Published by : Economictimes
Venturing into real estate business is part of our diversification strategy that will also enable us to monetize our existing land bank built at historical prices,” Khaitan told ET.
Jindal Aluminium, one of India’s largest manufacturers of aluminium extrusions, plans to venture into real estate business to monetise its 360-acre land parcels spread on the outskirts of Bengaluru, Delhi and Mumbai. The company is also scouting for more land to make a success of this strategic initiative, which is being led by its recently-elevated Managing Director Pragun Jindal Khaitan.
In the first phase, Jindal Aluminium is looking to form joint ventures with real estate firms to develop residential projects on its land parcels. It is likely to enter the commercial real estate segment later. “Venturing into real estate business is part of our diversification strategy that will also enable us to monetize our existing land bank built at historical prices,” Khaitan told ET.
“We are looking at developing these land parcels in phases. Over the next 8-10 years, along with these planned developments, we will also be looking to build capability and skill set to take this new vertical further.” Khaitan, who has majored in finance and strategic management from the Wharton School of the University of Pennsylvania, will also be focusing on organically growing each of the company’s business verticals, including aluminium extrusions, aluminium rolling, renewable energy and health care.
“To gain an entry into real estate sector, we are looking at forming alliances to understand the business and observe it closely. We may also consider going solo later on,” Khaitan said. Jindal Aluminium has around 300 acre of land on the outskirts of Bengaluru and some small land parcels on the outskirts of Delhi and Mumbai. Of these, the company plans to immediately develop 200 acre of land outside Bengaluru. Khaitan said the company is also looking at acquiring new land parcels.