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:
yyPeople needing to move into structured homes from relatively unstructured rented environments;
yyPeople living in structured homes seeking to move into larger homes;
yyPeople 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.
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