We have developed transparency as our credo
Real Estate

We have developed transparency as our credo

T Chitty Babu, Chairman and CEO, Akshaya Homes

Dreamers only dream  it takes a visionary to turn these dreams into reality. Take the case of T Chitty Babu, Chairman and CEO, Akshaya Homes, who has charted a meteoric career trajectory over the past 25 years in his bid to redefine the skyline of Chennai. In conversation with CHARU BAHRI, he speaks about his ongoing efforts to improve the image of the real-estate industry, starting with setting high quality and transparency standards for his own company.

Tell us about the early days of your career. What inspired the launch of Akshaya Homes?
After graduating in civil engineering from Bangalore University in 1987, I took up my first job as a site engineer with Dual Structurals, a construction company. I quit the company seven years later. I was the company director at the time but felt the urge to start something of my own; by then, I felt I was ready to forge my own path. So, I launched Akshaya Structurals in 1995 to take on contracting work for leading real-estate developers. Three years later, I decided to foray into the property development sector myself and started Akshaya Homes. Our internal accruals helped fund the new venture.

What is your vision for the company?
I want to redefine the skyline of Chennai by creating landmarks while improving the way property transactions are conducted. We aim to make the experience of buying a home as transparent as possible, ensuring clear title deeds, detailed area statements and timely delivery to customers. These efforts and our strict adherence to norms have helped Akshaya Homes become the first builder in India to have won the award for the 'Highest Transparency in the Real-Estate Business' at the recently concluded CREDAI NATCON 2011 in Singapore.  

Please share the practices that helped Akshaya Homes win this award.
The Indian real-estate sector is largely perceived as unorganised and is mostly patronised by consumers who are unaware of the legalities involved in buying a home. As a result, customers fall prey to builders who do not live up to their promises. Akshaya Homes aims to improve upon this situation by educating consumers. We have adopted transparency
as our credo. To this end, we have launched a buyers' guide Home Facts  that takes first time home owners through the process of acquiring real estate, step by step. We also provide our customers with detailed area statements mentioning the carpet area, built-up area, common area and amenities area. Once a customer books an apartment, the base price remains fixed; there is no cost escalation. We constantly update customers on progress made and provide them with documents that clearly show the clarity of the title, detailed area statements, government approvals and a draft of the sale and construction agreement to be signed by the client. We have also extended our transparent approach to business to all our stakeholders. We are transparent in our dealings with the government and strictly adhere to government norms.

Share some major company milestones.
We have set ourselves high quality standards and are committed to ensuring the transparency of every deal. This has endeared us to our customers and helped us acquire an ISO 9001:2000 certification for Quality Management Systems in 2004. In April 2006, we were accorded the CRISIL DA3 rating, indicating a 'good' track rec-ord in executing real-estate projects as
per specified quality levels and transferring a clear title within the stipulated time schedules. In just 16 months, the
rating was upgraded to CRISIL DA3+, indicating the progress made in process improvement. Only 24 developers are rated by CRISIL across the country, making Akshaya one of the few CRISIL-rated organisations in Chennai's real-estate space.
Our pursuit of excellence has also resulted in the company being conferred the Integrated ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 Management System, which has only been given to 11 companies in India. Akshaya is also one of the only two real-estate companies in the country to get the SA 8000:2008 Certification (the global social accountability standard for creating an employee-friendly workplace).

Our implicit adherence to quality building practices and governmental regulations led to Akshaya becoming the only developer in the country to bag the coveted CNBC/CRISIL award for 'Best Legal Systems' for four successive years: 2007, 2008, 2009 and 2010. In 2007, we were the winners of the outstanding builder award given by the Builders' Association of India. Akshaya is also the proud recipient of the CNBC/CRISIL award for 'Best Residential Property in South India' for 2009, for our Adair project. Last year, we won the highest transparency award from CNBC CRISIL.

How have the real-estate market and client expectations in Chennai changed in the past 15 years?
One key change we have witnessed is the entry of players from across the country in the Chennai market, especially developers based in the NCR, Mumbai or Bengaluru. The size of real estate developments has also seen a shift from small-scale projects to townships. The sector is also becoming more organised. From the buyers' perspective, the opening up of the economy has exposed them to the latest lifestyle trends as a result of which they expect their homes to come with a bevy of luxury amenities like a club house, swimming pool, etc.

So far, most of your projects are in Chennai. Do you plan to expand to more cities in the near future? Which cities would you target?
Akshaya is currently operating out of Coimbatore apart from Chennai. We will be entering the markets of Madurai, Trichy and Salem in the near future. We are aiming to touch a turnover of around Rs 1,000 crore by next year and establish a pan-India presence in due course.

How do you perceive the current economic climate unfolding for the real-estate development sector in the coming year?
We expect the construction industry to go through a period of consolidation, marked by an increased focus on environmental conservation through green buildings. Containing inflation will be the key to the next wave of growth. Otherwise, home loan rates will rise and may act as
a dampener.

Are you part of the green building movement that is taking the country by storm?
We have taken a conscious policy decision to design only green buildings and have applied for the precertification of our ongoing projects. Green features are being incorporated in seven projects currently underway. The environment-friendly features include the means to harvest rainwater, sewage treatment plants, recycling of treated water for landscaping and flushing, and fitting energy-efficient lifts and light fixtures. Building designs also ens-ure adequate lighting and ventilation.  

Who are the architects and consultants of your projects? What criteria do you apply to decide on an architect for a project?
We work with consultants like Feedback Ventures and AN Prakash Construction Project Management Consultants. Our projects have been designed by leading architects such as Shilpa Architects, CR Raju Associates, Ashwin Alva Associates, Edifice Consultants, Sajith & Vivek Architects, Master Plan Landscapes, Natraj & Venkat Architects, Passargad Architecture & Interior Design, Kembhavi Associates, and RC Architecture. Functional design abilities drive our choice of architect. We usually select the architect who draws the best techno-commercially viable scheme.

What is your key to tackling and overcoming challenges to growth, especially during slowdowns?
Akshaya has strong brand equity in the market it operates in and a track record of delivering projects ahead of time. That helps considerably. Also, we are driven by systems and processes that stand us in good stead when the going is tough. In per-iods of slowdown, we double our efforts to improve process efficiency across the company to drive cost reductions.

How important is real-estate branding? Do you envisage the role of rating agencies to grade real-estate developers for the benefit of investors/clients?
Branding has proven effective for a variety of businesses and organisations, including those in the real-estate industry.
A brand should stand for the values and aims of the business as perceived by employees, competitors and customers. Delivering outstanding customer services is vital to develop a brand. The benefits of a brand for a business range from lowering marketing costs to helping establish a positive image for the business and serving as a key distinguisher in a crowded market. A strong brand finds it easier to attract and retain the best customers and employees. Customers also benefit as branded real-estate services, and products reduce the uncertainty and risks associated with a purchase while simplifying their choice and saving time.Clients would find companies and projects rated by leading risk assessment agencies like CRISIL more appealing as they would have a clearer understanding of the viability of a project and the risks associated with the completion of the project within the publicised cost and time schedule. Akshaya is the only company in the country to have had all of its projects rated under the CRISIL Real Estate Star Ratings.

What is your success mantra?  
To exceed client expectations without compromising on our core values. My philosophy is, "Never sell a project; make people buy a home."

At a glance  

Top management:
T Chitty Babu, Chairman & CEO
J Ravi, Director (Land Acquisition Efforts and Liaison)
Nithya Chitty Babu, Director and Member of the Board

No. of employees
200

Centre of operation
Chennai

Group turnover
150 crore

Know of a builder who made it big in the industry? Write in at feedback@ASAPPmedia.com

T Chitty Babu, Chairman and CEO, Akshaya HomesDreamers only dream  it takes a visionary to turn these dreams into reality. Take the case of T Chitty Babu, Chairman and CEO, Akshaya Homes, who has charted a meteoric career trajectory over the past 25 years in his bid to redefine the skyline of Chennai. In conversation with CHARU BAHRI, he speaks about his ongoing efforts to improve the image of the real-estate industry, starting with setting high quality and transparency standards for his own company.Tell us about the early days of your career. What inspired the launch of Akshaya Homes?After graduating in civil engineering from Bangalore University in 1987, I took up my first job as a site engineer with Dual Structurals, a construction company. I quit the company seven years later. I was the company director at the time but felt the urge to start something of my own; by then, I felt I was ready to forge my own path. So, I launched Akshaya Structurals in 1995 to take on contracting work for leading real-estate developers. Three years later, I decided to foray into the property development sector myself and started Akshaya Homes. Our internal accruals helped fund the new venture. What is your vision for the company?I want to redefine the skyline of Chennai by creating landmarks while improving the way property transactions are conducted. We aim to make the experience of buying a home as transparent as possible, ensuring clear title deeds, detailed area statements and timely delivery to customers. These efforts and our strict adherence to norms have helped Akshaya Homes become the first builder in India to have won the award for the 'Highest Transparency in the Real-Estate Business' at the recently concluded CREDAI NATCON 2011 in Singapore.  Please share the practices that helped Akshaya Homes win this award.The Indian real-estate sector is largely perceived as unorganised and is mostly patronised by consumers who are unaware of the legalities involved in buying a home. As a result, customers fall prey to builders who do not live up to their promises. Akshaya Homes aims to improve upon this situation by educating consumers. We have adopted transparency as our credo. To this end, we have launched a buyers' guide Home Facts  that takes first time home owners through the process of acquiring real estate, step by step. We also provide our customers with detailed area statements mentioning the carpet area, built-up area, common area and amenities area. Once a customer books an apartment, the base price remains fixed; there is no cost escalation. We constantly update customers on progress made and provide them with documents that clearly show the clarity of the title, detailed area statements, government approvals and a draft of the sale and construction agreement to be signed by the client. We have also extended our transparent approach to business to all our stakeholders. We are transparent in our dealings with the government and strictly adhere to government norms. Share some major company milestones.We have set ourselves high quality standards and are committed to ensuring the transparency of every deal. This has endeared us to our customers and helped us acquire an ISO 9001:2000 certification for Quality Management Systems in 2004. In April 2006, we were accorded the CRISIL DA3 rating, indicating a 'good' track rec-ord in executing real-estate projects as per specified quality levels and transferring a clear title within the stipulated time schedules. In just 16 months, therating was upgraded to CRISIL DA3+, indicating the progress made in process improvement. Only 24 developers are rated by CRISIL across the country, making Akshaya one of the few CRISIL-rated organisations in Chennai's real-estate space. Our pursuit of excellence has also resulted in the company being conferred the Integrated ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 Management System, which has only been given to 11 companies in India. Akshaya is also one of the only two real-estate companies in the country to get the SA 8000:2008 Certification (the global social accountability standard for creating an employee-friendly workplace).Our implicit adherence to quality building practices and governmental regulations led to Akshaya becoming the only developer in the country to bag the coveted CNBC/CRISIL award for 'Best Legal Systems' for four successive years: 2007, 2008, 2009 and 2010. In 2007, we were the winners of the outstanding builder award given by the Builders' Association of India. Akshaya is also the proud recipient of the CNBC/CRISIL award for 'Best Residential Property in South India' for 2009, for our Adair project. Last year, we won the highest transparency award from CNBC CRISIL.How have the real-estate market and client expectations in Chennai changed in the past 15 years?One key change we have witnessed is the entry of players from across the country in the Chennai market, especially developers based in the NCR, Mumbai or Bengaluru. The size of real estate developments has also seen a shift from small-scale projects to townships. The sector is also becoming more organised. From the buyers' perspective, the opening up of the economy has exposed them to the latest lifestyle trends as a result of which they expect their homes to come with a bevy of luxury amenities like a club house, swimming pool, etc.So far, most of your projects are in Chennai. Do you plan to expand to more cities in the near future? Which cities would you target?Akshaya is currently operating out of Coimbatore apart from Chennai. We will be entering the markets of Madurai, Trichy and Salem in the near future. We are aiming to touch a turnover of around Rs 1,000 crore by next year and establish a pan-India presence in due course.How do you perceive the current economic climate unfolding for the real-estate development sector in the coming year?We expect the construction industry to go through a period of consolidation, marked by an increased focus on environmental conservation through green buildings. Containing inflation will be the key to the next wave of growth. Otherwise, home loan rates will rise and may act as a dampener.Are you part of the green building movement that is taking the country by storm?We have taken a conscious policy decision to design only green buildings and have applied for the precertification of our ongoing projects. Green features are being incorporated in seven projects currently underway. The environment-friendly features include the means to harvest rainwater, sewage treatment plants, recycling of treated water for landscaping and flushing, and fitting energy-efficient lifts and light fixtures. Building designs also ens-ure adequate lighting and ventilation.  Who are the architects and consultants of your projects? What criteria do you apply to decide on an architect for a project?We work with consultants like Feedback Ventures and AN Prakash Construction Project Management Consultants. Our projects have been designed by leading architects such as Shilpa Architects, CR Raju Associates, Ashwin Alva Associates, Edifice Consultants, Sajith & Vivek Architects, Master Plan Landscapes, Natraj & Venkat Architects, Passargad Architecture & Interior Design, Kembhavi Associates, and RC Architecture. Functional design abilities drive our choice of architect. We usually select the architect who draws the best techno-commercially viable scheme.What is your key to tackling and overcoming challenges to growth, especially during slowdowns?Akshaya has strong brand equity in the market it operates in and a track record of delivering projects ahead of time. That helps considerably. Also, we are driven by systems and processes that stand us in good stead when the going is tough. In per-iods of slowdown, we double our efforts to improve process efficiency across the company to drive cost reductions.How important is real-estate branding? Do you envisage the role of rating agencies to grade real-estate developers for the benefit of investors/clients?Branding has proven effective for a variety of businesses and organisations, including those in the real-estate industry. A brand should stand for the values and aims of the business as perceived by employees, competitors and customers. Delivering outstanding customer services is vital to develop a brand. The benefits of a brand for a business range from lowering marketing costs to helping establish a positive image for the business and serving as a key distinguisher in a crowded market. A strong brand finds it easier to attract and retain the best customers and employees. Customers also benefit as branded real-estate services, and products reduce the uncertainty and risks associated with a purchase while simplifying their choice and saving time.Clients would find companies and projects rated by leading risk assessment agencies like CRISIL more appealing as they would have a clearer understanding of the viability of a project and the risks associated with the completion of the project within the publicised cost and time schedule. Akshaya is the only company in the country to have had all of its projects rated under the CRISIL Real Estate Star Ratings.What is your success mantra?  To exceed client expectations without compromising on our core values. My philosophy is, Never sell a project; make people buy a home.At a glance  Top management:•T Chitty Babu, Chairman & CEO•J Ravi, Director (Land Acquisition Efforts and Liaison)•Nithya Chitty Babu, Director and Member of the BoardNo. of employees200Centre of operationChennaiGroup turnover150 croreKnow of a builder who made it big in the industry? Write in at feedback@ASAPPmedia.com

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