Puravankara’s construction arm Starworth eyes ₹2,000 cr turnover

Starworth Infrastructure and Construction Limited, a subsidiary of real estate player Puravankara Limited, targets a turnover of ₹2,000 crore by FY27 against a backdrop of diversification and expansion with an annual capex of ₹40–50 crore for FY24, the company’s managing director, K Satyanarayana, told businessline.

In FY23, the company recorded an annual turnover of ₹500 crore. About a year and a half ago, SICL was largely contributing to its parent company’s project in Bengaluru. To achieve the targeted growth, the company has been in expansion mode and ventured into multiple segments, he said.

“The strategy was to diversify into other segments of construction, apart from the existing segment of residential high-rise buildings. Currently, we are developing commercial projects such as hotels and malls. In the industrial space, we are developing steel, oil, and cement plants, as well as infrastructure projects such as metros and airports.”

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The company is also keen on developing data centres and warehouses. To date, it has developed more than 18 million sq ft of projects, he added. Its customers include ITC and Taj GVK. Currently operating in Odisha, Kolkata, and Chennai, it is eyeing a presence in the NCR zone.

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SICL also wants to increase the average job size, which is at present around 25 projects of ₹100 crore value each. “Going forward, we want to scale up to a per-project average size of Rs 250 crore to ₹500 crore.”

Capital investment

The company’s capex outlay for this year is ₹40–50 crore.

“The investment will go into setting up our new factory and buying a lot of scaffolding material, including aluminum, and tower cranes, to produce better results,” Satyanarayana said.

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Additionally, it is setting up a precast facility in Bengaluru at a cost of around ₹2.5 crore; it is expected to start commercial production by July and generate Rs 20 crore business year over year.

SICL also recently stepped into the B2C segment with Star Homes, to construct villas.

“We want to eliminate plot owners’ difficulties when it comes to constructing their dream homes by providing one-stop solutions to complete their dream homes in 119 days,” he said. The company will build these houses using precast technology and aims to develop 50 villas a year.

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