Realty firm Puravankara Projects today announced a major restructuring in the company to achieve
higher growth in sales and delivery of projects over the next five years.
As per the restructuring exercise, the company has decided to focus on five real estate markets -- Bengaluru, Chennai, Hyderabad, Pune and Mumbai -- and would outsource construction activities to third party.
The Bengaluru-based developer has also decided to merge the back-end functions like sales & marketing, customer relation management and execution of Puravankara Projects and its subsidiary Provident Housing, which builds affordable homes.
"We have prepared a strategy to achieve next level of growth in the company. We have set a target of annual sales bookings of 13.3 million sq ft by 2020," the company's Managing Director Ashish Puravankara told PTI.
He said the company has made a couple of internal changes in the organisation to realign all internal process.
"We are merging back-end function like sales, marketing, CRM and some technicals of Puravankara and Provident," he said, adding that the construction activities would be outsourced while project management will be done in-house.
Puravankara also said that the company has decided to make changes in the remuneration and compensation package of top 48 executives.
The remuneration would be mix of fixed and variable, while variables would be linked to key performance indicator, he added.
Puravankara Projects has set a target of 4 million sq ft of sales bookings in the current fiscal from 3 million sq ft last year. "By 2020, we aim to reach an annual sales bookings of 13.3 million sq ft".
In the current fiscal, the company will launch 13.5 million sq ft area in various projects against 3 million sq ft in the last financial year.
The delivery target has also been doubled to about 6.5 million sq ft this fiscal.
As part of corporate restructuring, Puravankara Projects had announced that Ashish Puravankara has been promoted as the Managing Director of the company.
Puravankara, who was joint MD in the company, has also been appointed as its Chief Executive Officer.
During 2014-15 fiscal, Puravankara's net profit dropped to Rs 132.73 crore against Rs 159.98 crore in the previous year.
Total income from operations rose to Rs 1,677.72 crore in 2014-15 from Rs 1,310.20 crore in the previous year.
