Hiranandani to invest Rs 3,000 cr in 2012 on realty projects

Last Updated: Tuesday, November 29, 2011 - 10:08

New Delhi: Mumbai-based developer Hiranandani Constructions will invest up to Rs 3,000 crore next year on various realty projects across the country.
The realty major may also hike prices of its housing units by 10-15 per cent to offset rising input costs.
"We have planned many new launches across various segments. There will be an investment of about Rs 2,000 crore to Rs 3,000 crore in 2012 from the group," Hiranandani Constructions Managing Director Niranjan Hiranandani told reporters on the sidelines of CREDAI summit here.
The company will primarily invest in housing and hospitality sector, he added.
"Our projects will come up in many locations such as Mumbai, Pune and Chennai... We do not have any plans to come to North India as of now," Hiranandani said.
Talking about the current market scenario, he said input costs are going up and it is putting pressure on the company's' margins.
"Input costs are going up due to various factors like high labour costs and different levels of taxation structures.

In affordable housing, 15-35 per cent of the cost is tax component," he said.
Asked if there will be any price hike to mitigate the impact, Hiranandani said it depends on the market and if demand is there, then prices may go up.
"In Maharashtra, the demand is strong and prices are likely to go up. I think, the prices will be raised by 10-15 per cent," he added.
When asked if the company will list itself on the bourses, Hiranandani replied in negative.


First Published: Tuesday, November 29, 2011 - 10:08

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