Mr. Sanjay Shah, Director, B-Right Real Estate

4 Jul 2022 , 12:07 PM

In an interaction with India Infoline News Service, Mr. Sanjay Shah, Director, B-Right Real Estate, talks about the company’s SME IPO and future strategies.

Mr. Shah said, “B Right Group has already completed 4 Lac plus square feet construction. The key growth drivers for our business segment include rapid urbanization, growth in population, and rise in the number of nuclear families with developers now focusing on affordable and mid-range categories to meet the huge demand”.

Q. While we know that B-Right Real Estate is a company which is into the real estate sector, we would like to know more about your business, projects and subsidiaries.
 
B-Right Real Estate Limited is an integrated construction and real estate development company, focused primarily on construction and development of residential and commercial projects, in and around Mumbai. B-Right Group has already completed 4 Lac plus square feet construction.  
B-Right Real Estate Limited has opted a business model wherein the company invests in its subsidiary LLP named B-Right Real Estate Ventures LLP and this LLP makes investment in various SPVs (Special Purpose Vehicle), which is incorporated for a specific project. Each real estate project has its own SPV and such SPV is closed upon completion of the project. This helps the company to keep a track of all the materials, human resource and all other miscellaneous expenses that occur from a particular project. 
B-Right Real Estate’s core competence lies in professionally managing the real estate value chain and attracting and retaining talent to maximize value creation & its design team uses customer insights to conceptualize and design products that are best suited for the respective locations and target a variety of customer groups with the company management having an experience of more than a decade in Real Estate Industry. Further, till date B-Right has executed projects having area of approximately 3.96 lac Sq. ft at various locations in Mumbai.
The company focusses on developing projects on land held in stock in trade and by entering into joint development agreement & partnerships with parties for development of projects. At present around 90% of the projects handled by the company include SRA projects. Further, I would like to mention that B-Right has participated in bidding for Stressed Assets of HDIL.

Q. Tell us more about your IPO and how will you utilize the proceeds received through this IPO?
 
B-Right Real Estate IPO is a SME IPO of 2,899,200 equity shares of the face value of ₹10 aggregating up to ₹44.36cr. The issue is priced at ₹153 per share. The minimum order quantity is 800 Shares. The object of this issue is to fund working capital requirements & general corporate purposes. 

Q. Brief us about the projects that have been completed by the company and also the projects that are ongoing or in the pipeline.

Projects completed by B-Right Group and Partners are:
– Parth Vaibhav Phase I Malad East 67,110 sq.ft.
– Solitaire Homes I Kandivali East  – 2,06,568 sq.ft
– Parth Business Plaza Malad West  –  62,960 sq.ft
– Devikrupa Malad East – 40,656 sq.ft
– Shiv Keshav Heights II Malad East – 40,000 sq.ft
– Ghanshyam Enterprise Jogeshwari East – 16,140 sq.ft 
On-going Projects under B-Right Group are:
– Meridian Malad East – 2,03,000 sq.ft
– Shrishti Khar West – 30,000 sq.ft
– Nirvana Malad East – 1,10,000 sq.ft
– House of 300 Jogeshwari East  – 4,50,000 sq.ft
– Caves Borivali West – 6,25,000 sq.ft
 
Q.What is your view on the Indian real estate sector?
 
The Real estate sector is one of the most globally recognized sectors. It comprises of four sub sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations within the country. 
By 2040, real estate market will grow to ₹65,000cr (US$ 9.30 billion) from ₹12,000cr (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
As per ICRA estimates, Indian firms are expected to raise >₹3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, vs. raised funds worth US$ 29 billion to date. The office market in the top eight cities recorded transactions of 22.2 msf from July 2020 to December 2020, whereas new completions were recorded at 17.2 msf in the same period. 
According to the Economic Times Housing Finance Summit, about 3 houses are built per 1,000 people per year compared with the required construction rate of five houses per 1,000 population. The current shortage of housing in urban areas is estimated to be 10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the country’s urban population.

Q.The government has laid out several initiatives for the real estate sector, kindly throw some light on this.
 
The Government of India along with the governments of respective States has taken several initiatives to encourage development in the real estate sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies.
In October 2021, the RBI announced to keep benchmark interest rate unchanged at 4%, giving a major boost to the real estate sector in the country. The low home loan interest rates regime is expected to drive the housing demand and increase sales by 35-40% in the festive season in 2021.
Government has created an Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of ₹ 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/financial institutions for micro financing of the HFCs.
Post RERA the industry has become very professional and competitive and has ensured that only competent and financially strong players survive ahead. Here B Right Real Estate has always focused on providing its customers the best possible service by constructing flats of better quality. Further, quality standards followed by the company have always been stringent right from the beginning, and adhere fully during the process of construction of projects.This has helped the company deliver quality projects mentioned above and has helped it gain a respectable brand for quality and reliability of its projects.
 
Q. What are the company’s competitive strengths?
 
Experienced Management: The company’s management team is experienced in the industry in which it is operating and has been responsible for the growth of its operations and financial performance. It has also adequate experience in the line of the business undertaken by the Company for its strategic as well as day to day business operations.
Established brand and reputation: B-Right Real Estate also enjoys an established brand and reputation which has enabled to obtain future business opportunities. Due its brand presence it has also gained significant experience having established track record and reputation for projects
Strong Operation methodology: B-Right Real Estate has focused on the overall management of its projects, including land acquisition, project conceptualization and marketing. The company works with service providers which has enabled it to access third party design, project management and construction expertise & has also helped it associate with other third-party architects, project management consultants, contractors and international property consultants.
Scalable Business Model: The company enjoys a business model which is scalable. Its business model is customer centric, and requires optimum utilization of our existing resources, assuring quality supply and achieving consequent economies of scale. The business model helps in generating scale due to development of new markets both domestic and international by exploring customer needs and by maintaining the consistent quality output.
It works with subsidiaries and stepdown subsidiaries. B-Right RealEstate Ventures LLP, BRV Leasing Andheri LLP, B-Right Realty Lonavala LLP, B-Right Housecon LLP, B-Right NY Esqure LLP, Jaliyan B-Right Developers LLP, B-Right Sejal Developers LLP, Darc Realty LLP, D.M. Realtors, Siddhivinayak Developers Kurar, and Parth Construction are its subsidaries.
Quality Assurance and Standards: The company believes in providing its customers the best possible service by constructing flats of better quality. Quality standards followed right from the beginning were stringent, and adhere during the process of construction of projects. The company is very particular from usage of right quality of material for construction.
 
Q. What are the key business strategies that the company will follow going ahead?
 
To derive efficiencies by focusing on its core market: Company intends to continue to focus on the MMR real estate market, where it believes it has already fared very well. It also believes that Mumbai’s position as the commercial and financial capital of India, along with the depth of real estate developments across asset classes and categories will help its long growth ahead. 
The company’s market leadership, industry knowledge and regulatory environment know-how in the MMR will enable it to benefit from the expected increased real estate demand as the Government commits to significant infrastructure spending in the MMR.
The company has continued to acquire strategically located parcels of land on competitive terms with the goal of ensuring that it will have a robust pipeline of projects.
Improve operational efficiencies and timelines: The company intends to further improve the operational efficiencies by designing its projects in a cost-efficient manner (“Design Smart”) to ensure faster execution. It also intends to bring in efficiencies in construction by simplifying construction structures such as minimizing high-rise buildings and basements, and maintaining standardized floor layouts within the same building.
Attracting and retaining the highest quality professionals: In the real estate industry people are the most valuable asset of the company and the reputation of the company will be built up by the management team. The dedication of the employees, professional skill, integrity and technical analytical mind results in success and growth of business. 
The well informed, technically and professionally qualified employee all help the clients to take correct decision and thereby the company can retain the clients and increase its clientele through mouth publicity of its brand.