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Starworth Infrastructure and Construction Target 4X Growth in Revenue by 2027


Starworth Infrastructure and Construction, a development arm of Puravankara Group, expects fourfold growth in revenue by 2027 to Rs 2,000 crore and plans to enter the data centre and industrial and warehousing segment, said its managing director K Satyanarayana.

The firm more than doubled its revenue to Rs 505 crore in 2022-23 from Rs 246 crore in the previous financial year. It expects 35% revenue growth in the current fiscal, led by residential and commercial assets.

“This remarkable growth resulted from capability building and strategic changes like diversifying into commercial, industrial. and infrastructure,” Satyanarayana told ET. “With data centres and warehousing, we want to get into a bigger league of contractors. In contractual business, for smaller projects, the competition is huge. However, for bigger projects, there’s low competition. Besides this, we want to focus on townships.”

In the first quarter of this fiscal the firm bagged two large residential projects in Bengaluru and Chennai. It expects new orders worth Rs 1,200 crore to be booked this year. “We have booked orders worth Rs 300 crore in the Q1 of FY2024. Many bids are under evaluation, discussion and negotiation. We are also in talks with many developers, with many new orders anticipated in Q2,” said Satyanarayana. The company’s current portfolio comprises the commercial segment (hotels), residential and infrastructure projects. “We want to diversify the portfolio with 70% project contributions from the industry, followed by in-house, and bid for development and target development projects upward of Rs 300 crore. We have capabilities for engineering, procurement and construction (EPC), and are looking to tap this segment for growth,” said Satyanarayana.

India’s real estate sector has witnessed growth across segments, led by residential and flexible office space. New-age asset classes such as data centres and warehousing have also garnered investors’ interest, with newer platforms being formed to tap the segment.

Supported by a resilient domestic economy and a stable job environment, the residential market continued its upward trajectory in the first six months of 2023. Sales of about 126,500 units were recorded during this period, marking a 21% year-on-year increase. Industrial and warehousing demand across the top five cities remained stable, with 11 million square feet of leasing.

Demand for data centres in India is increasing amid improved technology infrastructure and increasing adoption of new technologies such as 5G, artificial intelligence, cloud and Internet of Things. In the past five years, $14 billion has been invested in India’s data centre sector, and the amount is expected to cross $20 billion by 2025, according to commercial real estate consultancy CBRE.


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