Raymond Limited, a prominent name in India’s business landscape, is making significant strides in the real estate sector through its wholly-owned step-down subsidiary, Ten X Realty East Ltd. The company recently announced the signing of a Joint Development Agreement (JDA) for a prestigious residential project in Mumbai’s Wadala, marking its maiden venture in this sought-after locality. With an estimated gross development value (GDV) of approximately ₹5,000 crore, this project underscores Raymond’s ambitious expansion within the Mumbai Metropolitan Region (MMR) and reinforces its position as a key player in India’s real estate market.
Raymond Limited Bolsters Real Estate Portfolio with ₹5,000 Crore Residential Project in Wadala
A Strategic Move in Mumbai’s Dynamic Realty Market
The Wadala project represents Raymond’s sixth joint development initiative outside its established developments in Thane, highlighting the company’s strategic focus on capitalizing on high-growth opportunities in MMR. Wadala, known for its connectivity and proximity to key commercial hubs, is an ideal location for residential development, making this a landmark addition to Raymond’s portfolio. The company has not disclosed the identity of the landowner involved in the JDA, a common practice in such partnerships, which aligns with the industry’s shift toward asset-light business models.
With this latest project, Raymond’s total GDV across its real estate ventures is poised to approach ₹40,000 crore. This milestone reflects the company’s rapid ascent in the real estate domain, a sector it entered in 2019 with a 14-acre residential project in Thane. Since then, Raymond Realty has established itself among the top 10 real estate developers in India, earning a reputation for delivering projects ahead of schedule—most notably completing its first Thane project two years ahead of the RERA timeline.
Financial Performance and Market Sentiment
Raymond Limited’s real estate arm continues to demonstrate robust growth. In the third quarter of fiscal year 2024-25 (Q3FY25), the company reported a sales booking value of ₹505 crore in its realty vertical. Net revenue for the quarter grew by 36% year-on-year, rising from ₹727 crore in Q3FY24 to ₹985 crore in Q3FY25. Net profits from continuing operations surged by 75%, reaching ₹72.28 crore compared to ₹41.35 crore in the same period last year. At the operating level, EBITDA increased by 33% to ₹169 crore, signaling strong operational efficiency.
Despite these positive developments, Raymond’s stock experienced a slight dip on April 1, 2025, trading at ₹1,340 per share—a 1.7% decline from its previous close of ₹1,403.50—according to market reports. However, the stock has delivered impressive long-term returns, with a 62% gain over the past year and a remarkable 519% increase over five years, reflecting investor confidence in the company’s diversified growth strategy.
Expanding Beyond Textiles
Raymond Limited, historically renowned for its leadership in fabric manufacturing, has successfully diversified into real estate and engineering following the demerger of its lifestyle business into a separate listed entity in 2024. The company now focuses on two core verticals: real estate and engineering. Its real estate arm, Raymond Realty, offers a portfolio spanning aspirational (Ten X Habitat), premium (The Address by GS), and luxury (Invictus by GS) segments, catering to a wide range of homebuyers in MMR.
The Wadala project aligns with Raymond’s vision of delivering affordable luxury at scale, a philosophy articulated by Chairman and Managing Director Gautam Hari Singhania. “I’m focused on affordable luxury at scale, not south Bombay,” Singhania has previously stated, emphasizing the company’s commitment to accessible yet high-quality housing solutions.
Latest Updates and Future Outlook
As of April 2, 2025, the Wadala project is in its early stages, with construction expected to commence within the next 6-9 months, pending revised plans and approvals. The development, which includes a slum rehabilitation component, is projected to take 6-7 years to complete. Under a 60:40 revenue-sharing agreement with another developer, Raymond will focus on the residential component while its partner handles the rehabilitation efforts—a model that optimizes capital efficiency and mitigates risk.
This project follows Raymond’s recent successes, including a ₹1,800 crore residential development in Mahim West announced in February 2025 and a ₹2,000 crore redevelopment project in Bandra East secured in June 2024. With a pipeline of projects worth over ₹10,000 crore in Mumbai alone, Raymond Realty is well-positioned to dominate the MMR market.
Industry Context
India’s real estate sector is on a growth trajectory, projected to reach a trillion-dollar market by 2030, driven by urbanization, government policies, and rising demand for residential properties. However, the MMR market has seen a 26% decline in residential sales in Q1 2025 (31,610 units compared to 42,920 units in Q1 2024), according to Anarock. Despite this, Mumbai continues to lead the country in property registrations, with stamp duty revenue reaching ₹12,899 crore in FY25, as reported by Knight Frank India.
Raymond’s focus on joint development agreements reflects a broader industry trend toward partnerships that reduce capital expenditure while maximizing returns. Harmohan Sahni, CEO of Raymond Realty, emphasized this approach in a recent statement: “JDA is a more capital-efficient process to follow. In the last five years, joint development projects are back in focus.”
Conclusion
The ₹5,000 crore Wadala project is a testament to Raymond Limited’s growing influence in India’s real estate sector. By leveraging strategic partnerships, prime locations, and a customer-centric approach, the company is poised to redefine urban living in Mumbai. As Raymond Realty continues to expand its footprint, all eyes will be on its ability to deliver on its ambitious promises, further solidifying its legacy beyond textiles.
Add Business Connect magazine to your Google News feed
