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Real estate company Aparna Group is all set to commission a major backward integration project, a Rs 320-crore tile manufacturing unit at Peddapuram in East Godavari district of Andhra Pradesh.
The two-decade-old Hyderabad-based real estate company has taken up a number of backward integration projects, including manufacture of uPVC windows, sanitaryware, 12 ready mix concrete units, brick-making, doors and windows. It has diversified into tiles with a greenfield manufacturing unit.
The company is considering a buyout or a strategic stake buy of a tile unit in Gujarat to expand its product portfolio.
S.S. Reddy, Chairman and Managing Director of Aparna Group, said, “The company is gearing up for the next phase of growth, focussing on construction on one side and backward integration projects.”
While the real estate-cum-construction company closed the last financial year with a turnover of Rs 800 crore, the enterprises business, which covers several backward integration projects, closed with revenues of Rs 500 crore.
In phase one of the tile unit, now ready, Rs 200 crore has been invested with a capacity to produce 1.75 lakh sq.ft of tiles per day. This will be doubled with the completion of the project by next year and contribute to about Rs 600 crore revenue, Reddy said.
Referring to the real estate business, the CMD said thus far the company, which has a land bank of over 800 acres, has completed over 18 million sq.ft of residential space and has a strong pipeline of about 10 million sq.ft. “We are also seeking to enter the retail, entertainment and commercial space.”
“The new projects include a luxury apartment venture, Aparna Sarovar Zenith, and our first affordable housing venture close to the IT hub of Hyderabad,” he said.
While the Aparna Sarovar Zenith project will be taken up on a 24.5-acre site where 5 million sq.ft would be developed across 2,475 units, the affordable housing project will have apartments in the 800 to 1,500 sq.ft range and will be priced at Rs 20 lakh to Rs 45 lakh.
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