“Building material sector will grow at 5-10 % growth” – Mr.Ashwin Reddy, Managing Director, AEL

Ashwin Reddy, Managing Director, Aparna Enterprises Ltd, on Friday said that building material industry would witness about 5-10 per cent growth in 2020. 

“While the outlook is positive, for the optimism to turn into reality will an improvisation of ease of doing business as well. It will call for rationalisation and further streamlining as well as effective execution of taxes and policies. For instance, a comprehensive implementation of GST irrespective of the size of the business is the need of the hour,” Reddy said in a statement.

On the performance of building material sector in the current year, he said: “2019 was an eventful year for building material industry. While the real estate sector witnessed a muted growth, the thrust from the government on infrastructure development acted a great stimulus for the industry”.

The increased spend and focus on infrastructure development saw the sector witnessing a healthy growth. Initiatives like housing for all, setting up of dedicated freight corridors, metro rail projects; AMRUT, smart cities and upgradation of roadways have all bolstered the demand for building materials, he added. 

A key building material that has witnessed positive momentum in 2019 was ready mix concrete. The adoption of white toppings and cement for the construction of roads has helped ready mix concrete positively, he pointed out.

Aparna-Craft launches Alteza Aluminium Window and Door Systems

Telangana Today : Aparna-Craft, a joint venture between Aparna Enterprises, and Craft Holdings, Hong Kong, strengthened their market presence by foraying into premium aluminum window and door systems under the brand name Alteza. In addition to India, the company will cater to South East Asian and Central Asian markets. Within South East Asia, the company will target Australia, Philippines and Hong Kong.

Alteza will provide a range of solutions ranging from simple applications such as aluminum casement & sliding windows and doors to customised applications such as Slide and Fold, Tilt & Turn, Lift & Slide systems. Additionally, Alteza systems can also offer bespoke solutions to fulfill various other system requirements, including structural strength, increased safety & security, uninterrupted wider view, among many other benefits.

Speaking about the foray, Ashwin Reddy, MD, Aparna Enterprises, said, “Owing to the durability and malleability of aluminum as a premium material, aluminum window and door systems are fast becoming the preferred solution in India. The market for high-end aluminum window and door systems in India is pegged at Rs 1000 crore, however, there are very few players offering end-to-end solutions that match the international standards. We are aiming at achieving 10 per cent of market share for premium aluminium windows and doors within the first year of the launch.”

Elaborating about Alteza, Stuart Orr, CEO, Craft Holdings said, “Alteza will come as relief to architects and builders who have been scouting for bespoke premium aluminum window and door solutions. Alteza will leverage the designing and engineering expertise of Craft Holdings and the execution capabilities of Aparna Enterprises and offer revolutionary aluminum windows and doors. Timely delivery will also be a key aspect that Alteza will offer its customers.”

Alteza will be manufactured at a production facility located at Bachupally, near Hyderabad. The plant will have a production capacity of around 75,000 sq ft of premium window and door systems per month. The unit is attracting an investment of Rs 30 crore. Another greenfield facility is being developed at Sangareddy with an investment of Rs 20 crore, which will be commissioned by May 2020.

Craft will also help the joint venture entity to create a design and engineering team in Hyderabad to meet the domestic market expectations.

Mr. T Chandra Sekhar, Technical Director, AEL, shares his thoughts with 99acres on the shortage of sand!

Online sand portal: A relief for buyers in Andhra Pradesh

Skyrocketing prices and unfettered mining have cumulatively paved the way for the shortage of sand in India. With sand increasingly becoming scarce in several regions, the Government has come up with multiple measures to solve its crisis in the construction industry. One such initiative is the availability of sand online, introduced by the government of Andhra Pradesh.

Excessive mining on the river beds to meet the burgeoning demand for construction has caused severe ecological imbalance. Not only the rivers but even the wetlands are being exploited for sand mining. As a result, the sand available nowadays contains a high percentage of silt and clay that is deemed to be unfit for construction purposes. Moreover, with less than one-third of the sand quarries operational in a State like Tamil Nadu, the country is facing a crisis that has crippled several of its infrastructural projects. The scenario has even increased the sand prices up to a great extent.

As apprised by T Chandra Sekhar, Technical Director, Aparna Enterprises, “The booming infrastructure of our country requires extensive use of sand, which is rudimentary in order to produce concrete. The continuous mining of natural sand from river beds is causing significant damage to the ecosystem. The depletion of natural sand in river beds can cause deepening of rivers and expansion of coastal inlets and river mouths. Knowing that sand takes several years to form, many States have banned the mining of sand from river beds. Even though this makes it tough for the construction companies to procure natural sand for construction, the developers are encouraged to look for more sustainable and viable alternatives to river sand.”

The shortage of river sand has raised serious concerns amid the builder fraternity, due to which, multiple States have come up with measures to tackle the issue. These include desilting of dams, allowing quarries post clearance from Geology Department, the introduction of sand mining policy, and identification of more banks for sand mining.

In a recent move, the Andhra Pradesh government has decided to implement a stock point system, similar to the one prevalent in Telangana. As per the new system, the material will be made available to the buyers through an online portal. The buyers can pay the charges along with the transportation cost online and get the sand delivered directly to their homes. As opined by the experts, the measure will facilitate the buyers in the procurement of sand and eliminate the involvement of Mafia in the procedure.  Moreover, the buyers can get the sand at the correct market price. The sand booking policy is to enhance transparency in the system, along with the control of the government on sand reaches across the State.

At present, the facility is available not only for general customers but also for orders in bulk. The term ‘general customers’ here includes individuals who want to procure sand for domestic or personal use; whether it is for the construction of a new dwelling or repairs to the existing house. Bulk customers include real estate developers, private, and government contractors. 

Reportedly, there are 395 major sand reaches in Andhra Pradesh and it is the duty of their respective district collectors to take care of them. In case of online booking, it is the Andhra Pradesh Mineral Development Corporation Limited (APMDC) that will take care of the bookings across the State. Those who wish to place their orders online need to visit the official website of APMDC and obtain relevant details, including sand yards, current prices, order tracking, and online payment.

Steps for online sand booking in Andhra Pradesh:

  • Visit the official portal of Andhra Pradesh online sand booking
  • A pop up will appear on the screen providing options of registration for general and bulk customers
  • Click the registration options depending upon your need, provide the mobile number and request for One time Password (OTP)
  • Enter the OTP and click submit
  • Upon clicking on the submit button, provide details of Aadhar in case you are a general customer and GST number in case of bulk orders
  • In case you are a general customer, provide details including your name, district, Mandal, Address, and Pin code post verification of the Aadhar. On the contrary, if you are a bulk consumer, enter the company name, trade name, mobile number, and address details as per GST.
  • Check the details and click on the registration box to enable the Register tab
  • Lastly, click on register to complete the process and proceed to order sand

Shortage of sand is a major issue, having significant socio-political, economic, and environmental implications. In the wake of this fact, measures such as online booking will indeed help the consumers to fulfil their requirements up to a certain extent. Not only will it benefit the developers in terms of reduced transportation cost but will also prevent the misuse of sand to a great extent.

Ready Mix Concrete – the ideal solution to create quality homes

Home buying patterns have been evolving drastically in the last few years. Gone are the days wherein people used to look at homes as a mere dwelling space, today home is a reflection of one’s personality and stature. In fact, owing to the globalisation and exposure, customers are becoming very brand conscious when it comes to buying real-estate assets. One of the key factors that play a crucial role in building a brand in the real-estate space is the quality of construction. Customers expect players to maintain the same quality across all their projects. The key ingredient that ensures quality in construction is the concrete used to build the structure. Earlier in India the concrete mix used to be prepared by local contractors at the construction site. The mixing used to happen manually. As it is manual builders used to find it difficult to keep a control over the time and amount of components mixed in the cement mix. Further, in traditional mode there is a huge dependency on expertise of the contractor / mason for mixing various components. In fact, in case the expert was absent from work owing to any emergency the chances of inconsistency in the mix were also quite common. Apart from manual intervention the other big aspect for builders is that they would need to identify storage space to store cement, sand and gravel. This growing inconvenience coupled with the increased stress on uniformity in quality of construction is pushing real-estate players to move towards ready mix concrete than site mixing concrete.

What is Ready Mix Concrete?

Ready-mix concrete is concrete that is manufactured in a batching plant, according to a pre-set engineered mix design. Batching plants combine a precise amount of gravel, sand, water and cement together by weight, allowing specialty concrete mixtures to be developed and implemented on construction sites.

Merits of Ready Mix Concrete over the traditional on site mixing

  • Helps in ensuring strict control over quality and consistency across all batches
    As the name suggests Ready Mix Concrete is ready to be casted at the construction site. It is manufactured in a factory set up. The mixing of the gravel, sand, water and cement are computerised. The mechanical mixing reduces the discrepancies in the proportion of the ingredients and ensures uniformity in every batch of the product. Further, most of the RMC producers have a battery of experts who regulate the mixing ratio and monitor the progress of manufacturing. This multi stage process ensures quality and consistency in ready mix concrete.
  • Provides control over time and resources
    Being manual, the time taken to mix and then proceed for construction is far higher in the on-site mixing method, than a ready mix concrete. Further the builders should take charge of identifying and hiring mixing equipment, labour and purchase of the ingredients. They will also have to make arrangements for storage of the ingredients. In fact, in a nutshell the entire time and costs may simply be not worth it when compared to the linear cost model of ready-mixed concrete, wherein the customer would need to pay only for what they use, and lets someone else do the work up to that point.  Even in a large project, outsourcing concrete production to ready-mixed concrete suppliers means delegating the quality control and testing, material logistics and supply chain issues, and mix design, to specialists who are already set up for those tasks.
  • Better customization and predictability of outcome
    The weight carrying strength that is required for a house is different from that of a bridge and hence the type of concrete that needs to be used to construct each of the structure also varies. In fact, the strength of the concrete depends on the apt ratio of water and cement. In ready mix concrete as it is mechanised it is easy to customise. Also as the consistency and quality are uniform across all batches for the project, the outcome is also uniform and predictable. To improve the performance of a concrete mix admixtures are also used. Admixtures can be used to reduce water requirements, add small synthetic fibres to prevent surface cracks, or even super plasticize the concrete to make it self-compacting. However, the use of admixtures requires precision in dosing and mix design, which is more difficult without the dosing/measuring equipment and laboratory backing of a batching plant, which means they cannot easily be used outside of ready-mixed concrete. The admixtures used in RMC improve the flow property of concrete. The compaction also becomes easier in ready mix concrete.
  • No chance of issues like hair line cracks
    One of the biggest drawback of the on the site mixing is it is manual and hence the consistency may differ slightly in every batch and this slight variation can lead to issues like hair-line cracks.
  • Large volumes can be available
    As it is made in factory set up by machines, it can deliver large volumes within a short span of time.

This article is contributed by Mr. T Chandrasekhar, Director-Technical, Aparna Enterprises Ltd for Sawdust.

Check Aparna Reddy’s views on running a successful business venture with your spouse

Many people wish to become entrepreneurs. There are varied reasons for every entrepreneurial dream. While some chose entrepreneurship because they have a clear thought or idea, others opt as they don’t want to work for anyone else but themselves or they want to utilize the knowledge and expertise that they have gained for their own growth and then there are others who are just born to do it. Similar to the triggers every entrepreneurial journey is also different.  However, there are some common threads when it comes to turning a dream into a reality and then making it successful. Running a successful business requires hard work, patience, focus and above all a right partner. While some chose friends or colleagues as business partners, there are others who want to turn their business idea into a successful venture along with their spouse.

Building your dream along with your spouse has its own merits and challenges. On one hand, you have someone very close to you to provide guidance and support, on the other side you may feel short of personal time as the business demands most of it. Some of the key aspects to keep in mind while running a business with your spouse are

Allocate Work According to Each Other’s Strengths and Weaknesses

Like any other partnership, spouses need to understand each other’s strengths and weaknesses both from skill as well as emotional perspective and divide the work accordingly. It helps in the smooth functioning of the daily tasks. It also plays a crucial role in guiding and inspiring the team.

Nurture a Mature and Open Mindset 

When a couple comes together to run any business the trust component is very high, but the emotional equation is very sensitive. The difference in opinion is bound to happen, however, it needs to be handled very carefully as it may affect their personal life. Managing a healthy personal and professional equation will call for a matured and open approach. Another key aspect that can iron out friction is communication. Always maintain healthy communication between each other, especially regarding the functioning of the organisation. Ultimately, decisions should be taken keeping the bigger picture in mind.

Observe Caution and Transparency in Matters of Finance 

Managing finance needs to be planned and dealt cautiously as one bad decision can drain funds. It can prove fatal for the business as well. There are many examples of growing businesses been brought down to ashes due to mismanagement of funds. There should be a clear demarcation between the funds for domestic as well as business purpose. Sometimes one needs to hold personal expenditures aside and give preference to the requirements of the business. Such decisions should be taken only after mutual discussions as otherwise, it can lead to a conflict of interest. Further, maintaining transparency with regard to the transactions is crucial. Ensure that the spouse is been informed and updated about the income as well as spends.

Maintain a Healthy Work-Life Balance

While it is easier said than done, both the partners should take effort and enforce it.  The multitasking gets more complex when you step into parenthood which demands more focused adaptation of work-life balance. Work delegation comes handy here but the careful division of time is what is required to handle personal and professional life together.

In the end, clarity of thought will push one to find means and ways to filter ones focus to shape their goals and become a successful entrepreneur. The clearer one gets with the objectives, the better it becomes to face all hurdles and keep the business growing.

Aparna RMC: Providing Concrete Technology Solutions

Established in the year 2006 by Aparna Enterprises Ltd., Aparna RMC today is one of the leading producers of ready-mix concrete (RMC) in South India. The unique factor that sets Aparna RMC apart from the rest is the company’s ability to develop concrete technology solutions and design concrete as per the client’s requirement. At Aparna the products are produced using the latest technology (18 fully computerised Schwing Stetter RMC plants with latest concrete batching equipment) making it strong, customizable, versatile, and durable. Apart from being the preferred ready mix concrete partner for the construction of residential, commercial and industrial projects, Aparna RMC is also used for the production of precast concrete parts like stairs, ceiling elements and structural components.

An ISO 9001 certified company, the focus of Aparna RMC has been to provide quality products to its customers. All the batching plants are controlled by MCI 360 and Siemens PLCs for quality assurance. The continued emphasis on quality and timely delivery has earned Aparna RMC the seals of approval from the likes of Central Public Works Department and Military Engineer Services. It has also enabled the company to not only be a preferred partner for the private sector but also for the public sector. Aparna RMC has been associated with various government projects across the country. They had won the tender to supply Ready Mix Concrete for the development of Rail Under Bridge (RUB) in South Central Hyderabad and flyover construction in Lalaguda and Hitech city.

The other unique aspect of Aparna RMC is its capability to ensure timely delivery of its product. It has around 200 transit mixer trucks and 66+ high capacity concrete pumps ensuring timely delivery of RMCs. The growing acceptance by the real-estate and infrastructure sector has resulted in Aparna RMC expanding its production and delivering capacity. The company has added 5 new RMC plants in the last fiscal and increased its production capacity from 70,000 cubic meters per month to 1,20,000 cubic meters per month.

Aparna Enterprises records 50% growth in FY18-19

Hyderabad: Aparna Enterprises Ltd., a leading firm in the building material industry recorded 50 per cent growth in FY18-19. In the last financial year, the company made strategic investments and launched three RMC units in Andhra Pradesh and Telangana regions. The company also ventured into aluminium exteriors façade segment and strengthened its product portfolio in the luxury home fitting segment with introduction of Nolte Kitchen, Wardrobes & Beds. The growth was also backed by various government projects that the company won for tiles, ready mix concrete and uPVC category.

Ashwin Reddy, MD, Aparna Enterprises Ltd; said, “Despite massive investments in the last financial year, we have managed to do well and grow by 50 per cent in our revenue. From the last five years, we have been growing at a CAGR of 30 per cent Y-O-Y. This growth is a testament to our bullish business plans and the growing market opportunities. This year we further plan to strengthen our production capacity across product lines and focus more on government projects.”

“Quality assurance and customer satisfaction are at the core of our business and increasing demand for our products both in private and public sector is a testament to that belief. In the last one year, production capacity of RMC rose from 0.882 million cu mt in FY17-18 to 1.2 million cu mt in FY18-19 and we are aiming for 1.44 million cu mt in FY19-20. Similarly, we have produced 4.8 million sq.mtrs of tiles for various projects, which is a remarkable capacity to reach in two years of launch.

The booming infrastructure of the country is a motivating factor for us to continue delivering world class materials to governments and real estate players who require these building materials,” added, Aparna Reddy, ED, Aparna Enterprises Ltd. The company further plans to strengthen its dealership reach for Vitero and Aparna Venster this year and also start the production for Alteza Aluminium windows and doors under Aparna Craft Holdings in this quarter. The year ahead will also see introduction of new products across sub brands to address the evolving market trends and changing consumer demands. The accelerated growth of the company is attributed to the continuous innovation in technology that has helped in increasing the production capacity as well as in the launch of new products across Vitero Tiles, Aparna Venster, Okotech, Aparna Unispace and Aparna RMC.

Aparna Enterprises plans to grow the business by 25-30% in FY 2019-20

NEW DELHI: Aparna Enterprises is expecting a growth of 25-30 per cent in the financial year 2019-20, said Aparna Reddy, executive director, Aparna Enterprises. The company’s revenue in FY 2018-19 was about Rs 860 crore.

“In the last six months, we have seen 45 per cent growth in comparison to last year, majorly because of the commercial production of ‘Vitero Tiles’,” said Reddy.

Currently, it contributes 30 per cent of the overall revenue. The company plans to invest Rs 50 crore for its expansion. The commercial production of Vitero Tiles started in August 2017 and we generated revenue of Rs 70 crore in FY 2017-18. But in the next financial year we generated a revenue of Rs 190 crore.

The company through its Kakinada plant caters to the demand coming from Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Maharashtra and Odisha. The current capacity of Kakinada plant is 15,000 square meter per day. It plans to add one more production line in the plant by December 2019.

As to why Aparna Enterprises moved into the tiles business, Reddy says, “As of now there are not many good plants that caters to the demand in South India while the demand is high. Hence, we decided to utilise this demand.”

Ready-mix concrete (RMC) has been another major revenue generator for the company. Of the total revenue, RMC contributes about 45 per cent.

“RMC has grown to about 50 per cent in comparison to last year majorly because we added five commercial plants. In 2018, our capacity 70,000 cubic meter per month which is now close to 1 lakh cubic meter per month.”

In the last one year, the company has opened up one RMC plant at Vishakhapatnam and Vijayawada and three plants in Hyderabad- one along the Patanchal Road, one at Kompally and one along the Outer Ring Road near Shankerpally. The total investment that went into setting-up of these plants and buying and operating its own fleet was Rs 40 crore.

“Demand in Hyderabad has increased exponentially in the last one year and hence to cater to this demand, we set-up three plants at three different locations,” said Reddy.

The company recently announced its joint venture with Honk Kong-based Craft to make aluminium exterior solutions. Aparna holds 74 per cent of the joint entity while Craft holds about 26 per cent. Both the companies together will invest about Rs 30 crore in the first year.

Under this joint venture, the company will set up a manufacturing facility in Bachupally, Hyderabad, spread across 50,000 sq ft, with a production capacity of 0.8 million sq ft per annum initially.

“We expect to commence the operations by July 2019. In the first year of operations we are looking at a turnover of $10 million,” said Reddy. The company plans to cater to South India and Australian market initially.

The uPVC segment contributes about 20 per cent of the overall revenue. Aparna Enterprises plans to invest about Rs 2-3 crore for its expansion in the segment in the current financial year.

“Currently there is not much demand for uPVC products but the scope is high as people start adapting to green buildings and green products demand for uPVC products will increase,” said Reddy. The company has seen a growth of 20 per cent in comparison to the last year. It also plans to increase its capacity from 2.5 lakh sq ft to 3.5 lakh sq ft by May 2019.

Rest of the five per cent of the overall revenue comes from trading of high-end sanitaryware and kitchen products.

Nolte partners with Aparna Unispace

Hyderabad: German modular furniture brand Nolte is betting on the growing real estate market in Hyderabad. It is looking to partner with the builder and developer community to offer modular kitchens. In this direction, it has open its first showroom in partnership with city-based Aparna Unispace, the luxury home fitting showroom.

Aparna Unispace will be the exclusive dealer of Nolte kitchens for Telangana and Andhra Pradesh.

Speaking on the occasion, Alok Duggal, director, Nolte India, said the kitchens will be manufactured in Germany and will be assembled here. It would take about three months for the company to deliver on the orders. The cost per unit averages around Rs 3 lakh and increases with specifications. Nolte will partner with various players- appliance makers and suppliers, designers, architects, plumbers and others.

It has so far delivered more than 700 high-end kitchens across India and has processed about 10,000 orders in all. “With GST, issues related with logistics have eased out and now we are able to transport the kitchens to any State,” he said adding that it has a primary warehouse at Krishnapatnam port. It will be keen on setting up a manufacturing plant in three to four years after the volumes increase, he said.

Among others, it will also look to offer furnished bedrooms, whose average costs will be Rs five lakh upwards and will include various components like beds, mattresses, dressing table, wardrobes and others.

Duggals said Nolte has 22 showrooms across India. Each showroom sees an investment of Rs 50 lakh.

“Hyderabad is one of the fastest growing cities. There is a lot of demand for high-end kitchens, he said adding that kitchens are getting larger with more space allotted. However, focus remains on functionality. People are looking for warranty and prefer to deal with organised players, he said. It is already working with players like India Bulls, MPM, Lodha, embassy and others in various markets.

Notle has six production units. “We offer customers a choice of over 160 colours for exteriors and 14 for interiors. Each product undergoes a quality check ensuring security, reliability and quality,” he said adding that customers can get a look and feel of its products at Aparna Unispace.

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