Apr 24
A peek into L&T Realty’s evolution and growth journey
It’s a bright, sunny day. People are busy on the eighth floor of AMN Tower in Powai – the head office of L&T Realty. Some are discussing the nitty-gritty of an upcoming residential project, while others are meeting the representatives of an elevator- manufacturing company, and so on. Unlike L&T’s various corporate entities with offices in this upscale tower, L&T Realty is a B2C entity.
But that is not the sole reason behind the lively mood so palpable at L&T Realty. The energy emanates more from a sense of purpose – L&T Realty is one of the businesses that L&T Group has identified as its growth driver in the next few years.
The genesis and evolution of L&T Realty is interesting! It goes like this.
In 2006, L&T incorporated an entity named L&T Urban Infrastructure Ltd (L&T UIL) which developed some marquee projects in northern and southern India with HDFC as an equity partner.
In 2007-08, L&T Group Chairman Mr AM Naik created a larger vision to monetise L&T’s own land-bank and develop landmark residential and commercial real estate. This led to the launch of India’s first Transit Oriented Development (TOD), Seawoods, at Navi Mumbai in 2008. Subsequently, to consolidate the real estate business, L&T bought-back HDFC’s stake in L&T UIL in 2011.
Formative Years
Seawoods is till date India’s largest TOD. It encompasses commercial and residential towers integrated with a railway station.
“In 2011, realising the vision of Mr Naik, L&T decided to develop and position L&T Realty as a business brand in the real estate space. In addition to the redevelopment of L&T’s own land, we started undertaking residential projects in joint ventures with external partners. Mr Naik has been passionate about this business from day-one, with a keen eye on every related thing,” explains Mr Shrikant Joshi, the first and current CEO & MD of L&T Realty.
The management’s resolve manifested in L&T Realty launching in 2012 its first mega gated residential project – Crescent Bay – at Parel, the heart of Mumbai. Launched in partnership with an external player, L&T Realty led this upscale project spread over seven acres and encompassing 1,500 premium apartments in six towers. Redrawing Mumbai’s skyline, the project is complete in all respects.
“The customer response to Crescent Bay gave us immense confidence, and there has been no looking back,” Mr Joshi says.
In 2013, L&T Realty launched its second residential project – Emerald Isle – at Powai in Mumbai. Spread over 19 acres and encompassing 16 towers, this project is on L&T- owned land. Three years later, in 2016, the first 300 apartments were delivered to customers ahead of schedule – a rare occurrence in the pre-RERA era. As of today, 11 towers have been delivered and the remaining 5 towers are scheduled for completion by 2025.
L&T Realty also launched several other residential and commercial real estate projects in various cities. The major ones are – Elante Mall in Chandigarh (2013); Raintree Boulevard, a 30-acre mixed-use development project at Hebbal in Bengaluru (2016); AMN Tower (2018); Seawoods Residences in Navi Mumbai; gated residential projects Rejuve 360 at Mulund (2019), 77 Crossroads at Ghatkopar (2021), Elixir Reserve at Powai (2022) and Vihaan at Vadodara (2022).
In all, L&T Realty has till date handed over nearly 3,700 apartments to customers and will cross the 5,000 mark by FY24. As of FY23, across 10 projects involving a 5,800-odd workforce, it has accomplished 22.71 million injury-free manhours.
Growth Phase
What has propelled L&T Realty into the growth phase is L&T Group’s strategic decision to leverage the entity as one of the drivers for value-accretive growth. The move is based on L&T Realty’s impressive performance in the last decade.
In its latest five-year strategic plan – LAKSHYA 2026 – L&T targets doubling L&T Realty’s revenue share, with FY21-22 being the base year. L&T Realty’s projected order inflow and revenue by FY26 are in excess of CAGR 30%, and projected PAT is in excess of CAGR 25%.
These are significant targets considering that its revenue in FY21-22 was Rs 1,315 crore.
Achieving the target means launching more projects – at speed and scale. That’s what everyone in L&T Realty is working towards. Over the next five years, the plan is to add up to 10 million sq ft per year to the company’s portfolio.
“We are focusing mainly on the metro cities where both the demand for real estate and returns are high. This is because not only growth, but profitable growth is our mantra,” underscores Mr Joshi, looking out at the expansive horizon from his neatly-designed chamber in AMN Tower.
L&T Realty has a footprint in Mumbai, Bengaluru, Chennai and the National Capital Region. It wants to further boost its presence in these cities and expand footprints to places like Thane, Pune and Kolkata. But Mumbai remains its mainstay.
In 2023 alone, L&T Realty is set to launch six mixed-used real estate projects in the Mumbai Metropolitan Region, totaling 10 million sq ft. Besides these, another 19 projects in Mumbai are at an advanced evaluation stage, and several of them are likely to be launched by 2026. Two large residential projects have been finalised for launch in Chennai and Noida.
These are in addition to the 12 residential and commercial projects in Mumbai, Chennai and Bengaluru that are at advanced stages of either construction or handover.
While doubling the revenue share remains at the top of L&T Realty’s agenda, Mr Joshi proudly shares that the company’s profit is already on the higher side. “Our volume maybe less, but PAT is high. Even if we leave out the margins earned from L&T-owned land development, our PAT is still in the mid-teens – and this is one of the highest within L&T Group,” he beams.
Strategic Move

Real estate projects are capital intensive and returns come only after a block period. It is interesting how L&T Realty is devising innovative mechanisms to bring its aggressive growth plans to fruition.

“At L&T, we believe in managing risk wisely. Hence, instead of drawing capital from L&T’s own coffers, we have entered into a 50:50 equity model deal with HDFC wherein the latter will pump in USD 1 bn into our residential projects over the next 4-5 years,” Mr Joshi says, referring to the deal inked in 2022 as a watershed moment in L&T Realty’s history.
With respect to commercial projects, the company has entered into an equally innovative deal with Singapore-headquartered real estate management company CapitaLand. As part of the deal, L&T Realty will develop 6 million sq ft office space in Bengaluru, Chennai and Mumbai. CapitaLand will first lease these out, then buy them in a phased manner.
There are two more remarkable strategic moves that L&T Realty is making. First, to switchover from mid to big projects, with a focus on premium category. Second, to go into more joint venture projects in addition to own-land development.
“Zero-harm in project execution, zero-snag delivery, and delivering ahead of schedule are our USPs. We will continue to boost these and set new benchmarks in the real estate sector” says Mr Anupam Kumar, EVP & Chief Executive – Operations & Commercial Business at L&T Realty.
“As regards joint ventures, we are keen on collaborating with the ones who enjoy a sound reputation, have the ability to join hands for large projects and most importantly, are not financially stressed,” adds Mr Kumar, whom Mr Joshi is grooming as his successor.
L&T Realty recognises that even if it has the monies and land, without a committed and empowered workforce, all will remain confined to paper.
Thus, over the last one decade it has groomed highly competent teams across all related competencies of the real estate value-chain. With a focus on achieving the LAKSHYA 2026 target, by end-2023, L&T Realty wants to increase its employee base to 950.
Ask both Mr Joshi and Mr Kumar as to where they see L&T Realty in the next five years, and pat comes the reply: “Among India’s Top 3 most admired realty companies.”
And, going by every indication, it is highly possible that L&T Realty will scale this ambitious height.

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