Next year, we will increase our turnover by 25%
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Next year, we will increase our turnover by 25%

Next year, we will increase our turnover by 25%

02 Aug 2010 Long Read

Shailesh Sanghvi, Director, Sanghvi Group of Companies

Here’s a man who knows to keep pace! Shailesh Sanghvi, Director, Sanghvi Group of Companies, has chalked out a growth plan, taking into consideration the revival in the market. In conversation with Jayanthi Nararyan, he shares his modus operandi and vision for the future…

What is your expectation from the realty market? How do you plan to keep pace?
I feel the market will be stable till the month of August and after the festive season begins, it will pick up by 10 to 15 per cent. We have a few projects in the pipeline that we are planning to launch in the next few months. We have concentrated more on completion and will go for new projects from September onwards. Next year, we plan to achieve an increase of 25 per cent over our current turnover.

How secure are you in your land bank holding?
Sanghvi Group basically makes homes for the middle class and upper middle class and we have been in this field for the past 27 years. We also have MHADA and SRA projects, and mass housing projects. At present, the Group has an additional set of 13 residential projects in various stages of completion, with a total development potential of 2,000,000 sq ft. With a land bank of over 100 acre of prime real-estate space, we have chalked out an aggressive growth plan, which includes developing projects across Mumbai, Nashik and Lonavala.

Tell us about your affordable housing scheme with the Maharashtra Chamber of Housing Industry (MCHI).
We have aligned with the MCHI’s initiative to facilitate the government’s vision of establishing 500,000 affordable homes across Mumbai and the Mumbai Metropolitan Region (MMR). We have pledged to construct a total of 1,232 housing units by April 2015. The initiative by MCHI under the banner ‘Homes for All’ is truly commendable. As an association, it has striven to create a practical and well-structured roadmap between the state government and itself through the establishment of a PPP that will ensure the provision of proper housing for low-income groups. Mumbai has an immediate demand of about 1.4 million homes, of which 80 per cent of the demand will emanate from the Rs 3-5 lakh income group.

As you are the secretary of the MCHI Mira Road - Virar Unit, throw some light on its efforts for the betterment of the industry.
For the past five years, MCHI has been working really hard. Its main aim is to tackle the problems faced by developers with respect to the Central government, state government or any local body. It also looks into the problems faced by the customers like possession of homes; the customers can approach MCHI instead of going to the consumer forum.

Why do you focus only on the mid-income group rather than the luxury segment?
We are working on luxury projects too but at present the demand for such homes is less than the demand for mass housing and affordable homes. We have luxury projects coming up in Girgaum Chowpatty and Byculla. Also, for luxury homes a lot depends on the location. If you have a good location you can actually build luxury homes. And the same goes with affordable homes too. We have received various accolades over the past decade such as ‘The Best Project of Thane’ in 2007 for Sanghvi Hills and the Mass Housing Company title in 2005 - both from Accommodation Times.

Can you tell us more about your slum rehabilitation project?
We are currently working in Wadala and Ghatkopar. In slum rehabilitation the process is lengthy. You buy the project and then launch it; it takes a minimum of two years. There are various complications.

You are planning to generate Rs 1,500 crore next year. Tell us more.
We plan to launch 10 new projects across the city that will comprise both commercial and residential properties. As part of our immediate plans, over 26 lakh sq ft of land has been earmarked for the development of 10 new projects in the metropolis. We have procured a land bank of prime real estate in Worli, Lower Parel, Byculla, Dahisar, Mazgaon, Ghatkopar, Kalwa, Dombivli and Kalyan to ensure that consumers are offered best connectivity to roads, railways, commercial establishments and entertainment hubs.We have expansion plans in areas like Naigaon, Titwala, Boisar and Palghar that are near Mumbai. The rates we had in Mira Road and Bhayander are now the same that we have in Vasai and Virar. So after a few years the same thing will happen in places like Palghar and Boisar. We are working out on a big layout there.

How do you plan to keep abreast of the latest technology? Any plans to go green?
To complete projects as early as possible we give them to contractors who make use of the latest technologies. The slab that used to be completed in 20 days is now being completed in 10-15 days. We also have a penalty clause for late completion and a benefit for early completion. There is an additional 10-15 per cent expense for the use of such technologies but they save time. We have a project in Mazgaon that uses post-tensioning technology. There is less awareness of green projects. I plan to raise the point of increasing awareness on this as going green is the future.

What is your USP?
Ours is a family business. We personally interact with buyers to ask for suggestions and expectations. If the grievances are not taken care of, we compensate.

Where do you see yourself in the next five years?
In the next five years there will be high-rises in areas like Dombivli and Mira Road. The scenario will totally change as space in the suburbs will be exhausted. Once bridges are constructed, these areas will also be well connected. Our focus is land acquisition in these places and beyond that.

Company Details:

Year of establishment: 1983
Top management
Managing Director: Sankalchand Sanghvi;
Directors: Prithviraj Sanghvi, Ramesh Sanghvi, Shailesh Sanghvi and Rakesh Sanghvi
Centres of operation: Mumbai
No. of employees: 113
Group turnover: Over Rs 300 crore

Forthcoming projects:

Project name  Location  Liaison architect  Consulting architect Built-up area (sq ft)
Sanghvi City Dahisar Anish & Associates Archetype Consultant 1,200,000
Sanghvi Planet Byculla Arch Vision (Uday Warty) Skyline Architect 160,000
Sanghvi Centre  Worli  Arch Vision (Uday Warty)  Skyline Architect  120,000
Sanghvi Valley Phase III  Kalwa  Archetype  Consultant Archetype Consultant  100,000
Sankheshwar Nagar Phase III  Dombivli  D. Deshmukh & Associates  D Deshmukh & Associates  100,000

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