‘We are the third largest (real estate) developer in the country by sale” commented Abhisheck Lodha, the managing director of Lodha Group in an interview to the Business Standard magazine. The question that arises is, what makes this real estate giant so powerful in India today? So, let us then have a look at this powerful real estate group and their continuous rise.
1. Lodha Group, Who Are They?
This real estate giant was set up way back in the 1980’s in the city of Mumbai by BJP (Bharatiya Janta Party) legislator named Mangal Prabhat Lodha. Apparently, he shared close ties with one of the powerful party leaders, the late Mr. Pramod Mahajan. This powerful real estate group is now being managed by Mr. Mangal Prabhat’s sons, Abhisheck and Abhinandan Lodha.
2. How did the Lodha Group Enter The Real Estate Business?
It was the keen business acumen of Mangal Prabhat Lodha, which was responsible for transforming this group into a giant in real estate development. During the late 1980’s and early 1990’s several textile miles were rapidly shutting down in the city of Mumbai. It was the availability of these defunct mills land, which gave Mangal Prabhat the idea to get into real estate in a big way. He then made his first move by buying shares worth about Rs 200 crores of a textile mill located in Lower Parel called ‘Shree Niwas Cotton Mills’. It was also a period, when builders such as Hiranandani and Raheja were ruling the roost in real estate business. So, to break this monopoly and become a giant themselves the Lodha group began providing homes comprising of quality ‘aesthetics and amenities’. Which was not been focused on by builders.
3. Lodha Group And Their Rise In Real Estate Development?
It was eventually, the entry of Abhischek Lodha (son of Mangal Prabhat) as the managing director of this real estate company which led to this real estate group rising quickly. According to senior vice-president of the Lodha Group R Karthik, Abhischek has mainly brought in a new thought process and vision to this group which was missing. This can be clearly seen in the ambitious ‘World One’ project i.e. the construction of the world’s tallest residential tower he announced way back in 2013. It was also after he entered the business that this real estate group began working on a project every month which resulted in the development of 38 projects spread over an area of 29 million square feet.
With a number of projects lined up for the Lodha Group in areas such as Thane, it certainly seems that for this estate development company sky certainly does not seem to be the limit.