Page 48 - Kolte Patil AR 2019-20
P. 48

How Kolte-Patil has

            built its business

            Positioning              Governance               Brand                   Asset-lightness
            We operate like a        We believe that in a business   We believe that the most   We entered the business
            manufacturing Company    where we generally sell   valuable property that we   through asset-heavy
            rather than running our   dreams, there is a premium   own is ironically not even   investments but over time
            business like a conventional   on the ability to not just   visible on the Balance   have graduated to being
            real estate Company. This   market with credibility but   Sheet. Over the decades, the   as asset-light as possible
            focus makes us independent   to run the business in a   credibility with which we   through joint ventures and
            of a conventional obsession   holistically credible manner   have run the Company has   society redevelopment
            with land ownership. The   (governance). This holistic   generated the ‘trustmark’   projects, making us
            result is that we have   approach comprises the   recall for our Company. We   independent of land
            increasingly selected to   fusion of ethics, processes,   market properties under the   ownership and extended
            enter into agreements    policies and protocols that   ‘Kolte-Patil’ brand (mid-  construction cycles. We
            where the partner brings   make our responses to   priced segment) and ‘24K’   have generally monetised
            developable land to the table   routine issues predictable.  (premium luxury), making us   projects around shorter
            while we bring the power of                       relevant for customer needs   paybacks, faster cash flows,
            our brand, knowledge and                          from as low as C30 Lakh to   strong working capital
            competence.                                       as high as C5 Crore.    management and higher

            Operational              Technology edge          Broad-based             Customer focus
            footprint                We stayed ahead of the   portfolio               We are focused on
            We are engaged in a      curve through investments   We have evolved from the   affordable and mid-priced
            business where the need   in construction-accelerating   construction of standalone   housing, which is seeing
            for lifestyle-supported   technologies - Mivan    residential buildings to the   the strongest traction in
            apartments is virtually in   shuttering technology,   development of full-fledged   the Pune, Mumbai and
            every part of the country.   Aluform technology from   residential complexes,   Bengaluru markets. We
            However, we largely believed   Korea, adhesive technology   integrated townships,   believe that this segment is
            that real estate development   from Italy, waterproofing   commercial complexes   largely user-driven, stable,
            was a localised business; it   technology from Germany   and IT parks (saleable area   marked by low installment
            is only in the last few years   and pre-fabricated door   of more than 20 million   deferments and likely to
            that we cautiously extended   technology from Japan,   square feet across Pune,   keep growing.
            our presence from Pune to   accelerating construction   Mumbai and Bengaluru).
            Mumbai and Bengaluru     speed and quality. We also   The highlight of our portfolio   Partnerships
            (even as Pune accounted for   invested in cutting-edge   has been the Life Republic   We entered into partnerships
            91% of our sales in FY20).  information technology tools   township (390 acres),   with marquee financial
                                     (SAP implementation and   currently home to 11,000+   institutions where they
                                     advanced CRM) resulting in   residents and likely to be in   selected to own equity in
                                     informed decision-making.   various phases of completion   specific projects.
                                     We were one of the first in   for at least another decade.
                                     India’s real estate sector to
                                     implement advanced CRM
                                     SAP-based ERP.

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