We decided to go our own approaches as his kids had entered the commercial enterprise. So he selected to head off on his own. From 2005, some thing we have accomplished, we’ve achieved one at a time. All assets earlier than that are collectively owned. It is not possible to divide them as we’d have to pay stamp responsibility on an asset wherein there’s no cash float.
- The House of Hiranandani has assets in Chennai, Bengaluru and Hyderabad however not anything in Mumbai.
I couldn’t discover something at that factor of time because we by no means took investment from out of doors. And after 2006-07, there has been quite a few competition for assets and we shied away from paying the ones excessive prices. We had been looking for possibilities throughout India, together with in Delhi, Mumbai and Pune, but we observed nothing in those cities.
- You’ve stated you’re averse to taking over debt. But maximum developers do tackle leverage to grow and expand. What is your concept manner behind this?
Between 2005 and 2008, before the marketplace slowed down, we had aggressively positioned fairness into our initiatives. We got stuck with a slower marketplace publish 2008; plus approvals had been taking a long term. When your approval method takes longer, any debt on a mission turns into magnified. We realised that, submit 2008, it became impossible to make predictions approximately how soon we may want to launch and the way fast we may want to promote. As a result, taking debt in such an surroundings would have sunk us. If I load debt onto a task, the coins flows of the venture can’t preserve it. From 2010 to 2014, we reduce our debt all the way down to 0.