Home Interviews Jatin Dhansukhlal Suratwala: Managing Director and Chairman of Suratwwala Business Group Ltd.

Jatin Dhansukhlal Suratwala: Managing Director and Chairman of Suratwwala Business Group Ltd.

by Ms Nishtha B - Dec 16, 2020
Jatin Dhansukhlal Suratwala: Managing Director and Chairman of Suratwwala Business Group Ltd., Interview, KonexioNetwork.com

Mr. Jatin Suratwala is the Promoter and Director of Suratwwala Business Group Ltd and has over 30+ years of business experience in Real Estate. Under his able leadership, the company is taking strides towards achieving a goal of making ‘Suratwwala Group’ a renowned name in the Real Estate Development Industry not only in Pune but also in other states. 
 
Suratwwala Business Group Ltd. is Pune’s one of the best and leading construction companies that assures great results on the basis of quality and trust. The real estate sector is on the demand for envisioning new heights of the industry. 

Their firm belief is, “We prosper our path with passion and perfection towards innovation. We believe our experience, techniques, and expertise through our projects will emblem our mark in construction history and the days to come. Our partners and stakeholders are in our consistent association to deliver the ultimate satisfaction to our customers. The type of pride and construction we want to build is what empowers us to thrive more every day.”
 
Please can u explain in brief the journey of Suratwwala Business Housing LTD?

Established in 2008 by me in the name of Suratwwala Housing started as a private limited and undertook its very first project called ‘Sweet 16’. The company had borrowed funds from investors for this project. Unfortunately, due to the recession in world markets, the profitability of the project was greatly affected. Still, company managed to fulfill the commitment and returned the money to the investors, in which company had shell all the profits I earned from the project.

Despite being a new entrant in the field company  made sure to stay true to its words and gave the investors the committed results during the worst market conditions, needless to say, the investors were impressed and are still associated with the company.

Moreover, this residential project was awarded for being amongst the top 3 real estates project on the National level at CREDAI Real Estate Award 2012. After completing the project, the company undertook a commercial project of 5 lakh sq. ft. This project also was awarded as the best commercial project in West India at the Time Real Estate Icon 2020.

Simultaneously, the company had also started creating its land bank. At present, the company owns approximately 170-acre land. 

In 2018, I met Mr. Ajay Thakur who is the current head of BSE SME. He presented me the benefits of listing the company, thus helping me to make the decision to list the company on BSE's SME platform.

We changed the company’s name Suratwwala Housing Pvt. Ltd. to Suratwwala Business Group Pvt. Ltd. and then converted it from private limited company to limited company in 2019. Then finally got permission from BSE SME to list the company in February 2020 and accordingly Suratwwala Business Group was listed on August 30, 2020. Suratwwala Business Group is the first real estate company from Pune who got listed in BSE SME.
 
How is the distribution of residential and commercial market in Pune?

Pune is one of the fastest developing cities in India with a current population of 6 million and with a growth rate of 2-3% per year. According to these statistics, by 2030 Pune’s population will be around 10 million. Pune is also known as an Educational hub, IT hub and Industrial hub. More and more people are coming to Pune every year so the residential and commercial markets in Pune are always in demand.

What are your views about impact of Covid 19 on real estate industry?

Covid 19 has greatly affected the real estate business in unimaginable ways. At one point, the entire market had come to a halt. It was similar to a vehicle running at full speed which stops unexpectedly. Now, in order to regain its full speed, the business will need some time. During the lockdown, work on the construction sites was completely brought to a standstill and by the time lockdown was lifted, most of the labourers had returned to their native places due to which the project completion period got extended by approximately 6-9 months affecting the profitability of the project. Another factor preventing middle-class people from buying houses is job uncertainty. 

On the contrary, it is believed that there is a huge opportunity for those willing to buy or invest in property. Property rates are at their real value and also the builders are offering multiple schemes to buyers. Moreover, the government has reduced stamp duty rates to encourage real estate buyers. Interest for buying commercial as well as residential property is at an all-time low. Looking at the present scenario, this is an ideal time to buy or invest in a property.
 
Are there any response from Suratwwala Buyers?

Currently, Suratwwala Business Group is developing a commercial hub at Hinjewadi called the ‘Suratwwala Mark Plazo’. Hinjewadi is known as the silicon valley of Maharashtra and is one of the fastest developing areas in the Pune region. There are many small young entrepreneurs and small IT startup companies who require the property to start their businesses in Hinjewadi. Suratwwala Group is looking into offering 360-degree property solutions to their investors and property buyers. 

They are planning to sell their small commercial properties to multiple property buyers who are looking out for investing in property and earn rental income from it by renting it to the businesses. 

The company is also providing leasing services to its buyers and investors. Besides this, Suratwwala Group also provides a housekeeping team which takes care of maintenance, security and housekeeping of the entire property due to which property is always well maintained and investors get a good return for their investment as well as leaseholder gets a well-maintained property. Hence Suratwwala Commercial project has a tremendously excellent response from the buyers.
 
What is the company’s business strategy for next 5 years?

As stated earlier, the company is developing a commercial project in a phase-wise manner. Phase 1 which is of 1 lakh sq ft is already completed. Phase 2 of 1.5 lakhs sq. ft. is ongoing and will be completed till March 2022. Phase 3 would be of 2.5 lakhs and will start from October 21 and is expected to be completed by March 2025. Simultaneously, the company is also planning on the development of 175 acres of the land bank. The Company has already sanctioned the plan of resort villas on the land of 80 acres. This project’s development will also be executed in a phase-wise manner.

What would be your strategy to manage company finances?

 As mentioned above, the company is developing projects phase-wise. This creates new cash flow from time to time and as per cash flow creation, a new development of upcoming projects begins. Because of that, the company has a good inflow and outflow of money. 

Does the company needs any capital in next 24th Months – through - DEBT OR EQUITY?
 
As mentioned above, the company manages its capital based on the cash flow. Hence they only go for construction finances if their cash flow allows it. Every day the market has new opportunities to offer. If the company has undertaken a good project then the company works out its feasibility report scrutinizing whether it makes a good proposal and then they plan for debt and equity. As per their company’s policy, they make sure they are not overtrading.
 
What are the new schemes offered for Suratwwala customers?

Suratwwala Groups plans on always creating comfort for their customers who are looking out for buying a property at Suratwwala Mark Plazzo commercial project. Therefore, they are offering multiple schemes for them. Currently, they are offering Assured Rental Plan and Relax Plan till possession and Rent Protection Plan after possession. If a customer books an office under Assured Rental Plan, from the same day onwards Assured Rental Plan gets activated as per the percentage of the amount paid towards the booking. For example, if customers pay 10% towards the booking of the commercial property he starts getting 10% of the rental amount from that very day. As per cent of payment increases, his rental payment also increases so if he pays 40% per cent or 50%, he will get 40% or 50% of rental value respectively till possession. So by possession time he starts earning 100% of the rental amount. Under the Relax Plan, for booking, a customer just has to pay 10% which covers his stamp duty as well as booking. Then the rest amount is paid nearly possession so the customer almost does not have to pay anything for the entire construction period. This is the beauty of Relax Plan.
 
Both these plans are till possession. After possession, there is a Rent Protection Plan. Now because of COVID like situations, there is an uncertainty in the minds of people about what if after possession their property remains vacant. In this scenario, the Rent Protection Plan takes care of it. Whatever tenure property remains vacant, the company takes care of it and assures rental income to an individual. Once their property is leased out this plan gets deactivated and an individual starts earning rental income through the occupant. Now, suppose if your rental income stops after some months and property remains vacant then again your Rent protection plan gets activated and the company starts paying you the rental amount. In a nutshell, whenever your property remains vacant and you suffer from rent loss, the company starts taking care of it. The rent protection plan is our unique USP which we provide to our customers. It’s just like an insured rent.
 
What is view on home loan rate and its outlook?

Home loan and commercial loan at this present scenario are at an all-time low. Today, we get home loans from 7% onwards and commercial loans 8% onwards. If any buyer wants to buy any property then it will be his long term planning. If we look at the current property rate, it is purely at the bottom rate. If someone invests in the property at this point in time then that individual will get the property at a bottom rate as well as low-interest rate. After 2 to 3 years when the property market starts growing, then there would be a good appreciation from the property and if we look at ROI then the Residential property’s ROI would be approx. 12-14% whereas commercial property’s ROI could be anywhere between 10% to 20%. So it’s always beneficial to take advantage of home loan and commercial loans.