Adani Group to Pick Up Stakes In Emaar India

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Adani Realty is currently looking forward to picking up stakes in the real estate giant Emaar India. Some of the senior management executives from the firm are currently in talks with the Adani leadership to outline a plan for this acquisition. This would involve the Indian conglomerate owning a part of the realtor. The step was taken by the Adani Group in order to further enhance its presence in the real estate sector. It will help the Adani Group in further diversifying its portfolio and exploring new business horizons. The Adani Group will also be able to earn excellent revenue for itself and recover from the losses it suffered during the Adani SEBI investigation.

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The Acquisition of Emaar India:

Some of the senior executives from the Ahmedabad-based Adani Realty are currently holding frequent meetings with the Emaar management in Dubai. The talks have already been initiated and Adani Realty and Emaar group executives are currently discussing the possibilities of a transaction which would involve Emaar selling a part of the ownership in Emaar India to the Adani Group. Emaar India is known by its global parent the Emaar Group. It is one of the leading real estate developers currently headquartered in Dubai, UAE.

The chances of a possible transaction are currently being discussed but nothing has been finalized yet. The two entities are currently in the early stages of the talks and the blueprint of the stake sale is being outlined. However, there is no certainty on the amount of stakes that will be picked up by the Adani Group as a lot of things are yet to be discussed. If this plan becomes finalised, it will be a huge step for the Adani Group in the real estate sector. It will give the global conglomerate’s real estate business an excellent boost. This is going to be one of the biggest acquisitions taken up by the Adani Group in the real estate sector post the Adani SEBI Investigation.

Adani Realty’s Presence In Dubai:

Adani Realty had started its journey 12 years ago. It has a significant presence in the desert megacity. The company’s segmental revenue has not been revealed yet. However, it is believed that a large part of its business is in the Dubai real estate market. The Dharavi Redevelopment project is the first large-scale project to have been operating in India. The company has recently entered the Delhi NCR region. However, most of its business remains centred around Dubai. By acquiring stakes in Emaar, the Adani Group will be able to enhance its presence in Dubai. The Emaar Group will also be able to make a huge entry into the Indian real estate sector.

Emaar India’s Plans For The Indian Real Estate Sector:

Emaar India which is headquartered in Gurgaon is one of the leading players in the country’s residential and commercial sector. Earlier, Kalyan Chakrabarti, the CEO of Emaar India, had revealed his plans to launch 8 to 10 million square feet of real estate projects in India. This would require investments close to a billion dollars USD. In a recent interaction, he mentioned that 80% of the new projects will be in Gurgaon. Currently, Emaar India has a presence in 5 markets: Gurgaon, Lucknow, Jaipur, Mohali, and Indore. With time, it plans to extend its control over the infrastructure segment of India.

Emaar India has also witnessed its operational revenue fall 31.4% to INR 1,670 crore. In the previous year, its operational revenue was INR 2,434 crore. However, with this recent venture, the group will bounce back in the real estate market and build itself an extraordinary presence. The company’s revenue generation will increase. It will also be able to make significant contributions to the Indian real estate sector.

Conclusion:

By acquiring stakes in Emaar India, the Adani Group aims to increase its real estate presence in India. This will allow the Adani Group to rise above its competitors in the real estate sector. The global conglomerate will no longer have to deal with the allegations surrounding the Adani SEBI investigation. It will also be able to earn excellent revenue for itself.