We will develop 4.5 million sq ft of affordable housing in the current fiscal

Commitment to quality, smart planning, 21 years of experience...these are just some of the hallmarks of Aparna Constructions and Estates. The Hyderabad-based developer's vision has been to offer a sustainable balance between affordability and luxury. A pioneer in innovation in gated communities and building homes of global standards, the company has been growing since 1996. Rakesh Reddy, Director, Aparna Constructions and Estates, shares more on the company's plans in conversation with SERAPHINA D'SOUZA. What business do you foresee in the affordable housing segment? There is an inherent demand for the affordable housing segment if the right product in combination with the right branding is available. This is evident with our project Aparna Kanopy, which has encouraged us to venture into this segment. Of the total 8-10 million sq ft we plan to develop this fiscal, we will develop 4.5 million sq ft in this segment. We should be looking at somewhere between Rs 1,300-Rs 1,700 crore when we fully develop the 4.5 million sq ft. Do you adopt advanced technologies and materials for timely completion? We have already procured about five sets of Mivan technology that we are using currently for about 1.5 million sq ft that we are implementing. While the initial cost may be higher, this is more than made up by the speed of completion and quality of output. We are also backward-integrated, ie, we make our own RMC, windows, tiles, bricks, etc, which ensures that only quality products go into our buildings. We are perhaps the only such player in Telangana and Andhra Pradesh. Further, we also encourage our architects to adopt BIM. Especially for green buildings, this is important in terms of cost, because there is no scope to correct mistakes later and even if there is, it will be expensive. Tell us about the recent funds raised by the company? We have only had private equity investments in two of our projects: One was by Morgan Stanley in our Nallagandla project (it has since exited); the other is by JP Morgan in our Kanopy project. Most of our other projects are funded through a combination of bank loans, which fund about 30 per cent, internal accruals, sales and shareholder equity. Tell us about the opportunities in the office and retail segments. Along with the residential segment, which comprises about 99 per cent of our business, we are also developing projects in the retail and office spaces. Both segments are seeing buoyancy currently in the Hyderabad market, which is our focus, and going forward in Tier-II cities gaining momentum. We have done about two or three buildings in the commercial segment a few years ago. We are now consciously trying to get into the commercial and retail segments. Most of our projects are big townships, so these communities are good catchment areas for retail. Our first retail project is coming up at Nallagandla, which is close to about 3 lakh sq ft. How was the company's financial performance this year and what are your plans for the next? In 2015-16, our turnover was close to about Rs 540 crore. We expect our top line to grow by 15-20 per cent next fiscal and intend to maintain this sequential growth every year. One way to do that is to increase focus and drive sales from the affordable segment. In our current portfolio, a little less than 5 per cent is affordable; the rest is higher mid-market and the luxury segments, which impacts the top line. The intent is to bring the affordable portfolio to at least 20-30 per cent, which will drive volume. There is a lot of potential to grow in the commercial and retail segments too. For full version, log on to www.ConstructionWorld.in Year of establishment: 1996 Top management (promoters): SS Reddy and CV Reddy. No. of employees: Over 1,050 Centre of operation: Hyderabad Ongoing projects: Seven (Aparna HillPark Silver Oaks, Aparna Serene Park, Aparna Elixir, Aparna WestSide, Aparna Kanopy Tulip Phase 1B, Aparna Kanopy Lotus and Aparna CyberLife) Projects: 6 (upcoming projects); 35 (completed projects) Turnover: Rs.539 crore To share your building experience, write in at feedback@ConstructionWorld.in