Page 31 - Kolte Patil AR 2019-20

Overview
Kolte-Patil reported a record sales performance from a non-launch year in FY20.
In the midst of a sectorial slowdown, the Company reported 2.5 msf in net sales during the year under review, possibly a record
for sustenance sales by any Company in any city in India in FY20. The performance validated the Company’s credentials as a sales- driven organisation with capabilities in marketing apartments in virtually
any market condition. The Company possessed an unsold inventory that was equivalent to 22 months
of sales equivalent (based on the FY20 average), considerably lower than the sectorial average – and possibly among the lowest in India’s organised real estate sector.
Rewriting rules
The ability of the Company in generating all revenues from sustenance sales countered the longstanding industry belief that sustenance offtake needs to be complemented by
the excitement of fresh launches. The Company also countered the commonly-held belief that sustenance inventory
jades over time and
needs to be ‘pushed’. The Company de-inventorised apartment stock, generated precious cash flows and helped mature the real estate properties in which sustenance sales were made.
Highlight
The highlight of the Company’s sustenance sales focus was the ZABARDUS campaign launched on
7 November, 2019. The Company focused on selling 500 apartments inside
the existing Life Republic project in Hinjewadi (Pune). It complemented superior design, relevant pricing, market analysis, forecasting and a promotional campaign promising lifestyle upgrades (goods, services, accessories and tax waivers) at no additional cost. The result
of this intensive approach was that within 38 days the Company had marketed 500 units with a booking value
of C205 Crore. The success
of this initiative accounted for sizeable percentage of the Company’s sustenance sales during the year under review.
Success
The success of the ZABARDUS campaign was reflected not just in the
speed and quantum of sale; it was reflected in the fact that the Company marketed this throughput without reducing its sticker price. The Company enhanced customer engagement through an increased price-value proposition, protecting brand integrity. The Company trained in- house 50 team members and 500 channel partners. The complement of this word-of-mouth goodwill, distribution network and social media translated into an unprecedented sales response.
All-round effort
The Company generated higher international
sales compared with the previous year. Sales were generated across projects and all three regions
(Pune - Life Republic, Ivy Estate, Tuscan, Downtown, Western Avenue, 24K Opula and Stargaze; Bengaluru – Ragga, Mirabilis and Exente; Mumbai – Jai Vijay).
Technology
The Company’s Falcon app enhanced business ease, controlled employment costs and increased sales velocity — a comprehensive win-win.
Big numbers
2.08 Quantum of net sales in msf, FY17
2.50 Quantum of net sales in msf, FY20
45
% of sales generated from channel partners, FY17
64
% of sales generated from channel partners, FY20
Perspective
“Our ZABARDUS campaign achieved outstanding numbers in the sustenance phase of a project in a single location. It indicates our leadership position and brand equity in Pune and the value proposition we deliver across the demand spectrum. The strong demand validates
our decision to buy
the private equity partner’s share in Life Republic. We now possess the multi-year sales visibility from this project, enhancing long-term shareholder value.” - Gopal Sarda, Group CEO
Focused on intensive marketing bursts
Conscious engagement of channel partners
Our effective marketing approach
Mined customer data
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