Mr. Hari Prakash Pandey, VP-Finance, Housing Development & Infrastructure Limited, has been associated with HDIL since December 2005. He is a Chartered Accountant and has done his MBA (Finance) from Apsema & Latrobe University (Melbourne University). He has received Appreciation Letter for being nominated for Best CA Award 2008 and 2009 under Infrastructure & Real Estate Category in India from Institute of Chartered Accountant of India. In HDIL, he is a part of top management team and key member involved in Corporate Financial strategies & policies, fund raising and Investor Relations.
Housing Development & Infrastructure Limited has developed over 100 million sq. ft. area. The operations are spanning in every aspect of the real estate business, from residential, commercial and retail projects, to slum rehabilitation to land development. It has also diversified into energy, hospitality and the development of SEZs. It is a major player in Mumbai Realty with 90% land Reserves in the Mumbai Metropolitan Region (MMR) and are market leaders in residential and SRA projects in the Mumbai Metropolitan Region (MMR) and are currently executing the largest SRA project for rehabilitation of approx. 85,000 slum dwellers under expansion & modernization of Chhatrapati Shivaji International Airport, Mumbai
Speaking with Yash Ved and Aalok Shah of IIFL, Hari Prakash Pandey says "Overall, I expect a moderate price rise in the coming months and demand will continue in all segments of residential portfolio"
Brief us about your current and upcoming projects.
From March 2009 till September 2010, we have launched 11 residential projects which include 2 commercial and 1 industrial projects in Virar. The company has sold approx. 5000 apartments from March 2009 till September 2010. The company plans to launch about 21 mn sq.ft of area from its forthcoming project in MMR, Kochi and Palghar.
The company has its presence in suburban area and targeted focus at middle income with ticket size at Rs10mn. We capture whole suburban markets which include Goregoan, Andheri, Mulund, Bhandup and Virar and have established our self as market leaders in the residential segment.
There are three broad categories.
The residential projects covering another 7-8mn sq ft in suburban areas like Goregoan, Andheri and Mulund for the middle income with 8000 to 10,000 sq ft.
We are coming up with township project in Palghar with an area of 10mn sq ft. The company is starting a flagship project in Kochi as planned villa schemes.
A separate subsidiary has been set up to look and expand the hospitality business.
Are you planning to launch projects in other locations?
We are planning to launch projects in other locations. In Pune, the construction is going on with an area of 0.5mn sq ft. The company is planning to launch a residential project in Hyderabad and 2 projects in Kochi.
What is the revenue mix in terms of residential, commercial and retail projects?
95% of the revenue comes from residential projects, while remaining 5% of the revenue comes from commercial, Hospitality and retail projects. Going forward, 80% of the projects would be residential and 15-20% would be commercial and hospitality.
By what time do you expect your projects to get executed?
With average duration for residential projects at 3-years, the projects will be completed and ready for possession by 2013.
How do you see the TDR price going forward?
We are selling TDR prices and we control 100% of the TDR market. Going forward, TDR prices are expected to remain strong and may increase up to Rs3500 sq ft.
Any fund raising plans?
We have just completed a QIP of US$250mn in September. The company is adequately funded as on today and has no future plans of any capital raising. D/E is at 0.4x
There are reports that the company has acquired land in Mahul for Rs 1.5bn?
We have acquired a land parcel at Mahul in Mumbai for Rs 1.5bn. The company will start constructing the rehabilitation component on other land parcels and plans to build for 40,000 families by the end of this year.
How do you see the price scenario over the coming months?
For the last 1 year, price has increased by 40-50% and has shot up very significantly.
In central Mumbai like Lower Parel, we may see a shortfall in prices. Overall, I expect a moderate price rise in the coming months and demand will continue in all segments of residential portfolio.
What are your views on a real estate regulator?
We welcome a real estate regulator, if it benefits the overall economy and also the developers.
What is the current debt?
We have a debt of around Rs40bn.