Monday, August 17, 2009

Higher, still higher

Offering quality homes, enhancing lifestyles and bringing professionalism in the industry is what we have set out to do, says Niranjan Hiranandani

For Niranjan Hiranandani, MD, Hiranandani Group, and his brother Surendra Hiranandani, the journey to success over the last 15 years has by no means been smooth. For the sons of the illustrious surgeon Padma Bhushan Dr. LH Hiranandani, getting into real estate was like charting a different course altogether. Despite standing second in Mumbai University and having a degree of Chartered Accountancy, Niranjan Hiranandani decided to do business.
He says: "Coming from a professional family, we felt like fish out of water. We started with textiles and real estate was on the side. But it was difficult to do both. The textile business was not doing well, and real estate too was not on a sound footing. Raising capital was difficult. We were burdened with borrowings from hundis and banks. This went on until 1981 when we came at a cross-road." In 1981 he closed his textile business. “From that moment we became focussed on real estate. We started with 11 buildings at Lokhandwala, including the prestigious Beach Classic."

However the times were not easy. Material like cement was adulterated and available in controlled quantities. Steel was not of good quality. Not being engineers compounded the problem but the brothers did not give up.

Hiranandani recalls: “Once when I told my chief engineer that roofs and cornices should not leak, he laughed, saying he had not heard of such a thing in his career of 20 years. Roofs are bound to leak and plumbing will have to be replaced after a few years. You should make money, he said.
"I don't know whether we will make money or not, but you should give me quality construction second to none," Hiranandani replied. Customers were happy the buildings were intact even after ten years and that helped the group build a reputation.

Hiranandani says, "The buildings made on Marine Drive, for more than seventy years, have better quality RCC than buildings made in the '70s. Materials were difficult to procure, and of bad quality, but the application of knowledge that you could do things better was willfully lacking. We pursued quality although we were paid less, as the expectations were not high;
customers were not aware and not demanding." He continues, "We trained our people to respect and maintain quality, an investment now giving good returns. Enhancing quality became a habit and is a constant endeavour."

Being brought up in Malabar Hill amidst quality living, he replicated the lifestyle in Powai, the first integrated township on mixed usage concept that he did with his brother as an equal partner. "Now the model is being followed widely. We made Hiranandani Gardens with an aim to offer quality lifestyle and started with quality buildings, having beautiful façades, designs, entrances, rooms, lobby and lift areas. At prices between 20- 25 per cent of Malabar Hill we offered similar amenities like the best clubhouse, pool, badminton court and even schools, hospitals and retail areas."

The Group has many firsts to its credit. They developed the first super
market in India - Haiko, video games parlour and even the world-class Dr LH Hiranandani hospital. The group is now working on its project Hiranandani Estate in Thane.

Hiranandani prides himself for being among the first developers to go green. "We worked on environmental improvement of Powai. We created the largest sewerage treatment plant in India.” The complexes at Powai and Thane have rainwater harvesting centres. The group has created the first Leed platinum rated green commercial centre in India, looking towards creating a second one soon. As past president of MCHI and HUDCO and now with CREDAI, he has also been working closely with the government for the betterment of the industry.

Having received many awards he says, "The greatest compliment was when a customer came up to me and said, 'More than creating history, you have created geography. A few decades ago Powai did not exist except as an outskirt of Mumbai, a picnic spot near Vihar lakes. Today it exists on Mumbai's map prominently." The group is now expanding in other cities.

Hiranandani is proud of his son Darshan who has created a 90-storied building in Dubai. "It is a classic case of the son beating his father," he says, beaming with pride.

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