Wednesday, July 24, 2024

Mumbai-Based Man Infraconstruction Ventures into Uncharted Territory with India’s Tallest Building

In a bold move, Mumbai-based company Man Infraconstruction (MICL) is undertaking a monumental endeavor — the construction of India’s tallest building, standing at an impressive 312 meters with 81 floors. While relatively unknown on a national scale, MICL, originally a contractor that transitioned into real estate development, has carved a niche with commendable projects in Mumbai’s Eastern Suburbs.

Historically, ventures into constructing the world’s tallest buildings have been fraught with economic downturns. Notably, countries like the US and Malaysia faced financial crises during the development of towering structures. Despite India lacking a presence in the list of the world’s tallest skyscrapers, MICL is boldly challenging this trend.

Constructing tall buildings involves inherent risks, with costs escalating significantly compared to shorter structures. The expense isn’t limited to additional floors alone but transforms the entire project dynamics, encompassing factors such as steel and concrete consumption, elevator quantity, and a substantial consideration — debt. The prolonged construction timeline for tall buildings leads to extended repayment periods for high-interest debt, often resulting in completed structures without profitability.

Despite these challenges, MICL, in the property business for a decade, is venturing into uncharted territory with a uniquely designed super-tall building. The 31-year-old Manan Shah, representing the Shah family’s 50-year-old company, exudes ambition and believes in the potential recognition of their work. Unfazed by skepticism about super-tall buildings, Manan asserts that he initiates projects only after securing all necessary approvals.

Addressing concerns about execution challenges faced by even established players, Manan emphasizes his strength as both a contractor and developer, minimizing dependency on external contractors. While questions linger about the demand for million-dollar homes in a modest neighborhood like Tardeo in South Mumbai, Manan remains confident. He asserts that strong sales velocity indicators and limited dependence on debt will propel the project forward.

However, doubts persist about MICL’s brand recognition in the competitive South Mumbai market and the feasibility of selling luxury homes at the current price of Rs 60,000 per square foot. Additionally, the possession date set for December 2030 raises challenges in enticing early buyers. Success in this ambitious project could elevate MICL’s standing in Mumbai’s real estate landscape and potentially reinvigorate an industry that has lost sight of ambitious aspirations.

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