We are focussed on building affordable housing across northern India

We are focussed on building affordable housing across northern India
The Hindustan Times, January 7, 2010, Page 18

With over forty years of experience in developing quality residential townships and commercial projects, Ansal API is a name which comes first to your mind, when you think of real estate.

The group has been successfully catering o the ever growing demand for housing to the ever growing demand for housing and commercial real estate in the country across all sections of society by providing world-class products to consumers at affordable prices.

Needless to say, Ansal API has been doing well even as recession hit the Indian real estate market only because of their ability to understand and give people ‘what they want’ and ‘what they can pay for.’ Rakesh Kaul, Chief Operating Officer, Ansal Hi Tech Townships Limited shares with us the reasons Ansal API remains on top and the group’s growth plans which include new projects in Lucknow, Meerut, Punjab and Haryana and other Tier-II towns and cities of Northern India.

EXCERPTS FROM THE INTERVIEW: Before the world was hit by the recent recession, the real estate market was booming. In the present market scenario how are you sustaining the growth of your business?

At Ansal API, we follow a business strategy which gives us enough flexibility to adapt to the changing economic and market conditions. For instance, since more than last ten years, our group’s focus has been on developing mega township projects, which allows us to cater to all types of demands.

In India, there is still a big gap between demand and supply in the housing sector. As economic cycles change, the pending demand only shifts from one segment to other or within the sub-segments of the same asset class. With over 42 years of experience behind us, we have seen these kinds of cycles before as well.

In the present scenario, we are focussed on the affordable housing segment and have set ourselves a target of building 10000 homes in this category across the Northern India region where we are mainly present as of now.

We have also launched Megapolis, which is a 2500-acre mega township project that we are developing adjoining Greater Noida in the NCR.
Being a city in itself, it has everything that a modern day city should have and includes residential, commercial, retail, hospitality, institutional, health care, industrial, leisure (an international standard golf course, equestrian club, water sports in the 5 natural lakes) and a host of other features. With such a wide range of asset classes, Megapolis has the advantage of addressing all sections of the market, as against projects of the competition that are singularly focused.

Our ability to introduce only those products that could be absorbed in a recessionary market has helped us tide over the difficult times. Plots in attractive price range and ‘group housing’ in the affordable category sailed smoothly even in the downturn. Furthermore, Fairway Apartments that we launched in February 2009 is actually a luxury product and overlooks a golf course on one side and lake on the other, but was offered in the affordable category by value engineering without compromising on the size or the specifications. We are fully confident that we will be able to not only sustain our growth but even achieve greater heights by being able to offer the entire range of products in a world class environment with emphasis on quality while keeping the affordability factor in mind.

What are your new projects in the pipeline that Ansal API is presently developing?

Ansal API has a mixed bag of projects in the pipeline. This includes independent bungalows, premium floors, high-rise apartments at Megapolis, small and large offices in Corporate Park in Noida and IT offices in the IT SEZ in Greater Noida.

Apart from these, our Group has a heavy rollout planned for Lucknow, Meerut, Agra (UP), Haryana, Rajasthan and Punjab in the residential segments from premium to mid segment categories.

In the light of increased, increased environment consciousness, ‘green’ is the new mantra, in which way does your development work cater to this market as well as social needs?

As a group, Ansal API is socially and environmentally conscious and committed. We are presently executing approximately 4500 acres of townships which are purely ‘green’ and hi-tech in nature. Our Megapolis project has more than 50 percent green area and has obtained the environmental clearance subjecting itself to the most stringent norms.

Besides, we as a group have decided to use environment-friendly materials and products in our constructions. We also focus on renewable energy, water harvesting and waste-water recycling etc. in our residential and commercial projects.

Any real estate development work has to go hand in hand with larger infrastructural development by the government (for example, a residential complex gains in value only if it is well connected by roads), what kind of infrastructural requirements, the govt. has to put in place that would boost the growth of real estate.

No doubt, infrastructural development is the key to real estate growth. The best example is Greater Noida which can boast of the fastest access through Gautam Budh Expressway and a world class infrastructure of internal roads, drainage, sewage etc. Apart from these leisure and hospitality attractions also add value to real estate in the area.

Having said that, we feel that better connectivity through expressways, Metro/ mono rail, flyovers for lesser intersections, road over-bridges for railway crossings, water and regular power supply, schools, hospitals and public utilities are some of the areas where government spending should increase.

What are the challenges you face in land acquisition for real estate development purposes?

Land acquisition continues to be the most difficult and challenging aspect of the real estate development process. Multiplicity of laws, fragmented ownership, archaic land record system, ULCA etc. continue to be the challenges that realty companies face in land acquisition.

How do you differentiate your offering from others in this space?

Ansal API is among the leading Realty and Infrastructure Groups in India today, having established an excellent track record of over 42 years. We attribute the reason for our longstanding success to our ability to benchmark ourselves against international standards and quality parameters and also to delivery and service standards that we adhere to in all our projects/products. In the Township/Residential project segments, our Group plans and develops projects and products keeping in mind the fast changing requirements of the customers and by striking a fine balance between quality and affordability.

Besides, we handhold the clients post delivery as well, which keeps us posted on the pulse of our customers and allows us to adapt quickly.

In fact, this has been the key reason why our Group has been in the business for more than 42 years now and has always been a pioneer in each of the real estate asset classes - whether it is residential, commercial, retail or townships as a whole.

We have maximum penetration in Tier-II cities in comparison with any other developer and that has helped to keep us firmly grounded. Besides, as a policy we are looking at Mega Township rollouts which would allow the consumers to come to us for any kind of their real estate needs.