I don't want to bite more than I can chew: Darshan Hiranandani

Interview with MD, Hirandani Group

Darshan Hiranandani, 30, managing director of the Hiranandani Group of companies and son of patriarch Niranjan,spearheaded the realty group’s foray into Dubai and, more recently, its entry into the power sector. There’s also a dispute between his father and him on one side and his sister, Priya Vandrevala, over control of some of the family’s projects in the country. In an interview with Raghavendra Kamath, he talks of the dispute, his own plans and related matters. Edited excerpts:

How do you look at the arbitration proceedings initiated by your sister and the alleged role of your sister in villagers’ protest against your project in Pune?
The bottom line is that in India, if a law is not practical and an officer also thinks it is not practical and does not enforce it, five years later somebody can get up and say it’s corruption. Whoever it is, I do not feel it is my sister. Whether it is a lawyer, a villager, a family member, a corporate rival or somebody genuine, it does not matter. The fact is, I am tried for a loophole in the project. Better get it clarified today, because in five years time, people can call it corruption. If my sister has exposed it, I am thankful to her, if somebody else has done it, I am grateful to him. The point is, I am better off seeing (off) this problem before investing Rs 10,000 crore.

What is your take on your sister wanting control over the family’s projects? Aren’t you worried?
I do not see that as a problem. If somebody wants control over the projects, let him have it. I am focused on energy. Whether a professional does it (runs real estate), my sister does it or my cousin does it, it is fine. If they think it is their calling and they can add value, it is fine. I am adding value in the energy business. Why is there an issue over that? There is a dispute about inheritance. That is okay. It happens to everybody.

I am comfortable with the way I live. Whether I will get X less or Y more, that will not make a difference in my life. My journey is what I build. After I build, I do not think about that. Something will get you more money, something will get you less. 23 Marina ( the group’s Dubai project) or power plant in Pune is not my destination. It is the journey.

What is the idea behind getting into power when your family had a well-established real estate business?
I went to Dubai to do real estate business in a new and growing place with good policies, but I wanted to do it independently. I did not want to work in my father’s company. I wanted to do things differently from my father.

When you came back to India, you got into power and not real estate. Right?
That’s correct. My father is one of my greatest role models. He is a pioneer in building great townships. He had created a fantastic quality of life for many people. Today, I think about energy availability in India, where we consume only 600 units of energy per capita, one of the lowest in the world. China is 2,200 units and the world average is 2,400 units. For me, energy availability is quality of life. The idea was how I could increase it for a large number of people. My single power plant can eliminate load shedding in Maharashtra. That means 110 million people of Maharashtra do not need to resort to a diesel generator, which costs Rs 18 a unit. I can generate gas-based (power) at Rs 5 a unit at today’s prices.

So, will you stay away from real estate?
Nothing like that. I am my father’s son. My passion and excitement lies in energy. For the next 10 years, my focus will be only on energy. I was passionate about our super-tall tower; I built it. I am passionate about our energy project; I am doing it. Success or failure will be known only after five to six years.

Where do you want to see the venture you are heading four to five years from now and how many projects will your company do?
If the question is how many new projects we will do in the next three years from now, the answer is zero. But I can tell you the ones which will be completed in the next five years. When I started, I thought of growing horizontally or doing multiple projects. But when I started doing my first power project, I realised the answer lies in not doing multiple projects but going vertical. Do the power plant, go closer to sources of fuel. So, we are putting up this power plant in Pune, we are working on the LNG (liquefied natural gas) terminal. With the LNG terminal, we have access to buy gas from across the world. Today, we are stuck by a monopolistic situation, where we cannot buy anybody else’s gas apart from Petronet and Shell. I think a 2,600 Mw project is big enough for me. In the next two to three years, once the project reaches a level of maturity and everything is on track, I will look at the next project. I don’t want to bite more than I can chew.