We were on a roll till 2008, signing several similar joint
ventures for luxury construction projects, but then the recession
resulted in losses worth Rs 1.5 crore. This is when we decided to reinvent and enter the affordable housing space. We found a good construction site close to Pune, which was available for Rs 3.5 crore.
At the time of signing the deal, we had no funds, so we requested the
option to pay in instalments every quarter. The seller agreed on the
condition that the first two instalments be paid upfront and we had to
take a Rs 2 crore loan to facilitate this transaction. We
also made the financier our partner. The AnandGram project was an
instant success; we sold around 400 flats in two days. As a result, our
profit in 2009 was around Rs 10 crore. We used the money to buy
land and, since then, have purchased land blocks on the Pune-Solapur
highway, Pune-Satara highway, Pune-Nashik road, and at Bhoisar near
Mumbai.
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