Kolkata-based prominent developer Primarc has quietly strengthened its business by offering niche products. It has built up a reputation for being innovative, working towards making spaces affordable, and delivering value for money. “Being innovative and the right pricing will always have an edge in the market, even in a downturn,” says Sidharth Pansari, Managing Director of Primarc Group. Now the management has a vision of taking the company to new heights.
In November last year, the company attracted media attention when, along with RDB Group, it acquired DLF Tech Park 1 IT Park from DLF Infocity Developers (Kolkata) Ltd, a wholly owned subsidiary of DLF Cyber City Developers Ltd, for an aggregate consideration of approximately R638 crore on a slump sale basis. The acquisition includes the cost of the immovable property as well as the business undertakings. The business undertakings include rental, CAM (Common Area Maintenance), fit-out, property management, and other services being operated from DLF Tech Park 1.
DLF Tech Park 1 is one of the largest IT parks in eastern India, with a gross leasable area of approximately 1.49 million sq ft, comprising multiple blocks. The property is LEED Platinum Certified by USGBC and is home to global technology leaders such as IBM, Lexmark, Concentrix, and more. Around 15,000 people work in this IT park in New Town.
Commenting on the acquisition, Sidharth says: “We are buoyant and bullish on the future of IT and commercial office space in eastern India. Quality office spaces are in demand in Kolkata. This is a pivotal step in our growth in the commercial portfolio.” He added that DLF Tech Park 1 is a landmark project and the first largest tech park owned by any private player in Bengal or eastern India. It is also the second-largest tech park in eastern India, after Candor Tech Park, which is owned by Brookfield.
“This is not only one of the largest concluded real estate transactions in Bengal’s history but also one of the biggest acquisitions within the state by a Bengal-based company,” says Surekha Bihani, Senior Managing Director of JLL, the transaction adviser. DLF did not reveal why they wanted to exit Kolkata, but many in the segment believe that the company wants to focus on the larger markets in India. They have also sold Tech Park 2 recently.
A perfect example
Nand Kishore Pansari is the founder of the Primarc Group, and his entrepreneurial journey sets a perfect example for today’s aspiring entrepreneurs. He started in 1978 with a 100 sq ft multi-brand outlet for clothing, including Raymond, at Poddar Court, which was then Calcutta’s CBD. He worked relentlessly to make his store popular. Gradually, he built up a strong customer base and became very popular with a section of Marwari businessmen in the city. Pansari would often carry the latest fabrics to their bungalows for selection and measurement. Seeing his devotion and marketing skills, the Singhanias of Raymond made him an exclusive partner of the company. This was a turning point for Pansari, and he did not look back. Over the years, the small shop turned into a sprawling three-level showroom for Raymond. He also started opening EBOs for Raymond. Today, Primarc is one of the biggest retail partners for Raymond, operating over 50 stores across Bengal, Bihar, Odisha, Jharkhand, UP, and Tripura. The company has been associated with Raymond for the past four decades. “Poddar Court is the largest outlet of Raymond in India and has had the highest sales for the past three decades,” says his son Piyush.
Once the textile distributorship business became stable, the group explored new business opportunities. It entered diverse ventures like real estate, retail, hospitality, and omnichannel logistics. However, today, real estate and retail are the key verticals of the Rs900 crore closely held Primarc Group. The revenue has almost doubled in the past 5 years.
The founder has taken a back seat due to his poor health. His three sons – Mahesh, 49, Piyush, 45, and Sidharth, 44 – are driving the company to new heights. While Mahesh leads design and construction in real estate, Piyush is responsible for retail and distribution, and Sidharth, the Managing Director, oversees performance across the diverse businesses of the group. His passion for books manifested itself in the creation of Story, a popular bookstore in the city. Real estate is now the focus area for growth. It contributes almost 60 per cent of the revenue, with the rest coming from other businesses, including retail. The management has no immediate plans for an IPO.
The company has built several landmark residential (premium, HIG, and MIG) and commercial projects over the last two decades in and around West Bengal, such as Parvati Residency, Aura, Aspira, Akriti, Gangetica, Allure, Aangan, South Winds, and Transport Chambers, including the jointly owned largest mall in South Bengal, ‘Junction’, in Durgapur which spans 4.50 lakh sq ft and has been operational for the last 12 years.
The 1,951-apartment housing complex, South Winds, is the company’s largest project on the Southern Bypass in Kolkata, built in partnership with Srijan and Riya. “It is a runaway success,” affirms Sidharth. Spread over 16 acres of land, it was completed in phases. The complex has 60 per cent open areas with landscaped parks, flowerbeds, sit-outs, a walking track, and a water feature. The greenery is carefully created and maintained to provide an essential touch of garden living. It has modern club facilities called Zing. There is also a swimming pool, gym, outdoor and indoor games, a community hall, a reading lounge, a kids’ play area, a pet zone, and a shopping area. The last phase of 500 flats is currently under construction.
Premium projects
“Primarc projects prioritise community interaction and a sense of belonging. We are dedicated to sustainable practices, promoting a healthier environment for future generations,” explains Mahesh. “Today, we have one of the most diverse portfolios in the segment, including an IT park, a shopping mall, ultra-luxury projects, and many affordable housing projects,” he adds. Some of the group’s upcoming premium projects include Ramdulari at Ballygunge, The Soul at Rajarhat, Southern Vista on the Southern Bypass, and Logos at Beck Bagan.
Primarc is also in the process of building the city’s first super ultra-luxury residential tower at Ballygunge, a posh locality in south Kolkata. Sources say that the company’s unnamed 40-storey signature project will have only 20 limited-edition apartments, with a minimum size of around 25,000 sq ft each. The forest area podium alone is about 35,000 sq ft. This will redefine luxury living. However, the management has refused to share any details, citing that the project is still in its nascent stage. Sidharth claims the company will build more than 10 million sq ft of space in the next 5-6 years, worth Rs10,000 crore.
Primarc mostly works in an asset-light mode. It forms joint ventures with landowners and shares the revenue. “It is much easier for us. We don’t want to get into any legalities as our core expertise lies in design, construction, and marketing. This is less risky and gives us a cost advantage,” says Sidharth.
The Indian real estate sector has demonstrated remarkable resilience and continued its growth momentum on the back of strong end-user residential demand. A shift in consumer preference towards spacious homes, mainly due to improved affordability and positive buyer sentiment, along with the flexibility to move to peripheral areas of the city and the availability of affordable finance, has led to an uptick in demand. According to the ANAROCK Property Consultant report, the luxury home segment dominates new supply with a 42 per cent share, followed by the premium segment with 27 per cent, while the mid-segment comprises 18 per cent.
“RERA has restored customer confidence. The market has now matured, and demand is buyer-driven. Speculative buying has reduced significantly. Today, only the healthy players are launching new projects,” says Mahesh. He believes that the approval and sanction process in Bengal is still cumbersome and needs to be much faster, on par with other states.
After consolidating its position in Bengal, the company is now expanding beyond the state. “We are now moving to Madhya Pradesh (Bhopal), where we are developing a large mall with the RDB Group, as well as housing projects. The mall is expected to open in July-August this year,” says Sidharth. The total project cost is close to Rs1,400 crore.
“Primarc is a prominent player in real estate, with a great team of people. The company has always worked hard to fulfil customers’ needs. Their construction is of high quality with unique designs,” says Harshavardhan Neotia, chairman of Ambuja Neotia Group.
The Pansari family has carefully crafted the business, resulting in Primarc’s success. It will be interesting to see how the company explores new avenues efficiently, with a top-down focus, and takes the business to the next level.