Century Textiles stock soars over 8% after unit secures prime land parcel in Gurugram

Shares of Century Textiles and Industries, the real estate venture of the Aditya Birla Group, surged 8.3% in early trading today to reach ₹2275 apiece after the company's 100% wholly owned subsidiary, Birla Estates, secured a prime 5-acre land parcel in Sector 71, Gurugram, the company informed investors through an exchange filing on Monday.

This 5-acre parcel offers a development potential of around 10 lakh square feet and is expected to generate revenue exceeding ₹1,400 crore with aesthetically designed residences, as per the company's exchange filing. 

Birla Estates is rapidly expanding its presence in the NCR market. This new acquisition adds to its projects on Golf Course Extension Road and Sector 31 in Gurugram, as well as Mathura Road in Delhi. The company focuses on four key markets in India – MMR, Bengaluru, NCR, and Pune—to deliver premium real estate projects across residential, commercial, and mixed-use segments.

Century Textiles entered the real estate industry in 2016 under the brand name Birla Estates, marking its foray into residential and commercial real estate development.

Commenting on this latest expansion, Mr K.T. Jithendran, MD & CEO at Birla Estates, said, “Gurugram has been a pivotal market for us from the outset. The real estate potential in this micro-market is immense and reinforces our strong focus in the Delhi-NCR region. With this acquisition, we aim to cater to homebuyers seeking exclusivity and distinctive living experiences. At Birla Estates, our commitment transcends luxury; our ethos is to embrace a vision of residences that embody a legacy of dedication and excellence.”

Earlier in June, Birla Estates entered into a joint venture with Barmalt India Pvt. Ltd. The joint venture aims to develop a luxury residential group housing project in Sector 31, Gurugram. The land parcel spans 13.27 acres, with a development potential of approximately 2.4 million square feet and an estimated revenue potential of around ₹5,000 crore.

During FY24, the company achieved significant milestones as it sold nearly 1.7 million sq. ft., amounting to ₹3,985 crores across all launched projects. The new phase, Silas, of its flagship project Birla Niyaara in Worli, Mumbai, has witnessed exceptional success.

Within just a month of its launch, it recorded sales exceeding ₹2,391 crore. Similarly, Birla Trimaya in Bengaluru was completely sold out within 36 hours of its launch, achieving a booking value of ₹486 crore.

Further solidifying its reach, the company has recently inaugurated its first international office in Dubai, a strategic expansion designed to cater to the prospective customer base in the Gulf region and around, according to the company's recent annual report. 

Going forward, Indian residential real estate is poised for strong growth potential, driven by surging demand and a strong consumption record. Urbanization trends, a thriving rental market, and consistent property value appreciation are poised to fuel a transformative period in the coming quarters.

The industry’s growing demand for premium and luxury housing, will position the company for significant growth and expansion. 

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