THE POLICIES AND INITIATIVES OF THE COMPANY COUPLED WITH THAT OF THE GOVERNMENTAND THE RAPIDLY ESCALATING HOUSING DEMAND ARE EXPECTED TO CATALYSE OUR GROWTH IN APROFITABLE WAY OVER
In this year sectoral sluggishness persisted while the residential market in NCR wasless than flattering.
In the midst of such a challenging environment CHD has managed to perform considerablywell.
At CHD we are driven by the optimism in looking ahead instead of lamenting for whathas been. Being in a capital intensive market has taught us to efficiently manage ourgrowth by maintaining asset-lightness focusing on delivering projects with speed andinvesting in the technology and people that will duly accelerate the project growth andthereby our presence; which in turn will ensure us enhanced returns.
The most significant issue at present in the real estate market has been delayeddelivery of residential projects. According to PropEquity the average delay in possessionis 29 to 30 months in Ghaziabad and Noida respectively with Gurgaon at 34 months andFaridabad way behind at 44 months. The result: Scores of middle class families arestruggling to pay both the rent of their rented homes and EMIs for the ones they boughtfor a longer time which is proving to be a bigger trial owing to the present expensivetimes.
Hence in the real estate market timely delivery of project is the cornerstone ofexcellence. This is why CHD has been consistently particular about meeting the deliverydeadlines.
With a progressive government kickstarting economic resurgence CHD is
looking forward to an era of interesting policies that will transform the real estatesector.
Besides the economic resurgence is urbanising India faster than before with animproving lifestyle. Each year about 10 million people are moving to Indian cities. Theper capita income in urban India is expected to treble from US$2800 in 2012 to US$8300in 2028. This translates into increased demand for quality housing.
Another factor that is bound to change the scenario of the housing sector is the spurtof younger and smaller families across the country. The average household size is expectedto decline from 4.8 to about 4.4. With the fall in household size there is an expectedincrease in demand for 10 million new housing units. About 35% of India's population isbetween the 15-35 year age bracket; this demographic dividend is expected to drive housingdemand across 15 years.
The prime standout factor for CHD is our committed delivery. Our asset-light businessmodel timely collection in customer dealing and focus on turning around projects in timehas helped us deliver our projects on time. Hence at a time when the markets arechallenging for most of our contemporaries we have secured sustained growth.
As we march ahead we are optimistic that policies and initiatives of the dynamiccentral government should herald brighter days for the real estate sector over themedium-term.
During 2014-15 we launched a 10 Acre Group Housing Project in Gurgaon
and another 10 Acre Affordable Group Housing Project in Karnal (Under AffordableHousing Scheme 2013 of Haryana Government). Both the projects have received hearteningcustomer response. In May we had already launched one of its kind service apartmentproject in Sohna. We feel that all these launches will catalyse our growth in a profitableway over the foreseeable future.
On behalf of the Board I express my appreciation for your invaluable support and theconfidence reposed in us. Your continued encouragement will help us in elevating yourCompany to a new orbit of excellence.
I also take this opportunity to place on record my sincere appreciation for the undyingspirit of excellence tireless effort and priceless contribution of the entire CHD teamduring the year under review.
I also express my earnest gratitude for the co-operation and support extended to yourCompany by our key stakeholders namely customers bankers financial institutionsofficials of central and state governments. I thank all the members of the Board inproviding our business their invaluable guidance thereby successfully steering yourCompany towards excellence.
Rajinder Kumar Mittal