Priya

Vipul Infrastructure Developers Limited, the eighth largest builder in India by market capitalization, is planning to expand its operation in tier-II and tier-III cities with an investment of a whopping Rs 2,000 crore.

The company will initially step into the cities including Chandigarh, Ludhiana, Mohali, Bhubaneswar, and Nagpur. At present, Vipul Ltd. is working on residential and commercial projects in Gurgaon.

The company’s residential projects account for 70% of its revenue. Since the prices of land in tier-I cities are going through the roof, the company took a turn to smaller cities, says Punit Beriwala, Managing director, Vipul Ltd.

A large number of corporates are fast moving to tier-II cities like Nagpur and Pune. This has given a push to the commercial and residential properties in these cities, adds Beriwala.

The company will garner the funds for expansion through a mix of debt and equity. It also plans to form partnerships with private equity firms to raise money and may choose to grow inorganically.

Vipul Ltd says to have received several offers from small developers. The company will look at acquiring them if they have a good location.