Reliance Industries Ltd (RIL) is all set to foray into commercial real estate market.
The company said on Tuesday (28) that it has set up a subsidiary, Reliance SOU, to develop properties for commercial use.
The company said in an exchange filing that it has incorporated Reliance SOU “to carry on, inter alia, the business of development of properties for commercial use.” It has invested an initial capital of ₹1 lakh in the subsidiary.
“The Company has incorporated a wholly owned subsidiary named ‘Reliance SOU Limited’ (‘RSOUL’) to carry on, inter alia, the business of development of properties for commercial use and invested Rs. 1,00,000 in the equity shares of RSOUL,” RIL said in the filing, Financial Express reported.
There were no more details on this, including what kind of commercial properties it proposed to develop and where. It was also not clear whether the company intends this for its own use or for third parties.
With the latest move, RIL is expected to compete against similar Indian giants like Adani Properties, Tata Realty and Shapoorji Pallonji.
Another RIL’s 100 per cent subsidiary is developing a township in Jhajjar in Haryana reportedly involving an investment of over Rs 8,000 crore.
Back in 2019, it had acquired a 65 per cent stake in a real estate project in the business hub of Bandra Kurla Complex in Mumbai for ₹1,105 crore. A month later, it set up Reliance Navi Mumbai Infra Development for real estate development. Its real estate division is said to undertake major development projects for the group such as the Jio World Centre and Jio World Garden at Bandra Kurla.