Bullish on the growth of retail sector in India, Raheja group company Inorbit Malls said On Wednesday it would invest around Rs 1,500 crore (Rs 15 billion) over the next three years to build malls in west and south India.
"We plan to build 10 malls in the next three years and would be investing close to Rs 1,500 crore for this," Inorbit CEO Yogesh Samat told PTI on the sidelines of a retail summit The Shop.
Inorbit, which currently runs a mall in Mumbai, will open a second one at Navi Mumbai within the next six months. "We are looking into expanding into Hyderabad, Pune, Bangalore, Chennai in the coming months," Samat said.
The company buys land and develops malls which it later rents out to various retail players. "We are in talks with various retail chains for our upcoming projects like Lifestyle, Fame Multiplex," he said. Asked if it would also be speaking to Reliance Retail, he said, "We will be speaking to all the players in the retail format."
Samat said the retail segment in India was on a high growth path and there were no chances of a glut with the entry of a number of players, including formidable ones like Reliance and Bharti.
"The segment is witnessing 100 per cent growth and this will continue for the next three years as well," he said.
However, he listed high land acquisition prices as one of the big concerns that could slow down the growth momentum.
Asked about the revenue model for Inorbit, he said it would primarily be through rents. "However, we are looking at getting into a revenue-share model with some retailers," he said.
On the source of funding for the future projects, he said it would be generated internally. On whether the company was looking at getting in a partner for foreign direct investment, he said, "We have no such plans as financing locally is not an issue for us. It all depends on what value the foreign partner brings."
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