Pune, Maharashtra / 26 August 2024
EFC (I) Limited, a leading provider of managed office spaces, has announced the expansion of its portfolio in Pune through its wholly-owned unlisted subsidiary, EFC. The company recently acquired 49,556 sq ft of prime office space in Pune, valued at Rs 80 crore. This strategic acquisition will support EFC (I) Limited’s managed office business model, providing over 1,500 new seats and enhancing its growing regional presence.
During the earnings conference call, Nikhil Bhuta, Whole-Time Director of EFC (I) Limited, stated, “We have acquired approximately 80,000 sq ft of property in Pune. EFC (I) has acquired this freehold property under ownership, which will be developed and leased under our managed office business model. This acquisition has the potential to generate an annual revenue of about Rs 14.40 crore.”
EFC (I) Limited has strengthened its presence in the National Capital Region (NCR), Ahmedabad, and Kolkata by acquiring a 51% stake in Bigbox Venture to expand beyond Pune. Bigbox, which already had a portfolio of over 3,000 seats in Pune, has added approximately 2,000 more seats since the acquisition. Umesh Sahay, Founder and Managing Director of EFC (I) Limited, mentioned, “When we acquired Bigbox, it was already adding about Rs 2 crore a month in topline revenue with around 2,800 – 2,900 seats.”
EFC (I) Limited has also secured a significant design-and-build contract with Tata Consultancy Services (TCS). Bhuta noted, “In the design-and-build division, we have secured contracts exceeding Rs 75 crore during this quarter (Q1 FY25) across various business sectors and are currently negotiating additional contracts worth over Rs 100 crore.”
EFC (I) Limited has also incorporated a Real Estate Investment Trust (REIT) through EFC, with a substantial corpus of Rs 499 crore, to establish small and medium REITs. Sahay elaborated, “The REIT application has already been filed with SEBI, and a round of discussions has occurred with the regulator. We expect approval to register our REIT by the end of this month or early September.”
EFC (I) Limited manages approximately 2.25 million sq ft of assets across 57 sites in seven cities, with a seating capacity of around 47,000 as of June 30, 2024. The rental segment generated Rs 66.79 crore in revenue, accounting for about 63.44% of the company’s total revenue. The design and build turnkey contracting business contributed Rs 35.03 crore, representing approximately 36.56% of the total revenue.
Under its subsidiary, Ek Design Industries, EFC (I) Limited has also secured regulatory approvals to establish a manufacturing facility on over three acres in Phursungi, Haveli Taluka, Pune. Production trials are expected to begin in August 2024, with commercial production set to launch in September 2024. Once production starts, the company anticipates achieving a topline of Rs 50-70 crore in FY25.
Looking ahead, EFC (I) Limited plans to continue its aggressive expansion strategy, aiming to add 30,000 to 40,000 seats annually. The company is also optimistic about its furniture manufacturing business, expecting to reach a topline of Rs 250-300 crore by the end of FY26.