Indian realty firm forays into USA
September 29, 2007
At a time when the real estate players in the country are highly bullish on the sector, here in one developer who has dared to foray into the US where the housing sector woes are continuing.
It is the Pune-based D S Kulkarni Developers which is smelling a business potential in the US and has become the first organised sector real estate player from India to make a foray in the US market.
The company one had popular actress Madhuri Dixit on its board.
Kulkarni Developers has floated a fully-owned subsidiary in Delaware, USA, to develop residential and commercial projects.
Company chairman D S Kulkarni told PTI the idea was to cater to the demands of the Indians settled there. However, a large number of non-Indians have also queued up to buy the houses being constructed by the company.
He said DSK has acquired about 18 acres of land in New Jersey and construction of over one lakh sq ft is on. The company has already invested Rs 80 crore on the US foray and plans to invest another Rs 100 crore over the next one year. Incidentally, the company had posted turnover of over Rs 300 crore last fiscal and about Rs 80 crore in the first quarter this year.
Kulkarni conceded the profit margin in the US market is much less compared to what it is in India. But felt it is steady and reasonable. The cost of land there worked out to about USD 70\80 per sq ft while the cost of construction is about USD 80\90 per sq ft.