Jaipur and Hyderabad project expected to generate Rs. 70-80 crore of revenue by March 2015: S K Jain

Date : Jan 3, 2015

Om Metals Infraprojects stock is trading weak. The company has informed that the partnership firm m/s Om metals consortium has inducted M/s Goregaon hotel and Realty Pvt ltd (GHRPL) as a partner for 50% share in a partnership firm for development of Slum rehabilitation and residential development project in Bandra Reclamation. The Land FSI was awarded to the firm by MHADA. Post inclusion of M/s GHRPL, Om Metals  has 17.5% sharing in the partnership firm Om metals consortium.

Om Metals Infraprojects Ltd, is a conglomerate having diverse business activities and interests related to Hydro mechanical equipment, turn key solutions for steel fabrication, Hydro power developments, Real Estate, Leasing, Finance, Entertainment centers, Hotels and tourism.

In an interview with CNBC TV18, S K Jain, Chief Financial Officer, Om Metals said, "Our partnership firm is Om Metals Consortium in which we have 35% stake while taking the FSI from MHADA sometime back. So we are basically land owner and a partnership firm and we did a JV with DB for Goregaon Hotels & Realty Private Ltd. After that we are right now 17.5 percent partner in the Om Metals Consortium. The Goregaon Hotel will develop the entire project and SRA and they will develop in next four-five years time".

The Goregaon Hotels & Realty Private Ltd. is a partnership firm with D B Realty and Om Metals with 50-50 percent ownership.

Commenting on the project and the revenues expected, he said, "This project is SRA cum residential development in Bandra reclamation where we shall develop some residential and give some apartments to the slum dwellers there. Suppose the FSI availability is 4 lakh sq ft and as a firm Om Metals Consortium we get 4 lakh sq ft, out of this 2 lakh sq ft go to Goregaon Hotel and 2 lakh comes to the group of Om Metals. Right now there is no clarity on how much sq ft is there".

Presently, the company is developing projects in Jaipur, Kota and in Hyderabad. Out of which, the Jaipur and Hyderabad project is expected to generate Rs. 70-80 crore of revenue by March 2015.

Overall revenues the company is expected to generate in FY15 and FY16 is Rs. 300 crore topline in March 2015

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