Shriram Properties Limited (SPL) marks its 25th anniversary with a brand transformation initiative under the SPLNxT mission. This rebranding aims to resonate with modern buyers while retaining core values of quality and innovation. The company targets the growing mid-market segment, which accounted for 59% of housing demand in India in 2023. SPL plans to expand its footprint in key cities, aiming to double sales and triple revenue within three years. The company's robust pipeline of 42 projects and impressive growth metrics underscore its commitment to capturing new market opportunities.
Shriram Properties Limited (SPL), a real estate developer in South India, has launched a brand transformation initiative marking its 25th anniversary. This change is part of a broader strategy to redefine its identity in the competitive housing sector. The company aims to build a reputation that resonates with modern homebuyers while drawing on its rich history, supported by the parent company, the Shriram Group.
Murali Malayappan, the Chairman & Managing Director of SPL, emphasised the company's commitment to evolving alongside market demands. He explained that the new identity would foster stronger connections with the next generation of buyers. Although the company was embracing this change, he emphasised that its core values-customer dedication, quality construction, and innovative design-would remain steadfast. This transformation is designed not only to enhance customer satisfaction but also to leverage technology for improved service delivery.
As part of this brand overhaul, SPL has initiated the SPLNxT mission, which focuses on boosting growth and concentrating efforts on mid-market housing. This segment has shown notable growth, with mid-market homes accounting for 59% of all housing demand in India in 2023, a rise from 49% just before the COVID-19 pandemic. In cities like Bengaluru and Chennai, mid-segment properties represented nearly 75% of real estate demand.
The decision to target mid-market segments comes as part of recognizing a shift in buyer preferences. SPL's strategy seeks to position the company as a leader in this category, particularly in key cities like Bengaluru, Chennai, Kolkata, and Pune-where it plans to expand its presence. Historically, SPL has excelled in these markets, with mid-market offerings constituting 67% of its current portfolio.
The company has ambitious plans under its SPLNxT strategy, aiming to double its sales and triple its revenue within three years. This goal involves delivering over 20 million square feet of residential projects, firmly concentrating on the high-demand areas of its core markets. SPL currently has a robust pipeline of 42 projects, comprising 42 million square feet of development potential. The company's plans include significantly increasing this inventory, providing an even more substantial offering to prospective homebuyers.
The real estate sector has recovered remarkably since the challenges posed by the pandemic. The demand for homes, particularly in mid-market segments, has surged, reflecting changing consumer behaviour and preferences. Given this backdrop, SPL's targeting of mid-segment homes is seen as a well-timed strategy that aligns with market dynamics and customer needs.
In recent years, SPL has experienced impressive growth, reshaping its financial landscape. Since the introduction of RERA regulations, the company has expanded its sales volumes and values significantly, with handover numbers quadrupling to over 3,000 units in the fiscal year 2024. The company has also improved its return on capital employed (ROCE), climbing from 3% in 2018 to an impressive 11% by 2024. This record of growth and stability presents a solid foundation for the company's future endeavours as it embarks on this new journey.
Overall, Shriram Properties is positioning itself as a significant player in the real estate market by not only rebranding but also realigning its focus to meet the needs of a new generation of homebuyers. The company's growth initiative, backed by its established reputation, aims to solidify its presence across South India and beyond. As the real estate landscape continues to evolve, SPL looks poised to seize opportunities that arise, ensuring it remains relevant and competitive in the years to come.
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