Page 46 - Kolte Patil AR 2019-20

Our Business Model

and Stakeholder Value-

Creation Report, FY20

How we enhanced value in an integrated,
inclusive and sustainable way

Our business model

The relevance of our sector
At Kolte-Patil, we believe that we are present in a
sector whose relevance is only increasing. As incomes
and aspirations increase, people need to live better.
The quantum of spaces per person has increased
substantially in the last few decades, as a result of which
we are seeing multiple structural plays in motion:
y yPeople needing to move into structured homes from
relatively unstructured rented environments;
y yPeople living in structured homes seeking to move into
larger homes;
y yPeople already living in large structured homes seeking
to move into homes with lifestyle supports.
We believe that this traction has been catalysed in the
last few months following the outbreak of the pandemic.
The lockdown has created yet another structural shift
– the need for a larger home to accommodate the need
to work from home. We believe that this development –
the addition of one room to address working-from-home
needs – could increase the apartment outlay by a fifth
in most cases, generating attractive downstream for
additional space, building materials and fittings. We
believe that this single development can transform the
reality of the Indian real estate sector.
The country’s real estate sector is passing through an
existential crisis, marked by a decline in purchase intent
on the one hand and large completed inventory on
the other. At Kolte-Patil we have been relatively lesser
affected by this reality. On the contrary, we have done
better than ever through the course of this downturn by
selecting to grow within carefully-identified niches. This
contrarian achievement was achieved year-on-year in the
last few years on the back of a strategic clarity that has
been explained in this section.

44 | Kolte-Patil Developers Limited