Feet on the Ground Eyes on the Horizon" captures the essence of ourplans".
Our passion hard-work dedication and a divine discontent to keep bettering our besthas today made us a market leader in spite of our humble beginnings. As we grew insteadof following the traditional hub- and-spoke approach - often on a one-way basis we movedtowards creating unidirectional systems and creating talent pool which has ideas insightsand efficiencies. With the said approach Sunteck has emerged as one of the trusted Brandsin developing high end projects in each micro market.
Your Company in less than a decade has been through several cycles of changes ineconomic environment and workplace. Throughout these situations we have constantly focusedon our growth and continuous improvement. With this it is also imperative to be consciousof the fact that small steps aren't enough for creating strong Brand. Therefore ourapproach encompasses both the opportunity and responsibility to look beyond the bottomline to understand and shape the larger impact.
The fundamentals and demographics remain strong for Indian real estate market. The paceof urbanization is still slow compared to other emerging markets. Only 1/3rd of ourpopulation lives in cities as compared to an average 50% globally. As per the governmentestimates 50% of the population would be shifting to urban cities by 2050. The Governmentestimates a shortfall of 30 million housing units by 2022 in meeting urban demand. In lieuof this the government has announced big ticket reforms to provide housing for the masseswith the introduction of the policy viz. Housing for all 2022'. This we believe willopen new doors of opportunities for the real estate development in the country.
While the current market place has been challenging your Company has created adevelopment portfolio of 24 million square feet spread across 24 projects and 4 rentedassets. Of which we have completed 6 projects and 8 ongoing projects are expected to becompleted over the next 3-4 years. We have made great progress this year but I recognizethat we have not achieved all we set out to do and there is more we are working towards tomeet the desired goals in a timely manner. As we gear up we are now focusing to enhanceour footprint in the market place in the next 2-3 years by way of new launches and newacquisitions on JV / JDA basis.
Thousands of new products and services are being released into the market every day. Asthe market becomes crowded with similar products and services our strategy isdifferentiated and is in line with customer expectations. With creation of four brandsi.e. Signature Signia Sunteck City and Sunteck we have clearly distinguishedprice and product. The team fully understands and has always thoughtfully crafted theproduct-mix for every location and every project thereby creating destinations; atestimony to more iconic developments.
Executing a strategy is not as easy as formulating it. The team has stayed focused onthose events that have the largest impact on the ability to execute the strategysuccessfully. This is well evidenced by the approvals coming through for most of the keyprojects under execution alongwith completion of projects. During the financial year wewere able to get requisite approvals to launch few projects as well as receive severaloccupancy certificates for most of our completed projects. Further your company has takensteps to strengthen and monitor the internal processes by appointing one of the leadingBig 4 consultants to have a more robust review mechanism.
Trust and quality both remains the cornerstones of what we do and how we do it andthis is well accepted in the marketplace. Our 3 BKC residential projects have elite anduber rich class of India as its customers. This is well complemented by our customerrelationship team which is focused to deliver excellence and promotes confidence amongstthe customers.
Vision transforming into reality - space which is unconfined by walls with unfetternatural light and is a surviving example of beautifully decorated ultra luxury residencesof 1.1 million square feet development wherein well known personalities are residing i.e.Signature Island BKC. Even Signia Oceans Airoli and Signia Skys Nagpur offering luxurylifestyle living experience are habitable. We have also completed a commercial property inGoa i.e. Sunteck Kanaka.
As the economy begins to roll again the market is caught in low gear. Despite of thesechallenging conditions your Company has been able to record growth in pre-sales by 28%collections by 29% (Rs. 540 crs highest ever collected) and achieving operating margins of46%. Additionally we have also strengthened our international sales & marketing teamto cater to the requirements of NRI customers.
I believe that now your Company has strength and stability. Our thrust for the next 2-3years is to ensure that we have consistent sales growth by launching smaller ticket sizeapartments in the premium segment in the subsequent phases of our 23 acres of townshipin Goregaon (W) i.e. Sunteck City and other projects under the group's developmentportfolio on a case to case basis. Further selectively acquire new land parcels on a JV /JDA basis and also enhance our rental portfolio by exploring opportunities in the existingdevelopment portfolio. With Sunteck's sound strategy and strong leaders I have everyconfidence that we will continue to build on our success.
What makes me proud is that our standards are something that we don't compromise whichis why we are able to persistently provide our customers with the highest levels ofquality and enriching buying experience. To achieve this we have always been committed toattracting developing and retaining the best and most talented people. The team ishardworking enthusiastic results-oriented and of course career-minded.
While the economic environment is unfavorable I believe that the quality passion andenergy of our people over the last few years have impacted positively. With uniqueknowledge and experience delivering world class excellence and personal touch well ensurethat we continue to maintain our positioning in the ultra luxury segment.
I am truly privileged to have a team which brings commitment and enthusiasm to workeach day and carries it forward to enrich their communities. And finally would like tothank our Board of Directors partners associates and shareholders for your confidencein us which helps fuel the momentum towards an ever brighter future for Sunteck.