Aug 1 2015 | Q&A

Rajesh Jain, Managing Director, Neumec Group

The inordinate delays and negligence by the authorities and frequent changes in rules & regulations by incumbent heads of authorities have marred the development of Mumbai. New schemes and incentives are just to mask the authority´s poor performance and will burden the city´s infrastructure. Ease of doing business for the developer is the only solution, when it comes to boost this sector in India.

Rajesh Jain, Managing Director, Neumec Group shares his views with Sandeep Sharma about core competencies of Neumec Group, realty footprint, performance in the last year, emerging trends, signature projects, smart city development, top realty segment and recommendation to boost real estate sector. Edited Excerpts´

Tell us about your company, objectives and core competencies?
At Neumec, we rethink the realty space with a two-pronged approach. Instead of building indulgent, wasteful living spaces, we concentrate on creating right-sized, right-priced, right-located residences that are intelligently constructed and laid out to offer comfort, accessibility and an all-round lifestyle. Every business decision we make is guided by our core values of´ Vision ´ Commitment ´ Transparency ´ Excellence ´ Advisors ´ Right balance ´ Know the city ´ Scale & Diversity ´ Partnership.

With a clear vision, Neumec Group has continued to be an integral part of the development of Mumbai, wherein every resident gets to enjoy a lifestyle that reflects the greatness of this city. Through the experience, expertise and relentless effort, the Group is truly committed to a holistic development that will earn Mumbai the stature of a great international city.

Could you brief us about your company´s footprint in the real estate sector?
Neumec was established in the 1990s and since then we have contributed to Mumbai´s skyline with over 30 properties in different stages of development and completion. However, more importantly to us, we have been privileged to contribute towards bettering the lives of many of the city´s residents via our redevelopment expertise. Till date we have developed homes for over 1000 families in 1 million square feet in the areas of New Panvel up to Fort which includes Wadala, Ghatkopar, Lower Parel, Vile Parle, Dadar and Santacruz.

We are developing Homes for more than 2000 families across 2 million square feet currently in Mulund, Bhandup, Wadala, Vile Parle, Worli and Tardeo and a future development plan of homes for more than 12,000 families across 12 million square feet in the areas of Andheri, Dahisar, Santacruz, Wadala, Chembur, Ghatkopar, Mazagaon, Vile Parle, Lower Parel, Bhuleshwar, Cuffe Parade, Napean Sea Road, Worli and Sewri.

How did your company fare in FY2014-15 in terms of business generated, growth rate and your expectations from the current financial year?
Neumec as a group have soft launched 9 Lac square feet and approximately 5.82 lac square feet as fully fledged launch in the year 2014-15 with an expected revenue of Rs 807.5 Cr. further we added a loan book size Rs 200 Cr as financial closure which came in the form of Debt Structure funding from Clear Waters & Top line for FY14-15 has seen close to Rs 177 Cr on the revenue front.

Could you share with us your experience about any of your signature projects?
Chandelier Court at Worli is one of our master pieces. I would say less and expect people to understand our efforts that have gone into the finishing and scaling to optimize quality. This value based product has turned into a magnificent and soon to be among the iconic structures around. And only hope that our customers get delighted to deliver more than promised, particularly in the finishing.

What do you recommend to the government to boost the real estate sector in India?
The inordinate delays and negligence by the authorities and frequent changes in rules & regulations by incumbent heads of authorities have marred the development of Mumbai. New schemes and incentives are just to mask the authority´s poor performance and will burden the city´s infrastructure. Ease of doing business for the developer is the only solution, when it comes to boost this sector in India.

As the country gears up to develop 100 Smart Cities and is focusing on setting up manufacturing hubs as part of ´Make in India´campaign. What kind of opportunities do you see for your company?
Since we are Mumbai based, I don´t see any opportunities for us. Though for a nationwide growth, it is a great initiative by the Government.

According to you, which segment of the real estate will be the top runner in the next five years? And Why?
Residential will always be the top runner, within which re-development will definitely soar especially in the Metro. And this is particularly due to unavailability of urbanized land parcels in prime locations. This will be followed by Commercial Office spaces as I foresee good economic activities in the near future.

Could you provide us insight about your current project portfolio?
Our current projects are spanned across Prime location of Mumbai, such as Tardeo, Worli, Wadala, Vile Parle, Mulund and Bhandup; also up- coming ones in Andheri, Santacruz and Dahisar with configurations ranging from 1 BHKs up to 5 BHK penthouses. Our core USP is to give our customers Value for Money Homes and that too in the Prime locations of Mumbai, as you can see from our upcoming project locations mentioned above. Our prices are very competitive and we do not intend to provide numerous amenities increasing the customer´s maintenance cost. But at the same time, we do understand the basic necessity when it comes some of the lifestyle amenities and therefore our projects do come with Swimming Pool, Fitness Centre and Kids Play area where needed. We help preserving our environment by providing amenities like rain water harvesting, STP (Sewage Treatment Plan). We also take security very seriously especially your children´s to such an extent that we provide rubberized flooring to our children´s playground. We also like pampering not just the client but their vehicles too. We know how busy today´s life has gotten; hence we provide car spas in your basement. And for those who like to be driven around, we also provide a rest area for your drivers. You see, we never lose sight of the primary reason of what we do and that is our customers, their needs and desires fuel every endeavor, right from choosing a location to designing the initial blueprint up to the final touches in each room of each home. Also there is great news for our customers, the long awaited master piece project at Tardeo is taking shape with work in full swing and intend to execute it soon. This will be one of our finest from the stable.

What´s your take on the increase in overall construction cost owing to rise in building material and labour cost?
No developer can bare these incremental costs and due to any new government policies etc these rises, customers will be the ones bearing the brunt of it.

What kind of solution do you recommend to overcome shortage of manpower in the construction sector?
Economic habitation for the un-skilled and skilled labors in the city, appropriate commuting facilities for the rural migrants can help overcome this shortage.

What is the way forward to fast track infrastructure development process?
To fast track our infrastructures we need detailed planning involving bright young minds from IIT´s, followed by stringent rehabilitation policies and paced execution processes.


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