Today's Top Gainer
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Malayappan Murali, Managing Director, Shriram Properties done an education at Harvard Business School. Murali embarked upon a civil engineering career with the state public works department in 1988. Later, Shri Murali served with Larsen & Toubro and was involved with the setting up of the L&T Hitech City, a historical landmark in India's information technology revolution. In the year 1997, Shri Murali was appointed as head of Shriram Properties Limited and has been serving as its Managing Director since the year 2000.
Shriram Properties, the realty arm of the Rs 60,000 crore Shriram Group has its presence across Bangalore, Chennai, Hyderabad and Vizag, having developed nearly 10 mn sq ft of residential space (across 24 projects). Shriram Properties today has grown to be a property development behemoth with business of about Rs. 25,000 crores. With more than 12.96 mn sq ft already under development (across 11 projects) and another nearly 32 mn sq ft coming up for development, Shriram Properties has embarked on a new journey of aggressive growth and expansion, while retaining its key ethos of trust, transparency, and quality.
Replying to Yash Ved of IIFL, M Murali says "Property prices are likely to increase in all the large cities once the new government is formed at the centre. Tier II cities will witness high growth as we see more and more IT and industrial sectors investing in these places."
Brief us about your current and upcoming projects in residential, commercial, retail space?
Our residential projects are spread across south India with integrated townships, villas, apartments coming up in Chennai, Bangalore, Coimbatore and Vizag. Also we have an integrated township that is stretched out over a substantial land area of 376 acres, coming up in Kolkata, West Bengal. We believe in quality living and it is our core principle to offer best in class amenities at all our facilities. We take conscious care for the reduction of pollution and wastage by adopting ‘Reduce, Reuse and Recycle’ policy.
In the commercial space segment, we have an integrated development project called “Shriram Gateway” SEZ, located near Tambaram, Chennai. The project comprises about 6 million sq.ft. of development which includes IT/ITES SEZ offices and about 4.0 million sq.ft. of residential development.
What is the outlook for the real estate industry?
Our long-term outlook for the sector is certainly positive and the sector will have large potential to emerge as the backbone of Indian economy. Like most industries in the country, real-estate sector too had gone through a turbulent phase in the recent past. We are optimistic about the revival of the real-estate industry in the near future with the establishment of a pro-business and stable Government at the centre.
While we are positive about the growth prospective, the future of Indian real estate industry would purely depend on;
On faster implementation of the project
Adherence to project timelines and delivery as per committed schedule
Improved quality of construction and finishes
Coping up with ever growing expectations and demands of the stakeholders which include clients and investors
Given the circumstances of ever increasing cost of inputs namely materials and labour, coupled with unimaginable shortage of skilled and unskilled labour force, taking technological leap in terms of large scale mechanization, effective & efficient project management techniques and practices will be the factors driving growth tomorrow. Such steps need to be implemented quickly before it is too long to sustain the robust growth and the bright future of the industry.
What is the total area under development?
The total developable area in ongoing and upcoming projects are approx 57mn sft and Our land bank is around 1000 acres.
What price scenario do you see in Mumbai and other cities?
Property prices are likely to increase in all the large cities once the new government is formed at the centre. Tier II cities will witness high growth as we see more and more IT and industrial sectors investing in these places. Mumbai has always remained an attractive investment option, with the coming of new projects and rapid infrastructure development, prices will remain positive.
What is your outlook for FY15?
The outlook for FY15 is positive; with the formation of the new government at the centre, it will impact consumer sentiments and surge end user demand. Most recently the real estate sector has seen viable interests from foreign investors and funding from private equity firms which is a healthy sign for the industry. Even though the current year has seen a sluggish growth of economy with several macroeconomic factors influencing the same, the later half should start with a more positive character as new policy measures and different project clearances will set the way forward to an improved economy. Nonetheless, a calculated economic change can only happen if the new government implements a strong reform agenda that would in due course boost the economy.
How do you see commercial and residential demand in the coming fiscal?
While demand for residential spaces will see growth, the demand for commercial property may remain subdued. The introduction of real estate investment trusts (REITs) will bring in positivity for the real estate sector since this will open doors to funding and will attract new investors. Growth in various sectors, especially from the banking sector will largely drive the demand for office space.
What is your current debt?
Our current debt is around Rs 300 crore against the net worth of about Rs. 1100 crore.