The 160-year-old Shapoorji Pallonji Group has drawn a roadmap to unlock value from its ₹85,000-crore asset base by listing it on the stock exchanges.
In recent months, the group has been working on a strategy to unlock value, strengthen its capital structure, and focus on its core areas of engineering and construction, infrastructure, real estate and energy, company sources said.
The group, currently helmed by the next-gen of the Mistry family under Chairman Shapoor P Mistry, is poised for double-digit revenue growth in the next few years.
To become future-ready, the group proposes to leverage its engineering DNA, combined with an added focus on technological innovation and digitisation, sources added.
To enhance customer-centricity, each business is now more accountable for its profitability, a source said.
Group company Afcons, a leader in infrastructure construction, is scheduled to list in the months ahead and expected to unlock significant value for the group.
Real estate portfolio
The real estate business has 140 million sq ft of development potential, across multiple cities. The “unbundling” process has been completed and a separate real estate holding company has been created to unlock value from the portfolio, the source said.
The group’s real estate business is among the top 5 in the country and sells over 4,000 apartments annually.
It spans the spectrum from affordable to premium housing, and hence is well positioned to ride the demand growth in the decade ahead, said an analyst.
Crude oil processing
SP Energy develops, operates and maintains floating production storage and offloading (FPSO) vessels. It recently delivered to ONGC its largest FPSO, with a processing capacity of about 60,000 bpd of liquid and three MMSCMD of gas.
About 20 per cent of domestic crude production passes through assets owned or operated by the Shapoorji Pallonji Group.
The group has a turnover of ₹40,000 crore, with an order book of over ₹90,000 crore. It has 36,000 direct employees across 40 countries, including a large number in India.