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Max Ventures and Industries Ltd.

BSE: 539940 Sector: Financials
NSE: MAXVIL ISIN Code: INE154U01015
BSE 00:00 | 26 Sep 135.00 -6.00
(-4.26%)
OPEN

139.95

HIGH

140.90

LOW

133.75

NSE 00:00 | 26 Sep 134.50 -6.65
(-4.71%)
OPEN

141.00

HIGH

141.30

LOW

133.90

OPEN 139.95
PREVIOUS CLOSE 141.00
VOLUME 13834
52-Week high 157.95
52-Week low 85.40
P/E 5.15
Mkt Cap.(Rs cr) 1,986
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 139.95
CLOSE 141.00
VOLUME 13834
52-Week high 157.95
52-Week low 85.40
P/E 5.15
Mkt Cap.(Rs cr) 1,986
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Max Ventures and Industries Ltd. (MAXVIL) - Chairman Speech

Company chairman speech

Letter to Shareholders

This decision to enter residential vertical is based on severalpositive factors including all-time high affordability low-mortgage rates fiscalincentives and changing consumer preferences. The company also intends to leverage theGroup's strength in terms of its brand equity partnership DNA track record incommercial real estate and deep local knowledge and expertise for a successful foray._

Our projects have redefined the commercial real estate landscape ofDelhi-NCR in terms of product quality customer experience and rental realizations. Wehave been able to achieve this by implementing ‘WorkWell' philosophy - ouroperating mantra.

Dear Shareholders Greetings !

During the year under reference businesses around the world continuedto navigate challenges due to the pandemic as well as high volatility in commodity prices.For Max Ventures and Industries Limited (MaxVIL) this was the year of restructuring andrefocus. True to our long-term strategy of focusing on the real estate sector under theaegis of Max Estates we restructured the business mix by divesting our SpecialtyPackaging Films business. This has enabled the company to commit itself to a path ofbecoming a pure play and focused real estate player.

Arising from the disinvestment the Company added an additional corpusof `600-650 crore and is now looking at a war-chest of more than `1000 crore to expandits real estate business.

With undivided focus on real estate and a renewed purpose to"enhance the quality of life through the spaces we create" the Company has alsodecided to enter the residential segment. The Company will now focus in developing premiumresidential and commercial spaces in Delhi-NCR in line with our stated objective ofstriving for real estate excellence in one region and across multiple asset classes.

This decision to enter residential vertical is based on severalpositive factors including all-time high affordability low-mortgage rates fiscalincentives and changing consumer preferences. The company also intends to leverage theGroup's strength in terms of its brand equity partnership DNA track record incommercial real estate and deep local knowledge and expertise for a successful foray.

While the Indian economy has shown resilience against COVID-19 ledbusiness disruption the ongoing Russia-Ukraine war has slowed down economic growthglobally and has had its cascading effect on the Indian economy too in particularlyinflation leading to higher interest rates. This along with higher commodity prices hastranslated into 10-15% higher cost of development for real estate players in India.Despite this we have been able to control costs and time within budget for both of ourongoing commercial real estate developments - Max Square in Noida and Max House Phase-IIin Delhi. We have been able to achieve this through combination of factors includingdesign-led interventions procurement efficiencies and rigorous planning and monitoring.

The residential market turned the corner in FY22 with sales momentumconsistently improving over the year.

Arising from the disinvestment the Company added an additional corpusof `600-650 crore and is now looking at a war-chest of more than `1000crore to expand its real estate business.

The pandemic turned into a strong factor by supporting housing demandand resulted in a paradigm shift in the attitude of end-users for residential properties.Commercial office space has too witnessed a strong revival in leasing activities in FY22leading to better absorption and lower vacancy. Fresh leasing was the primary driver ofleasing activity and the momentum is expected to continue in FY23.

Our two commercial real estate developments - Max Towers in Noida andMax House Phase-I in Delhi are fully leased out at a 25-30% rental premium toleading domestic and multi-national corporations across multiple sectors despite COVID 19led uncertainty. This is a clear testimony of ‘flight to quality' and occupierswilling to pay premium for quality developments which is scarce across Delhi-NCR. Thisled to an annual increase in lease rental income for Max Estates by 116% `38.5 crore inFY22. The revenue pool will continue to grow once Max House Phase-II and Max Square getcompleted and the leasing starts.

Our projects have redefined the commercial real estate landscape ofDelhi-NCR in terms of product quality customer experience and rental realizations. Wehave been able to achieve this by implementing ‘WorkWell' philosophy -our operating mantra.

‘WorkWell' stands for a lifestyle where all thephysical amenities of a modern workspace come together with human centric design."Work" and "Life" have stopped being two distinct halves of ourculture. Instead all of our lives are informed by how we work and our work is informed byhow we live. Essentially we envision all our developments to be an environment builtaround enhancing and enriching your work and your life allowing you to truly ‘WorkWell'

We endeavour to implement this mantra in the avatar of‘LiveWell' in our future residential spaces. ‘LiveWell' forresidential spaces envisions a living ecosystem that enhances and enriches the quality oflife of its occupiers by building a confluence of spaces that enables comfort healthyliving and community experiences while ensuring their physical and emotional health andwell-being. Close attention will be paid to elements like air water safety biophiliarecreation and more by bringing the highest standards of expertise that goes into everystage of planning and execution – from design to operations of our spaces leading toan unparalleled experience for its occupiers. We are looking forward to launch our firstresidential community in Delhi- NCR in H2 2023.

As a part of our ‘One Region Multiple Asset Class' strategywe aspire to add on an average approximately 1 million sq. ft. each in commercial andresidential segments per year over the next three - five years. As we grow we will ensurea healthy mix of geographical footprint

‘WorkWell' stands for a lifestyle where all the physicalamenities of a modern workspace come together with human centric design. "Work"and "Life" have stopped being two distinct halves of our culture. withinDelhi – NCR and development models - Joint Developments versus outright purchase; todiversify the risk profile of the portfolio. We will continue to partner withinstitutional investors as we scale our real estate development portfolio.

We are confident to make Max Estates a leading real estate developerin Delhi-NCR – a market that has a huge vacuum of credible well-funded and reputeddevelopers despite it being one of the largest real estate market Pan- India.

We thank each and every one of you for your continued belief in theCompany and its vision. We are grateful to all our employees across the Group ourbusiness partners our JV partner New York Life Insurance Company investorsshareholders as well as the government and its various agencies with whom we engageactively for their support.

Analjit Singh__

Founder & Chairman

Sahil Vachani

MD & CEO

.