Banking on an industry-first end-to-end digital sales platform for customers, Arvind SmartSpaces Limited (ASL), the real estate arm of the Arvind Group is eyeing 45-50 per cent of sales coming via the online mode in the near future .
Already, the share of digital sales has jumped from just six per cent in FY21 to 35 per cent in FY22 for the organized real estate player which has presence in Bengaluru, Pune and Ahmedabad. This has come in the midst of an industry average of 30 per cent among organized players.
“Our digital sales initiatives including the launch of the country’s first end-to-end digital sales platform have enabled us to drive over 35 percent of all fresh sales through digital channels thereby lowering our overall cost of sales,” said Kamal Singal, Managing Director and CEO, Arvind SmartSpaces while adding that the company aims to touch 45-50 per cent of digital sales in the near future.
Arvind SmartSpaces’ digital sales platform will not only enable customers to view entire inventory listings but also can get complete information of the price per unit. An extension of the company’s website https://www.arvindsmartspaces.com/, the online sales platform will provide virtual walkthroughs of the projects to the customers.
Customers will also be able to view spaces within their potential home and will be able to experience the interiors. Arvind SmartSpaces will also enable customers to virtually get a view out of their balconies and look at the surroundings through the integration of the VR model into the existing website. In its first-of-its-kind offering, the exact units, position within the project, layout and the entire inventory will also be visible to anyone on the platform.
While the company has launched the platform with Arvind Bel Air, a premium residential project in Yelahanka, Bengaluru, eventually, customers will be able to book and purchase homes in various other locations.
According to Singal, digital sales have largely seen traction from end users of residential projects as well as non-resident Indians (NRIs) who tend to trust a brand with online presence. As a result, over 85 per cent of conversions in digital sales have been end users, with 80-90 per cent of Bangalore users being service sector employees.
With approximately 25 million square feet (msf) of real estate development across Ahmedabad, Gandhinagar, Bangalore and Pune, Arvind SmartSpaces has seven ongoing projects including six residential and one commercial. However, in terms of revenue, Ahmedabad contributes 60-70 per cent of sales, followed by Bangalore with 25 per cent.
Going forward, apart from expanding its digital sales platform to other projects and locations, Singal stated that the company would also be investing in new projects and pipeline amid momentum of input cost rise slowing down. “Along with surplus cash, we also have a head room to raise Rs 300-400 crore of debt which should be enough to fuel future projects,” Singal told Business Standard.
The company had recently reported strong momentum in fresh sales with Rs 150 crore for the fourth quarter ended March 31, 2022 aided by strong traction for luxury villas at its existing project in Ahmedabad. The company also reported a jump of 20 per cent in its net collections of Rs 160 crore for the quarter versus the same quarter of the previous year. Arvind SmartSpaces had clocked a 72 per cent year-on-year (YoY) growth in its revenue at Rs 257 crore for the full financial year 2021-22 with a profit after tax (PAT) growth of 186 per cent to Rs 25 crore during the year.