CREATING MILESTONES IN REALTY SECTOR

Earth Infrastructures Ltd is one of India’s most renowned capitalized real estate companies. It has constantly been in the pursuit of excellence, using innovation and cutting-edge technology on all its projects. It has strong financial aid and engineering expertise, which makes it top of line infrastructure provider, with a global presence.

Earth Infrastructures Ltd has a team of dynamic and young professionals who are qualified and highly experienced in management and marketing. Their motto lies in keeping their customers happy. The structured and unified marketing model followed by the Earth Infrastructures Ltd team has helped in building a strong network of channel partners, both in residential and commercial segment. Avdhesh Goel, FCA, ACS, AICWA, Joint Managing Director, Atul Gupta, Joint Managing Director, Rajnish Mittal, Joint Managing Director and Vikas Gupta, Joint Managing Director share their views.


How was the industry when you entered the business?

Real estate was very much unorganized and the belief level amongst the customers was very low when we started four years back in 2010. The whole eco system starting from government regulations, documentations and approvals were in such a state that it would require months even to get idea put across the customer to start the project. Although things are getting transparent but a few years ago, it was very tough for any real estate organization to prosper effectively.

How did you perceive things differently?

Thinking from the customers’ point of view and taking the customer first was the approach to make our journey different. Our corporate mantra is to move with customer mindset and deliver the projects timely and much better than what customer anticipates.

How has Earth Infra made a difference?

We dealt directly with land holders taking the traditional path with an effective marketing strategy entrusting the customers mind with positivity. Our main aim was to get the maximum respect for the brand in word and action.

How has the industry changed now?

As now the competition is increasing in the real estate and the overall quality of the projects have increased considerably and has reached an international level. The customer is more aware now due the technology and information available on internet. He sometime double/triple checks it before going in for any kind of investment. The industry has become more transparent now and all the legal formalities are laid in front of the customers.

VISION: WITH A COMMITMENT TO DELIVER UNIQUE, INTEGRATED PROJECTS THAT CATERS BEST TO CLIENT'S NEEDS, EARTH STRIKES TO BE THE MOST INNOVATIVE AND TRUSTED BRAND IN REAL ESTATE INDUSTRY BY ADOPTING NEW TECHNOLOGIES WITH THE FOCUS ON GREEN AND ECO FRIENDLY CONSTRUCTION.

MISSION: HASSEL FREE OPERATIONS WITH TOTAL CUSTOMER SATISFACTION BY RESOLVING CUSTOMERS ISSUE WITH UTMOST ATTENTION AND SPEEDY SERVICES ROUND THE CLOCK. EARTH IS DEDICATED TO DEVELOP AND DELIVER STATE-OF-THE-ART PROJECTS MATCHING TO STANDARDS AROUND THE GLOBE.

If you could change three things, what would you change?

1. Real estate has reached a stage where it should be given an industry status and like demanded by everyone there should be a single window clearance system for all the approvals.

2. Transparency in the system to be more customer-friendly with respect to customer and developer both.

3. The marketing practices for the real estate are still in a developing stage and customer has been through some rough experiences. The marketing practices should be standard and should be certified with facts and figures giving the customers no room for any kind of doubt.

Any other relevant input you would like to give.

Starting with one project in 2010 and now with ongoing 12 projects Earth Infrastructures Ltd has come up in a big way, out of 12 projects four are being delivered in 2015. Earth Infrastructures Ltd has got offices in around 50 cities across the country and 15000 satisfied customer bases they have got the work force of more than 1500 plus people and also most important more than 12 million sqft under construction. In their journey so far they have won many accolades at national and international level.

They have partnered with various national and international firms for technology and architectural finesse. Companies like CERRVERA & PIOZ - Spain, BDP- Netherland and Bose International - Europe are some of the firms with whom Earth Infrastructure has tied up to achieve technical brilliance.

They have got CLC block plant manufacturing cement block which gives five times strength of a normal wall. They have received the “Project of the Year award” by franchisee of India for their project TECH-1 at Noida Expressway which is mixed land used product.

Their project ICONIC has been ranked among the top 10 projects of Gurgaon. They have been given the best marketing campaign award by IRA Instituted by Property Observer Magazine.

Summarize your journey so far.

With four friends coming together and starting the company in 2010 it is now a family of 1500 plus employees. They started with their first residential project in greater Noida West by the name of Earth Town and now there are 12 ongoing projects and more than 12 million sqft under construction. It has been a commendable journey of dream –belief action and commitment.

Whom do you idealize as your role model?

Atul idolises Ratan Tata as his role model as he was the pioneer in many things but mainly he is a great motivator and has built an empire due to his fantastic approach in team building and great vision towards a better and prosperous India. Every small step is taken with a vision towards a great dream and that is why a great empire can be built with a great dream and team.

One thing people don't know about you:

Atul is a travelling freak and wants to explore new places and detonations all the time and would love to go some new place in the world whenever he gets free time. Avdesh believes in accumulating good fortune through righteous actions and beliefs. He has the philosophy that whatever is sown will be reaped accordingly, so good action should be sown so as to reap good benefits.

Rajnish has got an eye for latest trends in everything whether it is an architectural marvel or latest gadgets. He believes the technology can make life easy for all and is evident in his approach towards achieving the company's goal. Vikas Gupta is a relationship builder which he would like to keep eternal and everlasting.

Success Mantra: One can define and achieve success only through the right attitude. It’s only the attitude that matters to be able to build an empire and sustain it forever. Before setting this company we were marketing for others but only due to the right approach and attitude we are able to start 12 projects in the last four years and the completion and delivery by 2015. It is only attitude which drives the company to do something great to the environment, society and customers at large. They want to let the attitude flow in the employees and thus reach the customer to inform of a great project delivered on time.

Onus on government to protect, boost real estate

Presently, the real estate sector in India is facing several challenges. These include lack of adequate sources of finance, shortage of labour, steep rise in the prices of raw material, multiple tax system and lengthy and delayed procedures for approvals.

Funds are the basic requirement for any real estate project. These may be arranged through banks by availing loans. Another way to generate funds for the real estate sector is through Foreign Direct Investment (FDI). According to available information, the real estate sector in India has attracted a cumulative FDI worth over US $22 billion during the April 2000-June 2013 period.

Besides, small and big investors are also the source of finance for the realty developers. Despite all this, developers face shortage of funds. They have to arrange funds through loans from banks at a higher rate of interest. The government should fix reasonable interest rates for the real estate sector, considering the fact that the economy of a nation revolves around this particular sector besides other major sectors.

There is a dire need for the government to provide financial benefits to players in the real estate sector to build low cost and affordable housing for the masses across the country. Also, there is a need for reviewing the existing FDI guidelines for investment and development. Relaxation in FDI guidelines will further boost investment and development in this particular sector. Rather, the whole economy of the country will get a boost.

The cost of construction is increasing day-by-day. If one calculates, one finds that the cost of construction has risen by around 40 per cent in the last 24 months, approximately.

This is because of many factors. The bank rates are high. Many projects are getting delayed because of lengthy and complex procedures of sanctions from various government departments and ministries. The government, both at the state and the Centre, should try to simplify the procedures meant for approvals or sanctions for the real estate projects.

These delays also lead to escalation of cost. There was a slowdown to some extent also in the recent past. This also put an adverse effect on the real estate projects.

These days the real estate sector is not only facing labour shortage but is also under heavy pressure to pay increased wages to the labour. It has been observed that significant number of labourers have returned to their homes states after the start of the Government of India’s MNREGA programme. Labourers find it easy to get jobs at decent wages close to their respective homes. The real estate sector is likely to face more labour shortage in the coming time because labourers are getting attracted towards the MNREGA after listening about benefits of the MNREGA programme from others in their circle.

Therefore, the government must come forward to protect and boost the real estate sector by redressing problems and difficulties being faced by developers across the country.

Vikas Gupta, JMD, Earth Group

Realty Plus Interview along with Mr. Vikas Gupta JMD Earth Infrastructures Ltd

 ‘“We Promote Green, Sustainable Realty”’ 

Delhi-NCR-based real estate firm Earth Infrastructures Ltd, which bagged the best debutant award in 2010, has grown to become a major entity involved in multiple business activities — real estate construction, planning, marketing, strategy implementation and green innovations. With a slew of successful projects under development like Earth Towne and Earth Copia in Greater Noida and Gurgaon, respectively, the company plans to invest Rs750 crore on immediate expansion. As the company gears to launch 5-star properties in Rajasthan and Haryana shortly, it is also expecting to tap the stock market in 2014 to further strengthen its pan-India expansion agenda. 

Unlike some other real estate companies, Earth Infrastructures Ltd supports the government’s move to bring in a real estate regulator which it claims would immensely benefit consumers by bringing transparency in property transactions. Vikas Gupta (JMD), Earth Group, articulated the company’s stance on this and many other pertinent issues confronting the real estate sector, in a free-wheeling tete-a-tete with Vishnu Rageev R of Realty Plus. Excerpts...

Vishnu Rajeev R: Could you take us briefly through the company’s journey since its inception? What, according to you, have been the company’s notable achievements during this period? How much has the company grown in terms of the developed area, and sales turnover? 

Vikas Gupta: In the year 2010, Earth Infrastructures Ltd started off its journey with its flagship project christened Earth Towne, a mass housing project. In this short span, the company has managed to construct about 6,000 flats for medium income bracket people across 19 acres land in Greater Noida. Here, the land was acquired by Greater Noida Development Authority. The company began operations with this mega project valued at Rs75 crore which spread its popularity pan-India. One of the notable achievements is that the company has sold more than 70 per cent of inventory within 100 days of the launch of the project. Even industry experts touted it as a mega success in real estate sector in the recent times. The major reason for the success was because of our marketing strategy. The project was marketed not only in Delhi-NCR but also in tier I and tier II cities pan-India. Encouraged by the success of this project, the company launched its first commercial project Earth Sapphire Court in Greater Noida and then another mega housing project with the name of Earth Copia in Gurgaon in the year 2011. Within the first 18 months since its inception, the company is presently developing over seven million sq ft of residential and commercial real estate. 

Vishnu Rajeev R: What are the current initiatives and immediate plans of Earth Infra across residential real estate segment? Share details of your existing projects with pricing, features and other specifications. 

Vikas Gupta: The company, which is strictly following the concept of developing green sustainable buildings has launched LEED certified green projects alone. The company is planning to launch a residential project in Noida and another residential project in Gurgaon in the next 3-4 months. Presently, we have two important projects which are under development¬¬ — Earth Towne and Earth Copia — located in Greater Noida and Gurgaon, respectively. 

Located at Plot No. 4, Sector 1, Greater Noida, our first project Earth Towne has been completely sold out and has about 1,800 investors in it. This LEED certified green project offers 1, 2, 3 and 4 BHK apartments. It features a wide spread area of 19 acres lush green landscapes, water bodies and beautiful boulevards, dry balcony, 70 per cent wide open green area, etc. The project will have amenities like gymnasium, club house, swimming pool, gazebo, paver block roads, tennis court, barbeque, caring zone with nursing homes and the like. It is priced at Rs2,650 per sq ft. Earth Copia is a residential project located at Dwarka Expressway at Sector 112, Gurgaon. The project offers 2, 3 and 4 BHK apartments. Each apartment boasts of adequate living space for the whole family as well as a corner for an individual pursuit. It is a prestigious residential project in Delhi’s neighbourhood with 70 per cent greenery to maintain harmony with nature. It is equipped with all modern life facilities like 100 per cent power backup with latest security features and also includes ultra modern club and a world-class gymnasium. It is priced at Rs4,000 per sq ft. VRR: What would be the quantum of investment for your upcoming projects? How do you intend to raise the money for expansion? Do you plan to come up with an IPO in the near-to-medium run? VG: We have big expansion plans in the pipeline. We are planning to invest more than Rs750 crore in next six months for our expansion and constructions across existing sites. We are planning to raise the required money from internal accruals and advance from our investors and prospective buyers. We are also approaching domestic financial institutions for raising fund through loans. You can expect an IPO from Earth Infrastructure in the year 2014 depending upon the share market climate. 

Vishnu Rajeev R: Who are the key persons driving the group? 

Vikas Gupta: Avdhesh Goel is an avid learner. He has worked tirelessly to put Earth Infrastructure Ltd on the map of Indian realty sector, turning opportunities into successes. His outlook has helped him in shouldering many additional responsibilities alongside his professional calling. He has brought radical changes in business strategies, professionalised the entire group and has redefined the internal system. Instrumental in acquiring many proprieties in the NCR, he has also been involved in partnership with prestigious and leading infrastructure companies. 

Atul Gupta is a symbol of drive and performance. An expert in numerous management methods, he influences the internal and external dynamics of the organisation, synergising them with success. Principled, yet open to fresh thought and ideas, he has always used emerging practices and business models for rapid growth. He is also the founder of Uttkarsh, an NGO that works for the aged and the special- abled. 

Rajnish Mittal an expert in impression management, has worked wonders for the company’s public image. His pioneering strides towards relationship endeavours, such as corporate assets and legitimising long term competitive advantages, have helped in getting the company maximal social recognition. 

Myself, has been entrusted with fulfilling the expectations of the customers as well as manage to build a unique corporate identity for the organisation. I have also made various contributions to many American and European counterparts. As an entrepreneur and planner, I have tried to create multiple choices for the customers in the realty sector and institutional segment. 

Vishnu Rajeev R: Any plans to foray into other areas of real estate developments like commercial, retail, hospitality and the like? 

Vikas Gupta: We are already developing commercial and retail real estate projects. The company is all set to launch five-star hotels in Neemrana in Rajasthan and Manesar in Haryana. 

Vishnu Rajeev R: How conducive is the current market for value/affordable homes in Delhi-NCR region? Have you ventured into the segment? 

Vikas Gupta: We have a project in Noida Extension which is in the affordable housing segment. There is huge scope for such projects in the whole Delhi-NCR but developers alone cannot take the entire initiative. The government should come forward to sell the land to developers at cheaper rates to allow them to come up with such projects to cater the need of masses. 

Vishnu Rajeev R: How do you visualise your company vis-a-vis your competitors? What are your core strengths in real estate business? 

Vikas Gupta: Our company believes in innovation and follows the philosophy of “Innovation Beyond Imagination” while planning our projects to cater to the needs and demands of our clients. We are into green buildings which itself give us an extra edge over our competitors. We will keep these two aspects on priority while planning and executing our projects as we believe in delivering the best to our investors. We believe in high-end client servicing and being into green housing, we offer them a caring and eco-friendly environment to live in. 

Vishnu Rajeev R: As Noida stalemate continues, what is your assessment of the current real estate scenario in Delhi-NCR? How do you expect this market to behave in the next one year? 

Vikas Gupta: The issue of Noida and Noida extension has almost been resolved due to the active intervention of Greater Noida Industrial Development Authority. They have settled the cases of 60-70 per cent farmers. And we hope for a positive judgement from the honourable High Court. The real estate market in Delhi-NCR is going to witness moderate to high growth in this coming years. 

Vishnu Rajeev R: Are you in favour of a real estate regulator? What are the prospects and challenges before Indian realty sector? 

Vikas Gupta: Yes, we strongly feel that there should be a regulatory body for the real estate industry. This would make the sector more organised and prompt in its dealings with all the associated parties. The Noida Extension issue also highlights the need for the regulatory body for real estate industry. This would also benefit investors and other parties involved. Although there are many challenges, Indian real estate sector will only prosper in the coming years. 

Vishnu Rajeev R: What are your major promotional drives? Which media vehicle or promotion mode do you consider most suitable for crating brand awareness? 

Vikas Gupta: I feel that print and electronic media are the suitable mediums for the brand awareness as they reach the masses. Besides, the editorials and press releases play an important role in positioning the brand as they come from an authenticated and responsible source of the society. 

Vishnu Rajeev R: Anything else you would like to share with our readers? 

Vikas Gupta: I want to highlight the importance and requirement of Green Buildings here. Today global warming is a matter of grave concern and I would like to say to your readers that they should go for the green building projects as it would give them a healthy and eco-friendly environment and would decrease the CO2 levels, apart from providing them savings on electricity and water consumption.