Real Estate industry is a major contributor towards the economy and its rapid growth may contribute more for the nation. The government’s initiative to provide ‘House for all by 2022’ is a major boost to the sector, this lead to an increase in demand and supply. In an exclusive interview with Nitin Kulkarni, President Sales and Marketing Finolex Industries Ltd. revealed the reasons for the growth in realty sector and spoke about the expansion of a business. Originally the company is into agricultural segment provides manufacturing pipes and many things, but now it has extended its arms into the non-agriculture segment which will provide a complete range of products for homes.
1. With what investment value Finolex has entered into Real Estate market?
Finolex enjoys the market leadership position in Agri segment and has adequate production capacity for manufacturing Pipes and Fittings for the Non-Agri segment also, comprising of Construction, Real Estate and Infrastructure. We have a complete range of SKUs and Products Ranges specific to the Non-Agri segment. Foraying into this segment, along with our product range in ASTM, SWR, Drainage/Sewerage pipes, we also tied-up with Lubrizol of USA for Finolex FlowGuard Plus CPVC pipes and fittings. We are investing around Rs. 250 crores over 2 years to expand our pipe & fittings capacity.
2. What is the reason behind expanding your business in infrastructure and real estate market?
Construction segment contributes approx 8% of the country’s GDP and also is the second largest employer in the country, after the Agriculture sector. This constantly increased the demand for pipes and fittings in the real estate sector. The Government has initiated many structural reforms in the recent past like GST and RERA. Post this scenario, they earmarked huge capital outlay for many ambitious projects like Smart City development, Infrastructure projects, Pradhan Mantri Awas Yojna and Swachh Bharat Abhiyan to name a few. Finolex Industries is now offering the complete product basket required for projects such as the ones mentioned.
3. What is Finolex going to offer the end user?
We have our own PVC resin manufacturing plant and Thermal power plant in Ratnagiri. Finolex manufactures its pipes and fittings by using the latest state of the art technology and an excellent distribution network to complement this. The self-reliance for raw material helps us in achieving the uniformity, and this results in Finolex consistently giving the best quality to its customers.
4. What do you think about the present scenario of Real Estate?
The real estate sector is undergoing a transitional phase for the reasons mentioned above. It is but evident that this transition will be beneficial for both customers and builders alike in the long run.
5. Real Estate is a vast sector and expanding the business into infrastructure and real estate, how do you foresee the non- agricultural business in upcoming years?
In the non-agricultural segment, Finolex offers its entire range of products starting from ASTM, SWR, Drainage/Sewerage and Finolex FlowGuard Plus CPVC pipes and fittings. The real estate space has been growing at a consistent pace and so is the demand for pipes and fittings to cater to this expansion. The Non-Agri business will see a rise in the years to come.