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Real estate developer The Antriksh Group has played an important role in the growth of the Indian real estate sector. In an interaction with Entrepreneur, Abhishek Singh Goyat, CEO & MD, The Antriksh Group, talks about their earlier and upcoming projects.
How did the idea of starting The Antriksh Group come to your mind?
Our group was established in 1986 by our CMD Rajbir Singh Goyat. Our journey started with a project for railway department and our success in that project acted as milestone of inspiration for us. It gave us the audacity to expand horizontally into several residential and commercial real estate ventures. Presently, we are one of the leading real estate development groups in India with more than 30 years of treasured experience. Our focus has been on the development of premium residential and commercial projects, housing societies, shopping malls, etc. in Noida, Delhi and Gurgaon.
What kind of growth the company has witnessed over the years?
Over past 30 years, the collective efforts of our team have enabled us to deliver more than 50 projects across Delhi and NCR. Our first contract was to construct a medicinal facility in Rohtak, Haryana. To be honest, it was something very close to our heart because that project had the potential to significantly touch the lives of people from all grades of life. The bureaucracy existing in the public authorities is a widely known bottleneck that chocks the entrepreneurial spirit. Although we used to face similar issues back then, our team’s perseverance and strong dedication towards company’s vision held us strong and helped us transform all difficulties into opportunities.
How did you arrange funding for various projects?
Almost all real estate players resort to external sources of finance, such as term loans and equity selling. But, we have always relied on comparatively conservative means of finance, as our aim has always been to put the interest of clients first, both end users and investors. We do this by deploying internal financing, i.e. reinvesting profits from our earlier projects as a source of capital for new projects. Internal financing is generally less expensive because one does not have to incur transaction costs to obtain it nor do we have to pay the taxes associated with paying dividends. This has also enabled us to give our clients most competitive housing prices.
How do you gain investor confidence?
Clients have to stick with a real estate developer for a minimum of two-three years starting from the launch of a project to the offer of possession. During this period, as a developer, we try to ensure pleasant experience to increase the possibility of reinvestments and referrals. Our group’s vision have always been to deliver quality housing at competitive rates and in time-bound manner. We also encourage effective communication by keeping our clients updated about construction milestones in various projects.
Tell us about your current projects.
Currently, we have three running projects The Golf Address - Noida Expressway Sector 150, Antriksh Urban Greek and Antriksh Eco Homes Dwarka Phase 2, Delhi.
In which cities Antriksh Group has its presence?
Antriksh Group has delivered more than 52 projects across Indian cities like Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad, Rewari, Faridabad, Jaipur and Haridwar. The group is also undertaking projects in other key states such as Rajasthan, Uttarakhand and Haryana.
What is the present vacancy rate in all your projects?
Our group has been able to maintain moderate vacancy rate in our projects – at around 18-20 per cent. According to a study by a real estate consultancy, the number of quarters to sell unsold inventory (QTS) is at 19 quarters as of 30 June 2015. We believe in such an environment where industry’s average of vacancy rate is already skewed towards the higher side, our vacancy rate of 18-20 per cent is a moderate achievement in itself.
How has e-commerce fuelled the growth of the company?
E-commerce has opened up an effective and economical channel for real estate developers to target potential clients across India and increase effectiveness of sales pitch by segmenting potential buyer profiles. In July 2015, we organized flash sale of property in Delhi through the e-commerce space, and sold around 250 flats worth Rs 250 crore. Very soon we are also planning to have online property carnivals by entering strategic alliances with few of the biggest property portals in India.
How was 2015 for you as a group? What are your expectations from 2016?
Our team’s efforts coupled with our initiatives on digital front during July 2015 enabled us to achieve a breakthrough by selling more than 350 units worth over Rs 250 crore. During the coming year 2016, we are planning to bring medium to big ticket projects across several upcoming cities to cater housing and investment needs of domestic and NRI clients.
In which cities are you planning to expand further?
Our group was engaged in developing various real estate projects for the last 30 years and predominantly focused on residential units. We have chartered out plans for the next five-10 years with an aim to strengthen our group’s presence across India especially in regions such as Hyderabad, Chennai, Bengaluru, Pune and Lucknow.