Shailesh Puranik, Managing Director, Puranik Builders
With a land bank spread across 1,000 acre, the burgeoning Puranik Builders aims to expand further. With 5 million sq ft of ongoing construction activities, 5 million sq ft has already been delivered till date - 6,000 to 7,000 flats in the past 20 years - with an additional 10 million sq ft under planning. Shailesh Puranik, Managing Director, Puranik Builders, who took over the reins of the company in 1993, shares his experiences and current real estate trends, in conversation with MONISHA RAO.
A marked transformation has taken place in the real estate sector. From construction methods to project designs, functionality to customer psyche, the sector has evolved into a more mature market. The expectations of customers have increased and they have become more demanding now. This has resulted into conversion of open wiring into concealed wiring, manual lifts into automatic high-speed lifts, labour dependency into mechanised processes, and many more. Moreover, while customers primarily look out for popular brands, quality construction and timely delivery of projects have also occupied prime importance. Besides that, differentiation and innovation cannot be ignored. Hence, adherence to the above is more than sufficient for builders to sustain themselves in any sort of challenging market.
Utmost importance must be paid to quality construction. Our internal department continuously works towards exploring new technologies and materials. We travel abroad to analyse various construction methodologies and technologies that are being used globally. A concious effort has been made by us to try and incorporate these elements in India in order to improve the existing quality and reduce construction time. More important, acute labour shortage coupled with high costs in the country has laid stress on the need for advanced technologies and mechanised construction processes.
We are currently working with new construction materials and technology - Plasmolite walls, World haus and MIVAN. Plasmolite technology comprises readymade walls made of light weight concrete. It enables quick construction and creates more carpet area due to its thin walls that offer better finishes. It is the perfect alternative to conventional bricks and blocks. World haus is a type of partition wall that increases construction speed and reduces RCC cost. This technology is available, but at what price can you afford to implement it in India? This is the main challenge.
Unless there are any external factors like permissions or material shortage, we always try to deliver our projects before time. At times, permissions are delayed owing to unforeseen reasons because of which the project gets affected. Also, it gets really challenging for a developer at the policy level. With multiple government agencies, lack of clear communication is the issue. It not only burdens developers but adds to the overall cost of the project. The interest rates rise while waiting for necessary approvals before the project is launched. This ultimately gets transferred to the end user. Hence, single-window clearance that grants approvals on time is the need of the hour in all cities.
Over the period of time, Puranik Builders has invested about Rs 1,000 crore in the real estate sector. While most of it is self-funded, we have also been associated with nationalised banks like Bank of India, State Bank of India, etc. FDI from Indostar Capital, a leading NBFC promoted by Everstone Capital has invested about Rs 100 crore in one of our premium residential projects in Thane. Our per sq ft cost of development, including construction and infrastructure, is about Rs 3,500. Our project span ratio across the residential and commercial segment is 80:20. While the retail segment in the sector has reached a saturation point, the IT segment is yet to revive. We have ongoing projects in Thane, Nasik, Pune, Neral, Karjat, Murbad, Kalyan and Lonavala. With plans to expand in the entire MMR region, we are exploring Pune, Goa and Bengaluru as potential markets.
Contrary to the belief that the real estate sector has a lot of unsold inventories in the market, it is poised for a positive outlook with urbanisation on the rise. The sector has been waiting for industry status for a long time, which is long overdue. Real estate is one of the most important industries of this nation as it significantly contributes to the nation's annual GDP growth. The second biggest employer after agriculture certainly deserves industry status.
Year of Establishment: 1968
Top management (promoters): Shailesh Puranik, Managing Director
No of Employees: Over 350
Centre of operation: Thane
Ongoing projects: Puranik Sayama, Rumah Bali, Puranik Hometown, Aldea Espanola, Puranik City, Puranik Capitol
Upcoming projects: In Pune, Neral, Murbad
Completed Projects: Puranik Villa, Zeneeth, Kavya Dhara, Puranik City Phase 1
Turnover: Rs 500 crore
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