Mangal Prabhat Lodha is one of the most well known real estate developer. He is also one of the most highly-respected Politicians, India has ever seen. This highly honoured politician and founder of Lodha Group was born on the 18th of December 1955. Presently he is the working Chairman of the group. Also he has been devoting loads of his time as the Member of the Legislative Assembly. He has served the people of Mumbai as the Vice-President of the ruling party of Bharatiya Janata Party (BJP) in Maharashtra.
The entrepreneur has been married to Mrs. Manju Lodha and has two sons, Abhishek and Abhinandan. Abhishek has done his Engineering from the Georgia Institute of Technology and holds a Masters degree in the subject of Industrial Systems. His second son Abhinandan has done his Masters in Business Administration from Cardiff University. Both of them are currently leading the Lodha Group; Abhishek is working as the Managing Director and Abhinandan has been given the position of the Deputy Managing Director.
Mangal Prabhat Lodha comes from an affluent family. He was born on 18 December 1955 in Jodhpur, Rajasthan. His father, Shri Guman Mal Lodha is a popular freedom fighter and the chief justice of the Guwahati High Court. Mangal Prabhat Lodha holds a graduation degree in the field of Commerce. After completing his graduation, he went on to pursue the degree of LLB from the University of Jodhpur.
Soon after completing his studies, Mangal Prabhat Lodha began his law practice for law in Jodhpur High Court. As a lawyer, his career was seemingly picking pace, and also he was doing exceptionally well in this profession!
All was going well but after sometime, his father, Guman Mal ji got transferred and was appointed as a judge in the Jodhpur High Court. He found that it would be really inappropriate to practice in the court which would be judged by his father. Therefore, he decided to move his practice. It was an unfortunate event in the career of Mangal ji and soon happened to be a turning point in his life.
After moving his practice, Mangal ji continued to serve as a lawyer, but still there was something that was missing in his life! He did not find joy in his profession and found something very unappealing in this profession. Steadily, he was realising that this is not what he wanted to do.
Therefore, he brought the law practice to an end and decided to search for his dream job the city of dreams. So, in 1981 he moved to Mumbai and laid the building stone of the Lodha Group! And soon this group become his passion and his career!
After reaching the city of Mumbai, Mangal Prabhat Lodha had to work hard to create a niche for himself. He had to think of a way and had to establish an empire that would have a sustainable and steady growth and also a company that can sustain around thousands of people.
With loads of hard work and efforts, Mangal Prabhat Lodha founded the Lodha Group in 1981. All this while he has worked solely to take the Lodha Group to unpredictable heights! He started his dream by undertaking development in Thane. This suburb of Mumbai was an area which was one of the most underdeveloped areas of Mumbai. No developer ever thought of building property in Thane but Mangal ji decided on to take this calculated risk and offered housing at a very reasonable rate here.
He started on to start offers that could benefit his clients. Mangal ji not only provided his customers a beautiful and comfortable accommodation, but also redefined the standard of living. He brought in numerous innovative strategies that were unheard in the city.
- His Lodha Group became the first Indian real estate company to introduce a “Customer Rewards Program” and it became a very successful scheme.
- Under his guidance and expertise, the Lodha Group came up with the concept of LEED certification for their commercial projects.
- Unlike the age-old fashion, Lodha Group initiated the method of flat booking by ‘invitation only’.
- Mangal ji introduced some of the most hi-tech homes and state-of-the-art facilities. He designed homes which allowed the owners to control the various electronic gadgets of houses through their mobile phones.
These innovative and out of the box strategies of the group, created a buzz among the buyers. The group soon went on to attract a swarm of people who were excited to buy the property built by Lodha Group. Mangal ji was excited and there was a wave of celebration in the group, but in spite of this success, he did not lose focus and went on to reach unprecedented heights.
Mangal ji had succeeded in creating a name and demand for his real estate group in the market. For the next 20 years, he put his heart and soul to take the Lodha Group to the zenith of success. He offered exceptionally luxurious and beautiful buildings that became an instant hit among the masses. People had begun being addicted to his style and designs.
Mangal ji realised that to establish a successful business empire, he needed to maintain a good distance from the media and focus only on the middle class of Mumbai. And soon enough, he expanded his base to Hyderabad and Pune apart from the existing one in Mumbai.
In 2003, when he realised that his sons, Abhishek & Abhinandan were old enough to help him in his business, he involved them and handed them the position of Managing Director and Deputy Managing Director of the group. But he still kept the final say to himself and held the position of the Chairman of the group.
But the major success of the group was yet to come. In the year 2008, the group saw its biggest jump. In spite of being just a Rs. 266 Cr (USD 2.66 billion) company, the Lodha group finally received one of the most whopping funding of their lives. This funding amounted to Rs.1, 700 Crore and came from a group of investors who were led by the Deutsche Bank. For the Indian Real Estate this funding came across as the largest known FDI (Foreign Direct Investment) deals.
The creditability of the group increased manifold and it gained immense respect amongst the investors as well as the masses. The group has now finally been able to build a strong team of investors which includes loads of private equity funds and big bankers like JP Morgan, Deutsche Bank, HDFC Ventures, ICICI Bank and State Bank of India, etc.
In 2010, the company made headlines for acquiring a 25,000 square meters plot in Wadala for a whooping price of Rs. 4,050 Crore. The company bagged this plot in an auction conducted by Mumbai Metropolitan Region Development Authority (MMRDA). This was Mumbai’s costliest land deal in 2010 and the Lodha group has been able to get it.
And soon after this, in just a period of two years, the group again took the new channels by storm by again buying a 17-acre mill in Worli from DLF for Rs. 2,700 Crore this was a stupendous sum and this created enough headlines!
The Lodha Group which started off with the dreams of a lawyer in Jodhpur has now turned to be a company that owns more than 181 Million square feet of land just by bagging every opportunity that presented itself and by religiously following a path which was less treaded. Under the roof of Mangal ji’s expertise and sharp vision this group has currently undertaken over 30 projects on over 35 million square feet of land, in and around Mumbai. The group now has over 3800 associates and employs over 25,000 site-based workers.
Clearly, the group has now succeeded in becoming the biggest real estate developer in the country and by keeping into account the exponential growth in their stats; it just seems a matter of 5 to10 years when this prestigious Lodha Group would create a niche for itself in the world market.
Image Credit: www.lodhagroup.com
Acquisitions and investments
Mangal ji’s sons were very aggressive and they had made up their mind to expand internationally!
- In 2013, they bought the famous ‘McDonald House’ at the heart of Mayfair, London for more than Rs. 3,000 Crores ($500 Million).
This property has marked their entrance into the London markets and has also brought them into the big league of Indian real estate giants. They are now standing in comparison to the top three builders in the country, that are, Hiranandani’s, DLF and Raheja’s. With this propert they can now look forward to build a strong base in London similar to the one they hold in Mumbai and to convert the city’s commercial properties into luxury residential apartments.
This property can be considered as one of the most important investment of the group. Central London is one of the most attractive markets for foreign investors from West Asia, Russian and China so this property is an amazing buy. By selling properties in London the Lodha Group can certainly dream of earning huge amount of profits.
- Recently, in 2014; the Lodha Group has partnered with globally renowned designers, architects and consultants like Giorgio Armani, Quintessentially, Kapadia Associates Ltd, Ken Smith, Pei Cobb Freed & Partners, Leslie E. Robertson Associates (LERA), Leslie E. Robertson Associates (LERA), etc to build their most ambitious project named “The World Towers” in the heart of Mumbai.
With this project they aspire to build a building name World One, which would be the world’s tallest residential tower with 117 floors, and World Crest. The apartments in these skyscrapers would cost a person somewhere between Rs7.5 Crores to Rs. 50 Crores.
Mangal Prabhat Lodha has begun taking a keen interest in the Indian Politics. Since 1995, he has played an important part in it and is a six-time winner. Since he first stood in the election, he has won all the elections from his Malabar Hill Constituency.
He has a real-time net worth of more than $2.9 Billion, and is counted as one of the richest men in politics. Mangal ji is a legislator, and with this position he has brought about some magnificent developments in his home-ground. Some of his major political contributions include: –
- Introduction of the RTI bill in the Vidhan Sabha
- Even after firm opposition, he has undertaken a smooth transition of the bill
- Key role in the ratification of the Right to Information Act (RTI)
- Formation of the Animal Welfare Board in Maharashtra
- Proposition of a law against cow slaughter in the state
- Creation of separate law/regulations in support of the construction and development of over 50,000 housing societies
- An important link between the business communities and the government, to implement a number of policies
Other than that; he also runs a charitable trust under the name of the ‘Lodha Foundation’, through this trust he has taken numerous initiatives for the lesser privileged of the society and has done loads of work to benefit them with education, healthcare, sports and culture he has also done various work to provide thousands of people with the facilities such as medical treatment, vocational training, etc.
Awards and Recognitions
In his illustrious career, Mangal Prabhat Lodha has been awarded with innumerable laurels and recognitions. He has managed to earn a special respect among the masses. Some of the most notable awards and recognitions that he received include:
- Won the ‘Global Leadership in Real Estate’ Award at the NDTV Property Awards (2014)
- Awarded the ‘National Safety Council Award’ (2014)
- Won the ‘India’s Most Admired Builders’ Award at the 9th CWAB Awards (2014)
- Named as ‘India’s Most Trusted Brand’ in the Real Estate Developer category by The Brand Trust Report, India Study (2014)
- Won the CNBC Awaaz Real Estate Award (2013)
- Won the Emerging Business of the Year Award by HELLO! Magazine (2013)
- Named as the ‘Most preferred real estate brand in Mumbai’ by Morgan Stanley Research (2012)
- Won the ‘Leaders of Indian Infrastructure & Construction’ Award by Economic Times ACETECH (2009)