Page 46 - Kolte Patil AR 2019-20
P. 46

Our Business Model

            and Stakeholder Value-

            Creation Report, FY20

            How we enhanced value in an integrated,
            inclusive and sustainable way

            Our business model

            The relevance of our sector
            At Kolte-Patil, we believe that we are present in a
            sector whose relevance is only increasing. As incomes
            and aspirations increase, people need to live better.
            The quantum of spaces per person has increased
            substantially in the last few decades, as a result of which
            we are seeing multiple structural plays in motion:
            y yPeople needing to move into structured homes from
            relatively unstructured rented environments;
            y yPeople living in structured homes seeking to move into
            larger homes;
            y yPeople already living in large structured homes seeking
            to move into homes with lifestyle supports.
            We believe that this traction has been catalysed in the
            last few months following the outbreak of the pandemic.
            The lockdown has created yet another structural shift
            – the need for a larger home to accommodate the need
            to work from home. We believe that this development –
            the addition of one room to address working-from-home
            needs – could increase the apartment outlay by a fifth
            in most cases, generating attractive downstream for
            additional space, building materials and fittings. We
            believe that this single development can transform the
            reality of the Indian real estate sector.
            The country’s real estate sector is passing through an
            existential crisis, marked by a decline in purchase intent
            on the one hand and large completed inventory on
            the other. At Kolte-Patil we have been relatively lesser
            affected by this reality. On the contrary, we have done
            better than ever through the course of this downturn by
            selecting to grow within carefully-identified niches. This
            contrarian achievement was achieved year-on-year in the
            last few years on the back of a strategic clarity that has
            been explained in this section.

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