Success lies in continuous research and development
Realty plus in conversation with Kushal Bajaj, Executive Director, Geeta Group learns about the fenestration industry and the company’s success mantra for being present in the industry for more than 30 years. Bajaj’s firmly states that his team’s dedication towards customer service is the reason for their success story.
Current scenario of the industry
The current scenario one can say, is not the best post GST and Demonetization. Real estate is one industry that has been affected the most, by far. Then again about 60% of the real estate industry is still growing. The industry is such that it can have its speed bumps along the way but it will never completely shut down. Growth is eminent in the real estate industry.
So, overall real estate is growing but everyone is doing a lot of value engineering. People are still looking for quality products but at a cheaper rate. This is where we come in. We are looking at providing more economical and efficient solution which are easier on the consumer’s pocket. This is the crux of the scenario right now. However, it is subject to change.
Does Governments’ focus on building infrastructure impacts the fenestration industry?
Definitely. The requirement from the fenestration industry is going up. The amount of consumption is going up. With the construction of smart cities we are also looking at producing smart products and solutions. This involves more standardization and less customization. We want to make our products more energy efficient as well as commercially efficient for the end user.
The demographics of India is also continuously changing. Every area is growing differently. However, there is a big gap between the rich and the poor. There is a lot of stock in metros that is not getting sold due to the prices being so high. The living expenses are so high. So in metros where cost of living is expensive, people are looking for more affordable houses. Whereas, in tier II and tier III cities where one does not have those many expenditures the demand for luxury is more. Saying that the Metros still have the crème a la crème who want that luxurious property and can actually afford it.
Tier II and III markets vs Metros
In terms of percentage and market consumption the tier II and tier III markets are leading. However, the majority quantum is got from metros as the big projects are more. Consumption is more from metros but percentage growth of tier II cities is higher.
Growth and expansion plans
Annually we produce about 2.5 to 2.7 lakh sqft. We can never quantify this in number of units as there is no standardization. We have recently set up a new factory in Bangalore to serve the requirements of the city itself.
Other than that we have a manufacturing unit in Mumbai and Bangalore. We are also potentially looking at Hyderabad and Calcutta. On a global standpoint, we are looking at serving the SAARC nations and neighbouring countries. We had done bungalows in Seychellesand Africa. We also supplied to the tallest tower called City Centre Colombo, Sri Lanka. We have worked with the Bhutan government and done projects in Maldives. Export is going to be a very minuscule percentage in our growth.
We are present in the building and construction industry as well as the homebuyers, replacement and commercial. Other than this we aren’t looking to venture beyond the construction and interiors industry as this is our forte. Our expertise lies in doors and windows.
Catering to the changing consumer demands
R&D is a very important factor in the fenestration industry. We take inputs from our regional offices on ways to tackle the ever increasing consumer demands. We cater to each region differently as each area across the country has its own set of needs and demands. So I would emphasize that regular R&D is the only way to meet this demands.
Most of the machines we use are manufactured in Germany. To keep in touch with the ‘Make in India’ initiative we are looking for Indian machines and we will definitely switch once we find the appropriate Indian alternatives. We have also come out with thermal rig systems which control the very increasing heat in cities. We are also designing minimalistic windows, we have that range coming out soon. We have developments in each of the segments we are catering to.
In terms of aluminium, it is the best product for the Indian climatic conditions. Firstly it is vastly found in India. Secondly is it green, durable, light and the recyclable value is exceptional. Aluminium products can be resold years later and still generate a value, due to the inflation rates.