Raymond to build housing projects on surplus land at Thane

MUMBAI: The Board of textile major Raymond on Thursday approved the development of 15-20-acres of the firm's surplus land at Thane near Mumbai for building residential projects, work on which is expected to start within three to six months.

"The Board has approved commencement of development of our surplus land in Thane, which is not part of our factory operations. This proposal is in line with our strategy to unlock value of the land," Chairman and Managing Director, Gautam Singhania, told reporters here.

In Phase I, the company will develop 15-20-acres of its total surplus land, Singhania said, without divulging the quantum of total surplus land and the aggregate investment.

Raymonds expects to begin construction within three to six months and may complete Phase I within three years.

It has formed a team for the new venture, which may be structured as a new division within Raymond, Singhania said.

"This is basically an affordable residential project -- about 2-3 bedroom flats. It will be funded entirely through internal accruals," Singhania said.

Raymond will seek shareholders nod through a postal ballot in the next few days, which may be completed in early November, President Finance, S Ragunathan, said.

"Residential realty is showing signs of improvement. We will tweak our product according to the market needs," Singhania said.