Kamanwala Housing Construction Limited           
Serving since 1984
Investor Relation Overview
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KHCL - The Business

Mode of Operation

KHCL develops and sells properties on an outright basis, except in the case of old buildings taken up for conversion. The latter are very few in number . The following course of action is taken for properties developed and sold on an outright basis. With the experience gained over the years, the promoters of KHCL identify properties for development after careful thought and consideration. Some of the aspects dwelt upon are:

 Location of the property
 Connectivity by road and train
 Proximity to various essential amenities
 Cost of the property as compared to the prevailing prices in that area
 Demand for residences of offices in that particular area
 Growth potential of that area
 Clear title vetted by a solicitor or advocate.

Once a property has been identified, the company negotiates with the seller. All legal aspects are looked into in detail. On completion of all requisite formalities satisfactorily, land acquisition is completed. KHCL undertakes projects either on its own, in partnership with the seller of the land, or as a joint venture with another construction company.

Growth drivers

  Increasing Level of urbanization

Above-average economic growth in India. A burgeoning population, a pool of highly skilled workers, integration with the world economy, and increasing domestic and foreign investment are all expected to propel real GDP by at least 6% in the next decade.

Outsourcing continues to spirit up the businesses of IT companies, BPOs and call centres. The supply of high-quality space from developers has been insufficient to meet the demand thus generated. This will continue to exert upward pressure on values for such properties. At least 55 mm sq.mt. of premium office space needs to be created over the next five years. According to Crisinfac, an investment of Rs.1.50 billion is likely in this sector.

Increased industrial growth. With the country making rapid strides on the economic front, investments in industries like steel, oil and gas, aluminum, textiles, sugar, cement, automobiles and the like have received a boost. This expansion will give rise to increased construction activity.

Thrust on infrastructure. Having identified infrastructure as a critical area, the Government has drawn up ambitious programmes for development and modernization of roads, railways, airports, sea ports, the power sector and the irrigation sector. These programmes will throw up opportunities for developers. Not only that, this development will lead to growth in uncharted areas as a spin-off.

Rapid expansion in the retail sector. The growing middle class will cause nominal retail sales to grow at east 10% p.a. through 2010. This growth will be fed by a proliferation of malls and shopping arcades: industry experts expect at least 400 malls to be built over the next 5 years at a total outlay greater than Rs.100 billion.

The impetus given to special Economic Zones (SEZs) by the Government has seen 172 SEZs already sanctioned, and about 300 awaiting approval. The total investment for their construction is likely to cross Rs.1 trillion over the next five years.

Ever-widening demand for residential properties due to rapid growth in population, rising incomes, decreasing household sizes and higher aspirations. In 2005, the retail segment showed a capital appreciation of 25-30%. During 2006 also, the trend continuous. The current demand-supply gap of 20 mn units requires extensive residential construction.