Parsvnath Developers Delays Retail Expansion Amidst Economic Slowdown
New Delhi-based real estate developer Parsvnath Developers Ltd has deferred its venture into the retail sector due to the prevailing economic downturn. A senior official said that the company will reassess the market conditions before proceeding with the original plan. In the meantime, the company is nearing the final stages of selling its SEZ stake to private equity investors.
“Due to the present economic slowdown, the company has put a hold on retail diversification. But this is a temporary hold and our international partner has also put hold on its expansion plans in India. If the condition improves, we can review the situation again in another 3-6 months.”
This was stated by Parsvnath Chairman Pradeep Jain, who, however, refrained from disclosing the identity of their retail partner.
SEZ Stake Sale Nearing Completion
Jain further elaborated on the company’s current focus: “At present, we are talking to number of private equity investors, and talks are on for dilution of SEZ stake. We expect the deal to happen in another 2-4 months.” The chairman anticipates finalizing the deal within the next two to four months.
Details of the Postponed Retail Plans
Parsvnath Developers had initially envisioned launching between five and ten front-end retail stores by this fiscal year. An international retail partner was slated to provide logistical support. Their retail ambitions encompassed hypermarkets, food joints, and substantial retail spaces measuring around 2.5 to 3 lakh square feet, excluding the cash-and-carry format. When the company first announced its retail foray in June, it projected significant contributions to its balance sheet this fiscal year due to the large-scale rollout. This expansion has now been put on hold.