India's 5 most expensive stocks are the best performers over 1, 3 & 5 year time frames

India's 5 most expensive stocks are the best performers over 1, 3 & 5 year time frames

India’s five most expensive stocks have been the best performers over one, three and five year time frames. 

Shunning expensive stocks and chasing penny stocks? Think again. It may not be such a good idea. India's five most expensive stocks have been the best performers over one, three and fiveyear time frames. 

Consider this: MRF is the most expensive stock trading at Rs 22,000. With this, you can buy an iPhone 4 or settle for just one share of MRF. However, buying this stock may be a good bet. The MRF stock has given a return of over 1,200 per cent in the last five years. Similarly, many of India's expensive stocks, such as Eicher Motors, Page Industries and Shree Cement have all outpaced their peers and the broader index Nifty over the last few years. 

These stocks have given a return of over 730-2,560 per cent over the last five years and 26-116per cent in the past year. The outlook for all these companies remains positive, with most analysts having given a 'buy' rating on these stocks. According to Bloomberg estimates, all these companies are likely to register a growth of at least 20 per cent over the next two years. 

"One common thing amongst these names is the consistent improvement in their return ratios. This shows management's capital allocation efficiency," says Manoj Baheti, senior analyst with Edelweiss Securities. 

Although highly priced, investors should keep these stocks in their radar, he says. There are other advantages in owning such high-priced stocks. All these stocks are far less volatile as the shareholding is concentrated among a few investors, mainly long-term institutional investors, making it difficult to m a n i p u l a t e these stocks. 

Also, beta — a measure of volatility — is less than one for all these stock "By not splitting the stocks, these companies cap their equity. Companies such as Page Industries, Bosch, MRF are industry leaders. "By not splitting the stocks, these companies cap their equity. Companies such as Page Industries, Bosch, MRF are industry leaders. Having a limited equity helps them to always command a premium and keep their valuations high. Most investors in these companies are mainly institutions," said Deven Choksey of KR Choksey Securities. 

Source : By Jwalit Vyas, ET Bureau

Radhakishan Damani : Man with the Midas touch in the stock markets

Radhakishan Damani : Man with the Midas touch in the stock markets

Damani's likes to let his work speak for itself and his portfolio of listed investments, at its last-known market value of Rs 1,731 cr, is an eight-bagger. 

Since the days of Harshad Mehta, he's known to be the man with the Midas touch in the stock markets. Rakesh Jhunjhunwala's guru and now India's ace retailer, Radhakishan Damani is obsessively low profile but is revered among traders and investors. Kala Vijayraghavan deconstructs the man — the reclusive investor and retailer: 

They are three of the best investors in India. Rakesh Jhunjunwala, Ramesh Damani and RK Damani—the last two, no relation to the other—are competitors and players on Dalal Street, but hearty friends off it for nearly three decades now. Whenever they meet, they have plenty to discuss, gossip, share and ask, says Ramesh Damani. 

Radhakishan 'RK' Damani, 59, likes to let his work speak for itself. And it speaks volumes. It tells about a value investor whose portfolio of listed investments, at its last-known market value of Rs 1,731 crore, is an eight-bagger. It tells about a stock market trader who has eyeballed Harshad Mehta and ITC in their prime, and made a killing. It tells about the retail business that Jhunjhunwala covets, one that checks out about Rs 4,500 crore through its cash counters and yet barely registers in the happening retail landscape of India. 

For the past few years, the imagery of the Indian retail story has been the naked ambition of its biggest players—the building and breaking by Kishore Biyani, the try-again approach of Mukesh Ambani, the tripping of Walmart on its own toes. They have all grown. But they have also bled. Amid these upheavals, Damani's retail chain, D-Mart, has grown consistently and profitably— and, in trademark Damani style, silently and unobtrusively. 

Since the days of Harshad Mehta, Damani is known to be the man with the Midas touch in the stock markets. He's been Jhunjhunwala's guru. He's revered by traders and investors. But outside that community, even in the larger business community, few know about him. He's obsessively low profile. So few images of his are available on the Internet that a mention of RK Damani leads people to think about his more high-profile friend and namesake, Ramesh Damani. And that is just fine by RK Damani. 

After two weeks of cajoling, Damani met ET late in the evening at his Dalamal Estate office in Nariman Point, South Mumbai. He is dressed, as always, in white shirt and white trousers—an appearance that earned him on Dalal Street the nickname 'White and White'. His first words reveal anonymity as a defence mechanism. "Why don't you just write about D-Mart? I am too small a person," says the man whose net worth, market players estimate, is Rs 5,000 crore. And this is without considering the value of the 52% he directly holds in Avenue Supermarts, the company that controls D-Mart; his investment company, Bright Star Investments, holds another 16% in D-Mart. 

D-Mart has not shut a single store since it started in 2000. At last count, it had 73 stores—a fraction of that owned by Ambani and Biyani, but generating per store revenues even they would like. Its revenues have increased from Rs 260 crore in 2006-07 to Rs 3,334 crore in 2012-13, and are projected to hit Rs 4,500 crore this year, which would make it India's third-largest branded retail chain. 

It has posted profits at the net level for each of the last seven years. Damani iterates basics. "There are some 25 things that we possibly do differently and consistently," he says. "He is a very focused retailer," adds Kishore Biyani, CEO of Future Group, who knows Damani personally. "There is a simplicity and clarity of thought in his approach to the business." 

Investor To Retailer 

That comes from his days in investing. "Whatever I learnt in life is by investing," says Damani. In spite of a business that is in its growth stages, investing is what takes up most of Damani's time. "Most of the week, I am into investing," he says. "My weekends are for D-Mart." 

For Damani, the idea of what a business should be was shaped by analysing companies as investments. On the stock market, he wears two hats. There is Damani the trader, trying to guess the market's swings. There is Damani the value investor, with a liking for brands, cash flows, predictability and the long term—much like the most famous value investor of our times, Warren Buffett (See box). I liked the consumer business and I invested in such stocks too," he says. "So, there was this strong affinity to start something in the same sector."

In 1999, when retailing was yet just a concept in India, Damani and Damodar Mall, who is currently the CEO of Reliance Retail but was then a brand manager in Hindustan Unilever, took a 5,000 sq ft Apna Bazaar franchisee in Nerul and added one more in Navi Mumbai. Two years on, D-Mart was set up and it took over Apna Bazaar. Damani left the stock market, for six years, marking another professional turn—from trader of ball bearings to investor to entrepreneur. 

The early days were about intensive learning, on the job—store layout, billing systems, gaining the confidence of vendors. Mall and Damani would pore over books on Sam Walton, who built Walmart into the world's largest retailer. They would travel to the APMC market in Vashi or Crawford Market, in Mumbai, to interact with wholesalers and traders. "Within six to nine months, we knew we were on to a good thing and had the confidence to apply the model to multiple locations," says Mall, who left D-Mart to join the Future Group in 2005. According to Mall, Damani was hardworking and unassuming.

"He is as comfortable chatting with vendors as with the lowest level of employees," says Mall. "He is not seen as this formidable owner, but as a very simple, unassuming man who is happy chatting with employees with an arm around their shoulders." In the choices he made for D-Mart, Damani focused on three things: customers, vendors and employees. 

Business Values 

Take customers. All of D-Mart's stores are in, or close to, residential areas and not in malls. Since it owns 90% of its stores, it ends up paying more upfront but insulates itself from rising rentals or relocation risk. That works for it because D-Mart can use its capital steadily. 

It is not chasing growth, it is well capitalised and debt-light, and its operations generate spare cash. As of March 2013, it had Rs 786 crore in shareholder funds and debt of 432 crore. "With owned properties and no cost of rentals, they are, in fact, building assets on their books," says Ruchi Sally, director at retail consultancy Elargir Solutions. Further, in terms of size, D-Mart does not aspire to meet every consumer need like a Big Bazaar. Instead, it aims to meet most regular consumer needs, while offering value for money. "They have a relatively smaller format, which helps them reach store-level profitability much quicker," says Sally. At Rs 53 crore, D-Mart's revenues per store is said to be the highest among grocery chains (a comparison is not possible as Future and Reliance house multiple formats). 

"They (D-Mart) buy it low, stack it high and sell it cheap without undercutting," says George Angelo, executive director, sales, Dabur India. Adds a senior manager at a Mumbai based supermarket chain, not wanting to be named: "There is an unsaid rule not to open any store within a radius of one km of a D-Mart. We have come to terms that we cannot beat them on prices." 

Vendor relationships are the second pillar of D-Mart's model. "His (Damani's) biggest strength was vendor relationships, having come from a trader background," says Mall. Against the payment norm in the FMCG industry of 12-21 days, D-Mart pays vendors on day 11, a trait that keeps them in the good books of vendors and avoids stock outs. "As a retailer, they are reasonable with vendors," says Angelo of Dabur, for some of whose products D-Mart is the leading seller. "There is a Lakshman Rekha (a line they won't cross) to haggle with vendors."

Nilesh Shah, a seasoned investor himself, sees financial logic in such vendor engagements, which he explains in a way that, initially, sounds counter-intuitive. "The sole motive of RK Damani is not to make money through D-Mart," says the MD and CEO of Axis Capital. 

Shah compares D-Mart to Subhiksha, a discount chain that grew using debt and ended up going under. Subhiksha took credit from suppliers to sell to customers, and used its cash for overheads and acquisitions. It was always a spiral where cash disappeared and no wealth was created. "D-Mart, on the other hand, pays suppliers well in time. So, it buys goods cheaper since there is no interest loaded on them and, therefore, its turnover per square foot also increases," says Shah. "Since there is no expansion spree and no interest to be loaded, the model is hugely successful."

That's not to say D-Mart does not rile suppliers. "Since D-Mart buys in bulk to earn higher margins, at times, they run their own promotions through the year," says a sales head of a large regional food company, on the condition of anonymity. "This erodes brand positioning, especially of smaller brands, which find it difficult to sell without a discount tag." Counters Neville Noronha, CEO of D-Mart: "That is an immature view since this is not a one-day game. The incremental volume that D-Mart sells allows us to offer that additional value to the customer."

Profits Over Growth

Employees are the third pillar of D-Mart's model. What it does not offer by way of money, it makes up by way of flexibility, empowerment and a relaxed, but efficient, work culture. "We are happy even with a 10th standard fail, but with the right attitude and commitment," says Noronha. "What we do is invest heavily in training. And so, even from a basic front-end, when they rise to store-level managers, they are not seen as target candidates by others, who cannot accept a 10th standard fail." 

Dheeraj Kampani, who has been with D-Mart for nine years after joining from Spencer's Retail, values the empowerment. "You are just told once about the value system and policies at D-Mart and then given the freedom to operate without somebody constantly looking over your shoulder," he says. "There is a clear focus on what has to be achieved, but there is no mad scramble to achieve targets. If you have stayed a year at D-Mart, it is unlikely that you will ever leave." 

In 2004, Neville Noronha was in Hindustan Unilever and interacting with Damani as a vendor. Today, after being convinced by Damani to join as head of business, he is the main man at D-Mart; and unlike the HUL brigade, he neither has an IIT or an IIM degree. "I had nothing more than the passion to compete and be the best," adds Noronha. Noronha iterates Damani's philosophy for D-Mart. "We are not looking at any numbers play," he says. "We do not look too far into the horizon to generate this much or more revenues. What we are, however, very clear about is in following Damani's vision that the business has to be profitable."

That also puts into context D-Mart's expansion startegy, which follows a cluster approach. D-Mart is in Maharashtra (45 stores) and Gujarat (18 stores), and has six stores in Hyderabad and four in Bangalore. "Supermarkets have to have local sourcing and supply to be successful," says Harminder Sahni, managing director of retail advisory firm Wazir Advisors.

"That is where other bigger players faltered because supply chain cannot be pan-India." "We play to our strengths," says Noronha. "Our management bandwidth and cost structures do not allow us to go national for now." Damani, who meets the management once a month, says he is neither looking too far ahead nor interested in tying up with a foreign retailer. He visits D-Mart stores regularly, interacts with employees, looks at merchandise and gives insights. 

His two daughters, Manjri Chandak and Jyoti Kabra, are involved on a day-to-day basis, especially in merchandising; Chandak is also on the D-Mart board. "Both like consumer businesses," says Damani. "So, I guide them. They are being groomed more as stakeholders possibly than someone who will actively run the business." 

The market buzz is that Damani might yet list D-Mart when sentiment in the stock market improves for good, the main reason being to offer an exit option to employees, friends, family and well-wishers who own equity. "As an investor, I think, D-Mart is a great, profitable model and RK Damani has it in him to deliver great value to shareholders," says Ramesh Damani. "He is exceptionally gifted." 

The Value Investor

For all his mild mannerisms, the legend of Radhakishan Damani was born in a pitched battle. In 1992, when Harshad Mehta, the Big Bull of the time, was ramping up share prices, Damani kept looking at the astronomical valuations— and shorting. 

Mehta bought more, prices rose further, Damani sold more. Someone was going to be killed. When it was revealed that Mehta had been siphoning off funds from the banking system, the market collapsed, and Damani made a killing. Damani's conviction was borne out of a notion of 'right price'—or the hunt for value.

Much as he likes to dive into the rush of trading, there's also an old school part of Damani where value is a notion that takes many years to be realised. "He's a brilliant and successful investor, with a combination of being practical and humble at the same time," says Anand Rathi, founder of Anand Rathi Financial Services. 

Damani, who joined his brother's stockbroking business at the age of 32 following their father's death, built his fortune by buying multinational stocks during the late-80s and early-90s. "My philosophy is long term, with a horizon of five to 10 years," he says. "If I like something and believe in it, I am committed to it." 

That philosophy is demonstrated in his investment portfolio, which is housed in a company called Bright Star Investments. The subset of listed companies in it is a compilation of 31 companies, most of them blue chips, most of them chunks, most of them bought at low valuations. 

As of March 2013, the cost price of this subset was Rs 212 crore. Its market value: Rs 1,731 crore. Its largest holding is also its most dramatic. In February 2001, Bright Star announced it held 15% in cigarette maker VST Industries, owned by British American Tobacco, and wanted to buy another 20%. It had bought that 15% at an average price of Rs 88 a share. A bidding battle ensued with ITC. VST stayed with BAT. Yesterday, the VST stock closed at Rs 1,700. This values Bright Star's Rs 51 crore holding at Rs 681 crore. And the legend of RK Damani grew. 

Source : By Kala Vijayraghavan & Sagar Malviya, ET Bureau

Top 100 Listed Marwari-Owned Companies

Source : http://forbesindia.com

Quite the homecoming: Tendulkar 'humbled' by MCA's gesture as ground is named in his honour

Home is where the heart is, and for Sachin Ramesh Tendulkar it is Mumbai that has seen him grow from a wonderkid to a batting colossus over the years.

So, it was only natural that Tendulkar acknowledged the city's contribution in making him one of the greatest batsmen in history, when the maestro was felicitated by the Mumbai Cricket Association (MCA) on Monday, ahead of his 200th Test.

"I appreciate not just this evening but the last 24 years. Thank you for all the respect, all the love, all the care that you have showered me with," said a beaming Tendulkar, when he took to the stage amid loud cheers and applause by the attendees, including his India teammates and visiting West Indies team.

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Agriculture Minister Sharad Pawar felicitating Master Blaster Sachin Tendulkar during the inauguration of Sachin Tendulkar Gymkhana Club in North Mumbai

The Master Blaster was also honoured ahead of his last Test match, starting on Thursday, with the MCA naming its Kandivili Ground after him in the presence of a host of political bigwigs. 

"It felt special to read my name on the entry of the (MCA) club. It feels good as I am not used to it. I didn't expect this. It was a humble experience. I thank MCA for this kind gesture," he said, referring to the renamed Sachin Tendulkar Gymkhana Club.

The 40-year-old Tendulkar also expressed his gratitude towards the MCA for making its facilities available to him whenever he asked for it. 

"I want to thank the MCA for making the nets available for me at any time I wanted. I just needed to make a phone call to get it," he said.

Tendulkar added that the MCA had accommodated his requests at odd hours, too, for practice.

The Mumbaikar dwelled on his cricketing career which has spanned an incredible 24 years.

 

More...

• The only racket Sachin loves: The secret behind Tendulkar's extraordinary desire for fitness
• Umpire's decision ends Tendulkar's scratchy innings, but Rohit's ton leaves India in charge
• Man of the century! Little Master Tendulkar finally celebrates his 100th international ton
• 
  

"To play for India has been truly memorable. I think every step was different and every tour required different kind of preparation." 

MCA's president Sharad Pawar said Tendulkar would continue to inspire millions even after retirement.

"Sachin has been a precious jewel of the MCA. We are honoured to have a player like him. He has outstanding achievements in both Test and One-day cricket. He has been a great ambassador for not only the game of cricket but also for sporting community and a great role model for the youngsters to follow," he said.

"We will miss the 'Sachin! Sachin!' chant at the stadium. We thank him for giving so many pleasurable moments to the entire country for the last 24 years," he added.

Maharashtra chief minister Prithviraj Chavan echoed Pawar's sentiment. 

"Sachin is one of the greatest Indians, a great sportsperson and a great hero. He has given India years and years of sporting pleasure. He is admired not only here but all over the world. I am sure Test cricket will miss him," he said.

 

Where it all started

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Sachin Tendulkar lived at the housing complex in Bandra for 28 years

The place where Sachin Tendulkar first picked up a bat and broke innumerable window panes is a housing complex in Mumbai. Named Sahitya Sahawas, it is situated at the Kala Nagar area in Bandra East.

Kala Nagar is famous for being the late Balasaheb Thackeray's abode. But Sahitya Sahawas, with nine buildings, is known for its association with creative people, who have won plaudits for their work in literature.

In fact, all the nine buildings have been named after Marathi poets. The ambience of the complex is such that hardly anyone would associate it with the growing up of the legendary cricketer but Tendulkar seemed to have taken inspiration from the positive atmosphere.

The complex also houses a small playing ground. 

Tendulkar spent the first 28 years of his life in this complex.

Sachin used to reside with his parents in the fourth floor of 'Usha Kaal'. A resident revealed how the Master Blaster drew inspiration from his father, late Ramesh Tendulkar.

Tendulkar's childhood neighbour and friend Sunil Harse, a developer/rain water harvesting consultant, expressed his delight at his association with the maestro.

"I am blessed that Sachin and I spent many colourful years together at Sahitya Sahawas. Although Sachin shifted to his new house at Bandra East, he is a frequent visitor here. The residents of this complex still distribute sweets whenever Sachin scores a century," he said.

Harse said Tendulkar was also very close to his elder brother.

"Ajit took his younger brother to the field and although the other players would make fun of his size, Tendulkar surprised everyone with his array of strokes. He was also more than a handful with the ball and he was always in demand for his all-round skills," he added.

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The small playground at the Sahitya Sahawas housing complex in Mumbai - one of the buildings is Usha Kaal where Tendulkar was born and brought up

Tendulkar also came to visit an ailing friend after scoring his hundredth international ton in March last year.

Senior citizens remember him as a curly-haired boy who used to torment them with his strokes. But they are all proud of his achievements and swear by his simplicity. 

He may have touched dizzying heights on the cricket field but the residents of Sahitya Sahawas will always consider him to be one of their own.

 

Fans left high and dry as ticket website crashes

Fans eager to watch Sachin Tendulkar at the Wankhede Stadium in Mumbai for his farewell Test match were in for a shock on Monday, when the website meant for booking tickets crashed soon after it opened.

KyaZoonga.com, the official ticketing partner for the second India-West Indies Test from November 14-18, was swamped with huge number of surfers who wanted to buy tickets for the much-awaited match.

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Only 5,000 tickets are available for fans eager to watch Sachin's last Test

The Mumbai Cricket Association had decided to sell just 5,000 tickets online to the general public. Around 3,000 tickets were made available for sale, excluding the 1,500 special tickets priced at Rs 10,000. 

The price category for the online sale was - Rs 500, Rs 1,000 and Rs 2,500. The Wankhede has the capacity to seat 32,000 people. 

The shortage of tickets is due to the MCA's agreement with the Garware Cricket Club and the Tatas. 

The MCA has to give 4,500 tickets to the Garware Cricket Club for every international match, a similar amount go to the Tatas, and then tickets are also distributed among the 350 clubs that are affiliated to the MCA. 

Also, tickets are issued to sponsors, former players and even umpires. Sachin Tendulkar has been given 500 tickets by the MCA so that he can get his friends and family members in to watch him play.

Source : http://www.dailymail.co.uk/indiahome/indianews/, By BHASKAR PAUL

VLADIMIR PUTIN’S 1 BILLION DOLLAR PALACE

VLADIMIR PUTIN’S 1 BILLION DOLLAR PALACE

RuLeaks, a Russian WikiLeaks type site has posted photos of a lavish mansion alleged to be Prime Minister Vladimir Putin’s estate on the Black Sea.

The existence of the “Putin palace” on the Black Sea was discussed by the Washington Post’s David Ignatius in an article last year.

According to Russian whistleblower Sergey Kolesnikov, the still under-construction digs cost more than $1 billion, include an amphitheater and three helipads

However, Putin’s spokesman denied the report, saying that the building has nothing to do with Putin.

From the photos, the place certainly looks fit for a Romanov, with frescoed ceilings, outdoor maze bushes, marble floors, and four-post beds.

Via Therichtimes – Foreignpolicy

RuLeaks posts photos of alleged 'Putin Palace'

RuLeaks, a WikiLeaks type site owned and operated by the Russian Pirate Party, was shut down by a denial of service attack yesterday after posting photos of a lavish mansion alleged to be Prime Minister Vladimir Putin's estate on the Black Sea. The site, and the photos, are now back up.

The existence of the "Putin palace" on the Black Sea was discussed by the Washington Post's David Ignatius in an article last year. According to Russian whistleblower Sergey Kolesnikov, the still under-construction digs cost more than $1 billion, include an amphitheater and three helipads and is being "predominantly paid for with money donated by Russian businessmen." Putin's spokesman denied the report, saying that the building has nothing to do with Putin.

From the photos, the place certainly looks fit for a Romanov, with frescoed ceilings, outdoor maze bushes, marble floors, and four-post beds. Bizarrely, a man who appears to be a construction worker with his face blacked out poses in a number of the shots. (He may want toread up on the fates of previous WikiLeakers.) RuLeaks' description of the photos coyly describes them as "photographs of a palace, which has recently been discussed in the press".

RuLeaks, which was founded on Jan. 14, operates on servers outside the country. The Pirate Party says it is currently looking into the source of the DDoS attack.

More lavish images from the (possibly) "Putin Palace" below the jump:

Source : http://www.luxuo.com, http://wikileaks.foreignpolicy.com

Top 5 most expensive houses in the world

Top 5 most expensive houses in the world

Some people want to live in luxurious and extravagant houses, so they pay a lot of money for this pleasure. See the world’s most expensive houses, that are a true indication of the power and the wealth of their owners. These Top 5 expensive houses are one of the most beautiful mansions in the world to admire.

Expensive houses in the world

1) Antilla, Mumbai – $1 billion

This $1 billion home is located in Mumbai and has everything you can imagine.This amazing tower named “Antilla” belongs to the Mumbai-based petrochemical giant and one of the richest businessmen Mukesh Ambani. Antilla is currently the most expensive house in the world. This house made entirely of glass has 27 floors: bedrooms and bathrooms, four-story garden, six floors of parking for 150 cars (because this man owns 168 cars), health level with jacuzzi and gym, ballroom level, staff of 600 servants and pretty much everything.

2) Villa Leopolda, France – $736 million

Million Villa Leopolda is located on the French Riviera, and is the second most expensive house in the world. It was built in 1902 by King Leopold II of Belgium and has 19 rooms, 50 gardens, 14 bathrooms, swimming pool, bowling alley and other facilities. This house worth $736 Million was purchased by Russian billionaire Prokhorov.

3) Fairfield Pond, The Hamptons – $198 Million

This 66,000 square-foot house is one of the most expensive houses of United States. This luxurious house that cost $198 Million and has 29 bedrooms, 39 bathrooms, tennis courts and basketball courts.

4) The Hearst Mansion, Beverly Hills – $165 Million

This amazing mansion is located in Beverly Hills and has 29 bedrooms, three swimming pools, movie theather and a disco. This house was used in the movie The Godfather and is the most expensive home in United States.

5) Franchuk Villa, Kensington – $161 Million

This luxurious Victorian Villa in London, features ten bedrooms, underground swimming pool, panic room, a gym and movie theatre. This is the most expensive home on the market with a price at $161 Million.

Source : http://wowtop5.com

I dream of houses without water supply pipes: Hafeez

Three immensely successful decades in architecture… innumerable iconic buildings to his credit… from a two man firm to a firm of 500 plus employees and three working shifts…the story of Architect Hafeez Contractor inspires many in the profession. The man, who emancipated the Mumbai skyline, is an architect brand to reckon with. Debajyoti Samal meets the ‘King’ with a midas touch, Architect Hafeez Contractor.

What is your concept of affordable housing?

To me, an affordable housing is one that can be easily bought by a person with three years of his/her earnings. An affordable house shouldn’t cost more than Rs. 3,000 per sqft. Ironically, you will hardly find a house anywhere near this price range in India. All you find now is a house ranging between Rs. 8,000-Rs. 10,000 per sqft. Although, there are affordable houses available in the outskirts or in the suburbs, the amount of money and time spent annually by the consumers in travelling to and fro from their homes to their workplaces, equalise things. I am telling you, it is none other than the media who has done this damage to the real estate sector in the last ten years. But, why blame media alone? Builders also have an equal contribution in altering the picture of the real estate industry. In an attempt to make more money, when there is a scarcity of affordable homes, the builders have also done the damage. And who suffers the most in this game? We, the common people!

What are your views on FSI?

When the FSI gets increased, everybody says now the builders are going to get the benefits. But reality is something else. The builders never want the FSI to be increased. It is because we give a huge amount of money to buy a plot and after the FSI is increased, the same plot can be obtained at a cheaper price, leaving the builders alone to suffer the loss. Who doesn’t need money? Of course we need it. How will we afford infrastructure development unless and until we get the money? Why was Delhi so late in launching the Metro service? It is because we could not afford the cost required for running the Metro at that time. The credit goes to the IT movement in our country, because of which it becomes rich and infrastructure development could experience a boom after that.

Did you read about the West side freeway the Government has approved now? I was the one involved in getting it approved. It was as big as Rs. 7,000 crore!!!  At the blink of an eye, they approved it.

Are environment guidelines impeding realty development?

An important thing you need to understand is about the so called environmentalists, who do not want development to take place. If you don’t have effective law in place and keep the FSI increasing, the whole industry will become unorganised. Every second person in Mumbai lives in a slum. It is almost the same in Kolkata, Chennai and Delhi. Why? Because, there is no economic housing package available for them. So, eventually they became unorganised. This shows that unless you have money, you can’t afford to have infrastructure development. In western countries, they had the infrastructure ready even before the city actually came into place. But the case is totally different in the third world countries like India.

Are you working on any affordable housing project?

Today, I am sleeping, eating and breathing affordable housing. Even when I make a high-rise building, I always make sure to cut down a small percentzge from the budget planned for the costly projects. Let’s suppose, if the high-rise costs around Rs. 4,000 per sq ft to me, I try my level best to reduce it to Rs. 2,000 or Rs. 3,000 per sq ft and utilize my resources in the best possible manner. Today, we develop all kinds of buildings. We don’t only want to do plaster work. Gone are the days when affordability was confined to the idea of enjoying only a fewer amenities. Today, on the other side, affordability lets you have more amenities in a better manner, as the cost is reduced.

What are the basic principles of architecture you follow in terms of experimentation, or you go out-of-the-box to break the rules of architecture while designing buildings?

About past twenty years from now, we had never imagined a phone without a wire. And today, we can’t imagine a house without a water supply pipe. I am dreaming of houses without water supply pipes. Tell me! Why water supply can’t be made with antennas? For electricity, why do we need cables? We are talking about renewable energy, wind turbine etc., so dreaming of any random thing is completely open for all. I can dream of anything. But the big question is, will all these be possible? But I can tell you, in the next ten years, you will see them turning into realities, a house without water supply pipes. Yes, there will be antennas catching water and electricity. It is possible! The bottom line today is building high-rises in a way so that we can accommodate more people in a lesser land space and in a cheaper manner. That is the mantra and that is the need of our country. But at the same time, we have to create more land. Because there is a limit to going vertical as beyond a certain point, the increasing cost becomes constraint and owning one becomes impossible. Therefore, we have to create more land.

Do you think architects in India are getting enough creative freedom?

See, nobody gives you freedom …You need to take it (Laughs).

Is there anything else you find important in your view and you would like to share that with us?

Everybody wants to go on a holiday these days. You work, you sleep, you eat…this is what you do throughout the year. So there comes a time, when you decide to take a break from your routine. With the escalation in the need of holidaying, how many holiday resorts we have created till now? Barring some new resorts in Kerala or some new holiday destinations, how many are created. Now a days, construction is at a full pace in holiday destinations also. Take a look at Khandala, Lonavla, or even Matheran… construction projects at these places have eaten up the magnificent beauties of nature so much so that there is hardly any space left, not for a walk also. We need new holiday resorts. We need new holiday destinations. If given me a chance, I would rather endorse it and would say loudly that we need these very badly.

Source : http://www.infrawindow.com, Debajyoti Samal