Dr Anil Jindal, Chairman & Managing Director, SRS Group.
Taking off as a finance and leasing company in 1990, SRS Group has come a long way. Known as BTL Investments Ltd and Bansla Finlease Ltd then, the company diversified its business and entered into the manufacture and marketing of edible oil and tea in 1997. It floated two more companies, BTL Industries Ltd and BTL Commercial Ltd, and thus the BTL Group became a known entity.
Under the strong leadership of Dr Anil Jindal, Chairman & Managing Director, SRS Group, in the year 2000, the group took a quantum leap and entered the retail and real-estate businesses. This was a new beginning for the group that paved the way for SRS Ltd, the flagship company of the SRS Group. The company today owns and operates various multiplex cinemas, value bazaars and food courts and has developed many residential and commercial properties in northern India. Dr Jindal, who is also planning to develop a five-star hotel in Faridabad, shares more details with Jayanthi Nararyan….
What inspired the creation of the real estate and hospitality divisions of your company?
Real estate and hospitality are two cornerstones not only for the Indian economy but for our group as they present exciting opportunities. The demand for quality real-estate properties, both in the residential and commercial segments, is huge. The fact is that the demand for quality and affordable real-estate properties was never too slow even during the slowdown. We completely sold out two of our residential projects during this period. People who evaluate Faridabad real-estate properties on the affordability and features matrix will find that real estate here is highly undervalued and is expected to grow at a much higher pace than any other city in the NCR in coming years.
How do you think Budget 2010 will affect the real-estate sector?
The recent budget recommendations will have a mixed effect on the real-estate sector in India. The increase in income-tax slabs that gives extra spending power or disposable income to the common man is good for the industry. Also, the extension of subsidy on home loans less than Rs 10 lakh for an additional year is a good decision. Both these recommendations will have a positive effect on demand. On the negative side, we have the introduction of service tax on under-construction properties and preferential location charges (PLC), which will result in increased prices.
What is your take on the increase in excise duty on cement from the current 8-10 per cent?
It is ironic that on the one hand, the government talks of promoting affordable housing while on the other, in the latest budget it has increased the excise duty that will push up the price of all raw materials including cement, steel, etc. This will eventually lead to costlier construction and the buyer will have to pay the price. This might slow down the current momentum of demand in the real-estate industry in India. Also, the decision to increase MAT from 15 to 18 per cent will have an impact on the bottom-line and put additional pressure on real-estate developers.
All your projects are based in the northern region. Is there any specific reason for this? Do you plan to establish a pan-India presence?
We aim to first cater to the huge demand in northern India before we embark upon expansion into other markets. The reasons are simple. We understand the nuances of conducting successful business in north Indian markets because this is where we started. Our growth plans for other markets will be perfectly planned and the expansion will ultimately be pan India. We are already testing our business model in other markets as well. For instance, we have recently opened our first SRS 7Dayz food court in Central India at Indore in Madhya Pradesh.
You basically focus on Tier II cities. What are the challenges of doing business in these cities?
SRS Group has deliberately focussed on Tier II and Tier III cities for our various businesses and our strategies have paid off well. Our flagship project SRS Mall is situated in Faridabad. We are drawing a lot of interest from target customers as aspirational levels among people in these cities are witnessing unprecedented heights and they also seek a quality of life comparable to metro cities. These cities have a lot of potential as the organised retail, hospitality and entertainment brands offer a new experience to residents. SRS brands ensure a wholesome shopping and entertainment experience that can be enjoyed by the whole family together.
You are currently on a retail expansion spree. What kind of demand do you see in the market?
Retail is a huge thrust area for SRS Group as we see a huge demand and supply gap, particularly in Tier II and Tier III cities and towns. The aspirations of people in these cities and towns are comparable to those in the metros and their disposable income is also on the rise. SRS Value Bazaar, the group's flagship retail brand, is a chain of retail stores with over 34 outlets spread across many cities in northern India. The number of such outlets is expected to touch 100 by CY 2011. Our aim is to meet the twin objectives of profitable expansion while delivering superior value to consumers and stakeholders.
Where do you see maximum growth?
We expect demand to strengthen in the current year as there is huge buying interest among end consumers. We expect several of our real-estate projects to be complete and operational this year. We are engaged in building nearly 15 million sq ft to be delivered over the next five years. Our focus is on creating affordable real-estate properties that are high in terms of quality in different formats including flats, independent floors, farmhouses, commercial office space, etc. We are gearing up to meet the demand and plan to launch new projects this year to cater to several segments.
Tell us about your hospitality projects.
Our flagship hospitality project, a five-star hotel on NH-2, Faridabad, will be one of the biggest hotels of India with world-class facilities, including a helipad. The land for the project has been acquired and we aim to start construction by the end of the next financial year.
Where does your company see itself in coming years?
The economy is back on its growth path with key indicators giving positive signals. The job market is once again thriving. This will surely affect demand positively and we expect the industry to make even more sales than last year. Affordable housing projects will continue to thrive and real-estate activities will pick up pace in Tier II and Tier III cities and towns. The year 2010 will see SRS Group expand its operations in all business areas including real estate. We aim to grow further in existing verticals while keeping an eye on newer opportunities in other verticals to ensure substantial future growth.
What is your personal success mantra?
The keys to success are honesty and integrity on one hand and strong strategic focus and reliable systems on the other. Our success would not have been possible without the hard work and dedication of our team, commitment to quality services and the keen desire to excel in our chosen business areas.
Milestones
Establishment: The foundation for the SRS Group was laid in 2000.
Top management: Dr Anil Jindal, CMD; Sunil Jindal, MD and Tinku Singh, Group President.
Size of land bank: 400 acre
No. of employees: About 2,000.
Ongoing projects: SRS Residency and SRS Tower in Faridabad (to be completed in 2010).
Centres of operation: Faridabad, Ghaziabad, Gurgaon, Delhi, Jind, Greater Noida, Gorakhpur, Ludhiana.
Group turnover: Rs 2,000 crore.
Vision for the future: To consolidate SRS Group's position as one of the leading companies in the real estate, retail, hospitality and entertainment sectors in India.
