************************************************GLOBALINDIAN LEADERS**********************************

Shripad Borkar was a revolutionary of sorts. In the pre-independent era he was amongst the first to let women of the house manage their homes independently, and set a precedent for ladies to themselves fetch vegetables from the market; an attitude which was not well appreciated by the orthodox Goan society that time. As Chinmay Borkar, director Akar Creations puts it - “My great grandfather was a reformist in social arena, grandfather & his brothers were the cradle of entrepreneurship, and my father is a perfect living example of the free spirit of enterprise, under whose stewardship the realty business - ‘Akar’s’ flag flutters high today.”             

                Since 1944, the printing business remains the core strength of the group in which they have grown multi-fold. Initiated by Shripad Borkar’s four sons (including Sh. Sadanand, ie. the father of great luminary Mr. Avinash Borkar), the business was later joined in by their eight sons. Amongst these siblings - ‘Avinash Borkar’ ventured into real estate business, which later earned the reputation of being Goa’s omnipresent real estate group - “Akar Creations Pvt. Ltd.”      

                The retail arm of Borkar group today encompasses a chain of supermarkets spread out in the city of Margao (Goa). By virtue of extending these services - supermarkets were introduced with a concept of one-stop shopping in Goa. “As far as packaging division is concerned, the group has a total of three factories in Goa, Daman and Himachal Pradesh, and are one of the largest manufacturers of packaging cartons in India”, avers  Chinmay Borkar with pride; who is gen-next scion of the Borkar family..

                                                                                                                                                  

AKAR CREATIONS PVT LTD  is ISO 9001: 2008 certified group. 

         

 THE PRESENT PERFECT: Akar Creations Pvt. Ltd. is among the top - 3  commercial & residential - real estate developers in Goa

 

Borkar Group’s journey in brief:   

                                                    

1910: Started from a retail shop 

1944: Entered printing business

1980: Packaging business initiated

1981: ‘Akar Creations Pvt Ltd’ takes 'Shape’  

1990: Self-service retail outlet opens

2009: Hospitality & Financial services    

       Akar Creations Pvt Ltd. is a significant partner in the emergence of Margao as the commercial and financial hub of Goa. Their offered homes, shops, showrooms and offices have defined the skyline of Goa and enabled thousands of people to achieve - comfort, upward mobility, employment and a better lifestyle. A part of the Borkar Group, it is a well-known business entity in western India. The company has commissioned variety of innovative projects, many of which have become landmarks & a phenomenon in Goa.   

What makes customers keep seeking ‘Akar Creations’ projects in the new millennium is especially - “prime locations, attention to details and customer care”.            

 

THE INSPIRE TO EMPIRE AKAR (& BORKAR) STORY:

 

AKAR CREATIONS PVT LTD:  The beginning of AKAR's SUCCESS story…

 

         Avinash Borkar, the indefatigable spirit of enterprise - is a modest entrepreneur who has shaped ‘AKAR’s’ destiny. With a very humble beginning in 1981 as a contracting firm, and presently being counted as the premier real estate developer; the group has had a dream run in Goa. Avinash Borkar graduated from Goa Engineering College with a BE (Civil) degree. His first stint was with M/S Pinto Engineers, where he worked as an engineer.

            The bright burning golden lamp of inspiration served well for Avinash Borkar who slowly but steadily catapulted his small enterprise into a formidable force. Belonging to the 3^rd generation of Borkars, having an innovative mind & risk taking abilities paid dividends to him. Initially, he started taking few contractual projects, ie. bagged the prestigious - “Holiday Inn Resort” project in Goa. Meanwhile, he moved into real estate as a developer under the name - “Akar Creations Pvt. Ltd”. 

             Today, Akar has approximately   completed 30 projects - including commercial projects, residential projects and mixed-projects. ‘Panchratna’ was one of the prestigious project which was Goa’s one of the biggest acclaimed commercial project in 1990. They have done the 1^strow house project in Goa called - ‘Nandanvan’. An urge to give back to the less privileged class of the society made them work on a one-off project called ‘Ramnagri’ where flats were sold as low as for Rs. 60,000/ in 1994; value of which is pegged at Rs. 7-8 lakh today.   

           Prakash Borkar is the overall chairman of the group, and is the important pillar of ‘Akar’. He plays pivotal role in the decision making process; the Borkars are a closely knit family and all the business decisions are taken collectively.       

“Akar Creations Pvt. Ltd.” has always endeavoured to provide the best to their clients, be it in the area of - technology, quality or service. With a planned growth, the objective within the group is to be a very dominant, visible and well-accepted leader in India & abroad in the near future….

           Naturally, with a 100 year old legacy the promoters have to lead from the front; to ensure that they keep abreast with the huge local expectations. And, Akar Creations Pvt. Ltd has never disappointed its people even once… Rohit Borkar oversees the group’s Goan Real Estate business directly under Mr. Avinash’s leadership. He acquired a degree in civil engineering from RIT Sakharale, Sangli. Interestingly, he has worked in Mumbai with Kalpataru Constructions Overseas Pvt Ltd, before he joined the family business.  

          Akar Creations Pvt. Ltd’s entry into Mumbai Real Estate market has lent a fresh breath of air to the Mumbaities. Keeping in view of the group’s popularity in Goa, people here can have the taste of all Goan - hospitality, stringent quality norms, ethos, and expertise in offering scintillating ergonomic designs, etc.

        Akar Creations has been a trend-setter in real estate business. Your ideal dream home comes true now:For a customer who is ready with his dream home wish-list, Akar Creations Pvt. Ltd. packs-a-punch in its premium, sophisticated yet environmental friendly offering. Akar not only boasts about its various tangible but also about intangible benefits which come alive from - sensible blending of its design, intelligent planning, and execution, along with a focused customer-centric approach. It seems that their hospitality business has magnificently done wonders to    its real estate business, as the group leaves no stones unturned to groom their staff at par with the world-class service level. The warmth & personal care offered to each customer insures that the whole experience of buying a premium Akar home becomes a memorable one. Akar redefines the whole meaning of comfort & lifestyle. They add exclusivity to each of the project, so that their customer arrives in style. The inquisitiveness built around Akar projects bring CORPORATE CZARS to experience the kind of overwhelming response they receive, and ironically found  that the atmosphere here belies any negativity prophesied by market pundits for real estate…                                                                                                                                                         To get a closer look into the veracity of an Akar project, we tracked few enthusiastic customers about the choices they have made… A highly exuberant customer mentions - “I can vouch for an Akar project as they follow a pragmatic & eclectic approach while constructing the project and I heard that their projects often sell at a premium; offering better re-sale value.” Another customer offers his expert comment saying -“The important thing is to time the market well, and it’s so apt in bad times! Goodness gracious! Having heard so much about Akar, who better than them? Their track record shows that I will be looked after later, as I am looked after now.” We ask another customer who is a proud owner of Akar home since 20 years, turning towards his son he exclaims - “Buying an apartment is not a question of our own interests anymore, the decision we take today decides the future of our children. So, I am quite happy that the community environment in  Akar project is quite conducive in providing good values to a child’s initial growing years” CORPORATE CZARS is astounded      by this customer, who added new thought provoking rules to the established sales paradigm... 

“AKAR CREATIONS PVT LTD, caters to value for money & premium segments of the market. We are not in price sensitive segment nor positioned in the   luxury or ultra segment”, quips Mr. Chinmay.

        Chinmay Borkar, a 28 years young lad, grass root level player, a premium hospitality & realty brand strategist; a new business launcher  -  he is a serial entrepreneur who has worn all the hats, been there & seen it all.... The usually low profile reticent group have for the first time revealed about   their pan Indian odyssey….

                Also, a point worth mentioning is that the customers showed lot of positivity, coupled with immense patience while enquiring about an Akar project. Also, few of them made spot buying decisions too. As we planned to leave the project site, we saw a triumphant gleam in the customer’s eyes            who just bought his dream home here. Today, a customer has all the information about various projects coming up in the vicinity, still the likes of ‘Akar’ commanding so much customer euphoria speaks volumes about them. Also, it surely makes for an appropriate case study in the ever evolving real estate market about - how to win the customer, retain the customer & keep them satisfied so that they keep coming back for more! It is worth noting that ’Akar’ has quietly carved out a niche for itself amongst its contemporaries, away from the clutter around, towards a cleverly defined project portfolio.

Today’s customer do their homework quite well and can be very demanding,  posing umpteen challenges to the concerned companies who invest a AKAR’S MUMBAI PROJECT PLANS:

Premium Society Redevelopment projects planned for Mumbai are: 

 

Borivili: 

No. of Project: 2   

Estd. Apartments planned: 250

Average Ticket Size: 85 Lac-1.50 crore

 

Andheri (W)

No. of Project: 1   

Estd. Apartments planned: 100

Average Ticket Size: 1 crore-2 crore

Status:  Project coming up shortly

Location: Veera Desai

 

Kandivili:

No. of Project: 1   

Estd. Apartments planned: 100

Average Ticket size: 85 Lac-1.50 crore

 

Santacruz:

No. of Project:  1

Estd. Apartments planned: 150

Average Ticket size: 1 Crore-2 crore

 

“This is a good time to acquire as much plots during the market slump,” says Mr. Chinmay Borkar, the scion of the 100 years old Borkar group.

 

GOA & MUMBAI: OVERVIEW -

 

CORPORATE CZARS observed that the real estate development in Goa is horizontal with - Villas, etc. In Mumbai, the construction is more vertical. In Goa, only mini-townships maximum up to 250 units work, which is the Mumbai’s real estate standards not considered a township et all. Akar is working on these gated community projects since 2006. Aquamarina has about 250 units Excelsior has approx. 300 units, and Akar is looking towards completing its Mumbai projects in the next 1-2 years…    

CORPORATE CZARS in a tete-a-tete with the young achiever ‘Chinmay Borkar’ himself, who is entrusted with a huge responsibility by his father ‘Avinash Borkar’ - a doyen of Goa’s real estate Industry to spearhead Akar Creations Pvt. Ltd’s entry in Mumbai, and to rub Akar’s Goan magic & legacy in Mumbai too. We decode Akar’s ambitious growth plans with the warm, suave yet highly astute Chinmay Borkar, Director, Akar Creations Pvt. Ltd.

              Interestingly, last year - Goa Chamber of Commerce and Industry had emphasized the need of increasing the entrepreneurial base in the state, as outlined by its new president Manguirish Pai Raikar.

“In Goa, we were the pioneers in constructing gated communities, and we have experienced that big townships do not work there. Aquamarina is our most satisfying project till date”, says Chinmay Borkar exuberantly...

 

Q: Could you throw brief light on Borkar group’s enterprise journey? 

A: In fact, the printing business was initiated in 1944, and it was only in early 1980’s when the Borkar group entered packaging business! And, can you believe that ‘Borkar Packaging Pvt Ltd’ is one of the top 3 packaging businesses in India today. We have got factories in Himachal (Baddi), Daman & Goa and have clients across the world. Our biggest factories are based in Himachal, but we are head quartered in Goa.

                The retail business is based in Goa with 6 retail stores. They are like the D-mart supermarkets of Mumbai with ’Borkar Super Store’ brand name. And, this is an extension to our great grand father’s vision, when he started a kirana store. In 1990 we built Goa’s first self-service retail outlet in Goa. And, we are the only major chain of retail stores in Goa with multi-brand grocery, household items, FMCG products, etc.

                I had joined the family business in 2009. I started the group’s hospitality business - “The Sapphire”, a 3-star business hotel. This is the new business vertical of the group which was launched by me. After that I had gone to France to do my MBA, and came back only in July last year. In fact, I was still managing our hotel while I was in France. The Mumbai real estate mantle was passed to me from Nov-Dec’2011 onwards, but I got involved in it full-fledgedly only from Dec-Jan’2012. And, I was already participating in real estate business as a corporate or board level member since July, but I have been quite active on an operational level since Nov-Dec 2011.

 _________________________________________________________________________________

Q: In Goa people have a special bond with the century old Borkar group & “Akar” rich legacy? Could you share the aura? 

A:An Akar project strives to deliver more than what people expect from us, and as a benchmark even better than what would have been promised by any competitive project. We keep checking our customers with random questions about the factors which prompted them to buy our project, also non-customers about what would they like to see in a project! We are highly acclaimed for maintaining overall customer satisfaction levels. We periodically overhaul our quality from time-to-time, and the after sales commitment in our people is very high. There have been instances when customers share how our carefully planned projects changed their perception & raised the bar of quality in their lives, making us feel great with aplomb; but being well aware that our responsibility just got believe that we have all the skills required for the projects planned in Mumbai. In Goa, our structures get the freedom of unique design i.e. the villas can be individually customized while catering to a particular taste, etc. Whereas, in Mumbai our construction task will become much easier as we have to keep replicating the same structure up to the 20-30 floors. Until the building is finally complete.

 

Q: How is the market sentiment in Goa? And how do you plan to meet the challenge?

A: There is a mild dip in the real estate market, but it will recover soon. With a sparkle in his eyes, he emphasises - “In fact, it’s an opportune time for builders to acquire projects at a reasonable price, and equally a good time for the real estate Industry to consolidate.”

                In this fiscal year, depending upon the market conditions we plan to launch 2-major projects in Goa. As primary market is stable & not affected much, so there is still enough dearth of adequate homes. It’s the second home market which may have been affected in Goa/ Mumbai, but by large - primary home market is doing well. Frankly speaking, “compared to last year the sale has affected by 5-8% only.”

                2011-12 has been fairly good for us. Right now the economy is going through a churn, and we expect the market to revive by the end of the year 2013, to reach the normalcy levels of the Industry. Various factors drive the economy, and if the engines of growth in these crucial sectors sync well, then the good times may not be far away. Also, the unfavourable market situation will gives us ample time to plan our next move...

                                                                               

Q: What type of projects do we expect from Akar?

A: Our projects range from - a single building project, to mini-township, to a gated community project, etc. Presently, we don’t consider single building projects. Our projects in Goa are nothing less than 2 lakh Sq.ft. In Goa we have combination of villas & few buildings admeasuring the plot size. It’s only in the last 3 years that we acquired projects in Mumbai. And, we started Society redevelopment; wherein we bring down the whole building & re-construct the same. Akar has grand plans to replicate this streak of success in premium segment here in Mumbai too.

 

Q: Cushman & Weikfield have predicted the price correction but the builders are still reluctant to reduce the prices? What is the trend?

A: A Lot of agencies & even customers are talking about the price correction, but in the current scenario the bank interest rates are quite high as compared to what was - 5 years back. Inflation is high, and as input cost & finance cost is going up, so it’s not easy for       any developer to lower its rates. So, I don’t see any downward correction in real estate prices from the builders end! The builders are finding out ways to deal with the mixed   market sentiments. They are delaying their projects, doling out innovative schemes and making it affordable to people - till it’s viable for them to sell at!

 

Q: In many cases investors are shying in investing in the current market scenario? How are you dealing with it?

A: The serious real estate investors who are primarily investing in real estate continue to invest in the sector even today. It is the occasional investor which is shying away from this sector at the moment.

 

Q: What is so special in Goa’s soil that tends to naturally produce people with philanthropic nature?

A: Post-independence, as Goa’s major businesses prospered, they took upon themselves to do something for the less privileged community by large. Leading business houses of Goa came forward to build - hospitals, Education Institutes & other basic necessities required from time-to-time. Also, as this philanthropic movement gained momentum, external support started pouring in viz. finance, professional knowhow, etc. I feel it is an apt way of giving back to the society… Our responsibility has

increased further….   

 

Q: How is Goa & Mumbai real estate - comparison wise?

A: Goa & Mumbai are quite similar from climate and technical point of view. We believe that we have all the skills required for the projects planned in Mumbai. In Goa, our structures get the freedom of unique design i.e. the villas can be individually customized while catering to a particular taste, etc. Whereas, in Mumbai our construction task will become much easier as we have to keep replicating the same structure up to the 20-30 floors. Until the building is finally complete.

Q: How is the market sentiment in Goa? And how do you plan to meet the challenge?

A: There is a mild dip in the real estate market, but it will recover soon. With a sparkle in his eyes, he emphasises - “In fact, it’s an opportune time for builders to acquire projects at a reasonable price, and equally a good time for the real estate Industry to consolidate.”

                In this fiscal year, depending upon the market conditions we plan to launch 2-major projects in Goa. As primary market is stable & not affected much, so there is still enough dearth of adequate homes. It’s the second home market which may have been affected in Goa/ Mumbai, but by large - primary home market is doing well. Frankly speaking, “compared to last year the sale has affected by 5-8% only.”

                2011-12 has been fairly good for us. Right now the economy is going through a churn, and we expect the market to revive by the end of the year 2013, to reach the normalcy levels of the Industry. Various factors drive the economy, and if the engines of growth in these crucial sectors sync well, then the good times may not be far away. Also, the unfavourable market situation will gives us ample time to plan our next move...                                                                               

Q: What type of projects do we expect from Akar?

A: Our projects range from - a single building project, to mini-township, to a gated community project, etc. Presently, we don’t consider single building projects. Our projects in Goa are nothing less than 2 lakh Sq.ft. In Goa we have combination of villas & few buildings admeasuring the plot size. It’s only in the last 3 years that we acquired projects in Mumbai. And, we started Society redevelopment; wherein we bring down the whole building & re-construct the same. Akar has grand plans to replicate this streak of success in premium segment here in Mumbai too.

Q: Cushman & Weikfield have predicted the price correction but the builders are still reluctant to reduce the prices? What is the trend?

A: A Lot of agencies & even customers are talking about the price correction, but in the current scenario the bank interest rates are quite high as compared to what was - 5 years back. Inflation is high, and as input cost & finance cost is going up, so it’s not easy for  any developer to lower its rates. So, I don’t see any downward correction in real estate prices from the builders end! The builders are finding out ways to deal with the mixed   market sentiments. They are delaying their projects, doling out innovative schemes and making it affordable to people - till it’s viable for them to sell at!

Q: In many cases investors are shying in investing in the current market scenario? How are you dealing with it?

A: The serious real estate investors who are primarily investing in real estate continue to invest in the sector even today. It is the occasional investor which is shying away from this sector at the moment.

Q: What is so special in Goa’s soil that tends to naturally produce people with philanthropic nature?

A: Post-independence, as Goa’s major businesses prospered, they took upon themselves to do something for the less privileged community by large. Leading business houses of Goa came forward to build - hospitals, Education Institutes & other basic necessities required from time-to-time. Also, as this philanthropic movement gained momentum, external support started pouring in viz. finance, professional knowhow, etc. I feel it is an apt way of giving back to the society…

Since year 1999-2000 the group claims to have maintained a consistent growth performance of 30-35% on y-o-y basis. The trends show a whirlwind that is sweeping the group’s impressive growth, chiefly the growth drivers being   - Borkar Packaging & Akar Creations Pvt Ltd.

 

Q: We have the Tata’s & Birla’s but no organized set-up like USA to encourage our budding entrepreneurs? Please comment?

A: We have sea of highly educated people in India. But, unlike California, we still have dearth of an organized incubation set-up of angel investors in India. And, ironically we still look to the U.S.A for encouragement.

 

Q: Why Real estate is not accorded Industry status yet? Even Builders proximity to politicians has not done much good to get their support?

A: It is surprising that Film Industry is considered as an Industry, but Real estate which caters for Roti, Kapda & Makan does not get the Industry status.  If we had Real estate listed as an Industry, then it would have helped in lowering the cost of finance, almost down by 2-3 %. And, ultimately the benefits could have been shared with the end users… Also, few months back it was heartening to see our major associations - ‘CREDAI’ & ‘MCHI’ come in full strength to share real estate Industry’s issues with the government. Our fraternity looks much involved & active now. I am hopeful that in the coming few years we will definitely achieve an Industry status.       

 

Q: Could you share the group turnover & targets set for 2012-13?

A: Borkar group’s total revenues emanating in the FY 2011-12 was 250 crore. i.e. Rs.180 crore accounts from Borkar packaging, Rs.50 crore from Akar Creations, 20 crore from super stores and other allied businesses. In the current FY 2012-13 the total turnover envisaged from Borkar group is approx Rs. 380 crore.  ie.  Rs. 240 crore from Borkar Packaging, Rs. 100 crore from Akar Creations & the rest from the other businesses.

 

Q: What according to you are the various obstacles in entrepreneurship?

A: There are various obstacles in entrepreneurship today, for any youngsters -finance is the biggest obstacle. All thanks to my family that I was fortunate enough to not face any of such issues. Also, the unavailability of government clearance dries up even the best of the enthusiasm of the world. This is the 2nd biggest challenge for any new business as there are a lot of ambiguities & loop holes.

                                                                                 

Q: Kindly mention in brief about your new launches or diversification plans? 

A: On Healthcare: Akar could foray into medical tourism centres in the near future.

On Real Estate: We have ambitious plans to become a national player in next few years...

On New Launch: In the near future, 5 - projects are planned in Mumbai & 3-projects

are planned in Goa….

 

Q: What are the personal challenges you faced in the Industry?

A: I am not a civil engineer, and that has led to few initial challenges, but I have been able to overcome them gradually through the time I have spent working in this Industry.  Being an engineer it has helped me in overcoming these challenges much faster than I had expected.

 

Q: Finally - Kindly comment on your  father - ‘Mr. Avinash Borkar’s’ meteoric rise?

A: My father is not only my inspiration, but a source of inspiration for the whole organization. He is a role-model, a living example of what a simple person with - sincerity, strong determination, optimism & knowledge can achieve. If we stretch our limits, out-perform our set goals and carry a never-say-die attitude; then success is guaranteed. Mr. Avinash Borkar is the reason for Akar Creations achievements & rock solid performances till date. Apart from having marvellous business acumen, he has imparted the lessons of - integrity, trust, & humbleness with us.     

                 

 ☻ Akar Creations Pvt. Ltd. is one of biggest group in South Goa,

and has received the best real estate brand in Goa award -

Courtesy: Business    Goa publications ☻                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   &