Wednesday, September 23, 2020

Table of Contents for Realty Biz

Interaction- Sachin Bhandari, CEO, VTP Realty

‘Better Design, Better Build, and Better Care’

This is a developer who doesn’t build just buildings; it spawns communities of the residents by organising social networking events and fostering a culture of community life. Other end of the spectrum is backward integration right down to materials procurement and design and engineering.

In an exclusive interview to CONSTRUCTION OPPORTUNITIES, SACHIN BHANDARI, CEO, VTP REALTY, discusses their Group’s philosophy, what synergies were reaped via backward integration, and what Best Practices won them numerous awards.



Tell us about major milestones achieved by the VTP Group. From its conception in 1985, to its evolutionary growing of VTP Realty, and other Group companies. Do you always prefer the Organic route to growth?

VTP Group, for the past 30 years, has delivered its services in keeping with its core values of Quality, Trust, and Commitment. With modest beginnings in the steel and cement industry, VTP Group has become one of the largest distributors of cement in Maharashtra. Apart from its journey in construction materials, the Group has made a prominent name for itself in the steel and aggregate industry. VTP Group holds a prominent position in supplying construction material like cement, steel, flyash, bricks, crushed aggregates, RMC (Ready Mix Concrete), and sanitary ware. Viraj India Pvt ltd, a part of group has delivered more than 100 projects.

VTP Realty delivers superior quality, transparency, and maximum value, to the last detail with every property purchase. Its three-tiered philosophy of better design, better build, and better care, makes it a buyer’s brand. It cares more for its customers during and beyond the purchase of a new property, and aims to become a dependable friend for them today and forever.



How will you underline the importance of backward integration across procurement, products, pioneering technology and services, for a Developer? What synergies have you reaped in terms of cost and quality?

Being a backward integrated developer, VTP Realty comes with an in-built strength of sourcing construction material, contracting and infrastructure, along with easy access to the latest construction technology.

Hence, VTP Realty is able to build and deliver good quality real-estate coupled with great interior specifications delivering that little extra to its customers. Besides good quality, backward integration ensures timely delivery. VTP Realty has delivered close to 1 million sq. ft. of real-estate spaces in Pune, including residential, commercial, retail, and hospitality developments.



It is remarkable that a developer of your caliber is focused on the MIG housing segment instead of the high-end luxury segment. Your comments please.

At VTP Realty, we wish to deliver products that our customers expect from us. Presently, we have several projects catering to various segments across Pune’s geography. Our research indicated that there is always a demand for MIG properties across all parts of the city, and understanding the market requirement we wish to cater to what our customers demand. Being a backward integrated company also allows us to provide them of the benefit of competitive pricing. VTP Purvanchal offers MIG housing at Wagholi Kesanad, whereas VTP Bhagyastan offers affordable homes in Talegon. We are also coming up with an exclusive residential scheme in Western Pune which would be perfect for home buyers in MIG and luxury segment. All in all, VTP offers a gamut of homes to suit every budget.



Tell us about your holistic housing philosophy, which touches the social sphere of residents of your housing projects. Especially about lowering their house buying costs, Aftersales, and CRM.

I personally feel that it is important for the organization to have a customer centric approach irrespective of the industry in which they operate. Keeping the same approach in mind, we at VTP are committed to offer the best products to our customers at a competitive price. This simply means that the customer finds value while buying homes from VTP Realty. We believe in three-tiered philosophy that touches the sphere of the residents:

  • Better Design: We draw on decades of construction experience to ensure that each of our property fulfills all aspects from the buyer’s checklist. Of all the factors that affect a purchasing decision, the biggest factor is the actual space you get in your new home. And so, at the core of our imaginative design philosophy is a mission to utilise every square foot to the fullest, giving more usable space while maintaining an aesthetic and utilitarian balance.
  • Better Build: With a vast experience of 3 decades, and owing to our access to best quality materials, technology, and skilled labor, through our group companies, we ensure a superior quality of homes for our customers and no extra costs. In other words, you get timely possession of your home, and it comes with a vastly enhanced living experience.
  • Better Care: VTP Realty thinks beyond the purchase and knows that in the dynamic and challenging world we live in, life is not predictable and things change. In addition, we also don’t charge transfer fees on re-sale of a property, in the event of a customer wishing to transfer ownership to someone else. And for investors, VTP Realty can also help in the leasing and re-sale of the property.                               



Your strategy in choosing geographic and socio economic locations to expand your Group’s project footprint.

VTP is present in areas that offer great investment options and are upcoming areas of the city. Our projects are strategically located to offer a great lifestyle as well as close proximity to commercial hubs like EON IT Park, industrial corporations like Talegon etc.?? Being upcoming areas of the city, our locations offer some great landscapes as well as great return on investment, making it an attractive option for our customers.



About your innovative strategy of tying up with marquee hypermarket chain, Star Market and a sought-after brand in fitness – Abs Fitness & Wellness Club, to what extent has it benefitted residents, and has paid off in terms of your profit margins.

We feel convenience is the new luxury and that is where the idea of associating with hypermarkets and fitness chains arose. VTP homes offer the luxury of accessibility and convenience, allowing our residents more time to spend with their beloved family. This offering has been hugely appreciated and we strive to ensure that all our projects offer the same.



What Best Practices has earned your Group awards and recognitions?

VTP Realty was recently recognised for its efforts and has won awards in various categories. We won ‘Developer of the year’ from World CSR Day and the 9th Realty Plus Excellence Awards appreciated our efforts towards customer satisfaction and presented us the prestigious award for best realty website. The publication also acknowledged our radio campaign and offered us the ‘Electronic media campaign of the year – Radio’ award. VTP Realty also proudly accepted the ‘Iconic developer of the year’ award from Navbharat Times in Mumbai. We feel our customer centric approach and deeply ingrained philosophy of ‘Better Design, Better Build, and Better Care’ is the real reason for all the accolades we receive.



How do you plan to achieve your declared goal of ranking among top 5 developers in Pune by 2020.

VTP Realty’s values are rooted in customer delight and can be fully relied on for delivering superior quality, transparency, and maximum value, with every property. Present in all prime locales of Pune, our projects range between Rs.11 lakh and Rs.1.5 Cr.

With most of our projects offering a special focus on delivering customer delight in the MIG segment, we aim to become one of the top 5 developers in Pune by 2020.

VTP Realty places great attention in building homes that we (VTP) would be happy to live in. After sales, CRM is of utmost importance at VTP and we go to such lengths as organising and funding society’s cultural events/community building initiatives onsite to bring people together and break the ice during the first 6 months. We also stand by our product and pride on responding and remedying any snagging issues that occur, post possession of the property, quickly and thoroughly. Commitment to a residential project along with high quality construction and timely delivery of homes is the key to customer satisfaction. A well planned project combined with stellar post sales service is sure to generate a good word of mouth that adds a factor of trust to the brand. At VTP Realty, we are committed to our philosophy of ‘Better Design, Better Build, and Better Care’ and offer dream homes to our customers that enhance their lifestyle.



Your perception and assessment of the real estate landscape in India.

The real estate segment has been one of the most recognised sector in the world. In India, the real estate market stands as the second largest employer next to agriculture. This segment has been divided in to 4 different categories namely housing, retail, hospitality, and commercial. Considering a rapid shift in the lifestyle of younger generation, dominance of nuclear families, and increase in the disposable income, the real estate sector continues to soar high in the Indian market. According to reports, the Indian real estate market is supposed to reach a whopping $180 billion dollars by 2020. The housing segment alone would contribute to 5-6 percent to the country’s GDP. Contributing to this growth is the robust development of the retail, hospitality and the commercial real estate sector. The market size of the same is supposed to increase at a CAGR of 11.2 per cent. The recently launched Real Estate Regulator Authority (RERA) has created a huge potential in the Indian real estate market.



To what extent will RERA bring transparency in the sector and benefits to customers?

One of the major concerns for home buyers is transparency, which was previously missing. Customers have constantly demanded transparency in the industry, and expected a product that was committed to them while buying. However, the regular practice of not committing to deadlines by developers would largely disappoint buyers. There are other problems as well, like, different information from different sources and lack of standard mode of providing information. Now a days there are channel partners selling apartments, developer sales team selling apartments, online campaigns going on adding to the confusion for the customers. With RERA coming in the picture, I feel that a new phase has started for the real estate sector. The implementation of RERA has brought transparency in the segment that would be beneficial to customers.



Future outlook of the industry and from your company perspective.

At the moment there are certain reasons for the real estate sector not doing well. Unstable economic conditions, lack of job creation and security, are the primary reasons. Lack of job security has created a huge dip in the sales as customers are having a conservative approach towards home purchase. Demonetization and GST has further added to the chaos. In a nutshell, lack of job creation and security, unstable economic conditions, demonetization, GST and the lack of liquidity has affected the real estate sector in a very negative way. Speaking about the expectations of the future, the real estate market is liable to remain same, until and unless there is a drastic positive move by the government or a sudden downfall in the Indian/global scenario. We are quite optimistic about the future as, we expect VTP realty to grow by 50 per cent as we are coming up with some great projects in prime areas of Pune with some unique designs and great prices.



What methodologies and construction project software are you using to prevent cost and time over runs in your projects?

The most interesting part is the domination of technology and digital transformation in the entire spectrum of real estate business. Technology is not only used for customer engagement before sales, but also in the home/buildings that we offer. Along with providing homes with high quality amenities like fine texture finish, access controlled lobbies, top of the line interiors; VTP Realty also specialises in ‘Tunnel Form’ for our projects which is the latest technology in construction industry for residential project. The technology offers superior quality finish, structural strength and fastest delivery. This is another formwork technology that ensures high quality of construction that meets standards of accuracy and precision. Tunnel form technology is a highly efficient industrialised system of on-site construction. In this technology, a stable structure is put up on a 24-hour cycle basis. It enables the builder to construct large slabs and walls in one operation on a daily cycle. Initially used to create repetitive cellular structure, but today, Tunnel Form technology is mainly used in constructing projects at a faster pace. The structure is made completely of steel and can be readily modified for different projects. Tunnel form allows the operation to cast walls and slabs completed in a daily cycle. This technology requires only 1/4th of labor which is more economical and the quality of workmanship goes up. As compared to aluminum technology, tunnel form is five to six times quicker. Using tunnel form guarantees 100 times repetition which makes it cost effective. This technology also guarantees a long life- of approximately 15 years which obviously makes it a favorable option.

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