Who has not heard of the acclaimed Lodha Group? The real estate behemoth is a dominant player in the Mumbai real estate market and beyond. Here is the fascinating story behind its meteoric rise over the years and its dynamic founder.
Lodha Group, one of India’s biggest real estate conglomerates, owes its origins to Mangal Prabhat Lodha, a developer-politician. He is the Chairman of the Group while also juggling his duties as an elected representative and politician. His sons Abhishek and Abhinandan currently run the vast Lodha Group. However, there is a fascinating story behind the inception of one of India’s biggest real estate developers. Mangal Prabhat Lodha was born to freedom fighter and Guwahati High Court Chief Justice Shri Guman Mal Lodha. He was born in Jodhpur and later completed his graduation in Commerce followed by an LLB from the University of Jodhpur.
He initially started his law practice at the Jodhpur High Court and made a name for himself steadily. However, his father was transferred afterwards and he was appointed as a judge in the same court where M.P. Lodha practiced. He decided to shift his practice as a result. However, destiny intervened when he discovered that law was not his actual passion. He shifted to Mumbai in 1981 and started pursuing his new dreams. The Lodha Group was established in 1981 and steadily grew under M.P. Lodha’s astute stewardship. It first ventured into Mumbai’s suburbs which were neglected by many other big developers. The Group started coming up with luxury projects in suburban areas with competitive prices.
The Group was also one of the pioneers to come up with a Customer Rewards Program. They also came up with LEED certification for commercial ventures. They initiated the system of flat bookings via invitation only. The Lodha Group started offering cutting-edge and technologically elevated housing units with the best facilities including mobile smartphone controls for home appliances. The Group started creating a sizable buzz in the market and started witnessing huge sales volumes over the years in Mumbai and its adjoining areas.
Over two decades, M.P. Lodha steadily built the foundations for a massive real estate empire. He also focused on mid-income buyers of Mumbai, offering them elevated living at reasonable prices. He also ventured into the Pune and Hyderabad realty markets. In the year 2003, he handed over his business to his sons and in 2008, the Group received mega funding of Rs. 1,700 crore from an investor group spearheaded by Deutsche Bank. This deal created history as one of the biggest FDI (foreign direct investment) deals in Indian realty.
Back then, the Lodha Group had a net-worth of Rs. 266 crore by FY2009-10 and they again made a splash by acquiring a 25,000 square meter Wadala plot for a gargantuan Rs. 4,050 crore via the auction held by the MMRDA (Mumbai Metropolitan Region Development Authority) in the year 2010. They followed up this feat with a 17-acre mill purchase in Worli for an unbelievable Rs. 2,700 crore! Thereafter, the Group purchased a property in Mayfair, London which is the iconic McDonald House (the previous Canadian High Commission) for more than Rs. 3,000 crore.
Throughout the journey, the Group also built a big investor base, comprising of Deutsche Bank, JP Morgan, ICICI Bank, HDFC Ventures, State Bank of India and many others. In 2014, the Lodha Group once again made headlines by teaming up with Quintessentially, Giorgio Armani, Ken Smith, Kapadia Associates Ltd, Leslie. E Robertson Associates (LERA) and Pei Cobb Freed & Partners for building their biggest project till date, namely The World Tower, with apartments priced up to Rs. 50 crore and more! The project had the world’s tallest residential tower World One with 117 floors and the World Crest tower.
The Group owns almost 200 million sq ft in various land parcels while developing multiple real estate projects simultaneously. It has thousands of employees and on-site workers under its belt. Mangal Prabhat Lodha is one of India’s richest real estate developers with a net worth of $2.9 billion as per Forbes. Lodha is now developing a Trump Tower in Mumbai, named The Park in midtown, which will go up to 75 floors and will be one of the most luxurious projects in the city. The IPO of Macrotech Developers (parent entity of the Lodha brand) was also done in the year 2021. At least half of the business of the Lodha Group is derived from its affordable housing projects as per estimates while they also have a sizable presence in the commercial and luxury segments. The Group also purchased a building on Carey Street London in tandem with McDonald House. The Lodha Developers company became Macrotech Developers in the year 2019. In the same year, M.P. Lodha and his family were named as India’s richest realty developers as per GROHE India and Hurun, with a net worth of Rs. 31,960 crore.
Who knew that the story of one of the country’s biggest real estate developers and arguably its richest real estate tycoon would originate from the Jodhpur High Court. While Mangal Prabhat Lodha left his legal practice, the country gained one of its biggest realty behemoths, generating employment for thousands while contributing significantly to the nation’s development in various ways. The key differentiator for the Lodha Group, as per industry observers, is its ability to juggle luxury and affordable housing projects simultaneously. That is what characterizes the DNA of the Group, i.e. one based on offering multifaceted and dynamic solutions for customers in this industry.
