Chennai-based realty developer Akshaya Homes plans to develop special economic zones in tier 2 cities of Madurai, Trichy and Tirunelveli. The company is in the process of acquiring land in the three cities at a cost of Rs 150 crore (Rs 1.5 billion).

Plans for SEZ development are still in their nascence, Chitty Babu, managing director, Akshaya Homes, said.

The company has 11 ongoing projects on a combined area of 2.2 million sft, and expects to execute 60 per cent of the combined project work by the end of the current fiscal. He said the current potential of the 11 projects is around Rs 770 crore (Rs 7.7 billion) and the company expects to close the current fiscal at Rs 350 crore (Rs 3.5 billion).

Akshaya Homes recorded a total turnover of Rs 101 crore (Rs 1.01 billion) during fiscal 2007. "Besides the current 11 projects on hand, we have signed up for 10 more projects and expect to achieve the Rs 1,000-crore (Rs 10 billion) milestone by fiscal 2009," he said.

Chitty Babu said the company would require an additional Rs 200 crore (Rs 2 billion) in capital to touch the Rs 1,000-crore (Rs 10 billion) mark by the end of fiscal 2009, which would be funded primarily through an equity-debt mix of 80:20. He ruled out the possibility of a public listing in the near future. 

The company plans to invest Rs 25 crore (Rs 250 million) in infrastructure, manpower and technology to meet the Rs 350-crore (Rs 3.5-billion) turnover mark during the current financial year.

Akshaya Homes has completed 126 projects till date and plans to come up with residential projects in Madurai, Salem, Trichy, Bangalore and Hyderabad.

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