Century Textiles & Industries Ltd. has announced ambitious plans to venture into the real estate sector, targeting residential projects worth INR 12,000 crore for the fiscal year 2024-25.
This strategic shift was underscored during an investor call following the company’s April-June financial results, where Century Textiles outlined its intention to expand its footprint in key markets such as Mumbai metropolitan region, Bengaluru, National Capital Region (NCR), and Pune. The company currently boasts a substantial pipeline of residential projects across these four markets, collectively valued at approximately INR 54,000 crore. Century Textiles intends to enhance its revenue streams by demolishing and redeveloping its prime Worli headquarters in Mumbai, a move anticipated to generate an additional INR 2,000 crore in revenue.
Birla Estates, the wholly-owned subsidiary managing Century Textiles’ real estate ventures, clarified that funding for these projects will primarily be sourced from private equity and other investment channels on a project-specific basis. The decision marks a pivotal strategic pivot for Century Textiles, transitioning from its traditional industrial focus to a prominent player in India’s burgeoning real estate landscape. By capitalizing on its established market presence and leveraging prime urban locations, the company aims to capitalize on the robust demand for residential properties in key metropolitan hubs.
The company’s strategic emphasis on residential developments aligns with evolving consumer preferences and market dynamics, particularly in cities witnessing rapid urbanization and demographic shifts. This approach not only positions Century Textiles as a formidable entrant in the real estate sector but also underscores its commitment to diversifying revenue streams and maximizing shareholder value. The ability to navigate regulatory landscapes, manage project timelines, and deliver high-quality developments will be crucial in achieving sustained growth and profitability in the competitive real estate market.
