Dear Shareholders,
As we stand at the threshold of a new phase in our journey, it is with
great pride and optimism that I address you. Emami Realty has always been driven by a
vision of excellence, innovation, and sustainable growth. Over the past year, despite
market challenges, we have remained committed to building enduring value for our
stakeholders. As we move forward, our focus remains on creating world-class spaces that
resonate with our legacy while adapting to the evolving needs of our customers and the
industry.
Robust demand
It is an exciting time for the real estate sector in India, as we
witness a boom across all dimensions – residential, commercial, and retail. The
growth is fueled by rapid urbanization, increasing disposable incomes, and the
government's unwavering focus on real estate development through initiatives like
Smart Cities, Housing for All, and the infrastructure push under the National
Infrastructure Pipeline. These measures are creating significant opportunities for the
real estate industry, and we at Emami Realty are strategically positioned to leverage
these trends, driving growth and value creation across our projects.
Expectation
To further enhance the sector's growth, we believe that the
Government should take additional steps to promote affordable housing. Offering incentives
to both developers and homebuyers can be a game-changer. It is also recommended that if
the developers focused on affordable projects receive tax breaks, the first-time buyers
could benefit from subsidies. Additionally, raising the home loan interest rebate under
Section 24 of the Income Tax Act from 2 lakh to a minimum of 5 lakh would make home
ownership more accessible. Added, the introduction of a single-window clearance system is
the need of the day which could streamline the project approvals and fast-tracking land
acquisition processes. It is also expected that if the definition of affordable can be
standardized across government schemes if would help the financial institutions to ensure
clarity and consistency in their regulatory framework.
De-risking
Most companies of our size within our sector generally select to
specialise in one format of the large real estate sector. Over the years at Emami Realty
Limited, we selected to broaden our presence from the residential to the commercial to the
retail and widen our presence from the premium to the affordable, making it possible to
virtually address every kind of customer within the locations of our presence.
Most companies of our aspirations would have considered it prudent to
deepen their focus within specific geographic areas. We chose to do the opposite.
Companies in the real estate sector that focus on expanding their footprint rather than
narrowing it stand to benefit from diversified market exposure, risk distribution, and
broader brand visibility. This explains why, even after more than one-and-half decades in
property development, we have decided to extend our reach beyond our traditional markets.
We believe that diversifying our operations across different locations has allowed us to
be recognized as adaptable players; the more we've expanded, the more deliberate and
measured our property marketing has become. Today, we have successfully executed and
completed projects of repute across Kolkata, Coimbatore, Jhansi, Chennai, Mumbai.
Most companies in real estate typically buy land first and then
gradually develop it to profit from the entire process, from land acquisition to selling
finished properties. At Emami Realty Limited, we view real estate development as two
distinct areas: one involves buying and holding land, which requires significant
investment and time for approvals, while the other focuses on converting that land into
developed properties efficiently. The first part, land acquisition, is costly and
time-consuming, while the second part, property development, can be done more quickly and
with less capital, especially when using modern technology. We chose to concentrate on
both the propositions and de-risk from various vicious cycles and generate newer streams
of revenue.
On the move
It is through our agility and strategic foresight that we have
demonstrated resilience, leveraging our momentum to position ourselves for a future of
even greater success. Here are some of the year's significant highlights: Both
"Emami Business Bay" in Sector V, Kolkata, and "Emami Aastha" in Joka,
Kolkata, continued to receive strong market responses. As of March 31, 2024, we achieved
bookings of 197 units (91%) in Emami Business Bay and 285 units (76%) in Emami Aastha.
Across all projects, a total of 269 units were booked, representing
4.4 lakh sq. ft. and generating a sale value of 185 crores.
Looking ahead, the company has 11 new projects in the pipeline,
covering a saleable area of approximately 22 million sq. ft., with a revenue potential of
15,000 crores. In the current year, we aim to launch several key projects: Emami Aamod, a
residential property on James Long Sarani in Kolkata, with a saleable area of 6.1 lakh sq.
ft. and a revenue potential of 850 crores; Emami Tejomaya II in Chennai, with a saleable
area of 14 lakh sq. ft.; and Emami Miraai in SIPCOT, Chennai, with a saleable area of 15
lakh sq. ft. These projects will further enhance our growth trajectory and solidify our
market presence.
At Emami Realty, we are harnessing the best talent and resources from
across India in finance, marketing, and technical fields, complemented by modern and
digital processes, all of which promise significant topline growth. By leveraging these
strengths, we are committed to initiating new projects and to capitalizing on our land
bank, driving future success for our stakeholders.
Sustainability agenda
Sustainability is at the heart of our business strategy. We are
dedicated to incorporating eco-friendly practices throughout our operations, from planning
and design to construction and management. Our focus includes energy efficiency, water
conservation, waste management, and the use of sustainable materials. By adhering to
global environmental standards and promoting green building practices, we aim to reduce
our carbon footprint and enhance community well-being, creating value for our stakeholders
and fostering a more sustainable future.
Closing Note
As we move forward, we remain steadfast in our commitment to delivering
exceptional value and creating spaces that not only meet market demands but also set new
benchmarks in the industry. I express my heartfelt gratitude to our shareholders,
partners, and customers for their unwavering support. Together, we will continue to build
a brighter future for Emami Realty.
| With warm regards |
| Dr. Nitesh Kumar |