If there is one thing Dhaval Ajmera, Director, Ajmera Realty knows, it is making a winner of any venture he takes on. Whether it is his recent pet project, Ajmera Manhattan, or his past ventures, he has many accomplishments to boast of, at a very young age. While the residential segment is what makes him tick, he is equally confident in his commercial moves, with landmark developments springing up across Mumbai, Pune, Ahmedabad and Bangalore. The hugely successful marathon runner is running a well-thought out race in the real estate game.
At the outset, Dhaval knew that real estate was where he would land. The family-owned business, now a listed company, has been around for 55 years having started out as a steel company. Over the years, with an acute sense of discernment, the Group has grown to launch and complete several residential and commercial developments for various strata of people. Says Dhaval, “We have developed projects from premium affordable to luxury to uber-luxury. The ticket size of the project would then depend on the location. A strong demand forecasting aids us in designing the project accordingly. Inventory is not something that anyone wants to be laden with. Unless we see demand, it’s pointless to move ahead.”A A unique aspect of the company is its ability to create landmark properties thus carving pin codes for the area. Meticulously, it has chosen land that would offer future residents advantages of moving around in the city. Immaterial of the kind of development, the developer has chosen to please its buyers with ideal location strategies. Word of mouth has embellished its fame.
The company has preferred mid- and uber-luxury apartments in Mumbai, while going in for affordable projects in Bangalore. “Bangalore is not at par with Mumbai as far as real estate is concerned. Uber-luxury would take longer to find buyers. Our forte is building townships and that has greatly worked in our favour. Offering great amenities for residents is a good way of establishing connect with buyers,” says Dhaval, who is also Joint Secretary with Credai-MCHI.
Ajmera Realty has stood by their commitments since inception. Whether it is long-standing edifices representing successfully completed ventures or ornate obelisks in the form of modern-day marvels, each structure bears testimony to the company’s commitment to advanced technology and uncompromised excellence. That is perhaps why, even 55 years after their inception, Ajmera Realty remains synonymous with both quality of construction and luxury.
What endears the company to its customers is the promises it keeps. In October, it created history when it delivered 1,000 homes within 24 hours across three projects and two cities, Mumbai and Bangalore. And all of them were delivered well ahead of the RERA deadline.
Laying the groundwork
A strong ground check matters much for the success of any project. Dhaval says, “Today we have technology at our disposal. Prior to launching any project, it is pertinent that we conduct a thorough demand and supply check to ensure consistent sales. This is where our channel partners, clients and surveys come in. Importantly, knowing what kind of apartments to build in a particular locality also matters.”
It’s often cited that location, location, location is the lynchpin on what would sell. A superior development in a suburb surrounded by an insalubrious environment would hardly be sought after. Ajmera Realty is certain that sales must commensurate in quick succession as the project progresses. It works towards this goal with every project it develops.
The company made significant strides in FY24, capitalising on industry growth and infrastructural advancements. They strategically added six projects to their portfolio, aligning with their low capital expenditure model and inorganic growth strategy. This expansion has increased their launch pipeline to 1.3 million sq-ft with a Gross Development Value (GDV) of Rs 3,130 crore. This has strengthened their presence in various micro-markets within the Mumbai Metropolitan Region (MMR).
Ask him about some of the redevelopment projects it has taken up and Dhaval says that this is the only path left for Mumbai city. “Earlier, when the concept of redevelopment emerged, certain members of societies gave much grief to developers and some of the projects fizzled out or were left incomplete for years. Today, this is not the case. People residing in old or dilapidated buildings and developers too have realised its relevance. Societies also consider the reputation of the builder such as delivery schedules, quality, experience and transparency. Being a listed company has its advantages,” he adds.
In January, the company entered into a joint venture with Keystone Realtors (Rustomjee), which will execute a redevelopment project in Bandra West, Mumbai. The project aims to deliver premium luxury residential apartments with an estimated carpet area of approximately 130,000 sq-ft for sale.
Similarly, in September 2023, it announced plans to develop two residential projects in Mumbai and Bengaluru, with a combined estimated GDV of Rs 470 crore. The Mumbai project will redevelop 6.8 acres in the Bhandup suburb under the Slum Rehabilitation Act (SRA), and has a sales potential of 1 million square feet. In Bengaluru, a subsidiary of Ajmera Realty has partnered with a landowner to develop a residential project near Electronic City Phase 2, taking a 69% stake in the project.
Unlocking success
Experience indeed counts. One may wonder why the company has not been launching projects rapidly but for Ajmera Realty each project must furnish reasonable profit and not put them on the back foot. For instance, its Wadala project, Ajmera Manhattan, saw a record Rs 100 crore in sales in a single month, reflecting exceptional market response. The demand for the project remains strong, driven by the exponential growth in housing demand along the Sewri-Wadala belt, largely attributed to the recent launch of the Atal Bihari Vajpayee Trans Harbour Link. Moreover, the launch of the next phase of Ajmera Greenfinity has been equally impactful, underscoring the project’s immense appeal. The quarter’s robust collection, with a 97% YoY growth, was diversified across projects.
Strategically, it has secured credit facilities totalling Rs 500 crore from Standard Chartered Bank and ICICI Bank, of which a portion of the funds amounting to Rs 200 crore has been utilised towards the partial prepayment of the GCP loan availed from HDFC Bank and for the execution of Ajmera Manhattan.
Little wonder, why the company had ambitiously announced a 5X growth plan confidently. Dhaval says, “Our 5X growth trajectory, which began post-covid, is based on our performance year-on-year. Initially, pre-covid, our pre-sales ranged around Rs 300 crore, which has now escalated to Rs 1,000 crore, aligning with our fiscal target. The company’s relentless efforts have yielded remarkable results across aggressive acquisitions, business development endeavors, and execution strategies, underscoring excellence in every aspect of our operations. There is great opportunity in the cities we operate, namely, Mumbai, Pune and Bangalore.”
Joint developments and redevelopment projects is not compelling the company to invest large chunks of money, especially considering the cost of land. One can juggle three projects in such ventures. “Not only does it offer greater returns but also gives an additional project to our name. We have been successfully executing joint and redevelopment projects in Bangalore last 15 years and so far have delivered over 4,000 apartments with this strategy. We have replicated this in Mumbai as well where Ajmera Sikova, a boutique commercial office development in Ghatkopar, was a joint development project delivered in two-and-a-half years despite the challenges posed by covid-19. Such opportunities have helped us grow faster and also rake in money,” he adds.
While all this sounds easy, there were also challenges along the way. It takes an intrepid developer to venture into other cities outside their home ground. No two real estate markets are alike. Each of them have their own peculiarities. For Ajmera Realty, it was the language factor they faced when stepping into Bangalore. “We had local help since we had hired people for the first 5-acre project we executed in two phases. We tasted success but I think the success of any project is also based on the neighbouring infrastructure development. The booming IT sector of Bangalore is ensuring demand for real estate there, while the stock and diamond market of Mumbai is giving it its bull run,” says Dhaval with a smile.
The right moves
Ensuring a project is completed on time is essential for a developer to maintain their reputation in the market. With deep conviction, Dhaval says, “More often than not, projects get stalled or delayed when end-to-end planning is not done with sedulous care. The genesis of our success can be traced to the fact that we have diligently planned the project and clinched the finances in totality. Approvals are firmly in place and there’s no looking back.”
It is with this belief that nothing is impossible the company has taken on the enormous task of paring its debt significantly. Cash flows accrued for a particular project are aligned to that project purely so as to achieve completion.
Another decision the company has taken over the last two years is to develop only green projects. Sustainability is at the core of the world’s new goals and Ajmera Realty was not going to lag. All its current projects shall now be IGBC certified. This has elevated them into a new realm.
As one of the few developers who has also gone international, Dhaval admits that the extensions of a growing family presented them a possibility of developments in Bahrain and London. “Moreover, the Indian real estate market was seeing a slack with various norms that were coming up. Since development is all that we do well, an international project was a feather in our cap,” he says with a shrug.
But there is another feather in his cap that he would have loved to brag about – A chance to build the Burj Khalifa, if he could have done it first!
