Published by yourcollegebars on May 2, 2017

Landmark projects

The complex has a cafeteria, doc­tor on 24  hour call and other recre­ational facilities to suit the needs of elderly residents. Many of the residents have grown-up children who have set­tled overseas. “When they come here they bring i-Pads with them and teach us how to use them. This enables us to reach them whenever we want”, adds Sundaresh.

However, the most important aspect of the scheme is that the elderly residents feel secure in the complex. “People look after each other,” says Sundaresh. He
the prime properties of the city. “We feel our brand works well with the buyers in this area,” says Sashank.

Landmark projects

PSCL’s Blue Ridge is being developed on a 138-acre plot, with a sanctioned development plan of 9.1 million sq ft. About 50 per cent of the project is complete and the rest is expected to be over by 2019. This was in fact the second township project sanc­tioned by Maharashtra government since it began encouraging township projects.

All of the structures in the proj­ect are constructed using aluminium shuttering. “This provides neat finish to the buildings, apart from strength in construction”, says Dhananjay Divekar, vice-president, construc­tion, Paranjape Schemes. Among other things, the township will also have 3 million sq ft of IT SEZ.

One of the interesting features of Blue Ridge is a 30-acre golf course, which provides a pleasant pastoral environment to the township. The other features are a boat club with marina; a pet zoo for children; fruit orchard; shopping mall and multiplex; world-class school and day care centres for children as well as sports and recre­ation facilities. For the convenience of residents, the project has also provided for corner shops for daily essentials.

Another of PSCL’s interesting township projects is Forest Trails at Bhugaon, Pune. This is a 170-acres

adds, “We meet each other every eve­ning. Had you come in the evening, you would have seen the reception full and noisy with people chatting”. Everyone knows everyone else and, if someone is not seen for a few days, other members immediately get concerned and visit his flat to check whether everything is fine. To ensure safety and access in case of emergency, one key to the flat of every member is kept at the complex office under lock and key.

All the Athashri projects till date have had an overwhelming response, show­ing the growing need for such specialty housing in the country. The projects of Athashri are well researched and it would not be far-fetched to state that

 

Shashank: our brand works well

 

township that offers 1,2 & 3 bedroom hall kitchen premium apartments, along with separate sectors for inde­pendent and semi-detached bunga­lows and row houses of 13 different designs in varying sizes overlooking Manas Lake. “ASK Realty Fund has invested ?55 crore in this project”, avers its MD, Sunil Rohakale. He has in fact known and financed Paran- japes’ projects since 1999, when he was a general manager with ICICI.

Forest Trails has, apart from the usual sports facilities, some uncon­ventional facilities like camp­ing, trekking, horse-riding and a

these projects provide world-class facil­ities. Complete understanding of spe­cific needs of senior citizens, continuous research, learning from past experiences and, most importantly, the feedback received from actual users have been the cornerstone of every Athashri project right from the scheme’s conception.

“At Athashri, ageing is seen not only as the beginning of a new phase in the life of senior citizens, but more so as a ‘golden age’ based on solidarity and mutual sup­port”, says Shrikant. Indeed, Athashri Homes, which began in the year 2001, have grown in the expertise of serving senior citizens in their housing needs, personal care and dignified living.

♦ SM

professionally managed stud farm. Its residential part consists of bunga­lows, high rise buildings and senior citizen housing. The club house at the hill top gives a panoramic view of the township. The bungalows range in price from ?1.20 crore to ?6 crore and apartments from as low as ?35 lakh (1 BHK) to T1.90 crore (duplex).

Prior to Forest Trails and Blue Ridge, the developers had done a couple of bungalow schemes, Vasant Vihar and Rolling Hills, at Baner. The former was developed on the Aus­tralian pattern, with no compound walls, but just green spaces marking boundaries between bungalows. The project got the design award from the Architects & Engineers Associa­tion, after its completion in 2010.

Senior citizen schemes

However, Paranjape’s pet project has been housing for senior citi­zens, under the banner Athashri {see box). In the last 15 years, PSCL has executed five of these projects in Pune – two at Pashan and one each at Bavdhan, Hadapsar and Baner. In 2009, the company launched one more Athashri scheme, but this time in Bangalore. The first phase of this has been completed and handed over to the residents. The company’s lat­est launches in this category have been in Hingewadi and Baner, Pune and in Vadodara, Gujarat.

The promoters see a great poten­tial in Athashri brand, which has become Paranjapes’ niche scheme. Further, they also see great potential in mass housing. “If you look at the consumer pyramid, you will notice that the base is large. There is a scope to profitably deliver quality housing to this large underserved segment,” avers Shrikant. As for Athashri, it has been successfully tested in Pune since their first project in 2001.

Sceptics may, however, question the prudence in pursuing mass hous­ing, where operating margins can be low. The trick is to manage these proj­ects with tight schedules. “This can be achieved by breaking them down into smaller components, optimally scheduling them and controlling their costs and execution time to get satisfactory returns,” says Shashank.

In fact, pscl has successfully tested this segment in Pune too, with the flats priced at ?14-20 lakh. What is, however, significant is that they have always been cautious in first assessing opportunities on a smaller scale, before scaling up on a grander scale.

While these projects provide an overview of the Paranjapes’ approach to their business, they have recently undertaken two SRA projects in Pune. The main purpose of this has been to generate TDR (transfer of development rights) for use in their own projects.

Paranjape Brand

PSCL hopes to complete 20 projects in this calendar year, covering vari­ous schemes. This would indeed be an achievement, were the Indian realty market in metros not reeling under inventory.

However, “PSCL has been a promi­nent brand with an impeccable track record and a high velocity of turnover in whichever market it has stepped in,” says Jijina Khushru, MD, Indiareit, which has been financing Paranjapes for several years now. The Pune real estate broker Sanjay Apte also seems to agree: “There are clients who come to me specifically asking for proper­ties in Paranjape Schemes.”

Paranjapes have painstakingly built this standing over the years. One of their brand building strategies
has been to go well beyond the usual offerings like swimming pool, club house, etc, that other developers also offer. “We in fact maintain regu­lar contact with the residents of our schemes, even after the project is over and possession given to them,” says Shrikant.

To build bonds, Pranjapes pro­mote group activities like dance and drama competitions, singing concerts and sports events at their schemes on several occasions during a year. “This helps in bringing the residents together and creating a feel­ing of oneness with us”, says Sashank. Needless to say, it has also created an affinity towards the Paranjape brand in the buyers’ mind.

A safe bet

There is yet another interesting aspect of their marketing. Besides the prevailing marketing approaches to promoting schemes, like par­ticipating in housing exhibitions organised by the developers’ associa­tions, Paranjapes host exhibitions of their own schemes. The most recent of this was a three-day exhibition in Pune, in November 2014, where they pre-launched five new projects.

Raising funds for projects has never been an issue with the Paran­japes. Over the years, they have built up a sound track record of rewarding their investors. “We had invested ?68
crore in one of the Paranjape proj­ects,” says K.G. Krishnamurthy, CEO, HDFC Property Fund. “We exited after five years in 2012 with ?170 crore”.

Not surprisingly, the same fund has recently invested ?130 crore in the developers’ Wagholi Warve project near Pune. Similarly, India­reit, which had invested ?400 crore in three of their schemes during 2007-10, has recently advanced ?180 crore by way of debt.

It is well known that the recession­ary trends in Indian realty markets since the global financial meltdown in 2008 has affected many devel­opers. However, Paranjape’s have been punctual in meeting their financial obligations.

This could not have been possible without healthy cash flows. Looking at the last three years’ financial per­formance, the developer has indeed continued to grow the top and the bottom lines reasonably well even in these trying circumstances.

PSCL’s annual revenue has grown from ?139.41 crore in 2012-13 to ?195.49 crore in 2014-15. Its profit before tax grew from ?9.31 crore loss to ?18.95 crore profit during the same period (see bar chart). Thus, the company has beer, a sound bet even in the depressed realty market.

♦ SHRIKANT MODAi [email protected]: ~

Does anyone know where the critical components for Air­bus or Boeing come from? Or where United Technologies goes shop­ping for its Chinook helicopter? Or where Gulfstream Corporation gets spare parts for its Gulfstream5; Ale- nia Aermacchi (a Finmeccanica com­pany from Italy) accesses its ATR; or Pilatus Aircraft equips its PC 12 (a sin­gle-engine turboprop aircraft)? Not from Houston, Stockholm, Singapore, Paris or even Seattle, the aerospace global capital. These super versatile components, such as wing-flaps, air­frames, cargo door parts, floor boards, control boxes and aero-systems, are sourced from the $25 million Aequs SEZ (India’s first precision engineer­ing special economic zone), which is spread over 250 acres at Hattagri vil­lage, 50 km from Belgavi (formerly Bel- gaum) and 500 km from Bengaluru.

Aequs has offices in Bengalaru, as also Houston. And despite the lack of transport facilities (though Belgavi has an airport, there are no
direct flights), customers include blue-chip companies, such as Spirit AeroSystems Inc (Kansas-based Tier I aero structure manufacturer), Eaton, Baker Hughes, Halliburton, Bosch and the Triumph group (which sup­plies large systems to Boeing, Honey­well, Saab, Magellan, Goodrich and General Electric). And the require­ments include hydraulic valve actu­ators and landing-gear segments critical for aerospace manufacturing and needed by all major global aero­space and aviation companies – be they for Airbus’s A320, A330, A340, A350 or A380 or for its Legacy pro­gramme or for Boeing’s 737, 747, 777 and the Dreamliner 787.

“Despite specialising in precision machining, sheet metal fabrication, assembly, forging and special process­ing for the aerospace, automotive, as well as oil & gas industries, it was ini­tially tough to get customers,” says Aravind Melligeri, chairman & CEO, Aequs. “But, once they saw the qual­ity of the work, they started flocking

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