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Transcript
00:00Some of the key ways how ASBL is different is we are asset-focused company.
00:05So before starting this business in 2017-18, when we were doing research on okay what should be our
00:11key USP as a company and like how to even establish what should be the philosophy,
00:15the guardrails of the company at the top level. Lucky for us again looking at the past what all
00:20my father and where all they struggled, what was their pain points. So we realized that it's better
00:25to be asset-focused and even data also suggested that most of the company, not all, most of the
00:31companies who were multi-asset, who are operating multiple assets struggled over a 10-year period
00:36of time because in real estate each asset like housing behaves differently. It has a different
00:41supply chain process. It has a different consumer life cycle, different cash flow life cycle. If
00:45you're doing hotels, it's different. If you're doing plots, it's totally different. So different
00:48asset classes have totally different. Each of them behaves like a completely different business
00:53altogether. So we became asset-focused. So we were very clear. So let's develop expertise
00:59in high-rise apartments. So we purely build only apartments, the two high-rise apartments.
01:05So we specialize in that category. That's our bread and butter. So that's one key way our
01:10ISBL is different from most of our competition. We are asset-focused. So now let's get into
01:14the Hyderabad growth story. What's happening with Hyderabad? Why is the city growing or how is
01:18the city poised to do over the next 10 years? What are some of the, you know, how are we
01:24sort of competing with other cities, particularly Bangalore because there's good amount of data
01:28available and Hyderabad, Bangalore and Gurugav loosely put together can be seen as sister cities
01:33because most of the demographic profile is similar and the sort of job creation which is happening
01:38also is roughly somewhere around the same industries. So these three can be put together as three
01:44sister cities and can be sort of evaluated from that standpoint. So the image what I am showing
01:49you is the new downturn of Hyderabad, right? Again, I have just made a small video also what
01:54we could find on that. But to give you a context, the image what you are seeing that is the new
01:59downturn of Hyderabad and this particular area is the richest place in entire India, right?
02:07India has 813 districts, right? That's what it's divided into. This is the richest district
02:12in the country, boasting a per capita average income of close to 20,000 US dollars per annum.
02:19That's almost at the scale of if I may put in roughly, I think Dubai is around 25 to 30
02:24if I'm not wrong. So we have 70% of that. So that's the pace of development which has happened
02:31in the last 10 years. Most of that has happened in the last 10 years, right? So in the case of
02:35Hyderabad and Telangana in broad, right? So you can see like, you know, you can't imagine Hyderabad
02:42without the ORR, right? Most of you would have known. So to give you a little context of what
02:46happened with ORR, ORR is something which conceptualized 20 years back, around 2000, early 2000s, constructed
02:53almost 12 years back. And now majority of the city life is happening around ORR. Without ORR,
03:00you cannot imagine the growth story of Hyderabad. You cannot imagine the sort of easiness it has
03:05caused to entire living conditions there, right? So it's very important that any city or state
03:11keeps working on a 10-year program, right? So if let's say if you are conceptualizing
03:16to build ORR now, we would have been in a very, very big trouble because we will not be able
03:21to handle the scale of development which has happened. So in that line, it's very important
03:26for people to see how is the government's doing from a 10-year perspective. So in the case
03:30of Telangana, now currently they are working on something called RRR or called Regional Ring
03:34Road. So it's essentially twice the size of ORR. So another circumference which will be covering
03:38the entire state, right? So ORR is 170 kilometers, RRR is 340 kilometers. And recently, I think
03:45just a week back, government has come up with a program now where they are like moving all
03:51the industrial, what do you say, manufacturing plants and everything from within the ORR to
03:57in between ORR and RRR region. So in between ORR and RRR is where they are categorizing more
04:02around industrial clusters which will be connecting a lot of I would say semi-urban and sort of
04:08peripheral Telangana and focusing industrial clusters there. So what that will do is decongest
04:13the city particularly from a free movement standpoint, right? And second thing even sort
04:18of help the AQI air quality issues also. And then the core region within the ORR will be
04:24categorized as a principal GHMC or the principal municipality region. And there all office type commercial
04:30activities and mainly will be focused on consumer like people living, residences. So that is
04:35how they are sort of redesigning the entire space. So the first one is, should we invest in real
04:45estate? Is it overvalued, right? So let me digress that question. So if anybody is investing in real
04:51estate from a rental standpoint, I'm saying clearly don't do it. Because naturally, right? 4% is what
04:58your rental yield is. Your home loan interest only will be around 7, 7.5%. So rental yield
05:02perspective will be real estate. Right? Now if you are investing in real estate, you need to invest
05:08from a flipping standpoint. So enter, buy a property, exit in 4 years. If you are not exiting in 4 years,
05:13again your return will depreciate. So you need to enter probably when the work starts after somebody gets
05:19a RRR. You can enter even before getting RRR. One that's law doesn't encourage people to do that,
05:25but nevertheless sometimes people do because they might get some more return, but it comes with
05:30increased risk. So you can make money only by flipping and flipping Jayakunda, you cannot make money.
05:37Flipping low, if it appreciates at 6.5%, you will make that 18%. 18% CAGR on a 4 year period is doubling
05:45of money in 4 years, which is extremely competitive return world over. Like for example,
05:50averagely, if you look at the mutual funds in our country, let's not take last year has been bad,
05:555% return, but broadly speaking, the mutual funds give around 12 to 14 to 15% return.
06:01This is higher than that.
06:02We intended to do, but the market situation was such.
06:05We usually only had around 3.5 to 4%.
06:10In 2014, once the scale were divided, we got a stable.
06:12We had a scheme on interest data.
06:14No.
06:15Then we allowed it on.
06:16We company parangal like a...
06:19How do we assess the risk?
06:20That's not the market now.
06:22So that is the rent. Now we're coming to special.
06:25Do you understand because we belong from Bombay.
06:28What is the ratio of percentage?
06:29If you have any particular query, they'll help you out with it.
06:45You can imagine the sort of number of people are going to move into the city, right?
06:49Second thing is got to do with your cost of litter, right?
06:52For the same amount of money, let's say you're spending 100 rupees,
06:55average, generally speaking. You get 100 square feet in Bangalore.
06:59In Hyattabad, you'll get 200 square feet, right?
07:01So you'll almost get twice for the same amount of money,
07:04you'll get twice the amount of space what you get in Bangalore,
07:06and almost four to five times more than what you get in Bombay.
07:09So more space means better experience and better quality of life.
07:12Third thing is the young demography.
07:14In the city, a lot of younger people are moving in, right?
07:17So it's a vibrant urban ecosystem.
07:20And to add to that, the entire traffic condition.
07:22Nobody wants to waste time in traffic, right?
07:24Absolutely.
07:26Yeah.
07:28Thanks.
07:30Thanks.
07:32Thanks.
07:34Thanks.
07:36Thanks.
07:38Thanks.
07:40Thanks.
07:42Thanks.
07:44Thanks.
07:46Thanks.
07:48Thanks.
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