Gaurav Mittal, Managing Director, CHD Developers Ltd is an OPMer from Harvard Business School.He joined the company in 1999 as a management trainee and has thereon risen through the ranks by handling multidimensional assignments and heading all the major functions in the company at various points in time. He played a crucial role in CHD Developer’s transitory phase from a developer of “standalone projects” in Delhi to state-of-the-art residential townships in Haryana, NCR and U.P.
CHD Developers Ltd is one of the leading real estate developers in North India that specializes in commercial as well as residential segments. The Group is known for its design ingenuity, superior quality, professionalism and on-time delivery. It has expanded into the creation of world-class commercial offices, residential townships, retail complexes, office cum retail projects and hotels. The Group also aspires and aims to continue the development and delivery of outstanding IT Parks, commercial complexes and futuristic townships of international standards. The Group has constructed over one million square feet area of projects in the premium and upscale vicinities of Vrindavan, Haridwar, Karnal which have been some of the pioneering works in the city.
Replying to Yash Ved of IIFL, Gaurav Mittal says, “2011 looks to be a positive year for the real estate industry with a stable market welcoming the players.”
Brief us about your current and upcoming projects in Residential, Commercial, Retail and Hospitality space?
We are primarily into mid-segment Residential and quite bullish about it. Commercial and Retail are just an infrastructural addition to our residential parcel.
CHD Avenue 71, Gurgaon
CHD City, Karnal phase- III
CHD City, Karnal phase –IV
Sri Krisna Lok-Phase-II
Gayatri Lok – phase-II
Two Group Housing projects in Gurgaon
What price scenario do you see in Delhi-NCR?
Delhi CATEGORY 1 – prices are stable.
NCR Sector 1 –Gurgaon: Demand is increasing so will the price. Also, the demand is more than the supply here.
NCR Sector 2 -Noida, Greater Noida, Ghaziabad, Indirapuram: All/most of UP is affected by the current land acquisition crisis. It will take a year to stabilize.
NCR Sector 3- Faridabad, Sonepat : No major movement.
Are you planning to expand Karnal township?
CHD City is our flagship township and we have invested around Rs 2.5bn in the project till date. The company intends to invest Rs 2.5bn more over the years. Recently we expanded CHD City, Karnal by an additional 23 acres.
What are the new launches in Delhi-NCR?
We will be launching signature tower of Avenue 71 this Diwali.
What is the outlook for the real estate industry?
Year 2011 looks to be a positive year for the real estate industry with a stable market welcoming the players. Residential segment has witnessed rising demand which will continue even in 2011. Owing to the higher disposable income in the hands of consumers, real estate will position itself to be a safe investment option yielding optimistic results.
The mid segment has always been the leader in the Indian market and will continue to be so. Looking at the potential of Metros and Tier II cities in each segment, they are expected to gain further momentum and prove to be the hub of real estate development not only for residential players but also in commercial.
While demand for office spaces will increase, low premium segment in housing will gain further momentum this year.
With buyers becoming highly conscious about ensuring minimal environment damage, eco friendly lifestyle will be an emerging trend that developers will have to be accountable for in 2011.
We at CHD Developers have already taken care of achieving 0% environmental damage in our projects. Our latest project, Avenue 71, which has been awarded Gold Certification by the Union Ministry of Environment & Forest, has been built keeping in mind the provision of proper green infrastructure which includes water harvesting and recycling system, micro irrigation system and insulated roof tops.
What is your view on the real estate regulator?
There is a need for an efficient and focused regulatory body to overlook the functioning of the real estate sector in order to insure the future development of the industry and safeguard consumer interests in line with international benchmarks.
Brief us about your financials?
The fiscal 2010-11 was a watershed in our history for some good reasons.
The company completed 20 years in existence, crossed Rs 1bn in topline, launched a residential project in the Delhi-NCR for the first time and reported a record profit after tax of Rs 62.1mn.
The company grew revenues 233% in 2010-11. Its revenues have grown at a CAGR of 21.96% in the three years leading to 2010-11. The result of the company’s differentiated business model is PAT growth of 576% and EBITDTA growth of 147%.
What is the promoter holding in CHD?
Our promoter holding stands at 56.65%