We are one of the largest real estate development companies in India, based on the size of our Land Reserves available for development and number of locations in which our Land Reserves are located, which consist of approximately 8,484.65 acres of land, including 4,194.10 lacs square feet of saleable area, which we own or for which we hold contractual development rights. Our business plan is focused on developing 88 integrated townships under the “Sahara City Homes” brand name and 15 residential complexes under the “Sahara Grace” brand name across 99 cities in India. An integrated township typically will consist of a gated community with residential units in the form of apartment towers, townhouses and individual houses together with ancillary facilities such as schools, a hospital, a hotel, retail and leisure facilities. Our residential complexes typically will be smaller scale developments comprised solely of residential units. Our primary source of revenue is expected to be from the construction and sale of residential units within our integrated townships.
We currently have construction under way for nine integrated townships and one residential complex, which in the aggregate are planned to comprise approximately 547.10 lacs square feet of saleable area, 85.00 lacs square feet of which is already under construction. We plan to deliver the first residential units in 2011 in our integrated townships in Indore, Nagpur and Lucknow, which are scheduled to be completed in 2013, 2013 and 2017, respectively. We refer to these 10 projects under development, for which land or land development rights have been fully acquired and construction has commenced, as Ongoing Projects. We have an additional 16 integrated townships for which we expect to commence construction within the next 12 months, which we refer to as Forthcoming Projects, which in the aggregate are currently planned to comprise approximately 884.70 lacs square feet of saleable area. We refer to our remaining 77 projects as Upcoming Projects, which in the aggregate are currently planned to comprise approximately 2,762.30 lacs square feet of saleable area.
We are part of the Sahara Group, a major business conglomerate in India. The Sahara Group has operations in multiple sectors, including real estate, infrastructure and housing, financial services, housing finance, mutual funds, life insurance, print and television media and film production and distribution, information technology, medical, tourism hospitality and consumer products. The Sahara Group was founded in 1978 and has grown to an asset base of approximately US $12.0 billion to date. Over the past 10 years, the Sahara Group has completed four township projects under the “Sahara States” brand name, located in Lucknow, Hyderabad, Bhopal and Gorakhpur. During that same period, the Sahara Group completed two residential complexes, in Gurgaon and Lucknow, under the “Sahara Grace” brand name, two additional residential projects in Gorakhpur and Lucknow and five retail centers, for a total saleable area of 110.53 lacs square feet. This total saleable area was comprised of approximately 68.16 lacs square feet of residential area, approximately 23.82 lacs square feet of retail and commercial area, approximately 8.00 lacs square feet of healthcare-related area and approximately 10.55 lacs square feet of hospitality- related area. The Sahara Group also has developed approximately 150.00 lacs square feet of saleable area, including facilities to be operated by the Sahara Group or leased to third parties, at Aamby Valley City, a large scale luxury township project. In addition, the Sahara Group has developed approximately 85 kilometers of roads, 350 acres of landscaped area, an airport at Aamby Valley City with a 1,200 meter runway, 12 power stations, three dams and 11 artificial bodies of water.
We believe that the following are our primary competitive strengths:
Size and Quality of Land Reserves
Our Land Reserves consisted of approximately 8,484.65 acres of developable land across 99 cities and 18 states and two union territories in India, comprising 4,194.10 lacs square feet of saleable area, which we own or for which we hold contractual development rights either directly or indirectly. We have focused on acquiring contiguous plots so that the acreage currently available to us presents better development opportunities. We believe our plots of land generally are well located near national or state highways, with good access to roads and infrastructure, which should enhance the attractiveness of our developments to our customers. In addition, we already have fully paid for approximately 99.34% of our Land Reserves and without having to incur substantial indebtedness. In addition, approximately 48.20% of our Land Reserves are already in areas zoned for residential or commercial development or otherwise have already been converted from agricultural land to land eligible for real estate development.
Backing of the Sahara Group
The real estate professionals of the Sahara Group who have now become our employees have developed expertise in the real estate sector through projects that have been undertaken by the Sahara Group or that are currently under development directly by us. We benefit not only from managerial guidance from the Sahara Group, but also from its established business relationships and widespread brand recognition throughout India.
Strong In-House Development Capabilities and Project Execution Skills
We operate a detailed internal system for project development, implementation and monitoring to ensure proper identification and acquisition of potential project sites, effective and organized design and planning procedures, and efficient procurement, construction and other execution processes in order to complete projects on time, within budget and at a high level of quality. We believe these systems will facilitate efficient operations and ensure consistent quality across all of our projects, thereby shortening project timelines and allowing us to successfully execute complex projects.
Experienced and Dedicated Management and Employees
We have an experienced, highly qualified and dedicated management team. Many members of our management team have the experience of executing prior projects from within the Sahara Group, in particular Sahara States. Our teams, which include more than 2,300 professionals who have previous experience in the real estate industry, have developed relationships with, and have experience in working with, regulatory authorities, as well as managing external suppliers and third party contractors.
Move First in Emerging Cities
We intend to exploit our national footprint to be among the first integrated township developers in most of our markets. We believe this will provide us with a first mover advantage, meeting new or unmet demand in under-served and developing markets, leveraging our local knowledge and better positioning us against existing or future competition.
Exploit Economies of Scale
Our business plan calls for the development of 103 projects across India. As these projects commence, we believe we will be able to take advantage of economies of scale in our supply chain management, including in the procurement of raw materials, distribution of supplies and utilization of manpower. We also believe we will benefit from the ability to use our designs and plans in multiple locations and apply our project management techniques on a large scale basis.
Diversity in Market Segments
Our business lines will be spread across integrated township, residential, hospitality and healthcare sectors. This diversity should enable us to leverage our experience and market knowledge to focus on growth areas with higher margins.