Page 51 - Construction & Architecture Update JAN-FEB 2018

Since KOLTE PATIL is having strong presence in our working capital cycle. We have a diversified portfolio at
PUNE, MUMBAI & BENGALURU, which city you prime locations, and all projects are of an optimal size enabling
find more prospective; And Why? Also, your quick turnover.
venture in other cities in India? KPDL’s presence in the Bengaluru market provides geographical
We are present in Pune, Bengaluru and Mumbai. Our diversification in another volume driven market. We have
focus will continue to be in these markets in the medium ongoing/planned projects to the tune of over 2.0 msf. at prime
term. We have undisputed market leadership in Pune, locations like Hennur Road, Koramangala, Horamavu and Hosur
having an extensive presence across the length and Road. The strategic objective is to enhance presence in Bengaluru
breadth of Pune and across price points offering a 360 proposition thereby further de-leveraging the portfolio concentration.
to our customers. We look to consolidate our position in the Mumbai and Bengaluru expected to be additional growth
Pune market, which is endowed with multiple demand drivers. engines going forward as we expect our proportion of revenues
from these markets to grow to ~25% by 2020 from ~10% in FY17.

Mumbai and Bengaluru are expected to be
additional growth engines going forward as we
expect our proportion of revenues from these
markets to grow to ~25% by 2020 from ~10%
in FY17. We have fostered several key financial
partnerships in our growth journey with large PE

funds like ICICI Ventures, JP Morgan, KKR, IL&FS,
ASK Investment Managers and Portman Holdings,
USA. These partnerships have enabled us to gain
scale and internal discipline and processes. We
mitigate macro risks by operating with one of the
lowest debt in the industry and focusing on sales
velocity and cash flows.

What are the major steps being taken to realize
KOLTE PATIL’s future plans?
We are committed to delivering operational excellence.We
Actual image have a robust sales and marketing framework involving training
personnel and process standardization. We have made continuous
investments in technology like SAP, advanced CRM which helps us
Mumbai being a land-locked city makes redevelopment to take analytically driven decisions. We have region-specific sales
the most preferred mode of development going forward and teams and have recently also incubated an international sales
represents a huge opportunity. We are already one of the largest channel and are taking our brand from regional to national to
players in this segment within a short span of time since our international.
foray in 2013 with 12 projects. KPDL’s Mumbai entry was timed We have also made investments in construction technology,
with the changes in the Development Control Rules, 2013 (DCR, have dedicated project-wise funding lines, project directors
Section 79 A) making it a level-playing field for all developers. ensure stronger on-site delegation to enable quicker construction
The Mumbai business provides synergies to existing Pune and faster delivery timelines.
business. We have low capital commitment with payment of the To further our future growth objectives, the Board Board has
corpus fund and rental to the tenants linked to approvals. Our passed an enabling resolution/s for fund raising up to Rs. 500
focus in Mumbai is on generating strong ROCE’s and reducing crore by various modes.

www.constructionarchitectureupdate.com < Construction & Architecture Update < January-February 2018 049