Munjal Family Ready For Real Estate Business

NEW DELHI: The Munjal family, known for the two-wheeler business, is planning for real estate business. After announcing a tieup with the world’s largest commercial vehicle maker Daimler, the company has lined up major plans in the real estate sector that comprise developing residential townships, industrial parks, hotels, resorts and leisure centers all over the country.

According to the group head Brij Mohan Munjal his revenues exceeding $3 billion. “We are working on several projects around the country in the real estate area and plan to enlarge in a big way,” Sunil Kant Munjal, son of Brij Mohan, told TOI.

According to one member of group the initial investments in the real estate venture will come from the Munjal family. It has been observed that potential investors , bankers and private equity players are very much interested in the plan.

A new project of the real estate diversification is coming up around Hero Honda’s new Haridwar factory. Arrow Infrastructure, a new company, will develop township and industrial park around the plant, and this is one of the many projects that are in the pipeline.

Apart from the project at Haridwar, the group is developing an IT park at Gurgaon while looking at resorts development in Himachal Pradesh and residential townships in Punjab.

Elaborating on township plans, one member of the group said the company would provide housing options across price points. “Our idea is to provide mid-level to high-end housing and price points on the lower side could be even less than Rs 20 lakh.”

4 Comments

  1. Posted April 23, 2008 at 12:11 am | Permalink

    I have read the same news in Times of India.

  2. Posted April 26, 2008 at 1:01 am | Permalink

    The family that has made its name synonymous to the two-wheeler business in India, the Munjal family has recently announced that it is planning to diversify its business interests very soon. The company officials have informed that they are planning to enter the Indian real estate sector very soon and it would be developing the residential townships, industrial parks, hotels, resorts and leisure centers across the country. The Munjal group is being headed by Mr. Brij Mohan Munjal and the group has recently entered into a tie-up with the largest commercial vehicles maker company of the world, Daimler for expanding its business further.

    According to Mr. Sunil Kant Munjal, the son of Mr. Brij Mohan Munjal, the company is having its revenues exceeding $3 billion at the moment. He said, “We are working on multiple projects across the country in the real estate area and plan to expand in a big way”. Mr. Sunil Kant Munjal is the current Chairman of the Hero Corporate Service and also the MD of Hero Cycles and he is directly guiding the diversification plans for the group. There are a number of 20 companies in the Munjal group, including some of the largest companies like the Hero Honda, Hero Cycles, Hero Management Services, Munjal Showa Ltd, Hero Motors and the Hero Global Design.

    While talking about their plans for entering the real estate business in India, Mr. Sunil Munjal said that they are planning to fund the initial investments in the sector from the Munjal family. In his words, “We have already seen interests by potential investors – bankers and private equity players. However, we are not anywhere close to striking any deal as yet”. He said that the group is planning to develop a new project for the real estate diversification around the new Haridwar factory of Hero Honda. He added that a new company of the group, named the Arrow Infrastructure is going to develop township and industrial park around the plant and this is actually one of the numbers of projects that the group is planning to launch soon.

    Mr. Sunil Kant Munjal was also elaborating the company`s plans about the real estate foray and said that they are developing an IT park at Gurgaon and are also looking at resorts development in Himachal Pradesh and residential townships in Punjab. He added that the company is going to provide housing options across price points under its township plans. He said, “Our idea is to provide mid-level to high-end housing and price points on the lower side could be even less than Rs 20 lakh”. Mr. Sunil Kant Munjal`s brother and also the MD of Hero Honda Mr. Pawan Munjal was also talking about the matter and said that the group is likely to rope in some potential partners when the business expands, as well. To quote him, “It is too early to speak about this but as and when we expand, we may look at inducting partners”.

  3. Posted April 26, 2008 at 4:12 am | Permalink

    “Hero” is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The joint venture between India’s Hero Group and Honda Motor Company, Japan has not only created the world’s single largest two wheeler company but also one of the most successful joint ventures worldwide.

  4. Posted May 1, 2008 at 1:30 am | Permalink

    I think i have heard some news about the seperation of the Hero and Honda in the March end.

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