Adgully Exclusive | Planning few big launches in March 2012: Arihant Superstructures' Ashok Chajjer

Arihant Superstructures Ltd, a BSE listed company founded in 1999, is planning to approach the capital markets with a right issue within couple of months time. Besides, the company will also share various 'green' initiatives that the company has initiated and will also share the certain initiated things that will reduce the labour cost in the construction industry. Arihant Superstructures will also share the future plans and profitability expectations in the coming years.

Speaking exclusively with Adgully, Ashok Chajjer, CMD, Arihant Superstructures Ltd shared some of the key things about the company.

Highlighting some of the key attributes which has led to their success, Chajjer said, "We have 5 key attributes which drive our success; they are - Transparency, Satisfaction, Return, Relation, value for money."

Describing the firms workings for 2011 and also stating their plans for next year, he said, "We consider 2011 as a lucrative year; as we started the year with our grand expansion in pan India level in Jodhpur, Rajasthan for which we got drastic response. Later in September, we launched two more medium sizes project i.e. Arihant Amodini 'Taloja Nr. Kharghar & Arihant Akriti-Badlapur (w)."

As per capital market point of view; the company's revenues have increased from Rs. 1274 Lac in FY 2010 to Rs. 10157 Lac in FY 2011, an increase by 697%. Similarly PAT of the company increased from Rs. 131 Lac in FY 2010 to Rs. 736 Lac in FY 2011, as increase by 462%.

Chajjer said, "We are planning couple of big launches in March 2012. The total area to start development will be over 9 million sq.ft within next 2-3 quarters."

The growth strategy has been that the company has always entered virgin market first then designed a project to target group precisely. They have a strong tie up with first Public Private Partnership project of Government of Rajasthan for affordable housing for EWS & LIG.

On communication plans, Chajjer said, "We adopt major medium of communication as print, mailer, events, SMS & web."

Globally, the economies of all the countries are highly integrated with each other. Globalization and de-coupling cannot happen at the same time. Although India is one of the fastest growing economies in the world, it cannot de-couple itself from the slowdown in US.

But the question is, since there is an expected recession globally and India also will face some of the heat, so does Chajjer think that real estate / infrastructure will also get affected because of it?

Responding on this point, Chajjer said, "There will surely be a slowdown, this will be positive as the real demand will be addressed by the industry. The speculation will be at bay. The investor eyeing for night fall profits will have to forget the yester years. In Real Estate the demand will always be there for 'right product at a right price'.

On further explanation, he added, "As we are catering mostly to the affordable housing segment in the price range of Rs. 20 Lac ' Rs. 60-70 Lac where the demand is robust, the effect even though, will be minimal."

Stating the key problems plaguing the construction industry & how would they want to combat it, he said, "Government approvals delay is the highest cost in terms of financials & administration cost going high. Also rising labour cost & shortage will yield low results. Disaster Management Planning really will help to address the situation."

Arihant Superstructures Ltd, BSE Listed company is in the construction and real estate business. Since its inception, the company has met real estate demands of the modern age by continuously delivering concrete pinnacles of spatial splendor. Having dared to foray into new geographical terrains, Arihant Superstructures has been able to capitalise on its first-mover advantage and is now becoming a pan-India company. With an uncompromising attitude in terms of quality control procedures, checks at all levels from building materials and construction methodologies to quality skilled manpower, the company has consistently aimed to create a benchmark in the real estate industry. | By Aanchal Kohli [aanchal(at)adgully.com]