Friday, October 22, 2010

Vijay Shanthi plans Rs 1,000 cr residential project

Chennai-based Vijay Shanthi Builders plans to invest around Rs 1,000 crore over the next two years in various residential projects. These include Chennai's costliest premium apartments, where each flat would cost around Rs 8 crore.

Speaking to Business Standard, Suresh Jain, managing director, Vijay Shanthi Builders, said that the company had closed the fiscal ended March 31, 2010 with a profit of Rs 70 crore and set a target of Rs 150 crore for the current fiscal and Rs 500 crore over the next two years.

To support these plans, it has lined up projects worth Rs 900-1,000 crore. “We will take up projects across all categories and the price range would be Rs 9 lakh to Rs 8 crore,” he said.

The company has acquired 21 grounds at Kothari Road in Chennai to set up a premium apartments project. Each flat, with four bedrooms, would spread in 5300 sft and would cost around Rs 8 crore and total number of units will be 21. He said the costliest flat so far in Chennai was Rs 7.7 crore, bought by Pepsi's chairman and CEO Indra Nooyi.

“The premium project named Art will feature 21 luxury flats and will be based on Picasso’s cubist style,” said Kumar. The total cost of the project is around Rs 170 crore.

The company has signed a memorandum of understanding for a Rs 70-crore project at Kilpauk. “This will be for upper segment and price range would be around Rs 4-6 crore,” he said.

It has acquired two acres in Tambaram, 7.5 acres in Ambattur and 6.5 grounds in Pursavakkam for residential projects.

All the investments would be funded through debt and internal accruals, said Jain. “We will think about the IPO after reaching Rs 500 crore turnover, we are also open to private equity funding”.

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