MSN Group forays into real estate sector, plans to develop 20 million sq ft in five years, ET RealEstate
NEW DELHI: Pharmaceutical company MSN Group is foraying into the real estate sector through MSN Realty. The company plans to develop 20 million sq ft of residential and commercial space in and around Hyderabad, over next five years.
In an exclusive conversation with ETRealty, MSN Reddy, founder and chairman, MSN Group talked about why he has forayed in the real estate sector and what is his future plans. Edited excerpts:
Why have you forayed in the real estate industry now?
We launched the product seven-eight months back. We develop and supply generic drugs to the industry. We want to support people with low cost products and hence we want to venture into other areas like housing.
Many real estate projects have delayed over the years. How are you going to make sure you deliver projects on time?
We have been in the pharmaceutical industry for 30-35 years. We understand that we have to fulfill the commitment of the needy. We are managing the company professionally and whatever commitment we are giving, we will deliver on time with the quality product.
Will this be a separate entity?
Yes, this will be a separate entity and will be managed by separate team. We have hired professionals with 15-20 years experience to manage day-to-day business.
What is your future plan?
We want to be present in residential and commercial real estate business. We have launched one residential project. In the next 1-2 years we want to launch three to four projects. In the next five years, we want to develop 20 million sq ft (residential and commercial).
To develop 20 million sq ft, are you looking at joint ventures?
As of now, we have no plans to be in joint ventures. We have sufficient land bank to develop 20 million sq ft of projects.
How much land bank do you have as of now?
We have about 100-150 acres land in and around Hyderabad which we have kept separately for real estate entity
Can you give details of the residential project that you have launched?
We have launched ‘One by MSN’ project in Neopolis, Kokapet, Hyderabad. Spread across 7.7 acres, the project will feature five towers rising up to 55 floors, offering 655 residences ranging from 5,250 sq ft to 7,460 sq ft.
We plan to invest ₹2,750 crore in the project and it has a revenue potential of ₹5,000-6,000 crore.
How are you going to fund this investment?
This will partly be funded through internal accruals and rest will be funded through banks.
Which segments do you want to be present in?
We are starting with luxury segment but eventually we want to be present in mid and affordable segments as well.
