Published Paper Details:

This paper describes the corporate real estate strategy (CRES) of an existing food processing unit which is planning to expand their manufacturing operations. The options identified for expansion were either to buy out a new land parcel in the industrial zone or to use the existing land parcel already with them. The challenge with choosing the land parcel is shortage of space for expansion. CRES was devised to optimize the space of the land parcel for setting up the new unit and the feasibility of the expansion strategy was analyzed. In this paper CRES emphasizes on vertical construction of the manufacturing unit instead of building horizontal units. This would save cost of buying a new land parcel and the modern construction techniques would ensure cost optimization for the construction of manufacturing unit. The final strategy of renting out the existing building was proposed to capitalize on the benefits of the LRD scheme which would help in repayment of the E.M.I on debt financing. Implementation of these corporate real estate strategies were observed as favorable in reducing cost and increasing operational efficiency of the food processing unit.