INTERVIEW-UPDATE 1-Orbit sees firm demand, plans township

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By Prashant Mehra

MUMBAI, June 17 (Reuters) - Real estate firm Orbit Corp Ltd (ORCP.BO: Quote, Profile, Research) expects to add new projects worth 8-10 billion rupees in 2008/09, as it sees strong demand for redevelopment projects in south Mumbai, its main area of operation.

There has been concern in recent months that easing real estate prices in India's financial capital, and in other metros like New Delhi and Bangalore, could hit developers' operations, but Orbit sees more realistic pricing boosting long-term demand.

Orbit, focused on selling high-end apartments and offices in the city's affluent areas, sees revenue growing at least 25 percent this fiscal.

"Mumbai is one of the most stable markets in India, and if supply is made available, the demand is always there," finance head Ramashrya Yadav told Reuters in an interview on Tuesday.

With 40 percent of its projects in the premium category, the company's focus will remain in the segment it knows best.

"Given the rising number of millionaires in the city, we will expand in the premium segment. There is good demand stability. We are able to charge 30-40 percent premium over the market rate," Yadav said.

Orbit is also developing mid-level residential and office projects in central Mumbai, where prices have declined by 10-15 percent, but these constitute about a tenth of its portfolio.