Rodium Realty is a Mumbai specialist that replaces the city’s crumbling apartment blocks with modern towers, effectively recycling the same scarce land to create more homes. It was founded on the insight that over half of Mumbai’s buildings are more than 30 years old, and its recurring approach is to partner directly with the housing societies that own those ageing buildings, offering residents new flats in a taller, better structure at no cash cost. The company calls this “affordable luxury” - a model that turns a regulatory necessity into a pipeline of projects in established neighbourhoods where vacant land barely exists. # Business segments A single engine - redeveloping old residential buildings into modern towers - with a small commercial portfolio grown on the same sites and an early-stage digital subsidiary that sits apart. ## 1. Residential redevelopment: rebuilding Mumbai’s housing societies from the inside **The company persuades entire housing societies to hand over their ageing buildings; it then demolishes them, constructs a taller tower on the same plot, gives every original resident a new flat, and sells the extra apartments to outside buyers - that is how it makes money.** - **The ageing city is its pipeline** - more than half of Mumbai’s buildings are over 30 years old, and each one eventually needs redevelopment, so the company’s addressable market renews itself continuously. - **Land acquired through negotiation, not auction** - it secures plots by partnering with housing societies rather than bidding for vacant land, which means the land cost is effectively the new flats it builds for existing residents, keeping upfront cash outlay lower than buying a comparable plot on the open market. - **Paid only when the flat is ready** - revenue from a new apartment is recognised either at handover or, for units sold while under construction, gradually as costs are incurred, because the company has an enforceable right to payment for work done and the flat has no alternative use. It does not hand over possession until the entire outstanding amount is collected, so bad debts on home sales are almost negligible. - **A 3-to-5-year cycle per project** - the normal operating cycle from start to completion runs between three and five years, depending on the project’s size and how quickly approvals come through, which means cash is tied up in construction long before sales receipts arrive. - **Kandivali is the home turf** - the company concentrates its projects in the western suburbs of Mumbai, especially Kandivali, a well-connected residential belt with high demand, giving it local knowledge and a repeatable playbook rather than spreading thinly across the city. ## 2. Commercial development: offices and retail on the side **The commercial portfolio is a by-product of the residential engine - a handful of completed buildings in Andheri that house offices, restaurants and showrooms, built on the same redevelopment logic.** - **Two rated buildings anchor the portfolio** - X’cube and X’trium, both CRISIL 5-Star rated, provide space for corporate offices, banquet halls and residential hotels; X’cube is in Andheri (West) and X’trium is on the commercial artery. - **Same recognition, same risk** - commercial revenue follows the same accounting treatment as residential: recognised at completion or over time for units sold during construction, with possession tied to full payment. - **Sold through partners and exhibitions** - the company reaches corporate tenants, high-net-worth individuals and retail buyers through reputed channel partners and property exhibitions, supported by a digitised listing presence to maintain conversion rates. # Group structure and partners **The listed parent runs its projects through five subsidiary LLPs, each 75%-owned, while a small US digital subsidiary sits outside the real estate fold.** - Rodium Realty Limited is the listed entity, and it holds a 75% equity stake in five Limited Liability Partnerships - Rodium Housing LLP, Readystage LLP, 81 Estate LLP, Fluid Realty LLP and Xperia Realty LLP - through which its development projects are executed. - A wholly owned subsidiary, Rodium Digital Inc., was incorporated in Delaware in 2022 to offer digital marketing services to small US businesses, though as of early 2023 it had not yet started operations. - The board is led by Chairman and Managing Director Deepak Chheda, with two whole-time directors and three independent directors; the Chief Financial Officer, Rohan Chheda, also heads the digital subsidiary. - The company has provided a corporate guarantee of Rs. 5,000 Lacs as a partner in an LLP for its subsidiaries, and its long-term borrowing facilities were rated BWR BB / Stable as of FY23.