EFC, the wholly-owned subsidiary of EFC (I), has made a strategic investment by acquiring 49,556 square feet of office space in Pune for Rs 80 crore. This acquisition not only enhances the company’s real estate portfolio but also reflects its aggressive expansion strategy. The newly acquired centre boasts a seating capacity for over 1,500 people, underscoring EFC’s commitment to scaling its operations in key urban centres.
Nikhil Bhuta, whole-time director of EFC (I), detailed during the company’s earnings call that this acquisition is part of a broader property purchase totaling approximately 80,000 sq ft in Pune. The property, which EFC now owns freehold, is set to be developed and leased under the company’s managed office business model. This move is anticipated to generate an annual revenue of around Rs 14.40 crore, marking a significant addition to EFC’s revenue stream.
In addition to the Pune acquisition, EFC has recently bolstered its portfolio by acquiring a 51% stake in Bigbox Venture, which manages a substantial portfolio of over 3,000 seats in Pune. Umesh Sahay, founder and managing director of EFC, highlighted that Bigbox’s monthly revenue was approximately Rs 2 crore before the acquisition, with the company adding around 2,000 new seats since the acquisition.
EFC (I) has also secured a design and build contract with Tata Consultancy Services (TCS), with a contract value exceeding Rs 75 crore in Q1 FY25. The company is negotiating further contracts valued at over Rs 100 crore, showcasing its growing influence in the design and build sector.
Additionally, EFC has initiated the establishment of a real estate investment trust (REIT) with a substantial corpus of Rs 499 crore. The REIT application is under review by SEBI, with approval anticipated by early September. The company manages around 2.25 million sq ft of assets, encompassing 57 sites across seven cities, and has increased its leasehold area by 300,000 sq ft, adding over 7,000 seats across various centres.
Under its Ek Design Industries arm, EFC is progressing with a manufacturing facility in Phursungi, Pune, with production trials set for August 2024 and commercial operations commencing by September. The company projects a topline of Rs 50-70 crore for FY25 from this venture. Looking ahead, EFC aims to add 30,000 to 40,000 seats annually and expects its furniture manufacturing business to achieve a topline of Rs 250-300 crore by the end of FY26.
