HDIL's Ambitious Plan for Mumbai Airport Modernization and Slum Rehabilitation
Housing Development and Infrastructure Ltd (HDIL), a prominent real estate developer in India, is embarking on a significant undertaking to raise ₹1,000 crore within a year. This substantial investment will be allocated towards land acquisition and the relocation of 80,000 slum families as part of the modernization project for Mumbai's airport. This initiative represents the largest single rehabilitation endeavor in India, exceeding even the scale of the Dharavi project, which aims to relocate 55,000 families.
HDIL's Land Bank and Expertise
With a substantial land bank of 2,500 acres, valued at ₹21,000 crore in 2007, HDIL has transformed from its origins as a finance firm into one of Mumbai's largest landowners. The company's portfolio encompasses residential and commercial projects across various locations, including Pune, Kochi, and Hyderabad. HDIL's particular strength lies in slum redevelopment. Following approval from the state government in May, the company has been designated as the rehabilitation agency for the airport modernization project. The initial phase of the project will involve the relocation of 20,000 slum families.
Land Acquisition and Relocation Strategy
HDIL has recently acquired a 53-acre plot in the suburban Kurla area, formerly the site of the Premier Automobiles Ltd factory, for a sum of ₹1,900 crore. The remaining 60,000 families will be relocated in two subsequent phases, with 30,000 families shifted in each phase. “We have some land reserve for the resettlement but, we will raise Rs1,000 crore through debt to buy more land in the vicinity of the airport to relocate the remaining people. We will buy land which is within 1Km from the airport,” said Sarang Wadhawan, managing director of HDIL.
HDIL's Business Model and Project Scope
HDIL, having completed approximately 28 million sq. ft of construction, employs a unique business structure. The firm acquires large tracts of land, develops the necessary infrastructure, and subsequently sells the developed land to other developers. Within the airport project, which involves 276 acres of encroached land, HDIL's share amounts to 106 acres. “We are looking at a hospitality venture along with commercial space there. We will also develop and sell a portion of this land,” said Wadhawan. The remaining 170 acres are slated to be transferred to Mumbai International Airport Pvt. Ltd for commercial development. This entity is a joint venture between the GVK-SA consortium, responsible for the airport's development, and the Airports Authority of India. HDIL anticipates generating revenue between ₹15,000 crore and ₹18,000 crore from this rehabilitation program.
Diversification into New Business Areas
Beyond its core real estate operations, HDIL is actively pursuing expansion into new sectors, including oil and gas, and media. On the Fiat land in Kurla, the company intends to establish a 150MW power plant, accompanied by 40 residential towers to accommodate the relocated slum dwellers. HDIL is already in the process of constructing a coal-fired power plant within its 2,300-acre, multi-product SEZ in a Mumbai suburb, along with a port facility at the same location. “The objective of expanding our power business is to facilitate our core business which is real estate. We are also looking at more acquisitions in the power sector,” said Wadhawan. Under India's new exploration and licensing policy, HDIL has submitted bids for multiple oil blocks, aiming to expedite oil exploration within the country.
Expansion into Media and Entertainment
HDIL's latest expansion venture lies within the media and broadcasting domain. The company has acquired stakes in Sri Adhikari Brothers Media and Techocraft Media, the entities operating the Marathi channel Mi Marathi and the news channel Live India. Through HDIL Entertainment, a subsidiary of HDIL, the company plans to launch three multiplexes in the suburban areas of Kandivali, Goregaon, and Bhandup within the next year. Akshaya Kumar, chief executive officer of Parklane Property Advisors, a Mumbai-based property consultancy firm, says that real estate developers stepping into new businesses is a fairly recent phenomenon. “Historically, only DLF had cement and power businesses which it later exited. Now, in a tight real estate market, many developers are attempting at new sectors with good potential by hiring expertise and using their network.”