The Puravankara Group was established in 1975, in response to the growing need for quality housing and commercial space in the metropolitan cities of India. In the year 1987, the company began its operations, taking Bangalore into its fold. In 1998, the company began its operations in Mumbai. Puravankara has projects in Bangalore, Chennai, Kochi, Coimbatore, Hyderabad, Mysore and Colombo. The group also has a presence in Dubai in the UAE and business representatives in the United Kingdom and the United States.
Mr. Ravi Ramu, Director-Finance, Puravankara Projects Ltd has over 28 years of experience in the areas of finance, systems and procedures and accounting functions. A Bachelor in Commerce from the Madras University. He is a member of the Institute of Chartered Accountants in England and Wales and a member of the Institute of Chartered Accountants, India.Ramu has served as the Group Chief Financial Officer (CFO) and Director of Strategic Initiatives at Mphasis BFL Ltd. He has also been the Senior Partner and Head of the Information, Communication and Entertainment practice at KPMG India. He has also worked with KPMG in the Netherlands and has been associated with the Emirates Bank Group in Dubai, UAE, in Financial Control and Planning.
Speaking with Yash Ved of India Infoline, Ravi Ramu says, ?Things are on upswing and prices have bottomed out.?
What is your comment on the recently concluded elections?
I think the biggest reaction is relief after the election results. We are relieved because there is continuity and the mandate has come strong and clear to one party. India is very well positioned to take advantage and show strength in the ensuing global economic crisis. India can emerge stronger in this difficult period as its fundamentals are very strong. We needed a stable and strong government who can take decisions quickly. I belief election results have been excellent and there is a strong government to back our economic growth.
What is your outlook for the real estate industry? Is there any scope for more correction?
The outlook for the Indian real estate industry in the coming years appears absolutely fantastic. I think all price corrections are over. Things are on upswing and prices have bottomed out.
Brief us about your ongoing and upcoming projects? What is the total area under development across India?
The area currently under development is 13.4mn sq. ft. with projects spread across Bangalore, Chennai, Hyderabad, Cochin, and Kolkata. There are 13 on-going residential projects and two commercial projects currently under development. The current land bank has been further augmented through land acquisitions in the cities of Chennai and Bangalore and currently stands at 125.17mn sq. ft. of developable area.
Provident Housing, the 100% affordable housing subsidiary of Puravankara Projects Ltd has launched its first project in Chennai, Provident CosmoCity. This first project measures 2.23mn sq. ft. and comprises 2,031 three-bedroom and 143 two-bedroom apartments. The second project of Provident Housing of over 4mn sq. ft. is expected to be launched in Bangalore over the next few months. The price range of homes in these two projects will be Rs1.2mn to Rs2mn. A further 3,500 homes are expected to be launched by Provident Housing in fiscal 2010.
What kind of investments would these projects require?
We will be constructing 68,000 homes with an area of over 62.8mn sq ft over the next five years. This would entail an investment of Rs80bn. Of this, Rs15bn would go towards land acquisition while Rs65bn would be spent on construction. The cities include Chennai, Hyderabad, Mysore, Coimbatore and Cochin.
What is your take on affordable housing?
We believe that affordable housing area has wide and open scope. In affordable housing, we are planning to launch 100% subsidiary, known as Starworth Infrastructure and Construction Ltd. This will move towards third party construction contracts.
What is the total debt in your balance sheet?
The total debt is Rs7.9bn.
Your message to the shareholders?
I think we are in a very exciting industry and the company has strongly weathered storms of economic crisis and is well poised to take advantage of an upswing.