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Sharanam Infraproject and Trading, a supplier of building materials and steel products, has launched a wholly-owned subsidiary in the UAE, marking its entry into global real estate. The company will invest around AED 18 million (INR 42 crore) over nine months to support operations and deal facilitation. The new venture will focus on land arbitrage, buying strategic plots and reselling them to larger developers for profit. This move aligns with Sharanam�s risk-managed global growth strategy. Back in February, the company raised INR 48 crore via a rights issue to fund expansion. The UAE's booming property market, particularly in Dubai and Abu Dhabi, underpins this strategic step.
Sharanam Infraproject and Trading, a company known for supplying building materials and steel products, recently announced the formation of a wholly-owned subsidiary in the United Arab Emirates. This marks its strategic entry into the global real estate sector, particularly focusing on the dynamic UAE market. Advertisement
The company plans to invest approximately AED 18 million, which converts to around INR 42 crore, in this new venture over the next nine months. This investment includes provisions for working capital and costs associated with facilitating deals.
The subsidiary's core strategy will revolve around participating in the real estate sector in the UAE, with a specific emphasis on land arbitrage transactions. This means the new arm will acquire strategically located land parcels and subsequently resell them to larger developers or institutional buyers, aiming for modest profit margins.
This expansion is considered a pivotal step in Sharanam Infraproject's broader strategy. The company aims to enter global markets in a risk-managed manner and create incremental value for its shareholders. Sharanam Infraproject is currently engaged in the retail business of supplying steel products and building materials.
Earlier this year, in February, the company successfully raised around INR 48 crore through a rights issue, which was intended to finance its expansion plans and boost working capital. The UAE real estate market, especially in cities like Dubai and Abu Dhabi, is a significant draw for international investors due to its rapid growth and status as a global business hub, making it an attractive destination for such strategic moves.
Source: PTI
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