Built on the idea of transformation, Mumbai-based Transcon Developers follows only one approach: future-centricity. From buying huge land banks to developing sustainable projects, the company is a vanguard of change in the edifices it constructs. Having delivered about 6 million sq ft across its projects, with 10 completed and six ongoing projects, Managing Director Aditya Kedia’s vision for the company in the next three years is for it to be recognised as the leading quality player in Mumbai. He shares more on the company’s developments and plans in conversation with SERAPHINA D’SOUZA. How has the journey been for Transcon so far? Pre-2010, Transcon primarily focused on land acquisition. In 2010, we got into real-estate development on our own. Our operations are currently focused in the Mumbai, Thane and MMR regions. We are exploring opportunities in residential, commercial and retail in these markets. Currently, we have a land parcel of over 1,100 acre, with about 8 million sq ft under development across Mumbai. Tell us about your ongoing and upcoming developments and plans for these. We have a 3 million sq ft project in Mulund, of which 0.6 million sq ft is the Tirumala Habitat building, which is ready for possession; the contractor is Punit Infratech. The other 2.4 million sq ft – which includes the Fortune 500 and Signature Towers and a commercial and retail complex called Transcon Trans Avenue – is planned for a phase-wise launch in the next two years; this has been contracted to Pune-based Millennium Contractors. For Signature Towers, we are in discussion with various contractors on the bid requirements; based on that, we will finalise our bid documents and float it. Apart from this, we are developing the 3 million sq ft Auris Serenity project in Malad in a JV with Seth Creators, for which Capacit’e Infraprojects is the contractor. We have another 1.4 million sq ft project called Transcon Triumph, the first phase of which is already ongoing and the second phase will be launched by March. We are also developing an 80,000 sq ft society redevelopment project called Westbay in Bandra, in a JV with Ekta World. Further, in the commercial space, we are developing a 3-lakh sq ft project in Santacruz called Transcon Plaza; it is a slum redevelopment project. In future, we have projects coming up in Thane, Malad and Borivali. In the next two to three years, we aim to have 10 million sq ft on the floor. How does your procurement team work to ensure the requirements for your projects? Before we commence work on a project, a bill of quantities (BOQ) is prepared; after the approval of the top management, it is entered into the ERP. Based on this, procurement takes place. Also, there are checks and balances to ensure pricing and quantity of the materials purchased. In terms of construction equipment, the contractors who are awarded the work usually purchase the equipment. However, when we call for bids from contractors, we specify the kind of equipment that would be required, depending on the size of the project. So, the number of cranes, the kind of shuttering materials, the construction technologies, pumps for concrete pumping into the building, RMC plants, etc, are specified to the contractor before they submit the bid. What advanced construction technologies do you implement in your projects? Major changes in building technologies have come about in terms of shuttering. While we initially had traditional wood, we evolved to aluminium shuttering and now have technologies like jumpform. At Transcon, we continuously evaluate our need and cost benefit, based on which we adopt suitable technologies for our projects. For Tirumala Habitat, we have used a mix of aluminium and traditional shuttering. Another technology we are putting to use in this project is an app called My Gate, which controls the movement of people in and out of the building, as well as another called the bus bar system, which minimises the use of wire. Please elaborate upon sustainable practices adopted in your projects. We position our projects as either Gold or Platinum-rated green buildings. We constantly evaluate materials such as tiles, concrete, steel, etc, used in our projects; also, the elevators for speed, safety and automatic risk control. We also make use of sensor-based lighting in common areas in our projects. In terms of water conservation, we ensure the water used is recycled. How does the company’s in-house team work to assure quality of materials, etc? We have a quality control department and lab. So, for all materials that come in, we have various procedures specified for each item – tiles, cement, steel, etc – and the kind of testing these need to go through. How do you raise funds for your projects? And, how do you ensure the desired RoI in your projects? We raise funds through institutional funding, such as banks and NBFCs. We have relationships with ICICI Bank, Piramal Fund Management, etc, and have raised about Rs 12-14 billion so far. In terms of ensuring RoI, cost plays a big role and the only factor where we can control cost is construction, as land cost is more or less market driven. In terms of controlling construction cost, personalised attention to the buying strategy plays a big role. We have an active system of budgeting before the start of a project and we try to complete the project under our budgeted cost. We do this through value-engineering. Tell us about the company’s performance this year and plans for next year. This year has been tough. Our revenue will be about Rs 3-3.5 billion, about 15-20 per cent below our targets. Having said that, for the coming year, we are aiming for Rs 5 billion. Further, we are also evaluating new opportunities in co-working spaces; we are studying a business model where I as a developer construct something, an institution buys the whole asset, and that institution in turn leases it out to people. We are trying to see how this market will evolve in future. We are also evaluating opportunities in the affordable housing segment but have not come across or finalised any opportunity in this segment yet. Fact Sheet Year of establishment: 1985 Top management (promoters): Kirti Kedia, Aditya Kedia, Amit Jalan Segments of operations: Residential and commercial Regions of operation: MMR No. of employees: 150 Completed projects: 10 Ongoing projects: 6 Upcoming projects: 1 Turnover: Rs 3.05 billion