Manoj John, Vice President – Corporate Planning & Strategy, RNA Corp, is a civil engineer from MA College of Engineering (Mahatma Gandhi University) and MBA from Goa Institute of Management. He has over 13 years of rich and varied experience in business strategy and process improvement in various industry verticals including construction industry. He conducts continuous evaluation of business opportunities offering synergies with the company’s strengths & competencies, and provides recommendations on investment. He formulates the direction and framework for creation of ‘Standard Operating Procedures’, inter-department information flow and leads implementation of process improvement initiatives through a task-force approach.
RNA Corp, established in 1981, is one of Mumbai’s property development companies with a large land bank and strong financials. RNA Corp’s core strength lies in the residential and mixed-use development, with a balanced mix of open plot and redevelopment projects. The company's industry expertise and knowledge of the local markets, coupled with its unfailing focus on customer satisfaction has today resulted in its impeccable reputation and track record of performance. The company is involved in the redevelopment of projects in a strategic manner, with design aesthetics and modern amenities to meet the expectations of the customers.
Speaking with Yash Ved of IIFL, Manoj John says, "The options are always open for an Initial Public Offering; but it is difficult to put a time frame."
Brief us about your current and upcoming projects in residential, commercial, retail and hospitality space?
RNA Mirage at Worli, and RNA Continental at Chembur are amongst company’s key landmark residential projects. Redevelopment of Subhash Nagar, encompasses of MHADA buildings spread across 40 acres expanse. It is the residential development project in Chembur that comprises an impressive seven floor 40,000 sq. ft clubhouse offering premium lifestyle experience.
RNA Mirage has the distinction of being one of the tallest towers in Mumbai, overlooking the Worli sea face providing ecstatic views; it’s wide and spacious balcony further enhances the breathtaking view.
Apart from this, the company has projects like RNA Auroville & Address at Santacruz, RNA Grande at Kandivali (West). In the last ten years, the company has developed 10 mn sq.ft of residential, commercial and mixed-use Real Estate; while more than 40 mn sq.ft. are planned for development, inclusive of development on existing land banks across Mumbai.
We have various upcoming projects such as RNA Metropolis (Sewri), RNA Splendour (Andheri (W) and RNA Viva (Mira Road). The company also plans to undertake the development of hospitality projects, and select development of retail components as part of its market redevelopment strategy.
What is the price scenario in Mumbai and other cities?
The price increase has been quite steep over the last 6 to 9 months, and has become expensive in some micro-markets. We feel that substantial appreciation has happened during this phase, bridging the gap created during downturn. There would be some amount of balancing out of further price increase determined by market forces of demand supply. I expect prices will increase by another 10-15% opportunistically.
When are you planning an IPO?
We are observing the equity market performance and trends closely. The markets are not showing the desired resilience in terms of sectoral focus. The options are always open for an Initial Public Offering; but it is difficult to put a time frame.
What is the outlook of the real estate industry?
My view is that the growth will be reasonably good for real estate players. The first quarter numbers in terms of sales has been encouraging. The growth may not be as fast-paced as in Q4 of 2009 but year is expected to close with growth in top-line and bottom-line. Residential would continue to be the dominant contributor to revenues, and leasing of office space would see revival by Q3 in major cities. Retail segment would continue to be a laggard in comparison since the increase in rentals is not helping the revival of retail sector profitability.
How do you see redevelopment trend in the coming months?
Redevelopment is critical for meeting the urban housing requirement in Mumbai. The redevelopment process has been integral part of Mumbai’s real estate growth story. The recent amendments to development control rules have helped in this transformation to happen; especially with regards to cessed buildings in island city and FSI benefits offered for special development schemes
What is your view on the need for a real estate regulator?
I am not so convinced about how the framework, which is prescribed in the regulatory bill will be implemented. It is a very elaborate kind of mechanism which is promoted which involves checks & balances at every stage of development. It would be difficult for the center to implement the regulatory bill when the regulator has no control or issue a directive to the multitude of state authorities that grant approvals.
Brief us about your employee strength? What kind of hiring are you looking at?
RNA Corp’s present employee strength is 440; and the headcount increased by nearly 40 percent in the last 15 months. We continue to hire across departments and levels to meet the construction volume and projected sales targets.