Rising Entrepreneurship Leads To Higher Absorption Of Office Spaces

Vikas Gupta, JMD, Earth Infrastructures Ltd shares that the rising entrepreneurship has propelled a higher absorption for office space in India.

The rising entrepreneurship has led to a surge in the number of business entities, especially in the small and medium sized companies. According to The Global Entrepreneurship Monitor (GEM) Survey 2013, 61 per cent of people in India agree with the fact that entrepreneurship is a better career choice. In the current times, many start-up companies are led by younger generation.

Also, the new age professionals find their contentment in owning a business rather than getting hired by them. Such aspirations open opportunities not just for themselves, but the other sectors as well.

Increase in demand for office space is one direct impact which is visible with the rising phenomenon of entrepreneurship. In the top seven cities, demand of the office spaces surged to the 35 percent during the last fiscal. It stood at 8.2 million sq ft in comparison to 6 million sq ft in the previous quarter, as per the estimates of commercial property consultancy CBRE.

The surge in the demand for office space also grew with the rising phenomenon of the special economic zones (SEZs) where business units get multiple advantages, from infrastructure to the common facilities, industry oriented local policies to rebates or tax holidays or export promotion activities. Such initiatives don’t just lead to forming a good business environment but also provide opportunities to the related sectors like real estate which is currently reeling under pressures of an uncertain political environment, economic slowdown and high prices.

The said report also reveals an interesting trend of a rise in demand for office spaces from the SME segment, which normally has very specific requirements. SMEs usually need to utilize the maximum spaces in their office premises. Office or working zones must be energy efficient to reduce their cost of operation and maximize their return on investment.

Earth Infrastructures Ltd has also been a part of this trend with its office space segments like Earth Sapphire Court, Earth Alpha Tech, Earth Beta Tech, Earth Gamma Tech, Earth Express One, Earth Iconic etc. These commercial projects cater to the needs of the business community for commercial as well as retail zones.

Realty Plus Interview along with Mr. Vikas Gupta JMD Earth Infrastructures Ltd

 ‘“We Promote Green, Sustainable Realty”’ 

Delhi-NCR-based real estate firm Earth Infrastructures Ltd, which bagged the best debutant award in 2010, has grown to become a major entity involved in multiple business activities — real estate construction, planning, marketing, strategy implementation and green innovations. With a slew of successful projects under development like Earth Towne and Earth Copia in Greater Noida and Gurgaon, respectively, the company plans to invest Rs750 crore on immediate expansion. As the company gears to launch 5-star properties in Rajasthan and Haryana shortly, it is also expecting to tap the stock market in 2014 to further strengthen its pan-India expansion agenda. 

Unlike some other real estate companies, Earth Infrastructures Ltd supports the government’s move to bring in a real estate regulator which it claims would immensely benefit consumers by bringing transparency in property transactions. Vikas Gupta (JMD), Earth Group, articulated the company’s stance on this and many other pertinent issues confronting the real estate sector, in a free-wheeling tete-a-tete with Vishnu Rageev R of Realty Plus. Excerpts...

Vishnu Rajeev R: Could you take us briefly through the company’s journey since its inception? What, according to you, have been the company’s notable achievements during this period? How much has the company grown in terms of the developed area, and sales turnover? 

Vikas Gupta: In the year 2010, Earth Infrastructures Ltd started off its journey with its flagship project christened Earth Towne, a mass housing project. In this short span, the company has managed to construct about 6,000 flats for medium income bracket people across 19 acres land in Greater Noida. Here, the land was acquired by Greater Noida Development Authority. The company began operations with this mega project valued at Rs75 crore which spread its popularity pan-India. One of the notable achievements is that the company has sold more than 70 per cent of inventory within 100 days of the launch of the project. Even industry experts touted it as a mega success in real estate sector in the recent times. The major reason for the success was because of our marketing strategy. The project was marketed not only in Delhi-NCR but also in tier I and tier II cities pan-India. Encouraged by the success of this project, the company launched its first commercial project Earth Sapphire Court in Greater Noida and then another mega housing project with the name of Earth Copia in Gurgaon in the year 2011. Within the first 18 months since its inception, the company is presently developing over seven million sq ft of residential and commercial real estate. 

Vishnu Rajeev R: What are the current initiatives and immediate plans of Earth Infra across residential real estate segment? Share details of your existing projects with pricing, features and other specifications. 

Vikas Gupta: The company, which is strictly following the concept of developing green sustainable buildings has launched LEED certified green projects alone. The company is planning to launch a residential project in Noida and another residential project in Gurgaon in the next 3-4 months. Presently, we have two important projects which are under development¬¬ — Earth Towne and Earth Copia — located in Greater Noida and Gurgaon, respectively. 

Located at Plot No. 4, Sector 1, Greater Noida, our first project Earth Towne has been completely sold out and has about 1,800 investors in it. This LEED certified green project offers 1, 2, 3 and 4 BHK apartments. It features a wide spread area of 19 acres lush green landscapes, water bodies and beautiful boulevards, dry balcony, 70 per cent wide open green area, etc. The project will have amenities like gymnasium, club house, swimming pool, gazebo, paver block roads, tennis court, barbeque, caring zone with nursing homes and the like. It is priced at Rs2,650 per sq ft. Earth Copia is a residential project located at Dwarka Expressway at Sector 112, Gurgaon. The project offers 2, 3 and 4 BHK apartments. Each apartment boasts of adequate living space for the whole family as well as a corner for an individual pursuit. It is a prestigious residential project in Delhi’s neighbourhood with 70 per cent greenery to maintain harmony with nature. It is equipped with all modern life facilities like 100 per cent power backup with latest security features and also includes ultra modern club and a world-class gymnasium. It is priced at Rs4,000 per sq ft. VRR: What would be the quantum of investment for your upcoming projects? How do you intend to raise the money for expansion? Do you plan to come up with an IPO in the near-to-medium run? VG: We have big expansion plans in the pipeline. We are planning to invest more than Rs750 crore in next six months for our expansion and constructions across existing sites. We are planning to raise the required money from internal accruals and advance from our investors and prospective buyers. We are also approaching domestic financial institutions for raising fund through loans. You can expect an IPO from Earth Infrastructure in the year 2014 depending upon the share market climate. 

Vishnu Rajeev R: Who are the key persons driving the group? 

Vikas Gupta: Avdhesh Goel is an avid learner. He has worked tirelessly to put Earth Infrastructure Ltd on the map of Indian realty sector, turning opportunities into successes. His outlook has helped him in shouldering many additional responsibilities alongside his professional calling. He has brought radical changes in business strategies, professionalised the entire group and has redefined the internal system. Instrumental in acquiring many proprieties in the NCR, he has also been involved in partnership with prestigious and leading infrastructure companies. 

Atul Gupta is a symbol of drive and performance. An expert in numerous management methods, he influences the internal and external dynamics of the organisation, synergising them with success. Principled, yet open to fresh thought and ideas, he has always used emerging practices and business models for rapid growth. He is also the founder of Uttkarsh, an NGO that works for the aged and the special- abled. 

Rajnish Mittal an expert in impression management, has worked wonders for the company’s public image. His pioneering strides towards relationship endeavours, such as corporate assets and legitimising long term competitive advantages, have helped in getting the company maximal social recognition. 

Myself, has been entrusted with fulfilling the expectations of the customers as well as manage to build a unique corporate identity for the organisation. I have also made various contributions to many American and European counterparts. As an entrepreneur and planner, I have tried to create multiple choices for the customers in the realty sector and institutional segment. 

Vishnu Rajeev R: Any plans to foray into other areas of real estate developments like commercial, retail, hospitality and the like? 

Vikas Gupta: We are already developing commercial and retail real estate projects. The company is all set to launch five-star hotels in Neemrana in Rajasthan and Manesar in Haryana. 

Vishnu Rajeev R: How conducive is the current market for value/affordable homes in Delhi-NCR region? Have you ventured into the segment? 

Vikas Gupta: We have a project in Noida Extension which is in the affordable housing segment. There is huge scope for such projects in the whole Delhi-NCR but developers alone cannot take the entire initiative. The government should come forward to sell the land to developers at cheaper rates to allow them to come up with such projects to cater the need of masses. 

Vishnu Rajeev R: How do you visualise your company vis-a-vis your competitors? What are your core strengths in real estate business? 

Vikas Gupta: Our company believes in innovation and follows the philosophy of “Innovation Beyond Imagination” while planning our projects to cater to the needs and demands of our clients. We are into green buildings which itself give us an extra edge over our competitors. We will keep these two aspects on priority while planning and executing our projects as we believe in delivering the best to our investors. We believe in high-end client servicing and being into green housing, we offer them a caring and eco-friendly environment to live in. 

Vishnu Rajeev R: As Noida stalemate continues, what is your assessment of the current real estate scenario in Delhi-NCR? How do you expect this market to behave in the next one year? 

Vikas Gupta: The issue of Noida and Noida extension has almost been resolved due to the active intervention of Greater Noida Industrial Development Authority. They have settled the cases of 60-70 per cent farmers. And we hope for a positive judgement from the honourable High Court. The real estate market in Delhi-NCR is going to witness moderate to high growth in this coming years. 

Vishnu Rajeev R: Are you in favour of a real estate regulator? What are the prospects and challenges before Indian realty sector? 

Vikas Gupta: Yes, we strongly feel that there should be a regulatory body for the real estate industry. This would make the sector more organised and prompt in its dealings with all the associated parties. The Noida Extension issue also highlights the need for the regulatory body for real estate industry. This would also benefit investors and other parties involved. Although there are many challenges, Indian real estate sector will only prosper in the coming years. 

Vishnu Rajeev R: What are your major promotional drives? Which media vehicle or promotion mode do you consider most suitable for crating brand awareness? 

Vikas Gupta: I feel that print and electronic media are the suitable mediums for the brand awareness as they reach the masses. Besides, the editorials and press releases play an important role in positioning the brand as they come from an authenticated and responsible source of the society. 

Vishnu Rajeev R: Anything else you would like to share with our readers? 

Vikas Gupta: I want to highlight the importance and requirement of Green Buildings here. Today global warming is a matter of grave concern and I would like to say to your readers that they should go for the green building projects as it would give them a healthy and eco-friendly environment and would decrease the CO2 levels, apart from providing them savings on electricity and water consumption.