Totem Infrastructure Ventures into Real Estate
Hyderabad-based Totem Infrastructure Limited is poised to diversify its operations by incorporating real estate into its portfolio. A significant ₹200-crore multi-use apartment project, spanning approximately 10 acres near the outer ring road in Hyderabad, is slated to kick-start this new venture.
Shifting Business Paradigm
According to Abhijit Roy, Director and Chief Operating Officer of Totem, the company is strategically transitioning its business model from cash-based contracts to long-term revenue streams, exemplified by the Build, Operate, and Transfer (BOT) model. This shift underpins the company's desire for sustained growth and financial stability.
Recent Investments and Expansion Plans
In February, Totem successfully raised $10 million (approximately ₹40 crore) from Singapore's Aquarius Investment Advisors, a private equity fund. These funds are earmarked for facilitating growth initiatives, exploring new geographical territories, and bolstering operational capacities. Presently, Totem maintains offices in Hyderabad, Delhi, and Indore, with imminent plans to establish new offices in Kolkata and Nagpur.
Real Estate Ambitions
Totem envisions real estate comprising at least 25% of its portfolio, as articulated by Roy. This ambitious goal underscores the company's commitment to diversifying its revenue streams and fortifying its presence in the Indian real estate market.
Current Projects and Financial Outlook
Totem's current order book stands at a substantial ₹1,000 crore, slated for completion within two-and-a-half years. The majority of these projects are cash contracts, with investments mobilized through customer advances and other financial instruments. To support these endeavors, the company has formed a banking consortium, led by Union Bank of India. Totem anticipates its order book swelling to ₹2,500 crore in the current financial year and plans to go public within three years to secure funding for forthcoming projects.
Infrastructure Projects
Among its myriad projects, Totem is engaged in constructing roads in Maharashtra, Uttar Pradesh, and Karnataka on a BOT basis. Recently, the company marked its presence in central India by securing the ₹310 crore contract for the III phase of the Omkareshwar Project Canal System from Sadbhav Engineering Limited. Additionally, Totem is executing an NTPC power project in Nagpur and undertaking various construction works for RITES, a Government of India enterprise, including the development of minor bridges, culverts, and an internal railway line for the Bhilai power project expansion.
Upcoming Ventures
The ₹150-crore company is also pursuing a public-private partnership in a state-backed project in Rajasthan, having recently submitted a Request for Quotation (RFQ) in this pursuit.