BLUEPRINT OF SUCCESS

Kamal Singal, MD & CEO, Arvind Smartspaces, has put much thought into the way the company was going to approach projects

- JAYASHREE KINI MENDES

Wisdom will tell you that an idea you have come up with may not fit the current times but if launched at the right time can do wonders. Wisdom will also tell you that only a seasoned player should enter a boxing ring where heavyweights thrive. So when Arvind decided to enter the world of real estate in 2008, when the market was already well-established, it was only to improve the lives of those who would choose to live in the buildings they would go on to develop.

Kamal Singal, MD & CEO, Arvind SmartSpaces, says, “What triggered our debut was the unutilized land parcels in prime locations that were lying with the group for decades. We initially ventured out to sell them so as to fortify our balance sheet. But then unforeseen challenges of converting industrial land, accruing regulatory approvals, and mulling the frameworks for development that were then outside our ambit, among other things, compelled us to take a back seat. Since the value of the lands were not commensurate with the compensation we were being offered, clearly the deals were not in our favour.”

A careful analysis put forth a clear business case. Rather than monetizing the lands with inherent challenges which reduced the valuations, it was well worth the effort and hard work to develop and sell the lands. With that, started the real estate development journey of the group.

The company had a long way to go if it wanted to don this new role. Singal says nonchalantly, “We tied up with a renowned developer for our first project in Ahmedabad. It took a long time, effort, and patience to set things in order. But we were in no hurry.”

VORACIOUS VENTURE