Raymond’s Real Estate Reinvented: Subsidiary Powers Ahead with Redevelopment Model

Image Source: Realty Plus Magazine

Raymond Realty Ltd, now a wholly owned subsidiary of Raymond Ltd, will drive its real estate business forward using a redevelopment model. Backed by a vast land bank and strong financials, it aims to expand through asset-light joint development projects, targeting substantial revenue growth and independent stock exchange listing.

Raymond Realty Limited, the real estate arm of Raymond Ltd, is set for significant momentum as it transitions to operate as a wholly owned subsidiary focused on real estate business under a redevelopment model. This strategic shift aligns with Raymond’s broader vision of simplifying its corporate structure and unlocking shareholder value through specialized, independent management in the real estate sector.

Key Highlights:

Raymond Realty will undertake real estate development primarily through the redevelopment model, targeting key urban areas with growth potential.
The subsidiary incorporation formalizes the real estate vertical's separation from Raymond Ltd, allowing Raymond Realty to emerge as a focused pure-play real estate entity.
This move follows strong financial performance in FY24, with the real estate business reporting revenue of ₹1,593 crore, marking a 43% year-on-year increase, supported by an EBITDA of ₹370 crore.
Raymond Realty holds an extensive land bank of approximately 100 acres in Thane, with 11.4 million square feet of RERA-approved carpet area. About 40 acres is actively under development, contributing potential revenue of ₹25,000 crore.
The company has embraced an asset-light model, leveraging joint development agreements (JDAs) across Mumbai’s prime locations such as Bandra, Mahim, and Sion, enhancing project launch capabilities without heavy capital deployment.
The redevelopment projects under JDAs hold a potential gross development value of over ₹7,000 crore, adding to the substantial revenue prospects from the Thane land bank.
Upon completion of the demerger process, Raymond Realty will seek listing on stock exchanges, with shareholders receiving shares in the new entity on a one-to-one basis.

This structural realignment empowers Raymond Realty to sharpen its focus on real estate, pursue growth aggressively, and capitalize on redevelopment opportunities amid rising demand for housing and commercial spaces in Maharashtra's metropolitan regions. Industry experts highlight this move as a positive step to streamline operations and boost profitability by dedicating management expertise specifically to real estate ventures.

With a robust pipeline of projects valued at tens of thousands of crores and an asset-light operational approach, Raymond Realty is positioned for sustainable growth and enhanced shareholder returns in the dynamic Indian real estate market.

Sources: The Economic Times, Business Line, NDTV Profit, Free Press Journal, Fortune India, Raymond Ltd official disclosures.

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