Reliance Infrastructure Ltd. has expanded its footprint in the real estate sector with the incorporation of a new subsidiary, Reliance Jai Properties Pvt. Ltd. (RJPPL). The announcement was made on August 12, 2024, through an exchange filing.
As reported by the Mint, RJPPL was officially incorporated on August 12, 2024, as a wholly owned subsidiary of Reliance Energy Ltd., which is itself a subsidiary of Reliance Infrastructure. The new entity was established with an authorized and paid-up share capital of ₹1,00,000, divided into 10,000 equity shares valued at ₹10 each.
RJPPL is expected to focus on a range of real estate activities, including the acquisition, sale, leasing, and development of various properties. This strategic expansion into real estate aligns with Reliance Infrastructure’s broader objective of diversifying its revenue streams and capitalizing on the growing opportunities in the Indian real estate market.
Reliance Infrastructure’s move comes at a time when the Indian real estate sector is experiencing significant growth. This expansion is fueled by urbanization, rising income levels, and supportive government initiatives aimed at boosting both residential and commercial real estate development.
Among the key government initiatives is the Pradhan Mantri Awas Yojana (PMAY), which aims to construct 20 million affordable homes. As of 2023, approximately 11.4 million homes have been sanctioned, with 9.71 million already completed or delivered.
Additionally, the government has committed ₹48,000 crore ($6.5 billion) for the development of 100 smart cities across India. By 2023, over 7,900 projects valued at ₹1.93 lakh crore ($26 billion) had been tendered, with more than 4,700 projects worth ₹93,500 crore ($12.6 billion) completed.
Significant investments in infrastructure are also expected to drive real estate growth. The government has increased the budget for infrastructure-related ministries from approximately ₹3.7 lakh crore in FY23 to ₹5 lakh crore in FY24, presenting substantial opportunities for private sector investment.
The largest share of infrastructure investment is directed towards roads and highways, followed by railways and urban public transport. The government’s ambitious goals include expanding the national highway network to 200,000 kilometers by 2025 and increasing the number of operational airports to 220. Additionally, plans are in place to make 23 waterways operational by 2030 and to establish 35 Multi-Modal Logistics Parks (MMLPs).
Despite the strategic expansion, Reliance Infrastructure’s share price experienced a slight decline, closing 1.80% lower on August 11 at ₹225.85 on the BSE. The company’s market capitalization stood at ₹8,946.62 crore, down from its 52-week high of ₹308, which was reached on April 4, 2024.
Reliance Infrastructure’s launch of Reliance Jai Properties marks a calculated entry into the burgeoning real estate market. With significant government backing in the form of infrastructure investments and housing initiatives, RJPPL is positioned to play a crucial role in the company’s diversified growth strategy.