The Hindu Business Line : Strategic win for Puravankara

Puravankara Projects may well be on its way to greater geographical and business diversification after winning the bid to develop land near the Hi-tech city in Hyderabad. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has awarded the project to the company after considering bids from three players including DLF.

Strong footing

The land, which cost Puravankara Rs 630 crore, would entail investment of Rs 3,500 crore. The project would involve development of an estimated 6.5 million sq ft of land, with a mixed-use model of retail, commercial, residential and hospitality space.

Puravankara has, so far, focused on cities such as Bangalore, Chennai and Kochi and has been largely perceived as a player with market concentration in a few cities. With this project, it is likely to establish a strong footing in the Hyderabad market. Further, the strategic location of the land near Hi-tech city, an area considered to be the new IT destination would also provide the advantage of entering a potential high-growth location.

The company’s primary business has also so far been in the residential segment. This mixed model project, if completed successfully, would qualify the company as an all-round player.

The size of the project is also likely to be significant as against its current area under development of 15 million sq ft. The 30-acre land parcel lies on a high-rise zone. This implies that the developable area would be relatively high as Hyderabad allows unlimited Floor Space Index for such zones.

The fact that Puravankara has managed to compete with bigger players as DLF reflects the company’s ability to bid aggressively.

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