Binani Cement -- the flagship company of the Binani Group -- is getting into commercial real estate development in order to cash in on its idle land bank and to reduce dependence on the cyclical nature of the cement business. The company has decided to develop an information technology park jointly with a partner on 56 acres of land it has in Thane near Mumbai.
The construction work will start in a few months and the project is expected to be completed by next year, the Economic Times has reported, citing a person close to the matter.
The company's managing director Vinod Juneja said that the company is "exploring many options including a joint venture". He did not divulge any more details.
The I-T sector, which occupies the most in the commercial office space, had slowed down its demand after the collapse of Lehman Brothers in 2008. It is now scaling up its demand for office space. In the outlook for 2010, Fitch Ratings said the demand for commercial space in India will improve from second half of next fiscal.
Source: Realty Plus Binani Cement plans real estate foray
