Godrej Properties to get Rs 2,000 cr investment from parent

Godrej Properties, the real estate arm of the Godrej group, is all set to get a major infusion of cash in the form of a Rs 2,000 cr investment by parent Godrej Industries.

The flagship company of the Godrej group said it has also decided to invest Rs 500 Godrej Agrovet Ltd, which makes cattle feed and so on.

The directors of Godrej Industries took the decision at their meeting today to consider the company’s third quarter financial results.

It is not immediately clear what use Godrej Properties will put the extra funds to, but the developer is likely to use it to fund its current and new project development.

Godrej Properties is one of India’s fastest growing and healthiest real estate companies.

Last week, the company had announced it would invest Rs 400 cr in another real estate company, DB Realty, promoted by Shahid Balwa and others, and to set up a joint venture.

However, the deal was called off next day after major protests from some of the shareholders, and Rakesh Jhunjhunwala, the ace investor, stepped in to fund DB Realty.

Separately, Godrej Industries reported a 48% jump in its third quarter revenue, even as operating profit increased 23%. Godrej Industries’ home care division saw growth of 4% on year.

“Soft performance in Household Insecticides, however it continues to deepen penetration and gain market share. Goodknight Jumbo Fast Card is scaling up well and driving growth in burning formats,” it said.

The second major division, personal care products, grew by 12%.

“Personal Wash & Hygiene maintained its growth momentum, delivering double-digit sales growth. Hair Colours growth was relatively soft, while it continued to gain market share,” Godrej Industries said.

In chemicals, revenues increased by 90%.

Godrej Properties’ revenue for the third quarter increased to 399 cr from 306 cr in the same quarter of 2020, while net profit jumped to Rs 39 cr from Rs 14 cr.