25-06-07
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Emaar eyes 25 pc revenue from India
Source: The Hindu
Dated: 24 June 2007
Quote:
Real estate firm Emaar Properties aims to generate about 25 per cent of its total revenue from India by 2010 and is planning to invest over 38 billion dollars globally by that time.
"We are aiming to generate over 60-70 per cent of our revenues from international market exposures by 2010, out of which about 25 per cent is expected to be mobilised from India mainly through real estate developments," Emaar Properties Chief Financial Officer Amit Jain said here.
Emaar is operating in the Indian property market through a joint venture with Delhi-based MGF Development. It has already pumped in one billion dollars in the JV firm - Emaar MGF Land Ltd.
Emaar Properties, which posted a net profit of 1.74 billion dollar and a revenue of 3.8 billion dollars in 2006, is present in 16 countries including UAE, Saudi Arabia, Egypt, India, Pakistan, Indonesia, Singapore, US, Canada and UK.
Elaborating on its growth drivers in foreign markets, Jain told reporters: "We have moved into developing markets which have extremely high growth rates and are experiencing changes in the lifestyles."
Presently, Emaar Properties generates 79 per cent of its revenues from Dubai. It is listed on Dubai Financial Market and has a market capitalisation of around 18.5 billion dollar.
Over 95 per cent of the revenues Emaar is targeting to generate from its investment in India would be through real estate developments, Jain said.
Emaar MGF Land, which has a land bank of about 10,000 acre at par with major realty players DLF and Unitech, plans to invest a massive 12 billion dollars over the next 4-5 years to develop residential, commercial, retail, hospitality, IT parks and SEZ projects in the country.
The Indian JV also plans to foray into education and healthcare sectors and part of the investment would go into these ventures as well.
"Out of the 12 billion dollars, about 5 billion dollar would be invested in residential development while the rest of the amount would be equally invested among the other verticals that the company operates in the country," Emaar MGF Executive vice-chairman and managing director Shravan Gupta said.
On Emaar MGF's plan to list in Indian stock exchanges, Gupta said the Initial Public offer of the company was expected in the next 12 months.
"The need of capital is constant for a real estate player as new bids keep on coming and the company needs to fund its ambitious growth plans through the proceeds," he said.
Recently, Emaar MGF entered into a 50:50 partnership with UK's Premier Travel Inn to develop 80 budget hotels across the country with an investment of 600 million dollars over the next 10 years. The company already has a tie up with Accor for 100 budget hotels.
Emaar has prepared a roadmap for 2010, through which it expects to replicate its business model across its various international markets.
The company is constructing 20-billion-dollar Downtown Burj Dubai development, comprising of Burj Dubai - stated to be the world's tallest tower when completed in 2008 and The Dubai Mall - world's largest entertainment and shopping mall. It wants to replicate these projects in India.
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