The Rustomjee Group, also known as Keystone Realtors Ltd. (KRL), is in negotiations with landowners for joint ventures and joint development initiatives for projects near the Mumbai-Ahmedabad Bullet Train Project. Boman Irani, the Chairman and Managing Director of KRL, shared this strategy during the Q2FY24 earnings conference call. The company is also eyeing opportunities around the Mumbai Trans Harbour Link (MTHL). With an anticipated completion date of 2027 for the bullet train project, KRL is positioning itself for future cash flow in areas adjacent to major infrastructure projects. The company aims to launch projects with a revenue potential of Rs 4,000 crore in the current fiscal year, focusing on redevelopment and projects in the Mumbai Metropolitan Region.
The esteemed Rustomjee Group, a listed real estate developer recognized as Keystone Realtors Ltd., is presently engaged in negotiations with landowners to forge JVs and embark on JD initiatives for upcoming projects situated in locales earmarked for the Mumbai-Ahmedabad Bullet Train Project. Boman Irani, the erudite Chairman and Managing Director of KRL, shared these strategic insights during the Q2FY24 earnings conference call earlier this month. Additionally, the company is strategically eyeing the MTHL, a pivotal infrastructure development connecting Mumbai and Navi Mumbai. The anticipated completion date for the bullet train project is slated for 2027, while the MTHL is poised to open its doors to the general public on December 25, 2023. In a sagacious move, KRL surmises that locales adjacent to substantial infrastructure projects will inevitably become fertile grounds for robust future cash flow. The company, therefore, is gearing up for a strategic launch of projects with a revenue potential of Rs 4,000 crore in the current fiscal year. During the conference call, Irani asserted the company's proactive stance, affirming that Rustomjee will perpetually maintain a keen eye on developmental opportunities in areas where significant infrastructure undertakings, such as the bullet train expansion, the Bombay Baroda (Mumbai-Vadodara) highway extension, or the MTHL, are in progress. Irani expounded, emphasizing the belief that these areas hold the promise of substantial future cash flow. The company is strategically positioning itself to enjoy the first-mover advantage in these locales as a distinguished developer. With a gross development value (GDV) amounting to Rs 38,000 crore, a substantial portion of which, approximately Rs 14,000–15,000 crore, stems from non-township projects and the remainder from townships, KRL showcases a robust financial standing. The visionary Irani also highlighted the company's steadfast commitment to its trajectory of launching projects worth Rs 4,000 crore in the ongoing financial year. As envisaged at the beginning of the year, KRL successfully launched two projects in Thane during this quarter, boasting a GDV of approximately Rs 1,348 crore. Irani affirms that the company will maintain its alignment with the commitment of launching at least one or two projects every quarter throughout the fiscal year. In the realm of focus, KRL remains unwavering in its dedication to the redevelopment of antiquated and dilapidated structures, asserting that this niche will continue to be their forte. The company is steadfast in its commitment to unveiling projects in the Mumbai Metropolitan Region for the foreseeable future before venturing into uncharted territories. Irani, in a retrospective nod to the company's IPO in November 2022, underscored the strategic positioning of 70 percent of the company's forthcoming supply in the residential real estate sector within the Rs 1–7 crore segment. This discerning approach is integral to KRL's deliberate growth in Thane and strategic expansion in areas where the company has established a formidable presence in the Mumbai Metropolitan Region.
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