Raymond Realty Emphasises Financial Discipline in Redevelopment Deals

As the Mumbai redevelopment space heats up with fierce competition and inflated valuations, Raymond Realty is making it clear that it won’t compromise its financial discipline. At a pre-listing press conference for the real estate arm, Raymond Group Chairman Gautam Singhania emphasised that the company would walk away from any redevelopment deal that does not meet its profitability benchmarks, as per news reports.

Strict Margin Discipline: 20% or Walk Away

Raymond Realty’s Managing Director and CEO, Harmohan Sahni, echoed this stance, stating that the company follows a clear redevelopment-led growth strategy but insists on a minimum margin threshold of 20%, whether the project is a redevelopment or a land-led initiative.

He added that the company remains selective and disciplined in evaluating opportunities, regardless of the market buzz surrounding redevelopment, particularly in the Mumbai Metropolitan Region (MMR).

Thane Land Bank: A Core Growth Lever

Beyond redevelopment, Raymond Realty is also leveraging its sizable land parcel at JK Gram in Thane spanning 100 acres with a total development potential of 11.5 million square feet (msf). Of this, about 4.5 msf has already been launched in the market.

This land bank gives the company significant flexibility to balance its growth strategy, reducing overdependence on the highly competitive redevelopment segment.

Redevelopment Deals and Expansion Targets

So far, Raymond Realty has signed 6 redevelopment deals, primarily in and around the Bandra Kurla Complex (BKC), and is actively exploring additional opportunities in Mumbai's suburban areas.

Sahni added that the company is looking to add projects with a gross development value (GDV) of ₹10,000 crore annually. At the same time, it has set an internal goal to grow its topline by 20% each year.

Interestingly, Sahni dismissed the idea that land scarcity is an obstacle to growth in MMR, stating that with the right approach and discipline, viable opportunities continue to exist across the region.

Read More: Raymond Realty Shares Hit 5% Upper Circuit After Listing at 4% Discount.

Conclusion

Raymond Realty’s strategy reflects a cautious but confident approach to scaling in one of India’s most dynamic real estate markets. By focusing on disciplined financial parameters and leveraging its Thane land bank, the company aims to grow sustainably while navigating the complex landscape of Mumbai’s redevelopment ecosystem.

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