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companylogoArvind SmartSpaces Ltd

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BSE Code : 539301 | NSE Symbol : ARVSMART | ISIN : INE034S01021 | Industry : Construction |


Chairman's Speech

AT ARVIND

SMARTSPACES, OUR MOST DECISIVE INITIATIVE OF THE LAST FINANCIAL YEAR WAS THE DECISION TO ENTER THE MUMBAI METROPOLITAN REGION"

Overview

As a company, we had another strong year with several key milestones achieved across bookings, collections, and business development. Drawing from the strengths and confidence in business performance, I am pleased to share that the Board of Directors recommended a final dividend of H6 per equity share of a face value of H10 each. This marks three successive years of dividend distribution.

To appreciate our perspective for the future, it would be imperative to provide a context. This context is drawn from the introduction of the RERA (Real Estate Regulatory Authority) a few years ago that proved to be an inflection point for the real estate sector in India. This inflection has helped organise India's real estate sector; it has moderated the role of unorganised builders and shifted the market towards organised real estate brands. Besides, the fusion of economic growth on the one hand and increased formalisation of the market has created an unprecedented opportunity for select real estate players. In this environment, it would be unwise to plan incrementally quarter on quarter. The vastness of the opportunity landscape provides us with an unprecedented long-term opportunity.

The management of Arvind SmartSpaces has drawn out a multi-year blueprint to accelerate growth, enhance liquidity and create a sustainable engine of business sustainability that is directed to enhance value for all stakeholders.

Business drivers

Market selection: The company recognises the need to prudently select the right real estate markets. This decision will be influenced by the size, growth and, character of the markets as well as the nature of resources required to grow within. Following a detailed analysis of long-term prospects, the company selected to be present in Ahmedabad (traditional stronghold), Bangalore (among the fastest growing realty markets in the world) and Mumbai (India's financial capital and the largest real estate market in the country). What can make our presence in these markets profitable is that we possess relevant products – vertical and horizontal – compatible for each market; this neat fit is likely to enhance our brand connect faster and deeper in these markets than otherwise.

Enter Mumbai: At Arvind SmartSpaces, our most decisive initiative during the last financial year was its decision to enter the Mumbai Metropolitan Region. This decision can be the most defining in graduating the company to Rs.10,000 Cr in annual bookings. By being present in two of three mega realty markets in the country, the company will deepen its positioning as a top quartile player that generates high value bookings and strengthens brand visibility. As the Company enters the Mumbai Metropolitan Region, the Company has taken a three pronged strategy to cement its success in the region. The first is to capitalise on the Company's strengths in the horizontal space by targeting high quality horizontal projects in the newer developing micromarkets in MMR. There is a growing market for horizontal (land-rich) developments in Mumbai 3.0, which could provide a refreshing proposition in a city that is otherwise known for excessive vertical development. The second is to focus on mid-sized redevelopment projects (Rs.500 Cr to Rs.1000 Cr), a niche relatively under-served by branded real estate players. And finally is to evaluate small to medium brown field/green field developments through a joint development model which minimises capital exposure in a new market. Besides, there is a growing market for horizontal (land-rich) developments in Mumbai 3.0, which could provide a refreshing proposition in a city that is otherwise known for excessive vertical development. The successful execution of these business models will provide the company with a credible brand foundation on which to scale securely and sustainably. By selecting to be present in the fastest growing markets, including India's financial capital, the company is positioning itself as an opportunity-responsive premium real estate brand.

Our designs were directed towards retaining or planting local tree species; our properties were designed around floral sequences and patterns that enhanced our project reality and inspired stakeholders.

   

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