mahindra lifespace developers ltd Management discussions


Mahindra Lifespace Developers Limited (‘Mahindra Lifespaces, MLDL or the Company) is one of the leading real estate development companies in India. Over the years, the Company has anchored its approach in its brand promise of ‘Crafting Life and has created a reputation for delivering an array of successful projects, thereby establishing industry benchmarks in environmentally responsible homes and industrial developments.

Along with its subsidiary companies and joint ventures (JVs), Mahindra Lifespaces is engaged in developing residential projects in the premium and value housing segments, as well as integrated cities and industrial dusters. This chapter presents an overview of the performance of the Company during 2021-22 and its strategy for future growth.


Global economic activity witnessed an Impressive turnaround In performance in 2021, as it recovered from the slowdown triggered by the Covid-19 pandemic. According to the IMF, world output grew at 6.1 percent in 2021, compared to a contraction of 3.1 percent in the previous year The recovery was broad-based, with both Advanced Economies (AEs) as well as Emerging Markets and Developing Economies (EMDEs) rebounding strongly with a growth of 5.2 percent and 6.8 percent respectively.

India also registered a sharp turnaround in performance, emerging as the fastest growing large economy during the year. According to the second advance estimates released by the Central Statistics Office (CSO) on 28 February 2022, Indias Gross Domestic Product (GDP) grew by 8.9 percent in 2021-22, after a contraction of 6.6 percent in the previous year Both industry and services recorded a strong improvement, even as agriculture — which has been a pillar of strength during the last couple of years — continued to register steady growth. Chart A plots the data over the last two years.

From the real estate industrys perspective, the construction sector — which accounts for around 7.5 percent of GDP — grew at 10 percent in 2021-22, compared to a decline of 7.3 percent in 2020-21. As discussed later in this report, this revival is also reflected in MLDLs performance in 2021-22.

Even as one cannot rule out more virulent future waves of the pandemic, it is clear that Covid-19 related risks have come down — in no small measure due to high penetration of vaccines in India and large parts of the world as well as much better medical therapies and infrastructure to deal with hospitalisations and related emergencies. Another important contributor to the reduction in Covid-related risks is the preparedness at all levels — be it the government, large organisations, small businesses or even households — to deal with the pandemic-induced lockdowns and restrictions with minimal disruptions. This was evident in the speed with which normalcy returned after the devastating second wave of the pandemic in the first quarter of 2021-22. The experience during the third wave in January 2022 was even more reassuring.

Today the risks to the economy come primarily from sharp rise in global inflation and moves to wind down monetary policy support in Advanced Economies. These risks have exacerbated due to the war in Ukraine and ensuing economic sanctions, which has further disrupted global supply chains triggering spiralling inflation in global commodities including energy food, fertilisers, metals and minerals. As the events unfold, further tightening of monetary policy to reign in prices, supply-side bottlenecks and decline in world trade, strains in global financial architecture and aversion to emerging markets assets, all point to a deterioration in the outlook for economic growth, at least in the near term.

Considering this, the IMF has toned down its growth forecast in its most recent World Economic Outlook published in April 2021. According to these latest estimates, giobal output will grow at 3.6 percent in 2022, which is 130 basis points lower than its earlier forecast of 4.9 percent made in October 2021. India, too, is expected to record a somewhat lower GDP growthestimated at 72 percent in 2022-23 by the Reserve Bank of India (RBI) in its report released in April 2022 compared to its earlier estimate of 7.8 percent made in February2022.

It is encouraging to note that, even with this moderation, India will continue to be the fastest growing large economy in the world. Besides, the fundamentals of the economy remain strong, allowing sufficient room to take appropriate policy action both on the fiscal and monetary front. In its latest assessment on 4 May 2022, the RBI raised repo rates by 40 basis points initiating the withdrawal of monetary accommodation to ensure that inflation remains range-bound and supports economic recovery and growth.


The market for real estate, and indeed for all high-value and discretionary spend categories, was affected at the start 202122 due to the intense second wave of the Covid-19 pandemic. But as noted earlier, the return to normalcy in terms of both consumer sentiment and ability of businesses to service customers was much faster compared to the previous year. The demand situation and opportunities presented in the two key businesses of the Company are as below.

Residential Developments

Demand for residential developments were impacted in the first quarter of 2021-22 but recovered quickly once the lockdowns and restrictions were lifted. There was a strong momentum as the year progressed, with the latter half of the year seeing particularly strong demand.

Some key reasons contributing to this improvement in demand are worth noting. First, the consumer sentiment among home buyers was strong with well-identified needs and preferences shaped by the pandemic experience. Second, home affordability increased considerably with home loan interest rates at sub-6.5 percent levels. According to Knight Franks Affordability Index, which captures movements in property prices, interest rate and average household income, Indian markets were at their decadal best in terms of housing affordability in 2021.

This resulted in healthy demand across product segments for both ongoing projects as well as ready inventory. Most markets in which the Company operates saw a significant improvement in demand-supply balance leading up to a considerable increase in new launches in the latter half of the year. In another sign indicating strong buyer sentiment, pricing pressures did not impact growth as the industry was able to pass on increase in construction cost during the year through rate hikes.

Another important aspect of the current real estate market is the marked preference for trusted and established developers with a good track record. This has not only helped MLDL in achieving better traction among homebuyers when it comes to marketing its projects, but has also opened-up significant opportunities in the society redevelopment space in Mumbai, which the Company is actively looking at for future growth. On the supply side too, this preference for established brands coupled with its strong balance sheet has allowed the Company to access better opportunities when it comes to land procurement and partnerships. Taking this forward, MLDL is also now looking at opportunities in stressed assets and portfolios.

Even as Mahindra Lifespaces evaluates the emerging opportunities in the society redevelopment and stressed assets, the Companys strategy for the residential business continues to be to build a stronger presence in its key marketsMumbai and Punewhere it already has multiple successful projects. Bengaluru is another market where it is looking to build a presence. Other than these, its presence in additional geographies will be based on specific opportunities that emerge from time to time.

As for product segments, the Company will expand its offerings under both premium and value housing segments with a focus on sustainable developments and delivering differentiated products through design and innovation that enhance the living experience.

Integrated Cities and Industrial Clusters (IC&IC)

The improved demand outlook for industrial land and healthy increase in enquiries witnessed in the previous year gathered further momentum in 2021-22, albeit after a blip in the first quarter due to the second wave of Covid-19 infections.

The key factors behind this improved outlook are: (i) Growth in domestic consumption-led demand is prompting a new cycle of capital investment in manufacturing (ii) As global shipping routes remain bottlenecked, import-led categories are seeking domestic manufacturing alternatives. (iii) Large MNCs are looking to diversify their operations outside China; India is a viable alternative from a geopolitical standpoint and is poised to emerge as an export hub for key industries. (iv) India is increasingly finding its place as one of the largest and fastest growing economies; offers a stable economic and political environment. (v) India is investing significantly in infrastructure; Governments push for domestic manufacturing through schemes and concessions make it an even more attractive destination. (vi) After limited capex in the last few years, the capacity utilisation has increased as global economy recovered from the pandemic-induced recession, making investments imminent (vii) Following an explosion in e-commerce, ancillary industries such as packaging, warehousing and logistics are also driving demand for space — much of it for ready-built and built-to-suit solutions in well-serviced environments (viii) Sunrise sectors like renewables and electric vehicles are embracing rapid growth.

It also helped that curbs on international travel were gradually lifted as the year progressed, which paved the way for site visits, building a more definitive pipeline of potential deals and leasing activity during the year.

Mahindra Lifespaces is well placed to deliver in this environment. It is a pioneer in the Integrated Cities and Industrial Clusters (IC&IC) segment, marketing its products under two formats: large integrated cities under the brand ‘Mahindra World City and smaller industrial clusters under the brand ‘Origins.

Currently there are two operational Mahindra World Cities in Chennai and Jaipur and an operational Origins project in Chennai. Development work is currently in progress in an industrial cluster project called Origins Ahmedabad.

With these four projects, the Company has projects in some of the most important industrial corridors in India. This is in line with its strategy to offer multiple destinations to prospective customers that provide plug-and-play infrastructure based on their needs and cater to all major industrial sectors.

The Companys offerings in the business will be bolstered further with another industrial cluster project being planned in Maharashtra. This project is currently at the land aggregation and planning stage.


Mahindra Lifespaces residential and industrial businesses registered impressive performance in 2021-22, gathering strong momentum after a weak first quarter due to the Covid-19 outbreak.


In 2021-22, Mahindra Lifespaces launched two new projects: (i) Mahindra Happinest MWC in Chennai in the second quarter and (ii) Mahindra Happinest Kalyan 2 in the Mumbai Metropolitan Region (MMR) in the fourth quarter. The Company also launched fresh inventory in three of its existing projects — Vicino and Alcove in MMR and Happinest Avadi in Chennai. These launches cumulatively accounted for around 1.27 million square feet (msft) of saleable area.

Chart B provides data on MLDLs sales performance in the last five years. The Company registered sales of Rs.1,028 crore in 2021-22, which is not only a significant improvement over last year, but also its best performance so far. Area sold also increased considerably during the year from 1.07 msft to 1.28 msft and is now close to the pre-pandemic level of 1.31 msft in 2019-20. It is important to note that this performance was broad-based, with strong sales across its entire project portfolio spanning all price points, ticket sizes and markets. Several ongoing projects or phases were sold out completely in 2021-22, which is commendable given the typical challenges involved in selling residual tail inventory.

This superior performance is also reflected in the strong collections recorded during the year. As shown in Chart C, overall collections bounced back strongly to Rs.1,153 crore in 2021-22, compared to 758 crore in 2020-21. This is also the highest ever ooMections recorded in the Companys history — and is a testimony to its efficient project execution capabilities and customer centric processes that enable timely payments.

Construction activity and handover of units also increased considerably during the year. Mahindra Lifespaces completed construction of 1.30 msft1 in 2021-22, compared to 0.39 msft in 2020-21 — even surpassing 1.07 msft recorded in the pre-pandemic year of 2019-20. Handover of units to homeowners grew from 605 units in 2020-21 to 925 units in 2021-22.

During the year, the Company made three land acquisitions — two in MMR and one in Pune — in line with its strategy for growth in the business. These three projects should account for roughly 3 million square feet of development potential amounting to around Rs.3,800 crore in terms of Gross Development Value over their lifecycle.

Integrated Cities and Industrial Clusters (IC&IC)

The performance of the Integrated Cities and Industrial Clusters business also reflected a sharp turnaround in 202122 (See Chart D). Land leased2 by the business increased from 56 acres in 2020-21 to 111 acres in 2021-22. Total lease premium generated in 2021-22 was Rs.297 crore, which is significant improvement over Rs.129 crore generated in the previous year.


Table 1 provides a snapshot of the Companys project portfolio across different markets. As of 31 March 2022, Mahindra Lifespaces and its subsidiaries have completed projects covering 19.23 million square feet (msft)3 in the residential segment, including 1.30 msft completed during the year.

Table 1: Projects Snapshot as on 31 March 2022 (million square feet#)

Location Completed Development Current Development Future Development
MMR* 3.98 2.52 3.25
Pune 3.47 0.69 1.20
Nagpur 1.04 0.52 -
NCR** 3.90 - 0.43
Bengaluru 0.87 - 0.79
Chennaic 4.50 0.31 1.05
Hyderabad 1.08 - -
Jaipurc 0.40 - -
Total 19.24 4.04 6.72

# Estimated saleable area

* MMR includes Mumbai, Boisar, Palghar, Thane, Kalyan and Alibaug

** NCR includes Delhi, Gurugram and Faridabad

c Includes residential and commercial developments inside MWC Chennai and Jaipur Mahindra Lifespaces is currentiy developing projects totaiiing 4.04 miiiion square feet. Another 6.72 miiiion square feet avaiiabie in the form of future projects, of which 2.85 miiiion square feet are new phases of ongoing projects and 3.87 miiiion square feet are fresh projects for which design development or approvals are underway.

Table 2 provides project-wise status of sales and construction in ongoing projects and information on new projects where design and development is underway.

Table 2: Project-wise Status as on 31 March 2022

Market Project

Area (million square feet)

Status (%)

Total Laun ched Ong oing Forth coming Sales? Constr- uction&
Completed / Ongoing Projects
MMR Roots 0.14 0.14 0.14 - 96.7% 82%
MMR Vicino 0.26 0.26 0.26 - 72.9% 76%
MMR Alcove # 0.39 0.39 0.39 - 38.3% 39%
MMR Meridian ** 0.16 0.03 0.00 0.13 8.9% 100%
MMR Happinest Palghar 1c 0.43 0.43 0.00 - 82.6% 100%
MMR Happinest Palghar 2c 0.36 0.18 0.18 0.18 63.8% 78%
MMR Happinest Kalyan 1c 0.84 0.84 0.84 - 86.5% 66%
MMR Happinest Kalyan 2 1.09 0.71 0.71 0.38 15.6% 3%
Pune Centralis 0.34 0.34 0.18 - 99.3% 53%
Pune Happinest Tathawade 1.19 0.51 0.51 0.68 80.7% 24%
Nagpur Bloomdalec 1.55 1.55 0.52 - 97.0% 60%
NCR Luminarec# 1.20 0.77 0.00 0.43 100% 100%
Chennai Aqualilyc 1.58 1.35 0.00 0.23 100% 100%
Chennai Lakewoodsc 0.90 0.28 0.00 0.62 96.9% 100%
Chennai Happinest Avadi 0.73 0.73 0.10 - 100% 85%
Chennai Happinest MWCo 0.41 0.21 0.21 0.20 98.2% 15%
Total 11.57 8.72 4.04 2.85 85% 51%
New/Forthcoming Projects?
Kanakpura, Ben galuru 0.79
Dahisar, MMR # 0.86
Kandivali, MMR 1.70
Pimpri, Pune 0.52
Total 3.87

# All values and percentage are inclusive of joint developers share wherever applicable.

@ Percentage of Sales is based on total launched area and overall area sold of the launched area.

& Percentage of construction progress is based on ongoing development in such project. o Projects implemented by subsidiaries and JV companies.

$ The areas of the forthcoming projects are estimated areas and are subject to change basis approvals. ** Serenes was upgraded and re-launched as Meridian in 2021-22

Integrated Cities and Industrial Clusters (IC&IC)

The Companys presence in this segment spans two Mahindra World Cities (MWCs) at Chennai and Jaipur, and two Origins projects in Chennai and Ahmedabad.

These industrial projects have a combined gross area of over 5,000 acres and a leasable potential4 of over 3,600 acres. In 2021-22, it leased 111 acres of land, up from 56 acres in the 2020-21, taking the cumulative area leased under IC&IC to 2,147 acres5. As on 31 March 2022, the three operational projects — two MWCs in Chennai and Jaipur and Origins Chennai — had over 200 companies from over 20 countries, making these truly global developments. Combined direct employment provided by these projects stood at around 57,000 persons.

MWC Chennai and Jaipur have been ranked as ‘Leaders, and among Indias top 13 Special Economic Zones (SEZ), in the latest Industrial Park Rating System report (IPRS 2.0) released by the Department for Promotion of Industry and Internal Trade (DPUT), Ministry of Commerce and Industry, Government of India for 2021-22.

MWC Chennai is the Companys first integrated city project with gross area of 1,524 acres and a leasable potential of 1,145 acres across its Special Economic Zone (SEZ), Domestic Tariff Area (DTA) and Residential and Social Zone (R&S).

MWC Chennai has leased 100 percent of its existing land inventory in the SEZ and DTA but continues to offer lease options in the Residential and Social Zone. At the end of 2021 - 22, the total number of industrial customers in MWC Chennai was 68 — 24 in the SEZ and 44 in the DTA. Of these, 59 companies are currently operational and another one is under construction.

During the year, MWC Chennai also witnessed the inauguration of facilities of Dinex (Denmark), Emerson (USA) and Pegatron (Taiwan based manufacturer for Apple iPhones). For Pegatron, this is their first unit in India which will provide employment to close to 10,000 people once it is fully operational.

Completed residential projects at MWC Chennai saw an increase in occupancy to over 2,400 families. Construction is currently in progress in residential projects Lakewoods and the newly launched Happinest MWC, for which details have already been provided in the section on residential developments. The city has all key infrastructure and amenities for its residents such as retail and commercial centre, health, education and hospitality. As a mature project, the focus is on community building and other initiatives that enhances the liveability quotient of the city and promote it as a destination of choice.

Community building initiatives were kept on pause due to pandemic in 2021-22 and are expected to resume gradually in 2022-23. MWC Chennai successfully organised 11 covid vaccination camps in 2021-22, which benefitted approximately 4,300 people in the city.

Some key operations and maintenance projects implemented during the year to enhance liveability include: (i) installation of 85 surveillance camera with AI interface, (ii) installation of smart water metering to provide real time water management system, and (iii) replacement of MHSV lights to smart LED lights with IoT network, which reduced energy cost by as much as 40 percent.

As a part of the Mahindra Group, MWC Chennai has been at the forefront of adopting sustainable and environmentally friendly practices. In 2021-22, it was certified as Indias first integrated city to be ‘Zero Waste to Landfiiiby Intertek for the second consecutive year

MWC Chennai won several awards and recognitions in 202122. It received ‘Achievement Award for Best Smart City/Sub City Projects and ‘Chairmans Commendation Award the ‘Corona Warrior Rs.category at the 13th Construction Industry Development Council (CIDC) Vishwakarma Awards 2022. For its achievements as a manufacturing destination, it received Highest Annual Export and Highest Annual Employment (Second Place) non-IT/ITES SEZ by Madras Export Processing Zone (MEPZ).

MWC Jaipur is the Companys largest integrated city project with gross area of 2,913 acres and a leasable potential of 2,011 acres across its SEZ, DTA and the Residential and Social Zone. The project is being implemented under a public-private partnership, in JV between the Company and Rajasthan State Industrial Development and Investment Corporation (RIICO). It also has a strategic partnership with International Finance Corporation (IFC), a member of the World Bank Group.

In 2021-22, it leased around 95 acres to 13 new and 2 existing customers — taking the cumuiative leased area to 958 acres. MWC Jaipur ended the year with 114 customers — 59 in the SEZ, 54 in the DTA and 1 in Social Infrastructure. Of these, 68 companies are operational, and another 20 companies are expected to start operations in 2022-23. It currently caters to a wide range of industries including IT/ITeS, e-commerce, warehousing, logistics, packaging, engineering, defence equipment, auto components, construction equipment and materials, ATM machines, food processing, apparel, furniture, handicrafts, jewellery and herbal products.

MWC Jaipur has institutionalised a customer engagement platform called ‘Coalesce to discuss operational matters and collaborate on new initiatives. Owing to Covid-19, these events were carried out online during 2021-22. MWC Jaipur received several awards in 2021-22:

(i) ‘Chairmans Commendation Award in the ‘Corona Warrior category at the 13fh CIDC Vishwakarma Awards 2022, (ii) Gold Award in the ‘11th EXCEED OHS AWARD 2021. by EKDN for achievements in Occupational Heaith and Safety, and (iii) Gold Award in the Service Sector for Excellence in Workplace Safety at the CII 4th National Safety Practice Competition.

MWC Jaipur is committed to sustainable development. It is Asias first and worlds largest project to reach C40 Climate Positive Development Program (CPDP) Stage 2. It regularly carries out several initiatives that contribute to the sustainability and well-being of the environment and the communities in which it operates.

Origins Chennai is the Companys first industrial cluster project, which is being developed through its step-down subsidiary Mahindra Industrial Park Chennai Limited (MIPCL), a JV with Sumitomo Corporation. Launched in April 2019, this project in North Chennai currently has a gross area of 289 acres with a leasable potential of 209 acres. Origins Chennai is also Tamil Nadus first IGBC Platinum Certified industrial park, reflecting the strong focus on principles of sustainability employed in its design and development.

During the year, the enquiry pipeline for the project remained strong. Development activity for common infrastructure works including road, utilities and sewage treatment plant progressed as per schedule. Some of its early clients are in various stages of construction of their facilities, with commencement of operations expected over the next couple of years. Given the good response received so far, the Company is also planning the second stage of the project for which land acquisition is in progress.

Origins Ahmedabad is the Companys second industrial cluster project, which is located near Ahmedabad, Gujarat. The project has gross area of around 340 acres and a leasable potential of 255 acres. It is being developed through its subsidiary Mahindra Industrial Park Private Limited (MIPPL), in partnership with International Finance Corporation. The Company has obtained all major approvals for the project and the onsite development of the core infrastructure is in progress.


Mahindra Lifespaces has identified certain strategic priorities through careful analysis of its long-term growth objectives. One common underlying theme is to institutionalise the use of digital and technology-based solutions across the organisation to consolidate its gains and drive efficiencies in these areas. At the same time, the whole premise is centred around the insight of how well-designed spaces can be a true enabler of health, holistic well-being and success. This was articulated and unveiled as the Companys brand promise of ‘Crafting Life which manifests itself across all its business segments (See Box 1).

Box 1: Crafting Life — Three Pillars

Residential Business:

• Thoughtful Design: Experience homes crafted with signature designs, technology and environment friendly features. Crafting wholesome living through thoughtful designs.

• Trust and Transparency: Relationships built on courtesy, dignity, a spirit of win-win and simplified processes. Crafting trust through clear and transparent communication.

• Thriving Communities: Experience life crafted with a ready ecosystem of amenities and services that fosters community living. Crafting a better world through communities that inspire.

IC&IC Business:

• Enabling Ecosystem: Make doing business easy by offering a responsive and efficient ecosystem that is crafted with high quality infrastructure and robust governance.

• Thriving Communities: A well-crafted, self sustaining, and inclusive environment with co-located social and residential infrastructure, where work and living go hand in hand, enhancing quality of life.

• Commitment To Sustainability: A safe and sustainability focused environment nurturing growth and enabling you to fulfil your ESG commitments.

Customer Acquisition and Engagement

MLDLs activities in this area encompass marketing and brand building efforts to generate enquiries, convert them into actionable leads and to drive sales. The Companys efforts during the year can be structured into three broad themes.

First, create relevant and differentiated products considering the changes in the needs, preferences, expectations and priorities of customers through a continuous process of dialogue and research (See Box 2). One important aspect of the product development process at Mahindra Lifespaces is that sustainability is in-built right from the design process, which enables it to maximise the benefits and communicate it with the customers in terms of enhanced liveability and longterm savings.

Box 2: MLDLs Commitment to ‘Sustainability

• Mahindra Lifespaces contributes to Mahindra-TERI Centre of Excellence, its joint research facility with The Energy and Resources Institute (TERI) to create innovative energy efficient solutions for the Indian construction industry.

• Since the close of the financial year, in April 2022, it established a new benchmark in sustainable development with the launch of Indias first net zero energy residential project, Mahindra Eden, in Bengaluru certified by Indian Green Building Council (IGBC). The unique design features of the project will save over 18 lakh units (kWh) of electricity annually, which is equivalent to powering over 800 homes. The energy demand for the project will be met from renewable sources including both on-site solar and wind energy systems and purchase of green energy from the grid.

• This marks a major milestone in Mahindra Lifespaces sustainability journey and its pledge to build only net zero buildings from 2030 onwards.

Second, focus on digital content and social media to: (i) generate pull for the brand and improve the quality of leads, and (ii) market its projects. In 2021-22, Mahindra Lifespaces launched its ‘Crafting Life campaign through a digital video commercial, which achieved 38 million impressions and around 8 million video views. It ran several digital advertisement campaigns for its new project launches, generating tremendous reach and visibility among prospective buyers.

Third, significant additions were made to its channel partner network. The Company has a highly effective mobile app for channel partners called ‘HappiEdge which not just contains all project marketing material but also has tools for lead management and transaction processing. During the year, it also invested in building corporate partnerships and referral network to facilitate sales.

Customer Centricity

Customer is at the core of all activities and processes throughout the entire project lifecycle at Mahindra Lifespaces. Its recently unveiled brand promise ‘Crafting Life manifests the belief that purchase of a home is not merely the delivery of a physical structure but the starting point of a journey. In that context, providing an industry-leading experience is a vital part in making the home buying journey a memorable moment for its customers.

In line with this, 2021-22 marked a renewed commitment to delight customers at all touchpoints. Several initiatives were taken to simplify accessibility, make engagements meaningful and curate events to involve customers in their home buying journey. Some of the key elements include:

• Improve Response time: While prompt resolution of customer queries is non-negotiable, the Company has set a benchmark of an average resolution time of less than 24 hours. This was achieved through a combination of automation and intensive training to ensure that quality of solution is not compromised while improving on speed.

• Process Automation: Processes have been automated with the core purpose of simplification to add value to the customers. For instance, automation of customer invoicing, payments and launch of virtual account payments have simplified the payment reconciliation process, saving valuable time of our customers. Similarly, the standardisation of Virtual Contact Centre (VCC) solution across locations has created a seamless virtual platform for customers to connect with their dedicated relationship and payment support managers. Technology initiatives behind these changes are covered in greater detail in the section on IT.

• Customer Engagement: Given that home buying is the largest investment of ones lifetime, customers are quite anxious on how the actual unit will shape up. To alleviate such anxiety and involve customers in the home building process, Mahindra Lifespaces has curated exclusive events that allow the customers to experience their flats during construction. It has also entered into multiple alliances for value added services to augment the living experience by nurturing community engagement. In a first-of-its-kind initiative in the industry the Company offered group health insurance plan for the homebuyers of its newly launched value housing project Mahindra Happinest Kalyan 2, which is conceived as a wellnesscentric product.

MLDLs customers have appreciated these efforts, which is also reflected in the improvement in the customer net promoter scores during the year.

Execution Excellence

Mahindra Lifespaces considers high-quality and timely execution of projects as its key strategic and operational priority. Over the years, its focus on building robust processes and standard operating procedures (SOPs) in line with total quality management principles (See Box 3) have enabled it to deliver projects that meet the expectations of customers and enhance satisfaction.

Box 3: Total Quality Management at Mahindra


• The Company has adopted the principles of Total Quality Management (TQM) under the banner of ‘The Mahindra Way (TMW) — the Mahindra Groups integrated approach to promote excellence in all spheres of its operations. Both residential and IC&IC businesses moved up from Stage 3 to Stage 4 in the Service category of this assessment in 2021-22.

• The organisation is ‘Integrated Management System certified since 2013 complying to standards of ISO 9001 - Quality Management System; ISO 45001- Occupational Health and Safety Management System; and ISO 14001 - Environmental Management System.

• The Company has an established ‘Quality Policy which is deployed through quality objectives for each function. All processes starting from land acquisition to facility management are in place. Its quality management system based on Plan-Do- Check-Act (PDCA) approach has been instrumental in improving quality of its products, thereby leading to defect free delivery and enhanced customer satisfaction.

To further improve the effectiveness of its project related processes, the Company took several measures in 2021-22.

• Established a cross-functional Operational Excellence Squad to deploy learnings horizontally across its project portfolio. This involves brainstorming on chronic issues at project sites, carrying out the root cause analysis and present possible solutions, which is translated to a policy to be followed across projects sites bringing greater standardisation.

• Initiated development of a Technology Manual, which is set to become the repository of technical know-how for executing every task at project sites. The manual currently covers 24 key project activities.

• Adopted the Stage Pass system to track progress at the unit-level which allows measuring project completion in terms of units ready for handover along with traditional tracking. This has streamlined the inspection and handover process, aligned it with unit-level delivery schedule and enhanced on-time delivery.

The Company has always looked to deploy innovative, new technologies in construction to enhance quality and reduce construction time. During the year, it became the first real estate company in India to adopt ‘Stay-in-Place Formwork in a large-scale residential project. This technology has several benefits including faster construction, improved wall finish, lower consumption of material, reduced embodied carbon and scope to use alternative building materials such as glass fibre, plastic and e-waste. It also deployed Holographic Computing for real-time, cloud-based, multi-stakeholder collaboration in the construction process and is working on use of robotics, which has the capability to significantly reduce construction time. Other product improvements in 2021-22 included: (i) PU-based waterproofing, (ii) marine ply doors, (iii) coloured silicon sealant and epoxy waterproofing in toilets.

Box 4: Covid-19 Related Preparedness at Project Sites

Construction activity was affected at the start of the year due to the second wave of the Covid pandemic. But the recovery was faster compared to last year.

The Company effectively utilised the processes developed during the previous outbreak to retain workers at project sites as well as to ensure their health and safety as construction activity resumed. These included: (i) assessing risks early and putting in place safety protocols for movement of labour, (ii) ensuring safety and hygiene protocols were followed at project sites, (iii) arranging for adequate health services, (iv) provisions for food, water and essential items, and (v) conducting training and awareness sessions.

Mahindra Lifespaces success in dealing with the pandemic (See Box 4) also owes a lot to its ‘inclusive safety culture which involves perceiving risks and rectifying it systematically. Its projects have reached a maturity level in use of personal protective equipment, housekeeping, adherence to systems and aims to eliminate unsafe acts by proactive reporting of incidents. There is suitable awareness among operatives at all levels which has paved the way for a good safety culture in the organisation.

Land and Capital

Mahindra Lifespaces is focused on growing its presence in both its key businesses.

The Company has a strong balance sheet and has access to debt for its growth at extremely competitive rates.

As on 31 March 2022, debt at IND-AS consolidated level stood at Rs.280 crore and the average cost of borrowing during 2021-22 was 6.5 percent, down from 7.05 percent in the previous year Consolidated cash balances stood at Rs.198 crore at the end of the year.

The Company also has access to capital through partnerships spanning all its business segments. It has a track record of successful partnerships with:

(i) Actis and HDFC Capital for residential developments and

(ii) Sumitomo Corporation, Japan, and International Finance Corporation (IFC) for IC&IC projects.

In the residential business, the Company concluded three land transactions during the year which would provide around Rs.3,800 crore in terms of Gross Development Value:

1. Pimpri, Pune: Acquired 3.2 acres of land to develop a residential project with a development potential of 0.52 million square feet (msft).

2. Dahisar, MMR: Finalised terms for a joint development on a 4.8 acres land parcel in Mumbais suburb Dahisar East, with a development potential of 0.86 msft.

3. Kandivali, MMR: Purchase of approximately 9.24 acres of land to develop its second residential project in Kandivali with a development potential 1.7 msft.

Mahindra Lifespaces has a healthy pipeline of land deals and will continue to evaluate further opportunities in this space through asset light models including joint development and JVs with landowners. As noted earlier, it also sees considerable opportunities for redevelopment projects and acquisition of stressed assets. The Company has dedicated teams in place to evaluate opportunities in this respect.

In the industrial business, its focus is on accelerating the leasing activity and increasing deal sizes across its existing projects. It is also working on expansion of Origins Chennai and establishing a new industrial cluster project in Pune to benefit from the opportunities in the market, which is in the land aggregation and planning stage.


Mahindra Lifespaces has been at the forefront of deploying technology across all key business and administrative functions as well as its project sites. The Companys IT infrastructure includes SAP ERP for its core and peripheral business functions, which is fully integrated with SFDC — the Companys integrated sales, servicing and communications platform. It also includes primary and disaster recovery data centres, best-in-class remote audio-visual communication and productivity tools, and access to specialised industry specific software for project management.

As indicated earlier, its efforts to institutionalise the use of digital and technology-based solutions across the organisation to drive efficiencies and scale received a significant boost during the pandemic which required a completely new operating paradigm to ensure business continuity as well as to achieve its growth objectives. In effect, this enabled the development of an operating model where technology forms the backbone of the business. Some key elements of this technology-led model are:

• Digital Sales Platform encompassing best-inclass technologies for virtual tour of projects, fully digitised documentation and paperwork, all sales and marketing workflows, bookings and payments. Key developments in 2021-22 included (i) real-time integration of virtual tours with SFDC to monitor lead and booking management, and (ii) implementation of virtual payment accounts for capturing customer online payment transactions for better management of receivables and immediate reconciliation of payments.

• Customer Servicing and Communication Platform to provide unit details, contact information of relationship manager, construction status, account statements, payment plan, upcoming payments, invoices and receipts as well as handling customer queries and requests. An important initiative in this area was implementation of natural language processing (NLP) and artificial intelligence (AI) based Chatbot, which is fully integrated with its customer and project database allowing them to access real-time information — thereby providing spontaneous engagement and enhancing customer satisfaction. The Company is also in the process of upgrading its customer portal and mobile app to further augment their effectiveness.

• Project Management Platform for real-time monitoring of the project sites. Modules currently operational provide a 360 degree view of time and cost performance, work completion and contractor payments; ability to track and close critical issues; capturing of quality and safety parameters, inspection management, permits and checklists; and dashboards and reports. Most new projects of the Company are live on the platform providing accurate data on progress and project costs. The solution is being continuously upgraded to enhance its efficacy and reporting capabilities.

• Robotic Process Automation (RPA) for tedious user-dependent and time-consuming processes is an important area of focus. During the year, several processes such as monthly tax filings, vendor management and reconciliation between SAP and

SFDC were automated. One key application deployed in 2021-22 was the automated interest module comprising calculation of interest accrual and charge leading upto payment adjustments, changes in demand and account statement. Several processes have been identified for further expanding the coverage of RPA in the future which will result in significant cost savings and improving productivity by reducing errors and transaction time.

• Analytics and Dashboarding capabilities of the Company for data-based decision making have kept pace with the proliferation of data resulting from deployment of technology and digitalisation of processes. All key platforms used by it are equipped with powerful analytics engines which are used in combination with specialised business intelligence and reporting tools to process and present data in the form of meaningful dashboards and graphics. Going forward, the focus will be on integrating data from multiple platforms to generate real-time reports. An advanced Sales and Marketing Dashboard along these lines is scheduled for release in 2022-23.

Mahindra Lifespaces will continue to leverage IT and digital technologies to improve its efficiencies and gain competitive advantage. It seeks to further enhance its capabilities and maintain its leadership in the real-estate sector when it comes to adopting technology for which it has identified several projects in the areas such as enterprise network connectivity IT security compliance and litigation management.


Mahindra Lifespaces recognises that its people are the key to its success and play a pivotal role in accelerating its growth. It has effective HR policies and processes that enable it to galvanise its people and get the best out of them to meet its business objectives. The ability of the organisation to adapt to the challenges posed by the Covid pandemic and its success in attracting and retaining the best talent in the industry during these difficult times underscore the inherent strength of its people-oriented and flexible HR policies.

During the year, focus continued to be on the three identified areas — Career, Connect and Care — to build a productive and dynamic workplace as well as enhance its capabilities as an organisation. Some key initiatives are presented below.

• Career: These initiatives covered three areas: (i) The talent acquisition and onboarding process was further strengthened with a more effective handholding programme, periodic surveys of new employees and a goal-setting exercise within 30 days of joining, (ii) Learning and development activities are carried out in line with the annual training calendar and monitored through the Companys ‘My Real Learning portal.

New training programmes in 2021-22 included an eight- month long leadership development program ‘SCALE for mid-management cadre; workshops on service excellence, conflict management, and customer satisfaction for customer facing roles; adoption for Harvard Spark platform for digital learning where around 68 percent of associates completed one or more learning modules. Overall, each associate of Mahindra Lifespaces received an average of 18 man hours of training in 2021-22.

(iii) The performance appraisal system was also improved to establish a clear link between employee achievements and goals — both individual and organisational — as well as to augment its effectiveness in identifying training needs, succession planning, and career management.

• Connect: MLDL has adequate communication opportunities so that employees are updated about organisational priorities, can share their thoughts, ask questions and are motivated to contribute to its success. These include celebrating team events, individual milestones and achievements, sessions with CEO and an effective reward and recognition programme which is now being managed through an online portal ‘Pinnacle.

The Company carries out a pulse survey to gauge employee satisfaction. It also participates in ‘MCARES — the M&M Groups annual employee engagement survey — which allows it to benchmark itself within the Group. Besides, it reaches out to its employees twice a year for feedback on internal communications, based on which it introduced a monthly newsletter in 2021-22.

Care: Mahindra Lifespaces has supported its workmen and employees with food, medical support and counselling during Covid-19 outbreaks. Through its Apollo Homecare programme launched in 2021-22, it provided medical care and advisory services to its associates who tested positive for the complete duration of home quarantine. Similarly, its Family Assistance Policy covered vaccination support as well as personal counselling. It also promoted healthy living through employee challenges around following diets and workout routines.

As on 31 March 2022, Mahindra Lifespaces together with its subsidiaries had 480 associates on its rolls. The Company has a Diversity and Inclusion Council with the objective of creating an inclusive environment in the workplace. As it operates in a traditionally male dominated industry, special focus is on gender diversity. At the end of the year, the percentage of women working as full-time associates stood at 16.67 percent.

The Company endeavours to keep its workplaces safe, transparent and friendly for people to work in. It has a policy on Prevention of Sexual Harassment at Work (POSH) which is aligned to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. There were no complaints related to POSH or violation of human rights during the year under review.


As a part of its CSR activities, Mahindra Lifespace and its subsidiaries contribute to local communities by focusing on the following areas: education, skill development, health, environment and sustainability. Some of the key initiatives during 2021-22 are given below.

Education and Skill Development: MWC Jaipur contributed for education of underprivileged children, vocational skill development programmes and formation of self-help groups. Around 250 rural youth were trained in various vocational skills and 202 women were helped in developing skills and formation of self-help groups in 2021-22, taking the total beneficiaries under the project to 2,423 rural youth and 1,746 women, since the inception of this programme.

Environment and Sustainability: Around 20,745 trees were planted under the Mahindra Groups tree plantation initiative called Mahindra Hariyali. In another initiative, over 9000 saplings of rare trees were planted by Mahindra Water Utilities Limited in Tirupur. LED tube lights were installed in 2,130 rural homes and community establishments under its C40 initiative; several cleanliness drives and awareness sessions were carried out in government schools and colleges and under the Swachh Bharat Mission. Solid waste management project in Anjur Panchayat and cloth bag distribution were carried out in the vicinity of MWC Chennai. Under the ‘Green Army initiative, it conducted workshops to educate children on sustainable living habits and encourage them to spread awareness their communities — reaching 90 family members in the process.

Health: MWC Jaipur supported over 1,000 underprivileged families with dry ration kits and/or health kits in Rajasthan during the Covid-19 pandemic. It also supported ENT Research Society for implantation of cochlear devices for 100 underprivileged deaf and mute children; provided care to needy cancer patients; and donated an ambulance to a Government Hospital in Rajasthan.


Table 3 gives the abridged profit and loss statement of Mahindra Lifespaces.

Table 3: Abridged Profit and Loss Statement

(Rs. Crore)



2021-22 2020-21 2021-22 2020-21
Operating Income 252.8 89.6 393.6 166.3
Other Income 53.7 46.8 14.7 21.6
Total Income 306.5 136.4 408.3 187.9
Project and Operating Expenses 229.2 81.3 303.1 117.3
Employee and Other Expenses 148.0 114.4 179.9 142.5
Financial Expenses 4.7 3.7 6.5 11.0
Depreciation 6.2 6.7 6.5 7.0
Total Expenditure 388.1 206.1 496.0 277.8
PBDIT -70.7 -59.4 -74.7 -71.9
PBDT -75.4 -63.0 -81.3 -82.9
PBIT -76.9 -66.0 -81.3 -78.9
Share in Profit of JVs and Associates 90.3 12.1
PBT -81.6 -69.7 2.4 -77.7
Exceptional Item 6 104.1 0.0 96.8 0.0
PBT after Exceptional Item 22.5 -69.7 99.3 -77.7
Tax -20.4 -17.4 -62.4 -6.3
Profit After Taxes (PAT) 42.9 -52.3 161.7 -71.4
Non-Controlling Interest (NCI) 7.2 0.3
PAT (After NCI) 42.9 -52.3 154.5 -71.7
Diluted EPS7 () 2.77 -3.39 9.96 -4.64

Standalone Financial Highlights

Total Income of the standalone entity increased from Rs.136.4 crore in 2020-21 to Rs.306.5 crore in 2021-22. Operating loss (PBDIT) was Rs.70.7 crore in 2021-22, compared to a loss of Rs.59.4 crore in 2020-21. PBT of the standalone entity before Exceptional Item was Rs.(-) 81.6 crore in 2021-22.

During the year, MLDL reversed provision for an impairment loss of Rs.104.1 crore on account of a much better performance of its project Luminare in NCR, which has been recorded as an Exceptional Item in the Companys books in 2021-22. After accounting for this one-time exceptional gain, PBT was Rs.22.5 crore and PAT was Rs.42.9 crore, reflecting a significant increase in profitability during the year.

Consolidated Financial Highlights

Consolidated Total Income8 increased from Rs.187.9 crore in 2020- 21 to Rs.408.3 crore in 2021-22. Operating loss (PBDIT) was Rs.74.7 crore in 2021-22, compared to a loss of Rs.71.9 crore in 2020-21. After accounting for share of profits from JVs and associates, profit before taxes (PBT) improved considerably to Rs.2.4 crore in 2021-22, compared to a loss of Rs.77.7 crore in the previous year. This was primarily driven by an exceptional performance in MWC Jaipur.

At the consolidated level, MLDL reversed provision for an impairment loss of Rs.96.8 crore on account of a much better performance of its project Luminare in NCR, which has been recorded as an Exceptional Item in the Companys books in 2021- 22. After accounting for this one-time exceptional gain, PBT was Rs.99.3 crore and PAT was Rs.161.7 crore, indicating a considerable improvement in profitability in 2021-22.

Table 4 presents key financial ratios for MLDL as a standalone entity.

Table 4: Key Financial Ratios (Standalone)

2021-22 2020-21
Debtors Turnover ^ 1.28
Inventory Turnover ^ 0.24 0.09
Interest Coverage Ratio ^ 3.15 -8.13
Current Ratio 2.03 2.45
Debt Equity Ratio ^ 0.11 0.08
Operating Profit Margin (%) ^ 10.9% -43.5%
Net Profit Margin (%) ^ 17.0% -58.3%
Return on Net Worth ^ 2.9% -3.6%

^ Ratios where change is significant (over 25 percent compared to previous year)


6 Mahindra Homes Private Limited (MHPL), a Joint Venture of the Company, is executing residential projects in NCR and Bengaluru. Luminare, its residential project in NCR, is a Joint Development with the land owner. During the year, the project saw significant improvement in price, sales volumes and collections and there was a buyback of 18,900 Class C equity shares for which MLDL received a total consideration of Rs.55.05 crore. MLDL also evaluated the carrying value of its investment in MHPL and based on estimated Net Present Value of forecasted cash flows reversed provision for an impairment loss of 104.1 crore in its standalone books and 96.8 crore in its consolidated books. It may be noted that in 2019-20, following muted demand, declining prices and significant cancellations in the project, MLDL had provided for a one-time aggregate impairment provision for its investment in the JV entity MHPL of ?237.3 crore and 134.6 crore at the standalone and consolidated levels respectively.


7 On 16 September 2021, MLDL allotted Bonus Shares in the proportion of 2:1 i.e., 2 Bonus Shares for every existing Ordinary Share of face value 10 held on the Record Date of 15 September 2021. EPS for both period have been adjusted to reflect this.


8 Following the adoption of Indian Accounting Standards (IND AS) by the Company, classification of subsidiary is now based on control and not just shareholding. As a result, a few of the entities, which were formerly being consolidated as subsidiaries as per erstwhile Accounting Standards, are now treated as JVs. As per IND AS, for all JVs, equity method of accounting is applicable, whereby MLDLs share of profit in joint ventures is directly credited to profit and loss account instead of proportional line-by-line consolidation.

There was a significant increase in standalone operating revenues of MLDL, which almost tripled from Rs.89.6 crore in 2020-21 to Rs.252.8 crore in 2021-22. This led to an improvement in debtor and inventory turnover ratios. The decline in average debtors in 2021-22 further reinforced this improvement, with Debtor Turnover increasing from 1.28 in 2020-21 to 4.29 in 2021-22. Although average inventory levels grew in absolute terms, the corresponding growth in revenues was much larger. Consequently, Inventory Turnover also improved from 0.9 in 2020-21 to 0.24 in 2021-22.

After accounting for the reversal of provision for an impairment loss9 noted earlier, the profits of the Company improved considerably. This is reflected in the significant improvement of Operating Profit Margin, Net Profit Margin and Return on Net Worth.

Standalone debt equity ratio increased to 0.11 in 2021-22, from 0.08 in 2020-21 due to increase in borrowings during the year. Even so, the Company continues to have a limited debt exposure as a standalone entity. Besides, its average cost of debt, at 5.7 percent at the standalone level in 202122, is extremely competitive. Its ability to generate cash and service its debt obligation continues to be robust, as reflected in the improvement in Interest Coverage Ratio from (-) 8.13 in 2020-21 to 3.15 in 2021-22 due to higher profits. The liquidity situation remained comfortable during the year. Surplus funds available from time to time have been invested in creditworthy investments, including deposits with banks.


The Company has adequate internal control systems, commensurate with the size and nature of its business. Well documented policies, guidelines and procedures to monitor business and operational performance are supported by IT systems, all of which are aimed at ensuring business integrity and promoting operational efficiency.

An independent internal audit and assurance firm appointed by the Company conducts periodic audits to ensure adequacy of internal control systems, adherence to management policies and compliance with laws and regulations. The scope of work of this firm includes internal controls on accounting, efficiency and economy of operations. The internal auditors also report on the implementation of their recommendations.

Reports of the internal auditors are regularly reviewed at the Audit Committee meetings. The Internal Auditor reports to the Chairman of the Audit Committee. The Audit Committee of the Board also reviews the adequacy and effectiveness of the internal control systems and suggests improvements, as required.


Mahindra Lifespaces has appropriate risk management systems in place for identification and assessment of risks, measures to mitigate them, and mechanisms for their proper and timely monitoring and reporting.

The Company has a Risk Management Committee consisting of four members — one Non-executive Director, one Independent Director, the MD & CEO and the Chief Financial Officer — to review the risk management plan and oversee the complete process. The role of the committee inter alia, includes, formulation, overseeing and implementation of risk management policy, business continuity plan, and to ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company. The Board also regularly reviews risks.

Box 5: Covid-19 — Risks and their Mitigation

Despite a decline in Covid-related risks during the year, one cannot rule of future outbreaks of the virus which can affect both day-to-day operations as well as long term plans and strategy.

Mahindra Lifespaces has successfully handled the previous waves of the Covid-19 pandemic through wide-ranging measures including: (i) Technology-aided interventions and processes to ensure business continuity under lockdown restrictions (ii) SOPs for implementation of comprehensive safety and health protocols at offices and project sites (iii) SOPs to support workers with essential supplies, medical care and safe transport to mitigate risks associated with disruption of construction activity. Its ability to bounce-back quickly after the devastating second wave of the pandemic in the first quarter of 202122 was particularly encouraging.

The Company continues to monitor the situation constantly and is prepared to take swift and effective actions to deal with the situation, should the need arise. It also believes that its focus on design, innovative features and sustainability is bringing in greater differentiation for its products and aligning them with evolving customer expectations in the current environment.

Economic Risks

Both global output and Indias GDP rebounded strongly during the year. Even as the risks emanating from the Covid pandemic (see Box 5 for Covid-related risks) have come down, global inflation in commodities and energy markets — further intensified by the war in Ukraine — have brought about a significant deterioration in growth outlook. This has resulted in considerable hardening of prices of construction material and energy cost during the year. If the trend continues, it can have a significant impact on the performance of the real estate sector in India and hence, of the Company.

Mahindra Lifespaces is taking a multi-pronged approach to mitigate concerns associated with spiralling inflation: (i) value engineering and design efficiency to bring down costs (ii) procurement methods to insulate from inflation such as long-term and forward contracts, and (iii) upward revision of prices to reflect market realities. As one of the few organised players in the market with a strong balance sheet, the Company also benefits from very attractive cost of capital, which enhances its ability to stay competitive. Besides, its presence in both residential and industrial sectors, coupled with prudent financial management, has been a significant source of strength in dealing with a difficult market environment.

Operational Risks

Key operational risks include: (i) inability to sell the project as per plan, (ii) inability to complete and deliver projects according to the schedule leading to additional cost of construction and maintenance, (iii) erosion of brand value, (iv) difficulties in the appointment and retention of quality contractors and manpower, (v) inability to attract and retain talent, (vi) poor customer satisfaction, (vii) fraud and unethical practices, (viii) non-compliances with laws and regulations leading to fines, (ix) penalties, (x) delay in approvals and (xi) lengthy litigations. Some of these risks such as ability to retain skilled and semi-skilled migrant workforce have become more pertinent due to the Covid crisis.

Mahindra Lifespaces addresses these risks through a well- structured framework which identifies desired controls and assigns ownership to monitor and mitigate the risks. It has invested significant resources in transparent customer friendly processes and an enabling IT infrastructure, which are expected to effectively mitigate some of these risks.

The Companys corporate governance policies ensure transparency in operations, timely disclosures and adherence to regulatory compliances. It also has a Code of Conduct for all its associates. It believes that its employee- friendly policies and processes enhance engagement and welfare, effectively mitigating risks associated with attracting and retaining talent. The ability of the Company to adapt to the new environment and manage its entire operations under severe restrictions on mobility is testimony to its robust processes and capabilities.

Policy and Regulatory Risks

The real estate industry is often affected by changes in government policies and regulations. There are considerable procedural delays with respect to approvals related to acquisition and use of land, environment approval, etc. Unfavourable changes in the government policies and the regulatory environment may adversely impact the performance of the Company.

The Company attempts to mitigate these risks through its approach towards acquisition of land based on thorough due diligence and its transparent processes in developing the projects. Besides, its focus on environment friendly and sustainable practices helps in mitigating risks associated with environmental regulations.


Indias economy bounced-back strongly with a GDP growth of 8.9 percent in 2021-22, compared to a contraction of 6.6 percent in the previous year. The construction segment of GDP also registered an impressive growth of 10 percent in 2021-22, after a decline of 7.3 percent in 2020-21 — reflecting the broad-based recovery in the real estate market.

Mahindra Lifespace also reported a marked improvement in performance in both its businesses, with key operational parameters easily surpassing pre-Covid levels and reporting their best levels in recent history. For instance, the residential business delivered record sales and collections whereas the industrial business achieved top-notch numbers in area leased and lease premiums.

While the Covid-related risks seem to have come down, new challenges have emerged in the form of high global inflation and hardening interest rates. The situation has been further exacerbated by the war in Ukraine and threatens to derail the fragile global recovery after the pandemic. These developments have also dampened Indias growth prospects in the immediate future. But at the same time, fundamentals of the Indian economy continue to be strong, which should allow policy makers with sufficient room to navigate these challenges. In fact, even with these risks, India is projected to continue to be the fastest growing large economy in the world in 2022-23.

Mahindra Lifespaces expects the favourable demand situation in the real estate sector in India to continue. The Company is well placed to leverage this environment to grow further, with strong additions in land bank for residential projects and plug-and-play infrastructure across multiple corridors in the industrial business. It also has a strong balance sheet and the ability to raise capital at competitive terms to fund its growth aspirations. Besides, its success in deploying technology and innovative construction techniques to drive efficiencies; focus on sustainability and creating differentiated offerings; and its ability to build motivated teams and a high-performance organisation sets it apart among its peers — and signals its inherent potential to move to a higher growth trajectory. Therefore, the outlook for 2022-23 is positive.


Certain statements in the Management Discussion and Anaiysis describing the Companys objectives, projections, estimates, expectations or predictions may be forwardlooking statements within the meaning of appiicabie securities laws and reguiations. Actual resuits couid differ from those expressed or impHed. important factors that couid make a difference to the Companys operations inciude labour and material avaiiabitity and prices, cyciicai demand and pricing in the Companys principal markets, changes in government reguiations, tax regimes, economic deveiopment within India and other incidental factors.


The Company shaii be registering its forthcoming projects at an appropriate time in the appiicabie jurisdictions/States under the Real Estate (Reguiation and Deveiopment) Act, 2016 (RERA) and Ruies thereunder. Til such time, the forthcoming projects are registered under RERA, none of the images, material, projections, details, descriptions and other information that are mentioned in the Annual Report for the year 2021-22, should be deemed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer, or invitation to acquire within the purview of the RERA.

The Company uses carpet areas as per RERA in its customer communication. However, the data in saleable area terms has been presented in the Annual Report for the 2021-22 to enable continuity of information to investors and shall not be construed to be of any relevance to home buyers/customers.