Leading diamond jewellery manufacturer and retailer Gitanjali Gems Ltd is entering into real estate business through its maiden residential project at Borivli, in Mumbai's western suburb.
Spread over 400,000 sq feet, the project comprises two podiums and two identical wings of 28-storied residential towers with ultra modern amenities, overlooking the Sanjay Gandhi National Park. The project is being developed by Gitanjali Infratech Ltd, a 100 per cent subsidiary of the Gitanjali Group.
The existing Borivli rate, will fetch the company an estimated Rs 400 crore (Rs 4 billion) in revenues. The bookings are scheduled to start from September, while possession is expected to be given by June 2013.
"The real purpose of our entry into the real estate business is to unlock the value of the land. We have established the name of our company in lifestyle business which we will realise in real estate also," said Mehul Choksi, chairman and managing director of Gitanjali Group.
The land bank of about 400,000 sq feet at Borivli was vacant a year since the company's jewellery processing factory was shifted to Dahisar and MIDC in Andheri. Now, the company plans to build a residential complex on the land at an estimated cost of Rs 100 crore (Rs 1 billion) which will be borne by the parent company i.e. Gitanjali Gems and its real estate arm Gitanjali Infratech Ltd.
"Our focus on infrastructure is just opportunistic and we are not deviating from our core business of diamond processing and retailing," said Choksi.
Besides, Gitanjali Infratech has two other projects in the pipeline with significant potential to unlock values.
