The total cost of this expansion is estimated at Rs. 85 Crores, with a targeted completion date of March 2026.
Funding and Financial Support from Government of India and MTDC:
25 Crores funding has been secured from NKGSB Bank with an additional Rs. 32.5 Crores expected from other banking partners by December 2024.
Financial Support include fiscal and non-fiscal benefits such as:
25% capital subsidy for the project
Lower energy tariffs from MSEDCL
Exemption of electricity duty, GST reimbursements, and stamp duty
50 lakhs interest subsidy on term loans
Industrial status benefits
India’s wedding economy:
India’s wedding industry is estimated to have grown to $130 billion, second only to food and groceries in terms of consumption, thus driving a huge economic boom, according to a Brokerage report. India hosts approximately 80 lakh to one crore weddings annually, making it perhaps the largest such wedding destination worldwide, bigger than China and the US. The trend of destination weddings has grown significantly, rising from 18% in 2022 to 21% in 2023 and 26% in 2024. The ongoing wedding season in India is likely to generate business worth nearly Rs 6 lakh crore across around 48 lakh weddings in comparison to Rs 4.25 lakh crore business generated in 35 lakh weddings last year, said traders’ body Confederation of All India Traders (CAIT).
Revenue Projections:
Upon completion of the expansion, the company project’s annual revenues of Rs. 111 Crores by FY 2026-27, assuming an occupancy rate of 65-75%.
About Bharat Agri Fert & Realty Limited (BAFRL)
Bharat Agri Fert & Realty Limited, established in 1962, 1s a pioneering Indian company, initially recognized for being the first to manufacture NPK fertilizers through “Project Finance” from NRI investors. With three key business verticals — Fertilizers, Realty, and Hospitality — the company is strategically navigating challenges and pursuing growth opportunities.
Bharat’s Fertilizer Division:
BAFRL has successfully entered into a strategic Leave and License cum Fixed Conversion Charges Agreement dated 8th October, 2024 for its SSP /GSSP fertilizer unit located at Wada, District Palghar, Maharashtra with Araglass Products Private Limited (Araglass).
This agreement has been executed subject to the approval of the Department of Fertilizers (DOF), for which the application has already been submitted. The arrangement is structured for an initial term of three years, with the option to extend for an additional three years, effective from the date of DOF approval.
Earlier because of the Fertilizer division BAFRL’s profitability was impacted but after above agreement the Fertilizer division will be profitable from current Q3 quarter onwards resulting in a complete Turnaround of the company. This will also lead to generation of substantial Cash Flows.
Bharat’s Hospitality Division:
The Hospitality vertical features Anchaviyo Resort, set to double its room capacity in Phase 1 and expand further in Phase 2, aligning with the national initiative of “WED IN INDIA.” Additionally, a joint venture with a prominent hotel chain is on the horizon, reflecting the company’s commitment to innovation and market expansion.
Bharat’s Realty Division:
BAFRL has launched its iconic high rise prestigious tower namely Wembely-24 (G+60 Floor) with regulatory approval upto 35 floors, tallest in Majiwada, Thane to offer 457 BHK Residential Flats of 2/3 BHK. The Plinth work has been successfully completed. The total realisations from the Majiwada Project, comprising 457 flats, will be approximately Rs. 800 Crore in the next 4 years on a pro-rata basis out of which cost of Project will be approximately Rs. 300 Crore since the land is owned by company.
BAFRL is excited to announce that we have entered into a marketing partnership with a reputable and experienced company to facilitate the sale of 200 residential flats (2/3 BHK) over the next 15 months, starting from December’ 2024. Due to this partnership the Company is likely to get realisations of Rs. 350 to 400 Crore on a pro-rata basis over the next 15 months.
The Company is planning to redevelop the Company’s existing commercial building situated at BHARAT HOUSE, 12 Nanabhai Lane, Fort area to build modern sophisticated commercial offices up to 35,000 sq. ft. RERA saleable carpet area which can generate a free cash flow of Rs.200 crs.
The Company is also planning a JV project for redevelopment of promoters residential building situated at prime location in Vile Parle (East) near Hotel Sahara Star for making 3-4 BHK luxurious residential flats in Ground +13 Floor high rise building with potential minimum revenue of Rs.175-200 Cr approximately.
Regulatory Approvals:
Town planning approval has been granted for the conversion of 52,27,200 sq. ft. of land for Non-Agricultural (NA) use. Developing its excess surplus land situated at Wada, Palghar into NA by developing area required to build Destination Wedding, Banquet Mandap, Executive Rooms & Landscape with largest Lazy pool area.
Future Development:
The promoters also own an additional 13,06,800 sq. ft. of adjacent land, which will be developed under a 99-year lease for future expansions, including a sports complex and wellness center, subject to regulatory approvals and the upcoming AGM.
Considering above high growth drivers BAFRL could generate a free cash flows between Rs. 2,000 – 2,500 crs. In next 4-5 years as against current Market Cap of Rs. 425 crs.
Commenting on the update, Mr. Yogendra D. Patel — Chairman and Managing Director of Bharat Agri Fert & Realty Limited said, “We are confident that the expansion of ANCHAVIYO Resort will not only drive long-term growth for our hospitality division but also positively impact our real estate and fertilizers sectors. This expansion will significantly contribute to the company’s revenue streams, boost brand recognition, and establish the resort as a leader in the destination wedding and corporate event sector. This marks a pivotal milestone in our growth journey, and we are committed to delivering this vision with excellence and precision.
Anchaviyo will offer tranquillity, natural beauty, and proximity to new upcoming Vadhavan port & airport. This world-class infrastructure is expected to attract business travellers and high-end yachting enthusiasts. The Vadhavan port & airport presents a tremendous opportunity. We believe Anchaviyo’s 7-star like experience, coupled with the port & airport’s convenience, will create a unique and synergistic destination.
These developments reflect our commitment to delivering value to our stakeholders while maintaining financial prudence and operational excellence. We remain focused on executing our strategic initiatives and maximizing shareholder returns in the long term.”
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