WEBVTT 1 00:00:06.440 --> 00:00:08.599 You're with us here on the Business Today podcast. 2 00:00:08.640 --> 00:00:11.400 I'm Ababakaya and joining us today is Diman Shah, the 3 00:00:11.439 --> 00:00:15.560 co founder and co CEO of luxury home brand It's Brava, 4 00:00:15.640 --> 00:00:18.839 which is growing from strength to strength. It's actually completed 5 00:00:19.160 --> 00:00:24.640 its tenth year this year and we're celebrating the anniversary. Congratulations, demand, 6 00:00:24.719 --> 00:00:27.600 thank you, thank you very much. Phenomenal growth. I want 7 00:00:27.640 --> 00:00:30.079 to kick off by saying that everyone's watched how the 8 00:00:30.280 --> 00:00:35.039 Brava story has gone from zero to a thousand crores in. 9 00:00:35.200 --> 00:00:36.119 Just ten years. 10 00:00:36.439 --> 00:00:39.600 It is absolutely phenomenal. So today we're going to dive 11 00:00:39.640 --> 00:00:41.719 in and understand how this happened. 12 00:00:41.880 --> 00:00:45.119 Sure, sure, absolutely, very excited. Thank you for having me. 13 00:00:45.600 --> 00:00:47.759 So tell us when you first began and was this 14 00:00:47.880 --> 00:00:50.640 pre covid was it? Did you already have the seeds 15 00:00:50.679 --> 00:00:53.359 of thought pre covid? You know, where did you first 16 00:00:53.439 --> 00:00:55.600 begin to think about creating this concept? 17 00:00:55.920 --> 00:00:57.880 So absolutely pre covid. 18 00:00:57.920 --> 00:01:00.280 Let me start with that, you know where, Like like 19 00:01:00.320 --> 00:01:05.200 you said, we're completing our ten years and yeah, we started. 20 00:01:05.239 --> 00:01:08.079 The seeds of thought were way before COVID. Actually this 21 00:01:08.159 --> 00:01:10.920 had nothing to do with COVID. Actually, COVID just accelerated 22 00:01:10.959 --> 00:01:14.599 what we thought and saw coming the way India lives, etc. 23 00:01:15.239 --> 00:01:16.760 I'm sure we'll get to that through the course of 24 00:01:16.760 --> 00:01:17.879 the conversation. 25 00:01:17.480 --> 00:01:21.480 But very simply, you know, I was my brother and 26 00:01:21.519 --> 00:01:22.480 I were working abroad. 27 00:01:22.519 --> 00:01:23.640 I was in New York. 28 00:01:23.680 --> 00:01:25.959 He was in London and New York and we were 29 00:01:25.959 --> 00:01:29.879 investment bankers and came back, went to go out, fell 30 00:01:29.920 --> 00:01:31.640 back in love with Goa. We had you know, growing 31 00:01:31.680 --> 00:01:34.319 up as children, you go but fell back in love 32 00:01:34.359 --> 00:01:38.120 with GOA. Wanted to buy something of our own, and 33 00:01:38.599 --> 00:01:40.760 we just didn't like anything that we saw. 34 00:01:40.879 --> 00:01:41.040 Right. 35 00:01:41.400 --> 00:01:44.799 You had a lot of local builders. You had a 36 00:01:44.840 --> 00:01:47.920 few guys from Delhi at the time, even then, and 37 00:01:47.959 --> 00:01:51.480 they were just doing unimaginative stuff. Right there just wasn't 38 00:01:51.519 --> 00:01:52.560 anything that we loved. 39 00:01:52.799 --> 00:01:54.040 And the dream, isn't it. 40 00:01:54.040 --> 00:01:56.439 It's the dream to own your own home and to 41 00:01:56.480 --> 00:01:58.640 find something that you can love and you can call 42 00:01:58.680 --> 00:01:59.040 your own. 43 00:01:59.079 --> 00:02:02.079 Absolutely lucally, and you know, the dream for us was 44 00:02:02.159 --> 00:02:05.799 actually to build a true luxury brand. It wasn't real estate. 45 00:02:05.879 --> 00:02:09.039 We weren't planning on building a real estate brand. What 46 00:02:09.080 --> 00:02:12.000 we wanted to build was a true luxury brand. We 47 00:02:12.080 --> 00:02:14.240 happened to see the gap in the market, which was 48 00:02:14.280 --> 00:02:17.400 real estate which was building homes one of the kind 49 00:02:17.439 --> 00:02:21.120 homes and go other people had never seen before, layering 50 00:02:21.199 --> 00:02:24.840 on a whole host of other things like service management. 51 00:02:24.960 --> 00:02:26.759 You know, we manage your homes end to end. We 52 00:02:26.800 --> 00:02:29.159 have a twenty four x seven conciage. We had that 53 00:02:29.199 --> 00:02:29.960 from day one. 54 00:02:31.520 --> 00:02:33.639 Probably a little ahead of its time, a very. 55 00:02:33.520 --> 00:02:34.919 Ahead of its time. No one had heard of there's 56 00:02:34.960 --> 00:02:35.879 no one had experienced this. 57 00:02:37.039 --> 00:02:41.639 You know, our buyers, our people, their professionals, their bankers, 58 00:02:41.759 --> 00:02:47.639 their lawyers, their entrepreneurs, their industrialists, and I mean we 59 00:02:47.719 --> 00:02:51.000 realized true luxury lies and removing a lot of this friction, right, 60 00:02:51.000 --> 00:02:53.560 which is what we started doing for them, not only 61 00:02:53.599 --> 00:02:55.759 building what we like to consider and I think others 62 00:02:55.800 --> 00:02:58.159 consider as well, some of the most beautiful homes in 63 00:02:58.199 --> 00:03:02.159 the world, but layering on really really robust services around it, 64 00:03:02.599 --> 00:03:05.759 from you know, airport pickups and drops. We fully manage 65 00:03:05.800 --> 00:03:10.120 your home, say your housekeeping, your pool cleaning, your landscaping, 66 00:03:10.280 --> 00:03:12.479 and everything in between. We have a very strong in 67 00:03:12.560 --> 00:03:16.560 house F and B program. All of it gets layered 68 00:03:16.599 --> 00:03:19.319 on top, right and uh, and that's what people want, right. 69 00:03:19.400 --> 00:03:21.520 That's when when you're building out a luxury product, you 70 00:03:21.560 --> 00:03:23.520 have to cater to all of that and we've done 71 00:03:23.560 --> 00:03:23.960 that from. 72 00:03:23.840 --> 00:03:25.240 Day one fantastic. 73 00:03:25.319 --> 00:03:27.960 So, you know, did you have to put in some 74 00:03:28.000 --> 00:03:30.639 of your own money? Did you find early investors? 75 00:03:31.319 --> 00:03:32.360 What did it take now? 76 00:03:32.439 --> 00:03:34.759 So I it in the early days, it took a lot. 77 00:03:35.360 --> 00:03:39.599 We actually uh convinced our father and he very generously agreed, 78 00:03:39.680 --> 00:03:44.520 and we mortgaged his house kind of loan and uh 79 00:03:45.159 --> 00:03:47.840 we uh and that's how we started the business. 80 00:03:47.879 --> 00:03:48.000 Right. 81 00:03:48.039 --> 00:03:49.199 We bought a parcel of land. 82 00:03:49.439 --> 00:03:51.759 Uh. We used some of the you know money we 83 00:03:51.840 --> 00:03:55.719 had through this kind of loan to build, built our 84 00:03:55.759 --> 00:03:58.759 first home, sold it, built our second home with money 85 00:03:58.759 --> 00:04:01.039 from that sold it, filed our third home, and so 86 00:04:01.080 --> 00:04:03.919 on and so forth. And then I want to say, 87 00:04:03.919 --> 00:04:07.360 close to ten homes into what we were doing is 88 00:04:07.360 --> 00:04:11.599 when we started actually getting external investors. Right, People started 89 00:04:11.639 --> 00:04:15.039 believing in our story. People started seeing that what we're 90 00:04:15.080 --> 00:04:18.800 doing is completely different. Indian real estate hadn't seen anything 91 00:04:18.879 --> 00:04:19.079 like this. 92 00:04:19.199 --> 00:04:19.319 Right. 93 00:04:19.360 --> 00:04:24.920 Imagine these massive homes, right, luxury high end homes, fully furnished, 94 00:04:25.279 --> 00:04:29.360 fully managed, fully serviced, delivery of homes ahead of time. 95 00:04:30.240 --> 00:04:32.639 This was you know, just as the cusp of yeah, 96 00:04:32.639 --> 00:04:34.600 and just on the cusp of Rara coming in Rara 97 00:04:34.639 --> 00:04:35.360 hadn't yet come in. 98 00:04:35.399 --> 00:04:38.160 So, you know, Raira has been really good for the industry. 99 00:04:38.199 --> 00:04:40.800 I think it's just helped him create creating a lot 100 00:04:40.839 --> 00:04:45.920 of confidence. It weeded out all your fly by night 101 00:04:46.040 --> 00:04:48.920 kind of guys and you know, your true credible players 102 00:04:49.600 --> 00:04:52.480 thrive in Arera environment. When we started out, Rara wasn't 103 00:04:52.519 --> 00:04:54.959 really so real estate had a bad name actually if 104 00:04:54.959 --> 00:04:58.079 you think absolute. So people were seeing what we were 105 00:04:58.079 --> 00:05:00.279 doing and saying, hey, wow, right, and you know, place 106 00:05:00.360 --> 00:05:02.720 like go Up. That's where our journey started. Now whre 107 00:05:02.720 --> 00:05:06.040 in several other locations. But so we know, we've been 108 00:05:06.120 --> 00:05:08.600 really fortunate with the partners. We've had people who've taken 109 00:05:09.040 --> 00:05:11.079 you know, a chance on us in our early days, 110 00:05:11.720 --> 00:05:14.959 the ghost Rage family, the Berman's, the you know in 111 00:05:15.040 --> 00:05:18.959 several other right, and now we have more institutional style capitals. 112 00:05:19.000 --> 00:05:22.120 We have a couple of private recuity funds. But that's 113 00:05:22.120 --> 00:05:24.319 how it all started. And you know, I think we 114 00:05:24.480 --> 00:05:27.639 just literally built no pun intended, brick by brick, right, 115 00:05:28.079 --> 00:05:30.240 That's that's how That's how we did it. 116 00:05:30.360 --> 00:05:32.160 So you said you didn't want to become a real 117 00:05:32.240 --> 00:05:34.439 estate brand, but you obviously had to build to probably 118 00:05:34.480 --> 00:05:37.279 show proof of concept, to create sort of a model, 119 00:05:38.680 --> 00:05:40.600 you know, prototypes, so to say, in terms of what 120 00:05:40.639 --> 00:05:43.079 you were looking to build, and then it's just evolved 121 00:05:43.079 --> 00:05:46.360 into that as you've gone ahead. Now you've actually raised 122 00:05:46.639 --> 00:05:49.639 quite a bit of institutional capital recently. Tell us about that, 123 00:05:49.720 --> 00:05:52.000 and tell us you know what the plan is in 124 00:05:52.079 --> 00:05:54.319 terms of the rollout and the kind of infantry you're 125 00:05:54.319 --> 00:05:55.399 looking to build going ahead. 126 00:05:55.519 --> 00:05:59.360 Right, So let me answer this by putting some numbers 127 00:05:59.399 --> 00:06:03.240 in in in context. First, we now currently have about 128 00:06:03.279 --> 00:06:07.279 four hundred and fifty homes under construction. These are various 129 00:06:07.279 --> 00:06:10.079 stages of construction, like from early summer in the pre 130 00:06:10.199 --> 00:06:13.959 launch stage, pre design stage, and summer close to completion. 131 00:06:15.240 --> 00:06:19.040 Four hundred and fifty homes under construction, four hundred of 132 00:06:19.040 --> 00:06:21.839 which approx. Four hundred fourteen of which are already sold, 133 00:06:23.000 --> 00:06:24.360 maybe a bit more actually now. 134 00:06:24.240 --> 00:06:25.920 And give everyone the price point of these homes. 135 00:06:26.160 --> 00:06:31.279 Yeah, yeah, So these homes eighty percent of these homes 136 00:06:31.319 --> 00:06:34.519 in an average price point of about fifteen to sixteen crows. 137 00:06:35.240 --> 00:06:38.040 About twenty percent of these homes in the average price 138 00:06:38.079 --> 00:06:41.279 point but five to six cross. 139 00:06:41.319 --> 00:06:43.160 That's broadly the breakup today. 140 00:06:43.879 --> 00:06:46.680 We have, in addition, delivered about one hundred and eighty 141 00:06:46.680 --> 00:06:49.759 five homes now close to two hundred homes in addition. 142 00:06:49.439 --> 00:06:52.040 To what we have under construction. So that's just the 143 00:06:52.079 --> 00:06:53.279 context of where we are. 144 00:06:54.439 --> 00:07:00.000 This is across locations Goa, Alibag, Casoli, and we're launching 145 00:07:00.040 --> 00:07:03.879 Karjat very soon as well, so that those are the locations. 146 00:07:03.920 --> 00:07:05.439 So right now, everything i'm telling you is. 147 00:07:05.360 --> 00:07:08.199 Actually spread across three locations, right because Karjat is to 148 00:07:08.240 --> 00:07:12.639 be launched. So you know, the way, what we realized 149 00:07:13.040 --> 00:07:15.720 is the way to actually scale this business is to 150 00:07:15.759 --> 00:07:18.800 be deep in a location rather than just being in 151 00:07:18.959 --> 00:07:22.199 several locations. Right, that strategy doesn't really work it according 152 00:07:22.199 --> 00:07:26.439 to us. So when we wanted to, you know, when 153 00:07:26.480 --> 00:07:31.199 we receive some inbounds to raise capital, we were very fortunate, again, 154 00:07:31.639 --> 00:07:34.680 very high quality kind of private equity partners, et cetera 155 00:07:34.839 --> 00:07:40.600 approached us. We didn't really need to raise too much capital. Again, 156 00:07:40.600 --> 00:07:43.199 fortunately we you know, we're a profitable company, et cetera. 157 00:07:44.160 --> 00:07:45.600 Have you been profitable from get go? 158 00:07:45.759 --> 00:07:46.680 No, No we haven't. 159 00:07:47.079 --> 00:07:48.160 Okay, we'll come back to that story. 160 00:07:48.199 --> 00:07:50.600 Yeah, we haven't been profitable from the get go. We 161 00:07:50.680 --> 00:07:53.639 actually grew into profitability and we'll come back to it 162 00:07:53.680 --> 00:07:55.319 and I'll explain why there's newance to why. 163 00:07:55.399 --> 00:07:55.879 Et cetera. 164 00:07:56.000 --> 00:07:59.519 And so we're very fortunate we got we're partnering with 165 00:07:59.600 --> 00:08:05.399 Hillhouse in India, which is alta capital led by Sid Gupta. He's, 166 00:08:05.639 --> 00:08:09.680 you know, a legendary investor, understands real estate, understands luxury. 167 00:08:09.920 --> 00:08:12.199 Him and his team, you know, work closely with us. 168 00:08:12.680 --> 00:08:13.360 So we raised one. 169 00:08:13.360 --> 00:08:17.040 Hundred million US dollars in capital, primarily, like I said, 170 00:08:17.079 --> 00:08:19.839 for growth, because we're profitable. So this was all growth capital. 171 00:08:21.120 --> 00:08:24.680 The strategy is to go deeper, you know. And now 172 00:08:24.720 --> 00:08:28.839 I'll segue a little because it's all linked. We started 173 00:08:28.839 --> 00:08:31.519 with brand is Brava. What is Brava does? Is we 174 00:08:31.680 --> 00:08:33.600 just like you know, we spend some time talking about 175 00:08:33.600 --> 00:08:37.679 we build beautiful homes. Right the average selling price in 176 00:08:37.759 --> 00:08:41.039 Isprava is fifteen to sixteen cross. We've just sold a 177 00:08:41.080 --> 00:08:44.720 home for one hundred crows. Wow, thank you, thank you. 178 00:08:44.799 --> 00:08:49.519 So you know, no we can't you know, even the 179 00:08:49.679 --> 00:08:51.919 even the ten crow home, we can't. We really maintain 180 00:08:52.399 --> 00:08:56.600 really strict confidentiality. So I wish I could that I 181 00:08:57.559 --> 00:09:02.159 wish I could, but we can't. So but your average 182 00:09:02.159 --> 00:09:05.960 ticket is fifteen to sixteen cross, everything between ten cross 183 00:09:06.080 --> 00:09:09.720 to one hundred Cross is where Esprava operates. But if 184 00:09:09.759 --> 00:09:13.559 you take away to averages fifteen to sixteen Cross. We 185 00:09:13.639 --> 00:09:19.000 then layered onmo is a very high end luxury management 186 00:09:19.120 --> 00:09:22.159 and rental brand. So what Lohono does is then manages 187 00:09:22.200 --> 00:09:23.960 these homes and rents them in short in a short 188 00:09:24.039 --> 00:09:28.240 term format, again literally at the upper end of the 189 00:09:28.279 --> 00:09:30.639 band super luxury. Like I started with, we are a 190 00:09:30.720 --> 00:09:34.120 luxury house. We put out brands that are only in 191 00:09:34.159 --> 00:09:39.120 the luxury segment. We recently then launched the chapter. 192 00:09:39.399 --> 00:09:41.120 Okay, before you get to the chapter, So if I 193 00:09:41.159 --> 00:09:43.679 wanted to, let's say, go and rent out a Lohano 194 00:09:43.759 --> 00:09:47.279 stage in Goa, what would be the average pricing? It 195 00:09:47.320 --> 00:09:49.919 could be seasonal, but what would be the average pricing. 196 00:09:49.720 --> 00:09:52.960 Anywhere between thirty to forty thousand rupeas a night for 197 00:09:53.039 --> 00:09:55.480 a three bedroom to a four bedroom home. We have 198 00:09:55.559 --> 00:09:57.759 six bedroom homes, we have ten bedroom homes, and we 199 00:09:57.799 --> 00:09:59.679 don't have anything less than a three bedroom home. 200 00:09:59.799 --> 00:10:02.039 And what's the kind of inventory or the number of 201 00:10:02.120 --> 00:10:03.320 rooms you have when it comes to. 202 00:10:04.000 --> 00:10:07.960 So a lot? Okay, no, no, let me let me 203 00:10:08.039 --> 00:10:08.679 quantify it for you. 204 00:10:08.799 --> 00:10:12.720 We have in India alone, we have over one thousand 205 00:10:12.840 --> 00:10:17.120 rooms really in India alone, we have over one thousand rooms. 206 00:10:17.320 --> 00:10:17.600 Wow. 207 00:10:17.639 --> 00:10:20.279 And so this is not just in those three locations. 208 00:10:19.799 --> 00:10:22.559 No, no, this is I mean we're in Kashmir where 209 00:10:22.639 --> 00:10:26.440 in Rajasthan where Isprava and Chapter don't operate, okay, and 210 00:10:26.480 --> 00:10:29.399 there we take over really one of the kind properties. 211 00:10:29.440 --> 00:10:33.000 You know, people have built great assets over time. In Rajasthan, 212 00:10:33.080 --> 00:10:35.480 we have, you know, some properties that are part of 213 00:10:35.480 --> 00:10:37.000 the royal families. 214 00:10:36.519 --> 00:10:37.879 You know, as a pool, et cetera. 215 00:10:37.960 --> 00:10:41.240 So we are all really high quality assets that we 216 00:10:41.440 --> 00:10:43.320 then kind of you know. 217 00:10:43.279 --> 00:10:46.279 And you and you fill up the capacity. I mean 218 00:10:46.759 --> 00:10:48.120 really you're seeing. 219 00:10:47.840 --> 00:10:50.480 That much demand, you know, and this can be a 220 00:10:50.559 --> 00:10:53.240 segment on its own, right, No, no, no, but you know, 221 00:10:53.639 --> 00:10:56.279 if you think about Indians, right, all of us, we 222 00:10:56.360 --> 00:10:59.320 don't we do one out of ten trips or holidays 223 00:10:59.519 --> 00:11:02.360 with just us and our spouse, right when not like 224 00:11:02.399 --> 00:11:04.080 the West, the West they do nine out of ten 225 00:11:04.120 --> 00:11:07.080 trips is just the person in their spouse. In India, 226 00:11:07.240 --> 00:11:08.960 only one out of ten is you and your spouse. 227 00:11:09.080 --> 00:11:12.159 Nine out of ten trips is actually you in a group, right, 228 00:11:12.440 --> 00:11:14.960 You with family, you with friends, You with family and friends. 229 00:11:15.320 --> 00:11:16.080 We're very social. 230 00:11:16.120 --> 00:11:18.639 We like to holiday We're generous, we're large hearted, we 231 00:11:18.759 --> 00:11:19.799 like to be together, we. 232 00:11:19.759 --> 00:11:21.919 Like to you know, that's who we are. 233 00:11:22.519 --> 00:11:27.799 So very high end villas work really well because your 234 00:11:27.799 --> 00:11:30.320 swimming pool is yours, it's private, just for your group. 235 00:11:30.759 --> 00:11:33.039 You're in a living area that's yours, private just to 236 00:11:33.120 --> 00:11:35.120 your group. So you're not in a hotel sharing it 237 00:11:35.120 --> 00:11:37.399 with one thousand other people. Right, You're part of a 238 00:11:37.639 --> 00:11:41.440 very small community. It's only your pool, only your living room. 239 00:11:42.000 --> 00:11:43.919 You want to eat breakfast at four pm, you can 240 00:11:43.960 --> 00:11:46.039 eat breakfast at four pm. F and B is tailor 241 00:11:46.080 --> 00:11:49.679 made and catered to you. We Indians, we're also foodies. 242 00:11:50.480 --> 00:11:52.639 We love food, we love. 243 00:11:52.559 --> 00:11:55.240 Eating at different hours and different times, etc. Et cetera. 244 00:11:56.240 --> 00:11:58.000 You're able to cater to all of that as long 245 00:11:58.039 --> 00:12:00.440 as you crack service, which is something I think we've 246 00:12:00.440 --> 00:12:01.600 done really really well. 247 00:12:01.879 --> 00:12:02.159 Yeah. 248 00:12:02.200 --> 00:12:02.679 Absolutely. 249 00:12:02.759 --> 00:12:06.080 I mean it's very refuted in the industry. Everyone knows 250 00:12:06.080 --> 00:12:08.000 what in it. Bravaar Lahono's experience. 251 00:12:07.720 --> 00:12:10.279 Will be exactly exactly. So you know, when you have 252 00:12:10.440 --> 00:12:13.000 all of that right, the market just keeps growing. 253 00:12:13.080 --> 00:12:13.240 Right. 254 00:12:13.840 --> 00:12:17.080 You look at your super rich in India, your Bollywood stars, 255 00:12:17.080 --> 00:12:20.080 your cricketers, your industrialists, your low they only want to 256 00:12:20.120 --> 00:12:24.120 stay in luxury serviced villas. Almost nobody goes to a 257 00:12:24.120 --> 00:12:25.480 hotel anymore in that segment. 258 00:12:25.480 --> 00:12:27.720 I mean they do. There's a use case for hotels 259 00:12:27.759 --> 00:12:28.240 as well. 260 00:12:28.320 --> 00:12:30.720 Right, But when you want true privacy, when you want 261 00:12:30.720 --> 00:12:34.519 true luxury, when you want a very differentiated experience, you 262 00:12:34.559 --> 00:12:37.679 will do you know, a luxury villa kind of stay. 263 00:12:37.840 --> 00:12:39.799 Okay, So is it just the celebs the man or 264 00:12:39.840 --> 00:12:42.039 are you also seeing, like you said, you know, a 265 00:12:42.120 --> 00:12:43.120 larger segment. 266 00:12:42.879 --> 00:12:44.320 Right, seeing a massive segment. 267 00:12:44.919 --> 00:12:47.200 I was just using celebs as an example, but a 268 00:12:47.279 --> 00:12:52.000 massive segment right. In general, Indians are loving staying in 269 00:12:52.080 --> 00:12:55.440 luxury villas, right, and we are literally in most geography 270 00:12:55.480 --> 00:12:56.879 is the only real game in town. 271 00:12:57.000 --> 00:12:58.120 At that end of the segment. 272 00:12:58.480 --> 00:13:01.440 There are the villa company, but they're not service sing 273 00:13:01.519 --> 00:13:04.000 and they're not servicing. You know, it's it's a very 274 00:13:04.440 --> 00:13:07.360 you know, kind of hit and misservice level. Our service 275 00:13:07.440 --> 00:13:09.159 level is actually very elevated. 276 00:13:10.480 --> 00:13:12.480 So that's clearly your us USB. 277 00:13:13.000 --> 00:13:16.559 You know, we have two kind of very strong rights 278 00:13:16.600 --> 00:13:19.200 to win in this business in Lohono. Number one is 279 00:13:19.200 --> 00:13:21.279 the best product. We have the best home spirit. No 280 00:13:21.320 --> 00:13:24.000 one can no one in India has better homes than 281 00:13:24.080 --> 00:13:26.919 us on the Lohana platform and number two US service 282 00:13:27.000 --> 00:13:31.080 is insanely good. So I wouldn't say our service is 283 00:13:31.080 --> 00:13:32.799 like how I said about product the best in India 284 00:13:32.840 --> 00:13:34.960 because you go to a hotel and many hotels have 285 00:13:35.000 --> 00:13:39.879 great service, right Joe Buroi for the four seasons and 286 00:13:39.879 --> 00:13:41.480 so on and so forth, they all have great service. 287 00:13:42.399 --> 00:13:44.879 But our service is up there, right, but our product 288 00:13:45.000 --> 00:13:48.480 is unmatched, unparallel. You combine the two, it becomes very impotent. 289 00:13:49.120 --> 00:13:50.320 And that's why we're winning. 290 00:13:50.480 --> 00:13:51.320 Okay, fantastic. 291 00:13:51.399 --> 00:13:54.279 So now chapter you sink I interrupted your course the 292 00:13:54.360 --> 00:13:56.120 next leg of growth. 293 00:13:56.000 --> 00:13:58.000 Right, so you know the way we think about it 294 00:13:58.039 --> 00:14:01.399 is Isprava is our super luxury and Lohono kind of 295 00:14:01.480 --> 00:14:04.919 layers on top of everything. And then the chapter is 296 00:14:05.080 --> 00:14:08.320 our luxury brand. Right where your average ticket size between 297 00:14:08.360 --> 00:14:11.600 four to six cross, so call it five cross. These 298 00:14:11.639 --> 00:14:15.159 are fully furnished like in Isprava home really beautiful homes, 299 00:14:15.960 --> 00:14:19.080 very techingable. Though you kind of design your entire home 300 00:14:19.120 --> 00:14:20.000 with us on an iPad. 301 00:14:20.120 --> 00:14:20.559 What fun. 302 00:14:21.279 --> 00:14:24.240 People are loving it and think about it, right, you 303 00:14:24.279 --> 00:14:27.159 get a three bedroom home with a private swimming pool, 304 00:14:27.240 --> 00:14:28.600 fully furnished. 305 00:14:28.159 --> 00:14:29.919 Fully backed up, fully done for you. 306 00:14:30.159 --> 00:14:33.320 Every fully serviced with by Lohono for five cross right 307 00:14:33.360 --> 00:14:35.440 and go our Alibag or Karajats right. 308 00:14:35.480 --> 00:14:37.600 And but tell me something this trend and I think 309 00:14:37.600 --> 00:14:40.080 that's why we touched upon COVID earlier because clearly the 310 00:14:40.120 --> 00:14:42.840 second home or the holiday home trend came about during 311 00:14:42.879 --> 00:14:45.759 that time or accelerated during that time. Do you think 312 00:14:45.799 --> 00:14:49.600 today people I mean a clearly the demand is still there. 313 00:14:49.679 --> 00:14:52.200 I want to ask that question, but are people also 314 00:14:52.240 --> 00:14:55.120 looking for this, you know, within their city of residents 315 00:14:55.120 --> 00:14:58.559 because we're seeing luxury booming across metros. Are you going 316 00:14:58.639 --> 00:15:01.200 to continue to focus on the second home market or 317 00:15:01.200 --> 00:15:03.480 are you also looking at new segments? 318 00:15:03.519 --> 00:15:07.720 No great question, I think. So let me actually just 319 00:15:07.960 --> 00:15:11.720 kind of tweak what you said, right, We actually don't 320 00:15:11.799 --> 00:15:14.559 view ourselves as a second home or you know, holiday 321 00:15:14.559 --> 00:15:17.600 home kind of player at all. Okay, and I'll tell 322 00:15:17.600 --> 00:15:19.519 you why again. I'll just give you some data points. 323 00:15:19.759 --> 00:15:22.080 Thirty to thirty five percent of people who buy from 324 00:15:22.120 --> 00:15:25.759 US are using these home as primary residences. I define 325 00:15:25.759 --> 00:15:28.559 a primary residence as someone who's using spending nine to 326 00:15:28.639 --> 00:15:33.120 twelve months in a Really now, look at places like Alibag, 327 00:15:33.200 --> 00:15:37.159 you look at even places like goa right, these are 328 00:15:37.200 --> 00:15:41.559 becoming real. They're not holiday destinations anymore. Right, people are moving. 329 00:15:43.399 --> 00:15:47.919 Ninety percent of our homeowners are not investors, right, ninety 330 00:15:47.960 --> 00:15:50.840 five percent actually are not in These are end users. 331 00:15:51.559 --> 00:15:51.960 Number one. 332 00:15:52.039 --> 00:15:55.159 Number two is again i'll link back to you know 333 00:15:55.200 --> 00:15:58.159 how we are with family, et cetera. One person might 334 00:15:58.279 --> 00:16:01.159 buy the home, but between eight to nine months in 335 00:16:01.200 --> 00:16:03.120 a year, you have someone from the family living in 336 00:16:03.159 --> 00:16:03.440 the home. 337 00:16:03.600 --> 00:16:05.799 Okay, So that's point one. 338 00:16:05.840 --> 00:16:08.960 Point two is another thirty percent of our homeowners use 339 00:16:09.000 --> 00:16:10.320 these as semi primary owns. 340 00:16:10.399 --> 00:16:10.519 Ok. 341 00:16:10.840 --> 00:16:13.639 What we define as a semi primary home is someone 342 00:16:13.679 --> 00:16:15.759 who uses their home four to six months in a year. 343 00:16:16.159 --> 00:16:19.200 So the majority of our homeowners are primary and semi 344 00:16:19.200 --> 00:16:24.279 primary homeowners. Now, the amazing thing about that is, you know, 345 00:16:24.440 --> 00:16:27.000 I say this over and over again, but our cities 346 00:16:27.039 --> 00:16:31.440 are becoming unlivable. Right for six months in the year, 347 00:16:31.440 --> 00:16:34.360 you can't breathe the air and deli traffic in Bombay 348 00:16:34.440 --> 00:16:36.240 roads I have dug up every single day. There's something 349 00:16:36.279 --> 00:16:38.759 or the other going on. We're a big city growing fast. 350 00:16:38.759 --> 00:16:41.240 You have to build infra on the fly, right, I 351 00:16:41.279 --> 00:16:43.440 get it. It's not easy to build the kind of 352 00:16:43.440 --> 00:16:46.840 infra we are building. But that also makes the cities 353 00:16:46.840 --> 00:16:51.279 a little unlivable. Bangalore has a traffic problem and so on. Right, 354 00:16:51.320 --> 00:16:53.519 I think so the cities are becoming more and more 355 00:16:53.559 --> 00:16:57.519 and more unlivable, which means really wealthy Indians are saying, hey, look, 356 00:16:57.639 --> 00:17:00.879 of course my primary residence is my city, but I'm 357 00:17:00.879 --> 00:17:03.200 going to also have a home in Alibag or Goa 358 00:17:03.320 --> 00:17:06.279 or the hills where my family will go, I will go. 359 00:17:06.640 --> 00:17:09.519 You combine that with the fact that you look at 360 00:17:09.519 --> 00:17:12.400 our central government and you look at state governments. The 361 00:17:12.559 --> 00:17:14.480 kind of jobs they have done when it comes to 362 00:17:14.519 --> 00:17:18.079 infra is unbelievable. It's been unprecedented over the last ten 363 00:17:18.119 --> 00:17:21.119 to fifteen years, the kind of growth we've seen in infra. Right, 364 00:17:22.039 --> 00:17:25.279 I use Goa as an example. You have two international airports. 365 00:17:25.319 --> 00:17:27.400 It's a small state, right, A small state like that 366 00:17:27.440 --> 00:17:30.920 has two international airports. These are world class airports, both 367 00:17:30.920 --> 00:17:34.279 of them. You look at Ali bad right, the kind 368 00:17:34.319 --> 00:17:37.480 of connectivity that you're getting by road, by water, by 369 00:17:37.839 --> 00:17:41.519 you know, it's unbelievable, it's unprecedented. No one has seen 370 00:17:41.559 --> 00:17:45.039 something like this. Suddenly, all these look at Karjat Karjats now, 371 00:17:45.319 --> 00:17:47.680 I mean sitting here in Bombay, right, will be in 372 00:17:47.720 --> 00:17:49.920 South Bombay, will be in Karjatan sixteen minutes. 373 00:17:50.039 --> 00:17:50.240 Wow. 374 00:17:51.720 --> 00:17:54.200 Ten years ago it would take you sixteen minutes to 375 00:17:54.279 --> 00:17:57.440 reach Bandra, right, I mean pre ceiling, it would take 376 00:17:57.440 --> 00:18:00.039 you nineteen minutes to reach Bandra. So the infra and 377 00:18:00.160 --> 00:18:02.519 the work that you know, our government has been doing 378 00:18:02.640 --> 00:18:05.759 over the last ten to fifteen years has also made 379 00:18:05.960 --> 00:18:09.240 a lot of these locations not holiday destinations, but also 380 00:18:09.240 --> 00:18:13.519 semi primary and primary home destinations. People are realizing, Hey, 381 00:18:13.519 --> 00:18:17.559 when the air is unbreathable in Delhi, I'm going to 382 00:18:17.599 --> 00:18:20.720 my old you know, my parents who have retired can 383 00:18:20.759 --> 00:18:22.599 go stay in my home and go off for four months, right, 384 00:18:22.640 --> 00:18:24.440 and they come back to Delhi and I can be 385 00:18:24.519 --> 00:18:26.160 in and out and my kids can be there my 386 00:18:26.319 --> 00:18:30.480 you know. So when you combine this great infrastructure growth 387 00:18:30.559 --> 00:18:35.640 with Indians getting richer and hence wanting to invest in wellness, 388 00:18:35.680 --> 00:18:39.079 in their children, breathing better air and just a quality 389 00:18:39.119 --> 00:18:42.759 of life, right, the market actually is growing exponentially and 390 00:18:43.400 --> 00:18:45.759 demand is really strong, really firm, and it's not just 391 00:18:45.799 --> 00:18:47.960 a holiday destination or holiday asset anymore. 392 00:18:48.160 --> 00:18:50.839 It's actually a very real asset that you use. 393 00:18:51.279 --> 00:18:54.000 I'm so glad you explained that yeah, and I want 394 00:18:54.039 --> 00:18:56.480 to talk further about, you know, what you're envisioning for 395 00:18:56.519 --> 00:18:58.559 the future. You know, you've already talked about how much 396 00:18:58.599 --> 00:19:01.039 development we've seen in the last few years. But before 397 00:19:01.039 --> 00:19:03.759 we do that, let me rewind a little bit and 398 00:19:03.799 --> 00:19:07.200 come to that past to profitability piece more to understand 399 00:19:07.240 --> 00:19:10.480 your own journey as an entrepreneur, as somebody that you know, 400 00:19:10.519 --> 00:19:13.559 people are aspiring to hear your story as to how 401 00:19:13.559 --> 00:19:16.519