DLF’s Investment in Working Capital
DLF, the leader of the Indian real estate industry in terms of revenue, earnings, market capitalisation and developable area has been able to capitalise opportunities in an efficient manner. Though the company made its Initial Public Offering (IPO) in July 2007, it has a 62-year track record of sustained growth, customer satisfaction and innovation in the country’s realty sector.
DLF was founded by Chaudhary Raghvendra Singh way back in 1946 and developed about 22 urban colonies between 1947 and 1964. It had developed few of the first residential colonies in Delhi such as Krishna Nagar in East Delhi (completed in 1949) and had also been responsible for the development of some well-known colonies such as South Extension, Greater Kailash, Kailash Colony and Hauz Khas. With the passing of the Delhi Development Act in 1957, the State assumed control of real estate development activities in the capital city, thereby restricting the entry of private real estate development players in the sector. This forced the company to diversify into batteries and cable business.
Meanwhile, the company started acquiring land at relatively low cost in Gurgaon district of Haryana, which was not under the control of Delhi Development Authority. In 1975, DLF initiated the development project DLF Qutab Enclave under the leadership of Kushal Pal Singh (chairman of DLF and son-in-law of Chaudhary Raghvendra Singh), which evolved as DLF City – DLF’s first landmark project. DLF City is an integrated township, including residential, commercial and retail properties with modern facilities like schools, hospitals, hotels and shopping malls spread over 3,000 acres of land in Gurgaon. Since 1981, the company had ventured into different businesses – group housing projects (1982), community shopping centres (1989), first grade office space (1991), etc. and developed numerous projects in each segment (Annexure V).
The success of the company is...
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