Arvind infrastructure: Godrej Properties in the making?

Hi Abhijeet,

1. Who invests the capital which is required for the construction ? It is invested from AIL’s books ?
2. In 6/12 projects under development are 100% AIL owned (no JD), so we need to have some understanding on Q1. Who will invest the money for construction, who owns the land currently, is it owned by AIL ?
3. In the other 6/12 AIL’s share is also north of 50%. Who will invest the money for such projects ?
4. Arvind probably is a good brand in Gujarat. But at all India level, I doubt it has any of the quality factor’s associated with it, like Godrej brand.
5. Next few years companies fortunes are tightly tied to upland properties fortunes as 50% of projected revenues are tied to it. Feels risky.
6. Perception that “Beyond Five” project is only residential plotting and very little needs to be done probably isn’t correct. Check our their plans http://www.arvindinfrastructure.com/about_beyond_five.php#horizontalTab2
   Also fact that their proportion in the project is 45% probably means, they will realize a revenue of 45%*600 cr = 270 cr. and have to spend on all the amenities listed above from that. Probably the land owner get’s the 330 cr. as cost of land and no more expenditure form his side. That’s how most JD works.
7. In Godrej properties case, the group land is owned by Godrej Boyce (Group company). Cost of the project development is also to be borne by Godrej Boyce. GP get’s a 10% share of revenue mainly for marketing activities, hence providing higher visibility of earnings without putting to much at stake. So we need to understand what’s the equation for AIL on these parameters.