As a part of its future growth, Chennai-based Radiance Realty plans to further penetrate into TN, and sign residential and commercial projects in Karnataka and Maharashtra, and dabble in solar energy projects with an upcoming acquisition in Tamil Nadu. The company is also identifying ancillary businesses it can bring under the Radiance brand, apart from its current interior and home solutions division.
For Varun Manian, a second generation entrepreneur and managing director of Radiance Realty, the success mantra for a business lies in refraining from biting more than one can chew, and prudent cash conservation. Since he joined the business in 2012, after a degree in business from New York University, he has grown the business rapidly. In fact, currently, Radiance is finalising four projects in Chennai, totalling over two million sq ft.
Sharing his views on the uneven growth the real estate sector has seen in the past few years, Manian states, “While the sector was rosy five years ago, it has now become a tough market to perform in. That being said, I see large economic growth creating a heightened demand in both the residential and the commercial sector. As for challenges, they specifically pertain to the multifarious laws and tax structures and the delay in obtaining approvals.”
Geographically, we would be happy working in tamil nadu, maharashtra and karnataka for the time being, though we are open to exploring good opportunities elsewhere
Today, while the company continues to focus on growing in the Tamil Nadu market, Manian indicates that the real estate player is also entering into projects in Bengaluru, Mumbai and Pune, and exploring potential opportunities in the solar energy space. “The thought to enter renewable energy is straightforward; fossil fuel, besides being limited in supply, is both expensive and polluting whereas renewal energy is both permanent and non-polluting,” he opines. While the company was close to setting up a solar plant in Tamil Nadu last year, it did not pan out as intended due to a higher focus on growing its real estate division. However, Manian is optimistic that the project will be back on the cards, as it closes a deal on a solar plant acquisition in the near future.
In the Pipeline
While Radiance last spoke to the media in April 2013, when it announced the signing of four million sq. Ft. of projects that will be completed in five years, in the last three years, it has silently been making strides into expanding Radiance’s wings into other ancillary businesses; such as Radiance Total Care, Facility Force, Sports and Address. While Radiance Total Care offers home solutions such as housekeeping, car wash and pest control, its Facility Force division takes charge of property maintenance, security, landscape maintenance (and more), its Sports division promotes development of young sporting talent, and Address, focuses on re-sales and rentals. In fact, under Radiance Sports, the company manages two clubs, PTRC and CFC, of which the latter is leading the Chennai League in football this year. The company also plans to try its hand at developing ISL stars. “These divisions are just over six months old but are growing very fast.
At present, while the company is well on track to complete its four million sq ft project, it has also taken up two projects in Bengaluru, one in Coimbatore, and has in the pipeline, construction projects in Mumbai and Pune, which it plans to pursue in 2017. “Geographically we would be happy working in Tamil Nadu, Maharashtra and Karnataka for the time being, though we are open to exploring good opportunities elsewhere,” he cites.
Into the Future
Today, Manian has his top five priorities as an entrepreneur clearly laid out; to ensure safety on construction sites, focus on customer satisfaction in terms of quality and delivery, seek new real estate projects while ensuring borrowings are at a minimum, understand construction nuances in other regions, the amenities offered and such, and identify new businesses that could supplement the Radiance banner. While, in the next three years, he would like to expand Radiance’s real estate wings further South and West, he clearly states that he is not looking at growth for just growth sake but would like to focus on the bottom line. “Having said this, we are open to both the asset light (JV) model as well as outright purchase of property,” he adds on a concluding note.
KEY DRIVERS TO BUILD A SUCCESSFUL VENTURE
○ Never succumb to peer pressure nor bite more than what you can chew.
○ Control over cash – You need to ensure your borrowings are at a minimum
○ Customer satisfaction, which means top notch quality and timely delivery
○ Construction site safety and the welfare of associates and colleagues.