Our JV with Arabtec will generate a business of...

Navin Raheja, Chairman and Managing Director, Raheja DevelopersTraversing a well-defined path of steady growth and expansion, Raheja Developers has consistently posted increasing turn­over and profits year after year. Indeed, the company is one of the fastest growing entities in the realty sector with projects worth Rs 80 billion in the pipeline. Moreover, with a land bank of about 58 million sq ft of developable area at prime locations and its recent JV with Arabtec – one of the leading contractors of the Middle East – Raheja Developers is confident of being amongst the front runners in the Indian realty sector. Navin Raheja, Chairman and Managing Director, shares more on the company's operations, future plans and the Indian realty sector, with Shubhangi Bidwe.How will your partnership with Arabtec help consolidate Raheja Developers' position in the market?We entered into a JV with Arabtec around six months ago. According to this JV, we will initially develop three projects, the first of which is Revanta, a recently launched high end residential development, and one of the tallest buildings in Gurgaon. The second project will be launched in Delhi and this again is expected to be the tallest building in the city. And the third project, Shristi, will again be developed in Gurgaon.While Raheja will hold 37 per cent stake in this JV, Arabtec will hold the remaining 63 per cent. According to the agreement, Arabtec will act as the contractor in all the future projects undertaken by this JV. These projects will involve innovative technologies such as those that enable casting of slabs in just three days and completion of a 57-storey building in just two to three years instead of the normal six years time taken. Moreover, the JV will generate a business of Rs 1,500-1,800 crore in the next three years, which is further likely to scale up to Rs 2,000 crore in the following five years.Residential, commercial or IT SEZ—which of these is the most challenging to develop and why?I believe that residential projects are the most challenging as the changing lifestyles of urban people and easy access to international patterns and designs make it difficult to create developments that cater to the tastes and needs of each and every individual.Aren't you concerned about the response to your luxury hospitality projects due to the global economic downturn?As India still has a huge shortage of luxury hotels and only limited brands and developers have so far ventured into this segment, there is a huge scope for development here. Gradually, though, a lot of international players are entering the market, and India is emerging as the global hospitality hub.Raheja Vedanta Floors in Gurgaon has been built according to IGBC guidelines. Tell us about its green features.The green features of this project include north-south orientation of the residential blocks to harness maximum daylight and provide glare-free views, provision of occupancy sensors for normally unoccupied areas, high-efficiency lighting with electronic ballasts, water harvesting pit and sewage treatment plant, zero discharge, storm water management, drip irrigation, native and low water consuming plants, 100 per cent recycling of sewage, solar water heating; doubly glazed tinted windows, CFC-free equipment, efficient luminaires, waste reduction during construction, and the use of local materials.Also, highlight the features of your upcoming first-of-its-kind, in-situ slum redevelopment project in Delhi.Spread over 13 acre, this project, named Raheja Navin Minar, will comprise 2,800 EWS (Economically Weaker Sections) units for slum dwellers along with a 50-storey residential tower, retail and commercial development.Please elaborate on Raheja Aranya, the company's on-going project in Gurgaon.Raheja Aranya – The Green City is being developed in Sohna, close to Gurgaon. Its first phase is spread across 108 acre and encompasses open greens, a state-of-the-art clubhouse and 12 m wide circulating roads along with 24 m and 45 m wide sector roads crisscrossing the township. The township offers plots in the range of 193 sq yards to 822 sq yards, with over 70 per cent of the stock already been sold. It also provides social infrastructural facilities such as schools, hospitals, nursing homes and community centres to ensure quality life, which is comparable with the best in the world.As most of your projects are located in Gurgaon, do you plan to expand your geographical reach in the future?Real estate is a region-specific industry as a variety of factors such as development norms, patterns and evolving consumer behaviour influence the projects launched by any developer. Yes, we do plan to expand our geographical reach in future by launching projects in other north Indian states as well.Please throw some light on your land acquisition process and favoured funding options.We acquire land through direct negotiations with farmers either on a joint development basis or through outright sale. We also partner with specialised agencies that help us to access land parcels available for development in the region. We have a full-fledged team of business development professionals who evaluate land opportunities in the state based on the usage of land, financial viability, legal due diligence, reference check, etc. The most important aspect in land acquisition is the title of land and its usage as per the master plan. We normally fund our land acquisition through internal accruals and equity.What are your views on the emergence of Tier-II and -III cities as lucrative real-estate markets?Although we plan to explore opportunities in Tier-II cities, standalone real-estate projects in these might not work effectively. They need an inclusive scheme wherein industrial and agricultural developments are undertaken simultaneously; thus creating a disposal income for the company. Self-sustainable industrial townships that provide housing solutions for workers and locals work best in these cities.What is the company's USP?Our company is based on ethical foundations, transparent functioning as well as value and respect for our biggest brand ambassadors-our customers. Additionally, our professional approach, manifested in system-based operations across all verticals of the company, has contributed to the company's success.Please elucidate on your contribution as the Chairman of ASSOCHAM Real Estate Committee and President of the Builders Association, Naredco.As the Chairman of ASSOCHAM and President of the Builders Association, Naredco, I am involved in the formulation of policies and suggesting the required changes and improvements for the betterment of real estate pan India. I also head the various conferences organised by these representative bodies.Builders often lament about the number of approvals and clearances they have to seek before initiating a project. Your comments?Builders often have to seek multiple approvals for a project, which is a time-consuming process. To avoid this, once the master plan is notified, all approvals should be granted through single-window clearance and that too preferably online. The master plan must be formulated only after all internal approvals are granted and the nodal agency must be empowered to grant these. This will not only reduce the complications in the approval process but decrease the amount of time consumed in the entire process.In the past five years, the real-estate industry has witnessed a positive change with more builders adopting ethical practices. What are your views on this?With the emergence of large corporate houses, there has been an increased emphasis on ethical practices in the past five years. This has also resulted in strong and fundamental growth of the industry. The opinion of the community about the sector is changing and it is now attracting quality buyers and professionals.Where do you see the industry headed in future? What are your plans to leverage the future growth?The industry is currently witnessing robust and organised growth. We have worked towards making our organisation completely process-driven, transparent, and committed to delivery.Fact Sheet:Year of establishment: 1990Top management: Navin M Raheja, Chairman and Managing Director; Nayan Raheja, Executive DirectorNo. of employees: 300Centres of operations: Delhi, Gurgaon, NCROngoing projects:Raheja Shilas, Raheja Sampada, Raheja Revanta (Gurgaon), Raheja Highway Arcade, Raheja Oma, (Dharuhera), Kathputali (New Delhi), Sohna TownshipUpcoming projects: Raheja Srishti, Raisina Residency-II, Raheja City Arcade (all three in Gurgaon), Bawal Residential and Commercial Projects.Turnover: About Rs 600 croreThink a builder should be featured here? Write in at feedback@ASAPPmedia.com