“I am a staunch supporter of values and commitment”
The three decade old Sanghvi Group of Companies recently unveiled their new brand identity – Sanghvi Parrsssva.SapnaSrivastava spoke to Ramesh Sanghvi, Chairman & Managing Director, Sanghvi Parrsssva Group on the revamp of the brand identity and future plans.
Established in 1983, Sanghvi Parrsssva group of companies takespride in offering custom-made solutions to all sections of the society from budget residences to exclusive luxury penthouses and villas.
Our conversation started with the reasons for the new brand identity for the group. Ramesh Sanghvi gave the brief history of the company to help understand the sequence of changes. My father started working with Lodha and we were the non- name partners. I was around 17 year of age when I got involved in the realty business. It was in 1985 that Lodha Sanghvi name was established. In 1995 due to the ideological differences, the two companies decided to separate after completing all the projects.
The family business that included Ramesh Sanghvi and his three brothers was called the Sanghvi Group.“It was in 2015 that I decided to form a real estate business in the name of Sri Parrsssva Group in my individual capacity. I completed all the projects taken under the Sanghvi Group. This year we rebranded the company as Sanghvi Parrsssva and have taken up more projects and land to develop. The latest projects are residential buildings at Charni Road and Khetwadi in South Mumbai and one Lower Parel. We have almost completed an affordable housing at Ategaon and one more is under development”
Commenting on the future course of action Ramesh Sanghvi said that he would continue the brand legacy & trust that the group had earned over the years and have worked so hard to build. “We have revamped our brand identity and also infused new blood into the organization. My daughters Vama&Prarthana Sanghvi were inducted on the Board as Directors of the Companyand will help us stay innovative and bring new ideas in the business, “he added,
The Industry Challenges
Ramesh Sanghvi asserts that RERA has come now but therehave been developers in the sector that had been following all the compliances as what RERA asks for today. “I feel where developers go wrong in their business strategy is when they do not focus on performance and instead over stretch their fiancés by investing in many projects or land. There are enough finance options and attractive interest rates available for developers. We ourselves have done most of our business with ICICI and have competitive offers from others like Tata and Reliance finance. What banks want is a good financial record of a developer and timely repayments.”
Sanghvi believes that GST has impacted the home buyers purchasing capacity as the taxes for them have increased on the other hand Input Tax Credit (ITC) provisions are still not very clear. “Developers receive Input Tax credit primarily on steel and cement. The near completion stage projects do not require much steel or cement and therefore the ITC gets reduced. On an average only 6% gets passed on to the consumers. Also there is no fixed time period of receiving the ITC.”
Sanghvi further explained that about 45-55 approvals and compliances from various agencies are required for any given project. “Approving Authorities should maintain time limit for approval procedures,’ he remarked.
Criteria for home loans should change and interest should be reduced further for the home buyers. Infrastructure development is happening but we need more connectivity to city outskirts for affordable housing to become reality.
Giving example of slow pace of infrastructure development, Sanghvi gave an example of his project in Atgaonthat has been going on for last 5 years but the infrastructure and connectivity has not improved till now. He added, “Another example is Nallasopara on the Mumbai outskirts which 30 years ago had one train from city centre of 1 hour 10 min duration time and even now it has only one train of same speed. After Virar there is no rail connection though announcements had been made long back.”
Changing Business Environment
Clients are more educated and more aware and Sanghvi feels that is good for both the client and the developer. “Today they come with all the information about the project and the surrounding area which reduces our time in explaining them about the locality and the project. They even come prepared with the price analysis of the projects in vicinity.” He said.
According to him now consumer expects full value, earlier builder would build the building, home buyers would come and stay and infrastructure around like gardens, amenities etc. would be developed later. Today, developers can’t take that liberty; they have to develop the project in accordance with what was shown to the buyer.
Another important point Sanghvi raised was the changing role real estate brokers. He said, “Earlier we did not need brokers or channel partners as projects would sell by name. A board at the site, advertisement in a newspaper and word of mouth reference of existing buyers would be enough. Today, there is a lot more competition in the market and brokers have replaced marketing advisors, now they inform us about the marketing schemes, client profile and pricing strategy. Even the advertising that earlier comprised only of project picture and prices has become more innovative and has to be designed in sync with the target audience. Social media and digital marketing is now becoming very important for any developer to connect with the customers.”
The Bright Horizon for the Sector
Another five years we will see surge in real estate sector. Industrial & Warehousing is coming up in Navi Mumbai and other parts of the country. Commercial real estate is booming in pockets where job opportunities exist. Residential too will prosper with growing economy, job creation and now increasing transparency in the sector. The government is focusing on infrastructure which is good news for real estate.
Talking about the future plans for Sanghvi Parrsssva Group, Ramesh Sanghvi proudly said his daughters who are also studying professional courses have plans to take the company towards being more corporate and in a strategic way grow the company business. “Till now we did not talk about our work or our values and commitment, the legacy that we have followed for years. But now we want to increase the visibility of our good work and also contribute to the welfare of the society through ‘Seema Sanghvi Welfare Foundation’ and CSR activities towardssocial causes.” On a concluding note Ramesh Sanghvi said, “I feel we have just started and there is a long way to go.”