~4.66 lakh homes delivery in 2020 may miss deadline
The top 7 cities were to see the delivery of nearly 4.66 lakh units by 2020-end. June 2020
SOBHA was founded by PNC Menon, a well-known entrepreneur, in 1995, with a clear vision to transform the way people perceive quality. Today, this Rs 32-billion company is a trusted brand and among the foremost backward integrated real-estate players in the country. In fact, the company has all the key competencies and in-house resources to deliver a project from conceptualisation to completion. Based in Bengaluru, SOBHA is primarily focused on residential and contractual projects. The company went public in 2006 through its IPO,an event that created history when the issue was oversubscribed a record 126 times. As on March 31, 2019, the company has delivered real-estate projects and contractual projects covering about 103.88 million sq ft of area. It currently has ongoing real-estate projects aggregating to 41.57 million sq ft of developable area and 28.74 million sq ft of saleable area, and ongoing contractual projects aggregating to 8.59 million sq ft under various stages of construction. The company has a real estate presence in 10 cities: Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gujarat (Gift City) and Mysore. Overall, SOBHA has a footprint in 27 cities and 14 states across India. JC Sharma, Vice-Chairman and Managing Director, SOBHA, shares more….
Name one major challenge faced in FY2018-19. How did the company approach the same?
The sector has witnessed several challenges owing to reforms such as RERA, GST and the liquidity crisis in recent times. Even during these tough market conditions, SOBHA has delivered a record operational and financial performance for FY18-19. More importantly, this was achieved in the backdrop of uncertainty over the revision of the GST rate. We were able to accomplish our performance as we delivered projects on time with the highest quality. Our unique backward integration model and a strong presence in 27 cities and 14 states is our proven strength. We are the only real-estate company known so far to have full control over our supply chain, which helps us maintain high-quality standards. Additionally, we have a wide range of products that caters to the aspirations and requirements of home-buyers across all segments.
What is one decision you consider the biggest contributor to the company’s growth in FY2018-19?
We believe our strong processes, unique backward integration model and unmatched execution capabilities have always helped us grow at a steady rate each year. We are consistent and growing steadily. Our backward integration model is actually our real strength. It enables us to deliver fine quality products in time with transparency. Name one single factor you avoided that could have otherwise impacted the company’s topline and bottomline.
We never dithered from our chosen path of delivering best-in-class homes in terms of quality. We focused on timely delivery and kept things transparent and customer-centric. We neither cheat nor are in a hurry.
Going forward, what are your plans for the company’s growth in FY2019-20?
The focus is always on increasing our footprint across the country. In line with this, we have entered the Gujarat market with SOBHA Dream Heights at the Gujarat International Finance Tec-City (GIFT City). Additionally, we have entered into a joint development agreement for residential development in Hyderabad. Further, we are planning to launch projects in Bengaluru, Gurugram, Delhi, Hosur, Chennai, Thrissur and Hyderabad in coming quarters. SOBHA is slated to emerge as a true, pan-India, real estate company. We will have presence in all the major states. This will help boost our image and help us deliver better operational performance.
Read on the CW Top Challengers selection criteria and methodology at https://www.constructionworld.in/articles/beststories/CW-identifies-the-Top-Challengers-of-FY2019/21687