As a real estate development company that is constantly on the move 2018-19 was apoignant year that reflected the outcome of our strategies and the potential of ourfuture.
I want to write to you about the deep- rooted transformation underway at our Companyand to put a better context to this allow me to dwell a little bit on the past.
Puravankara has become synonymous with real estate because we had a vision when westarted out - a higher calling that guided us to put the customer at the center of ourwork.
So when we appraised a land parcel we first thought of how the future of thismicro-market would shape up to help the buyer live better and commute easier. Before wefinalised the architectural blueprints we explored how we could maximise the utility andfunctionality of space so that the user would benefit from it the most. When we evaluatedlandscaping and lifestyle amenities we considered how it might foster community livingbringing something for everyone. When we got down to the pricing we examined how we couldensure affordability and value while eliminating the complexities of home purchase.
As we became more entrenched in serving the needs of our customers we saw aninteresting paradox shaping up - a number of people were looking to purchase a home yetit was beyond their reach.
Even the average income rise couldn't help cover the EMIs. So we had a largepopulation size that wanted their own home had the intent yet even their life's savingsor future income wasn't enough for them to meet their aspirations.
The only logical way forward was to make home prices within the reach of the masses. Bethat as it may it was easier said than done since real estate pricing was primarilydriven by high land costs.
But sensing the opportunity we were determined to infuse affordability into thecomposite pricing.
So we went just outside the metropolitan peripheries seeking to balance the lowerasset prices with the future potential of the location. Thorough appraisal of the vicinityhelped us amass rich experience and competencies in locational due diligence. It built ourconviction that we could develop a residential project in a locality that would soonbecome a part of the city limits thanks to urbanisation.
Affordable projects in fast-developing sub-urban locations with smart space utilisationsoon morphed into Provident
Housing which represented an inflection point in the company's journey to pioneer theaffordable housing business in India.
This was almost 11 years ago and today Provident Housing is among the select fewpure-play affordable housing companies in the country with a development pipeline of 9.74msft and a completed portfolio of 9.64 msft (as on end 2018-19).
At Puravankara our premium luxury brand we continued to bring value to the customer'shome through developing well-appointed marquee projects in prime urban locations thatoffered a superlative and contemporary lifestyle experience for home owners. BrandPuravankara including Provident today has completed 68 projects with an ongoingportfolio of 14 projects spread across 23.08 msft (as on end 2018-19).
Real Estate V2.0
With this backdrop I yet again foresee that the company will be quite differenttomorrow than what it is today. Even in this dynamic period of change powered by thepositive frameworks of RERA and GST we will continue to adhere to our core fundamentalsof pursuing all endeavours that help us to deliver the maximum real estate value to ourcustomers in a regulatory-compliant way.
In this line of sight we are building the company of the future that strives to stayahead of the curve. This is the crux of our Real Estate V2.0 journey where today housinghas become an indispensable requirement in the hierarchy of needs - it has emerged as anessential lifestyle necessity.
Provident has struck a deep chord with the large aspirational class not only withrespect to the affordability proposition offered by the brand but also with regards tothe fact that it represents a solid lifestyle proposition where customers can accessamenities and facilities of a top-quality housing development. Yet we have redrawn theaffordability factor through smart architecture and elegant space planning that helpsmaximise its use. In the share of our ongoing projects Provident has taken the lead witha launch pipeline of 74% of the total pipeline (as on end 2018-19).
With greater affluence sweeping through India consumers have moved up the value chainto our upmarket Puravankara brand.
To this swish and tech-savvy set we are pioneering home automation through 'BluNexLife' a project with a tech giant that will integrate Puravankara homes with smart homedevices and features enabling residents to live in a contemporary convenient and securehome environment. BluNex Life is an intelligent virtual home assistant that integratesmaster command for all smart appliances to ensure a home with intelligent motion sensorsintelligent lighting and cooling intelligent biometric security entertainment on-demandetc.
Encouraged by the solidity of our residential real estate platform we are now trainingour sights on commercial real estate. Architecting our ambitions in this space under theuber-luxury Puravankara brand we hope to create positive salience in our new venture too.
Our intent to grow the commercial realty business on the strength of collaborations isevident in the partnership we forged with Keppel Land of Singapore under associatecompany Keppel Puravankara Development Private Limited which is our first large-scale 1msft-plus Grade-A commercial project. The development is coming up in Yeshwantpur apremier location in Bengaluru. We have articulated the objective of building a 10 msftannuity commercial asset portfolio in the next five years.
I'm proud of the fact that Starworth Infrastructure & Construction Limited a 100%subsidiary of Puravankara has build-design civil and MEP capabilities to a degree whereit participates and wins tenders while competing with the big names of the industry.Also amassing tremendous experience and knowhow in precast the firm is now stridingahead to open its order book to non-Puravankara customers. Starworth closed 2018-19 withan order book of C1431 cr up 20.56% over the past year.
Putting a context to our journey
As outlined in more detail in this report Puravankara powered by the right sectoralmomentum has bold ambition of transforming the business into a diversified collaborativeand digital-led real estate enterprise while protecting and growing its existingactivities in the more traditional real estate development areas.
Realising this ambition will require us to develop more critical skills andcompetencies in formulating a strategic matrix for sustainable growth includingstructuring the right land acquisition frameworks forging cohesive partnerships anchoredon sustainable mutual benefit and improving our understanding of the evolving digitalworld and how we can improve our customer-centricity while leveraging it. It is alsoimportant that we have the right organisational culture to deliver significant innovationand yet maintain a people-centred customer focus.
On behalf of the Board I would like to express our deep appreciation to the executiveteam and all employees for their invaluable contribution to the Company's success. I wouldalso like to thank our business partners shareholders and other stakeholders for theirongoing engagement and support.
As a leading Indian real estate development enterprise Puravankara is operating in anincredibly dynamic and exciting time. I am confident that we have the right strategy andleadership team in place to deliver on our vision of becoming a pioneering real estatedevelopment company leading the industry in its next phase of growth while empowering aconnected society with world-class residential and commercial real estate.
I look forward to working with my colleagues on the Board towards ensuring that thecompany delivers on this vision.