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Flooring and interior solution provider, Nitco Tiles, has drawn up a Rs 1,000-crore plan to enter Mumbai's residential real estate development business.
Mr Vivek Talwar, Managing Director, said the initiative will create another business vertical to synergise with its focus as a tile-maker. The core tile business is doing well, and the company hopes to close with revenues of over Rs 650 crore.
Land bank
The company has a land bank of over 120 acres, of which, 10 lakh sq.ft. in suburban Kanjumarg will be the first in the residential space. This will be followed by villas in Alibaug, where it has over 100 acres. Nitco also has 80,000 sq.ft. at Worli, which has also been scheduled for development.
Around Rs 750 crore has been earmarked for these three projects, that will depend on clearances under the development rules consequent to the revised Coastal Regulation Zone (CRZ) norms in Maharashtra.
Nitco has just completed its first two lakh sq.ft. office space project in Thane, at a cost of Rs 120 crore. About 50,000 sq ft has been leased out to three multi-national companies at Rs 55 a sq.ft.
The company is also offering space on outright sale at Rs 6,000 a sq.ft. Another Rs 120 crore will be spent to develop two lakh sq.ft. of residential apartments on the premises.
Mr Talwar said it was important for Nitco to ensure that the Thane project met the highest standards in terms of certification, energy and water conservation as it would serve as a benchmark for the future.
Mr Talwar said the residential space would generate money right from the launch to subsequent phases. Funding here needs to be done only in stages. The commercial project alone had warranted funding, which was provided from Nitco's internal accruals. The company is bound to benefit from the Environment Ministry's CRZ notification, as the Kanjumarg land comes under this ambit.
“We are awaiting approvals to begin the project,” he said, adding that the company's marble warehouse there will be shifted to Silvassa shortly.
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