People who invested in Amaravati realty bleeding

You have set a steep target of Rs 5,000 crore top line by 2030, which means a 50-fold jump from the current turnover in a decade. To achieve this target, will you diversify into new segments?

Our key focus is the construction sector which has been my strength for the past three decades. We have constructed industrial buildings, commercial sectors, buildings for educational institutes, etc.

But we never went out seeking contracts. All the contracts we executed so far came to us through referrals and as repeat orders. But we are going to change our strategy now and go out for works. However, we don't enter sectors in which we do not have any experience.

Will you go into co-working or co-living segments?

Definitely. Today, I can't say I will do this or that. But we are going to tap every opportunity. However, we do a proper study and background work before tapping any new opportunity. Nothing will happen to me if my group doesn't achieve Rs 5,000 crore. But we will never deviate from our core values to achieve the goal. We will not do things which are not possible.

I told myself that I can run for 21 km (half-marathon). I did. But I know that I can't do full marathon (42 km). So, I will not attempt full marathon. My approach to business will be similar. However, I will make a big difference to the society and increase Ark Foundation's (CSR) activities if I achieve my goal of Rs 5,000 crore turnover.

In how many States Ark had undertaken construction contracts? Will it expand to new geographies?

We have executed projects in Maharashtra, Goa, Tamil Nadu, Andhra Pradesh and Telangana. In Bengaluru, we already have real estate operations. So, we will establish Contracts Division there and start taking up projects in Karnataka as well. Going forward, we will take up projects across the country. However, we are not taking up government projects. Our focus is private projects and that will continue.

Open plots segment needs organised players. Do you have any plans to develop layouts and sell open plots?

Ark will also foray into open plots segment as it's easy to do. We have land in Adibatla, but we may not take up the project immediately. We will explore every possibility as our only aim is to grow. We have recently taken up apartment project in 2,000 square yards in Suryapet. If you ask me whether it's viable, I can say it is viable.

Will Ark take up any real estate projects in Amaravati, the Greenfield capital of Andhra Pradesh?

I studied Amaravati market when I got an opportunity in the past. I was not happy with the way things were happening there. I also made some suggestions. I expected the bubble to burst there. The exponential growth that was projected would not be feasible. People who invested in Amaravati real estate market are bleeding. People invested their hard-earned money in that market. Some borrowed and invested there. It's very sad that developers are not able to execute projects there. They are in deep trouble. A reputed contractor is not able to pay salaries. I don't want to name him, but that is the situation there. The situation is beyond their control though.

Will real estate market in Amaravati revive?

The market there will come back on track if AP government is keen and takes steps for its revival. There is a lot of negative perception about AP's capital now. It takes time for the government to change the negative perception to positive. That will not happen any time soon. It will be difficult for anyone to change the negative perception. Furthermore, we don't know what is in the new government's mind. It may have better plans. At present, the AP government is focusing on welfare schemes.

How is the Hyderabad real estate market now?

It can be said that there is a slowdown in growth in Hyderabad. However, there is no de-growth.

Why the impact of economic slowdown is severe on Telangana compared to other States?

It's true that there is more impact of slowdown on Telangana economy compared to other States. The Telangana government has been focusing on welfare schemes. As consequence, there is a fall in capital investments. I think Telangana government will invest in growth-oriented initiatives. It will have to do.