WEBVTT

1
00:00:08.199 --> 00:00:10.720
<v Speaker 1>Hello and welcome to business today. I'm Sadhat Zarabian. With

2
00:00:10.919 --> 00:00:14.359
<v Speaker 1>me is Perosha god Ridge, the chairperson Designate at god

3
00:00:14.439 --> 00:00:20.719
<v Speaker 1>Ridge Industries. Perosha, welcome, congratulations. You are taking over a

4
00:00:20.760 --> 00:00:24.120
<v Speaker 1>storied legacy almost one hundred and thirty year, one hundred

5
00:00:24.160 --> 00:00:27.960
<v Speaker 1>and twenty nine and the pressure of continuing the brand

6
00:00:28.079 --> 00:00:31.920
<v Speaker 1>which you have in the process of reinventing, but continuing

7
00:00:31.960 --> 00:00:38.439
<v Speaker 1>with that legacy and making this group relevant to Naia India. Nayabhara,

8
00:00:38.520 --> 00:00:39.119
<v Speaker 1>it must.

9
00:00:38.880 --> 00:00:42.479
<v Speaker 2>Be a big task. What's the core of this plat

10
00:00:43.200 --> 00:00:44.719
<v Speaker 2>So it's great to be with you.

11
00:00:44.799 --> 00:00:46.840
<v Speaker 3>Sadda, thank you so much for being here with us.

12
00:00:47.159 --> 00:00:49.920
<v Speaker 3>I think we're at a very exciting juncture the group.

13
00:00:50.359 --> 00:00:53.039
<v Speaker 3>You know, we're in a relatively unique position. We were

14
00:00:53.119 --> 00:00:56.039
<v Speaker 3>both in some ways, as you rightly said, celebrating one

15
00:00:56.079 --> 00:00:59.640
<v Speaker 3>hundred and twenty nine year legacy, enjoying the advantages of

16
00:00:59.640 --> 00:01:02.560
<v Speaker 3>a brand that has built over the years a great

17
00:01:02.560 --> 00:01:06.319
<v Speaker 3>sense of trust, a great sense of respect amongst its customers.

18
00:01:06.480 --> 00:01:09.400
<v Speaker 3>But also as the Goodridge Industries Group just two years

19
00:01:09.439 --> 00:01:12.159
<v Speaker 3>old in this new format. So I think the aspiration

20
00:01:12.280 --> 00:01:14.680
<v Speaker 3>for the group in the period ahead is to try

21
00:01:14.680 --> 00:01:17.879
<v Speaker 3>and bring together the best of what we've enjoyed in

22
00:01:17.959 --> 00:01:20.439
<v Speaker 3>terms of our legacy, but also bring to that a

23
00:01:20.480 --> 00:01:23.840
<v Speaker 3>new sense of energy, purpose and ambition, and combine those

24
00:01:23.879 --> 00:01:26.319
<v Speaker 3>two things and where we feel, you know, there's tremendous

25
00:01:26.319 --> 00:01:27.280
<v Speaker 3>opportunities in.

26
00:01:27.239 --> 00:01:28.040
<v Speaker 2>The period ahead.

27
00:01:28.560 --> 00:01:31.799
<v Speaker 3>We enjoy as a group a strong performance track record.

28
00:01:31.879 --> 00:01:34.439
<v Speaker 3>So now at the Gordridge Industries Group, we have six

29
00:01:34.519 --> 00:01:37.359
<v Speaker 3>operating businesses. Three of them are publicly listed Go Toadge

30
00:01:37.359 --> 00:01:40.480
<v Speaker 3>Consumer Products, Godage Properties and Go to jaggravet and three

31
00:01:40.519 --> 00:01:42.920
<v Speaker 3>are unlisted Go Toadge Capital, Go Toadge Chemicals and Go

32
00:01:43.000 --> 00:01:46.760
<v Speaker 3>toad Ventures. Cumulatively, these businesses have already in the past

33
00:01:46.760 --> 00:01:49.680
<v Speaker 3>five years delivered both sales and earnings growth of about

34
00:01:49.719 --> 00:01:52.480
<v Speaker 3>twenty percent a little over twenty percent in fact a year.

35
00:01:52.840 --> 00:01:55.200
<v Speaker 3>What we'd like to do in this next period is

36
00:01:55.280 --> 00:01:58.640
<v Speaker 3>take that consistency, do another five years of over twenty

37
00:01:58.640 --> 00:02:02.120
<v Speaker 3>percent learnings per share growth, make sure that we add

38
00:02:02.159 --> 00:02:03.840
<v Speaker 3>to that at the company level.

39
00:02:03.799 --> 00:02:06.239
<v Speaker 2>A return and of equity of at least eighteen percent.

40
00:02:06.719 --> 00:02:10.560
<v Speaker 2>We're also looking forward to celebrating our legacy and our

41
00:02:10.639 --> 00:02:13.039
<v Speaker 2>vision for the future through a new purpose statement. So

42
00:02:13.080 --> 00:02:15.800
<v Speaker 2>we've put out the new Purpose Statement, which is crafting

43
00:02:15.840 --> 00:02:19.080
<v Speaker 2>tomorrow since eighteen ninety seven, and that intends to show

44
00:02:19.479 --> 00:02:23.039
<v Speaker 2>celebrate the legacy of the group since eighteen ninety seven,

45
00:02:23.639 --> 00:02:26.000
<v Speaker 2>celebrate the values the group has stood for. But make

46
00:02:26.039 --> 00:02:29.479
<v Speaker 2>sure that people understand that our gaze is firmly looking forward,

47
00:02:29.840 --> 00:02:32.199
<v Speaker 2>that we believe that the best parts of the gold

48
00:02:32.280 --> 00:02:34.800
<v Speaker 2>Ridge Group lie before us, and that you know, it's

49
00:02:34.840 --> 00:02:36.599
<v Speaker 2>our opportunity to make that happen.

50
00:02:36.719 --> 00:02:39.800
<v Speaker 1>You know, in the age of startups all across India

51
00:02:39.840 --> 00:02:42.680
<v Speaker 1>and the world, it's remarkable and when you look at

52
00:02:42.759 --> 00:02:47.080
<v Speaker 1>data that very few groups survive even five decades. The

53
00:02:47.120 --> 00:02:49.400
<v Speaker 1>fact that you've been around for this extended period of

54
00:02:49.400 --> 00:02:52.840
<v Speaker 1>time and I've seen pivotal moments in India's economic journey industry,

55
00:02:53.000 --> 00:02:54.599
<v Speaker 1>I want you to take a moment before I get

56
00:02:54.639 --> 00:02:57.639
<v Speaker 1>into some company specific question in terms of the larger

57
00:02:58.280 --> 00:03:03.680
<v Speaker 1>environment macro environment that Indian business operates in p Rosha,

58
00:03:03.680 --> 00:03:06.680
<v Speaker 1>how do you describe this moment? Lots of challenges, but

59
00:03:06.719 --> 00:03:08.120
<v Speaker 1>lots of opportunities as well.

60
00:03:08.800 --> 00:03:10.479
<v Speaker 3>Yeah, I think you know, if you look in a

61
00:03:10.919 --> 00:03:13.080
<v Speaker 3>very narrow way, I think you can always focus on

62
00:03:13.120 --> 00:03:15.960
<v Speaker 3>the challenges. I think there's lots of opportunities, for example,

63
00:03:16.319 --> 00:03:18.479
<v Speaker 3>for ease of doing business to be better. You know,

64
00:03:18.520 --> 00:03:20.039
<v Speaker 3>I've spent a lot of my career in the real

65
00:03:20.120 --> 00:03:23.800
<v Speaker 3>estate sector. I can say firsthand that ease of doing business, you.

66
00:03:23.719 --> 00:03:27.639
<v Speaker 1>Know that always as Alaine, You're your first baby, will

67
00:03:27.680 --> 00:03:29.039
<v Speaker 1>always remain my first baby.

68
00:03:29.039 --> 00:03:32.159
<v Speaker 3>But you know, very excited about all the opportunities of

69
00:03:32.240 --> 00:03:34.840
<v Speaker 3>the group. But you know, I think there are opportunities

70
00:03:34.879 --> 00:03:36.719
<v Speaker 3>for us as a country to get better, and I

71
00:03:36.719 --> 00:03:38.879
<v Speaker 3>think we're doing a good job of focusing on going

72
00:03:38.879 --> 00:03:41.080
<v Speaker 3>to do our best to improve them. Things like ease

73
00:03:41.120 --> 00:03:45.240
<v Speaker 3>of doing business, creating an environment where we're attracting institutional

74
00:03:45.520 --> 00:03:48.759
<v Speaker 3>foreign capital are all quite important drivers of the economic

75
00:03:48.759 --> 00:03:52.039
<v Speaker 3>growth we hope to see unfold. At the same time,

76
00:03:52.080 --> 00:03:53.719
<v Speaker 3>if you kind of zoom out a little bit and

77
00:03:53.759 --> 00:03:56.520
<v Speaker 3>look at where India is today compared to ten years

78
00:03:56.520 --> 00:03:58.439
<v Speaker 3>ago or twenty years ago, I think it is a

79
00:03:58.479 --> 00:04:01.960
<v Speaker 3>new country. It is all pull of aspirations. If you

80
00:04:02.000 --> 00:04:05.520
<v Speaker 3>look at things like our infrastructure is a transformation that's happened,

81
00:04:05.759 --> 00:04:08.520
<v Speaker 3>not still to be done, but lots that has happen.

82
00:04:08.560 --> 00:04:11.400
<v Speaker 3>So I think it's similar to the story of the

83
00:04:11.439 --> 00:04:13.680
<v Speaker 3>group in some ways. That you know, I think there's

84
00:04:13.719 --> 00:04:16.680
<v Speaker 3>been a huge amount of progress as a country over

85
00:04:16.720 --> 00:04:19.480
<v Speaker 3>the last many decades, a lot of opportunity and a

86
00:04:19.480 --> 00:04:21.480
<v Speaker 3>lot of hard work that lies ahead of us. But

87
00:04:21.560 --> 00:04:24.839
<v Speaker 3>we think that it's a you know, a real privilege

88
00:04:24.879 --> 00:04:28.839
<v Speaker 3>and blessing to be operating a business in India today.

89
00:04:28.839 --> 00:04:30.360
<v Speaker 2>I think we we're.

90
00:04:30.000 --> 00:04:32.759
<v Speaker 3>Obviously the country with the largest population in the entire

91
00:04:32.800 --> 00:04:35.560
<v Speaker 3>world if you look at it. I think most analysts

92
00:04:35.639 --> 00:04:39.079
<v Speaker 3>expect India's economy to be the fastest growing major economy

93
00:04:39.360 --> 00:04:41.519
<v Speaker 3>over the next couple of decades. So that is a

94
00:04:41.560 --> 00:04:44.360
<v Speaker 3>pretty unique place and a unique opportunity to be able

95
00:04:44.399 --> 00:04:47.560
<v Speaker 3>to tap and to have an established brand, have established

96
00:04:47.600 --> 00:04:49.879
<v Speaker 3>platforms like we have. We rarely do see it as

97
00:04:49.920 --> 00:04:51.000
<v Speaker 3>an immense opportunity.

98
00:04:51.040 --> 00:04:53.399
<v Speaker 1>You spoke about an established brand, and one of the

99
00:04:53.519 --> 00:04:57.319
<v Speaker 1>unique things is that you would perhaps in my mind,

100
00:04:57.360 --> 00:04:59.959
<v Speaker 1>be one of the finest examples of patman h Gerda.

101
00:05:00.199 --> 00:05:03.600
<v Speaker 1>The current energy in security that the world faces on

102
00:05:03.639 --> 00:05:06.680
<v Speaker 1>account of West Asia, and we see our dependencies not

103
00:05:06.759 --> 00:05:10.199
<v Speaker 1>just in oil and gas but multiple industrial imputs. I

104
00:05:10.279 --> 00:05:13.720
<v Speaker 1>just want a quick comment from you on how important

105
00:05:13.879 --> 00:05:19.040
<v Speaker 1>is it to develop our own base and supply chains

106
00:05:19.079 --> 00:05:22.360
<v Speaker 1>from raw material to final products. Because your group operates

107
00:05:22.399 --> 00:05:24.040
<v Speaker 1>in so many areas and you have a very good

108
00:05:24.079 --> 00:05:28.120
<v Speaker 1>sense of that, how critical is it for our economic

109
00:05:28.199 --> 00:05:31.240
<v Speaker 1>security to be more artmor neighbor across the chain.

110
00:05:32.160 --> 00:05:34.040
<v Speaker 2>You know, I have a mixed feeling about this.

111
00:05:34.120 --> 00:05:36.000
<v Speaker 3>On the one hand, I think it's quite sad to

112
00:05:36.040 --> 00:05:38.360
<v Speaker 3>see the way the world is going where this is

113
00:05:38.399 --> 00:05:41.920
<v Speaker 3>becoming more necessary. I think the globalized world, as much

114
00:05:42.120 --> 00:05:45.639
<v Speaker 3>maligned as it was in many Western countries, bought and

115
00:05:45.800 --> 00:05:50.160
<v Speaker 3>before seen prosperity, got great growth, took millions and hundreds

116
00:05:50.160 --> 00:05:52.199
<v Speaker 3>of millions of people in fact out of poverty. So

117
00:05:52.240 --> 00:05:54.879
<v Speaker 3>it's a bit of a shame to see that being

118
00:05:54.959 --> 00:05:58.560
<v Speaker 3>questioned in the way it is globally, and the globe

119
00:05:58.639 --> 00:06:01.040
<v Speaker 3>going in a direction of each country needing to be

120
00:06:01.079 --> 00:06:03.439
<v Speaker 3>self sufficient. But at the same time, of course, we

121
00:06:03.480 --> 00:06:05.160
<v Speaker 3>have to take the world as it is, not as

122
00:06:05.240 --> 00:06:07.639
<v Speaker 3>how as we hope it will be. And I think

123
00:06:07.680 --> 00:06:11.000
<v Speaker 3>there is an opportunity and a requirement for India to

124
00:06:11.040 --> 00:06:14.240
<v Speaker 3>look at becoming much more self sufficient in key inputs.

125
00:06:14.319 --> 00:06:17.720
<v Speaker 3>We've seen now global disruptions many times in just the

126
00:06:17.800 --> 00:06:19.959
<v Speaker 3>last few years. If you look at the pandemic, that

127
00:06:20.120 --> 00:06:23.680
<v Speaker 3>made clear what kind of disruptions can be faced. How

128
00:06:23.839 --> 00:06:25.920
<v Speaker 3>you need to make sure that your supply chains are

129
00:06:25.959 --> 00:06:29.199
<v Speaker 3>more secure. The current situation globally with the war and

130
00:06:29.240 --> 00:06:32.240
<v Speaker 3>the close of the Strait of homost is another example

131
00:06:32.279 --> 00:06:34.439
<v Speaker 3>of how supply chains can be quickly impacted.

132
00:06:34.639 --> 00:06:35.720
<v Speaker 2>So I think India.

133
00:06:35.439 --> 00:06:37.319
<v Speaker 3>Will have to do a lot of work on gaining

134
00:06:37.319 --> 00:06:40.560
<v Speaker 3>self sufficiency. This is not something that can happen overnight

135
00:06:40.680 --> 00:06:42.319
<v Speaker 3>or in a year or two, but I think we

136
00:06:42.399 --> 00:06:45.040
<v Speaker 3>will have to move in the direction of ensuring that

137
00:06:45.120 --> 00:06:49.480
<v Speaker 3>at least key strategic things needed for the country's security

138
00:06:49.519 --> 00:06:55.800
<v Speaker 3>first and foremost, but economic growth secondly are internally available. Now,

139
00:06:55.800 --> 00:06:58.279
<v Speaker 3>it won't be again a short journey or an easy journey,

140
00:06:58.439 --> 00:07:00.000
<v Speaker 3>but it is one that we'll have to undertake.

141
00:07:00.399 --> 00:07:04.199
<v Speaker 1>Russia, I sat through your very detailed presentation and I

142
00:07:04.240 --> 00:07:06.639
<v Speaker 1>got the sense and just for our yours to be

143
00:07:06.639 --> 00:07:10.399
<v Speaker 1>able to understand it, that you are indicating and coming

144
00:07:10.439 --> 00:07:14.360
<v Speaker 1>out now going public with a pivot. What does that

145
00:07:14.399 --> 00:07:19.040
<v Speaker 1>pivot entail? How much of your legacy businesses will contribute

146
00:07:19.079 --> 00:07:23.319
<v Speaker 1>to this stretch target of five lacro marketcab by twenty

147
00:07:23.399 --> 00:07:26.839
<v Speaker 1>thirty one, And what about the new businesses? What will

148
00:07:26.879 --> 00:07:29.920
<v Speaker 1>you be spending time on driving in terms of group growth?

149
00:07:30.680 --> 00:07:33.160
<v Speaker 3>Well, I think you know the opportunities lie in all

150
00:07:33.199 --> 00:07:35.680
<v Speaker 3>of these, So I think we have three listed businesses,

151
00:07:35.759 --> 00:07:38.079
<v Speaker 3>each of which we think has tremendous potential. If you

152
00:07:38.079 --> 00:07:41.439
<v Speaker 3>look at the three businesses, our FMCG business has a

153
00:07:41.519 --> 00:07:45.399
<v Speaker 3>large portfolio of brands. I think we think that FMCG

154
00:07:45.680 --> 00:07:48.439
<v Speaker 3>industry has been underperforming the last couple of years, but

155
00:07:48.480 --> 00:07:51.639
<v Speaker 3>actually the last few quarters we are seeing that turnaround

156
00:07:51.920 --> 00:07:55.519
<v Speaker 3>irrespective of industry performance. Furthermore, we think the brands we've built,

157
00:07:55.560 --> 00:07:57.680
<v Speaker 3>the kind of steps the business has taken in recent

158
00:07:57.800 --> 00:08:00.439
<v Speaker 3>years will lead to very strong performance there. So our

159
00:08:00.639 --> 00:08:03.240
<v Speaker 3>our medium term aspiration for that business is to get

160
00:08:03.240 --> 00:08:05.399
<v Speaker 3>to a ten percent volume growth. We think if the

161
00:08:05.439 --> 00:08:07.959
<v Speaker 3>business can do that, of course revenue growth will be faster,

162
00:08:08.000 --> 00:08:10.639
<v Speaker 3>earnings will be even faster, and that can unlock a

163
00:08:10.720 --> 00:08:13.839
<v Speaker 3>huge amount of value. Similarly, another listed business of ours

164
00:08:13.839 --> 00:08:16.959
<v Speaker 3>is Goodridge Properties, which has been one of the fastest

165
00:08:17.000 --> 00:08:19.120
<v Speaker 3>growing businesses in the group, one of the fastest growing

166
00:08:19.160 --> 00:08:20.319
<v Speaker 3>businesses in the sector.

167
00:08:20.720 --> 00:08:21.959
<v Speaker 2>For the last three years.

168
00:08:22.120 --> 00:08:25.519
<v Speaker 3>That business has consistently been the largest residential developer in

169
00:08:25.560 --> 00:08:28.240
<v Speaker 3>the country. Its growth has been well distributed. It's the

170
00:08:28.279 --> 00:08:30.839
<v Speaker 3>number one or two listed player in all five of

171
00:08:30.879 --> 00:08:34.480
<v Speaker 3>India's largest real estate markets and despite now being a

172
00:08:34.559 --> 00:08:37.159
<v Speaker 3>leader in the sector, our market share in that business

173
00:08:37.200 --> 00:08:39.639
<v Speaker 3>is only about five percent, so we believe this tremendous

174
00:08:39.679 --> 00:08:43.360
<v Speaker 3>opportunity to continue to benefit from the consolidation that is

175
00:08:43.360 --> 00:08:45.679
<v Speaker 3>happening in the real estate sector, and we'd hope to

176
00:08:45.720 --> 00:08:48.399
<v Speaker 3>about double our market share over the next five to

177
00:08:48.480 --> 00:08:51.440
<v Speaker 3>seven years in Goodridge properties. We think that can again

178
00:08:51.600 --> 00:08:54.840
<v Speaker 3>unlock a huge amount of value as that unfolds. Also,

179
00:08:54.960 --> 00:08:57.399
<v Speaker 3>the accounting in that business is a little bit strange,

180
00:08:57.440 --> 00:09:01.120
<v Speaker 3>where you have sales happening upfront, but vl recognition only

181
00:09:01.159 --> 00:09:03.759
<v Speaker 3>when projects are delivered. So we actually think the market

182
00:09:03.799 --> 00:09:07.399
<v Speaker 3>hasn't fully appreciated the scale of earnings that are going

183
00:09:07.399 --> 00:09:10.080
<v Speaker 3>to unfold over the next couple of years through sales

184
00:09:10.120 --> 00:09:12.039
<v Speaker 3>that have already happened. So we hope to see some

185
00:09:12.240 --> 00:09:16.120
<v Speaker 3>value unlocked happen as we're able to prove that through deliveries.

186
00:09:15.679 --> 00:09:16.960
<v Speaker 2>Over the next couple of years.

187
00:09:17.200 --> 00:09:20.960
<v Speaker 3>Our agri business, similarly, is a listed player, hasn't seen

188
00:09:21.000 --> 00:09:24.559
<v Speaker 3>much value creation unfortunately in the stock market in recent years.

189
00:09:24.559 --> 00:09:27.320
<v Speaker 3>We're very committed to turning that around. It's almost a

190
00:09:27.360 --> 00:09:30.440
<v Speaker 3>mini conglomerate of its own, with several different verticals under it.

191
00:09:30.759 --> 00:09:33.519
<v Speaker 3>Some of those are already leaders in the categories they

192
00:09:33.559 --> 00:09:35.360
<v Speaker 3>operate in with bright futures, like.

193
00:09:35.320 --> 00:09:36.559
<v Speaker 2>Our oil palm businesses.

194
00:09:36.840 --> 00:09:39.200
<v Speaker 3>Others like some of our food businesses in dairy and

195
00:09:39.240 --> 00:09:43.159
<v Speaker 3>chicken processing, we think have much more potential than has

196
00:09:43.200 --> 00:09:45.600
<v Speaker 3>been exhibited so far, and we're quite focused on turning

197
00:09:45.639 --> 00:09:48.559
<v Speaker 3>those around. Equally some of our unlisted business I won't

198
00:09:48.600 --> 00:09:51.279
<v Speaker 3>talk about all of them but in the interesting time,

199
00:09:51.320 --> 00:09:53.080
<v Speaker 3>but I think you know one that we're very passionate

200
00:09:53.120 --> 00:09:56.399
<v Speaker 3>about is our financial services business. That business is just

201
00:09:56.440 --> 00:09:59.399
<v Speaker 3>five years old. It's the youngest business in our group.

202
00:09:59.679 --> 00:10:01.759
<v Speaker 3>In the five years has already gotten to over a

203
00:10:01.840 --> 00:10:04.360
<v Speaker 3>twenty five thousand coro AUM.

204
00:10:03.799 --> 00:10:04.759
<v Speaker 2>Has scaled very well.

205
00:10:04.759 --> 00:10:07.840
<v Speaker 3>We're very confident about the team that's in place in

206
00:10:07.879 --> 00:10:10.559
<v Speaker 3>that business and the aspiration there is to take it

207
00:10:10.600 --> 00:10:12.960
<v Speaker 3>from a twenty five thousand coro roughly to one hundred

208
00:10:13.000 --> 00:10:16.159
<v Speaker 3>thousand coro AUM over this next five years. At that point,

209
00:10:16.200 --> 00:10:18.720
<v Speaker 3>we think that business will be a very good candidate

210
00:10:18.759 --> 00:10:21.480
<v Speaker 3>to be a publicly listed player, given the scale of

211
00:10:21.480 --> 00:10:26.039
<v Speaker 3>the financial services business as an industry and the opportunity

212
00:10:26.080 --> 00:10:29.080
<v Speaker 3>the gold Ridge brand provides. If we're able to execute well,

213
00:10:29.080 --> 00:10:30.960
<v Speaker 3>I think over a period of time, this can be

214
00:10:31.279 --> 00:10:33.399
<v Speaker 3>one off, if not largest business.

215
00:10:33.639 --> 00:10:36.960
<v Speaker 1>Okay, when you talk about listing at least two more companies,

216
00:10:37.000 --> 00:10:40.279
<v Speaker 1>what will the intent be raising capital or unlocking value?

217
00:10:41.480 --> 00:10:43.559
<v Speaker 1>Why would you do that? And if you could talk

218
00:10:43.600 --> 00:10:45.240
<v Speaker 1>about a generalized time frame.

219
00:10:45.360 --> 00:10:47.960
<v Speaker 3>I think so this five year timeframe is the timeframe

220
00:10:47.960 --> 00:10:50.639
<v Speaker 3>we're looking at for that. Within that, exactly when will

221
00:10:50.639 --> 00:10:54.240
<v Speaker 3>this depend on how markets perform, how the individual businesses grow.

222
00:10:55.279 --> 00:10:57.840
<v Speaker 3>I think the intent will be to make sure the

223
00:10:57.879 --> 00:11:00.960
<v Speaker 3>businesses can raise the capital they need for their growth

224
00:11:01.000 --> 00:11:03.720
<v Speaker 3>on an ongoing basis, in a sustainable manner. So the group,

225
00:11:04.200 --> 00:11:06.000
<v Speaker 3>at the group level, we don't want to be funding

226
00:11:06.000 --> 00:11:10.360
<v Speaker 3>businesses indefinitely. So once we've created a certain amount of value,

227
00:11:10.399 --> 00:11:13.039
<v Speaker 3>businesses have gotten to a certain stage, we think it's

228
00:11:13.039 --> 00:11:15.720
<v Speaker 3>both important to unlock some of that value and then

229
00:11:15.759 --> 00:11:18.440
<v Speaker 3>think about new ventures at the group level, but let

230
00:11:18.559 --> 00:11:21.200
<v Speaker 3>those businesses then grow on their own steam.

231
00:11:21.480 --> 00:11:25.679
<v Speaker 1>Okay. I want to come back to property, not just

232
00:11:25.720 --> 00:11:28.440
<v Speaker 1>because of how you scaled it up and people talk

233
00:11:28.480 --> 00:11:31.159
<v Speaker 1>about the kind of effort that you made, and it's

234
00:11:32.000 --> 00:11:35.720
<v Speaker 1>a business that's talked about, but primarily from where the

235
00:11:35.759 --> 00:11:39.440
<v Speaker 1>real estate industry in India, residential particularly stands in terms

236
00:11:39.440 --> 00:11:40.080
<v Speaker 1>of the cycle.

237
00:11:40.279 --> 00:11:41.159
<v Speaker 2>Is it at the peak?

238
00:11:42.159 --> 00:11:46.120
<v Speaker 1>What is likely to happen to rates and consumer adoption.

239
00:11:47.039 --> 00:11:49.639
<v Speaker 2>I think we're probably somewhere in the middle part of

240
00:11:49.679 --> 00:11:50.120
<v Speaker 2>the cycle.

241
00:11:50.200 --> 00:11:52.919
<v Speaker 3>So if you look at it, a typical cycle, you know,

242
00:11:53.000 --> 00:11:56.000
<v Speaker 3>starts with a couple of years of volume confidence coming back,

243
00:11:56.240 --> 00:11:58.240
<v Speaker 3>and if you look at that's exactly what happened this time.

244
00:11:58.320 --> 00:12:02.240
<v Speaker 3>So from twenty thirteen to about the end of twenty twenty,

245
00:12:02.279 --> 00:12:05.159
<v Speaker 3>we were in a consistent down cycle. Volumes were going down,

246
00:12:05.200 --> 00:12:07.799
<v Speaker 3>prices were going nowhere, and that was a pretty tough

247
00:12:07.879 --> 00:12:09.960
<v Speaker 3>end of the cycle. But from the end of twenty

248
00:12:10.039 --> 00:12:12.639
<v Speaker 3>twenty onwards, the cycle has been through a very strong phase.

249
00:12:12.960 --> 00:12:15.159
<v Speaker 3>I would say twenty one and twenty two or more

250
00:12:15.200 --> 00:12:18.440
<v Speaker 3>about volumes are covering the market, getting confidence that the

251
00:12:18.480 --> 00:12:22.440
<v Speaker 3>market the cycle had in fact turned direction. Twenty three

252
00:12:22.559 --> 00:12:25.679
<v Speaker 3>and twenty four were about very rapid price growth, very

253
00:12:25.759 --> 00:12:28.120
<v Speaker 3>rapid volume growth, and that's very typical of the sector,

254
00:12:28.759 --> 00:12:30.960
<v Speaker 3>and we saw that in our business as well, where

255
00:12:31.039 --> 00:12:34.720
<v Speaker 3>you know places like NCR Bangalore or twenty thirty percent

256
00:12:34.759 --> 00:12:37.240
<v Speaker 3>even more in some cases pricing growth in a single year.

257
00:12:37.679 --> 00:12:40.279
<v Speaker 3>I think from about the middle of last year we've

258
00:12:40.279 --> 00:12:41.919
<v Speaker 3>been in what I would call the most steady end

259
00:12:41.960 --> 00:12:44.720
<v Speaker 3>of the cycle, which also typically lasts three or four years,

260
00:12:44.759 --> 00:12:46.559
<v Speaker 3>so our best case estimate is for the next three

261
00:12:46.639 --> 00:12:49.840
<v Speaker 3>years you should see pricing move roughly in line with inflation.

262
00:12:50.240 --> 00:12:53.559
<v Speaker 3>Volumes should be healthy but not growing explosively as they

263
00:12:53.600 --> 00:12:55.559
<v Speaker 3>were a couple of years ago. So we think there's

264
00:12:55.639 --> 00:12:58.279
<v Speaker 3>lots of opportunities at this part of the cycle as well.

265
00:12:58.600 --> 00:13:01.720
<v Speaker 3>And for the company growth comes in two forms. One

266
00:13:01.840 --> 00:13:05.360
<v Speaker 3>is the sectoral growth with benefits from both the structural

267
00:13:05.399 --> 00:13:08.840
<v Speaker 3>growth in the sector as in the urbanizes its incomes growth,

268
00:13:09.039 --> 00:13:11.600
<v Speaker 3>but also is impacted by where you are in the cycle.

269
00:13:12.000 --> 00:13:14.840
<v Speaker 3>But the second part of the opportunity at the company

270
00:13:14.919 --> 00:13:18.240
<v Speaker 3>level is from consolidation and market share gains. And if

271
00:13:18.240 --> 00:13:20.279
<v Speaker 3>you look at it, Codridge Properties has over the last

272
00:13:20.360 --> 00:13:22.840
<v Speaker 3>five years doubled its market share from about two point

273
00:13:22.879 --> 00:13:26.200
<v Speaker 3>five to five percent, and that opportunity remains very strong.

274
00:13:26.399 --> 00:13:28.879
<v Speaker 1>Okay, as we come to the end of this conversation,

275
00:13:28.960 --> 00:13:31.960
<v Speaker 1>I want to come back and once again ask you

276
00:13:32.039 --> 00:13:36.320
<v Speaker 1>to tell our viewers about how the Goddage Group journey,

277
00:13:36.320 --> 00:13:41.200
<v Speaker 1>including the separation that happened a couple of years ago.

278
00:13:42.919 --> 00:13:45.720
<v Speaker 1>It's in some ways a textbook of how you handled it,

279
00:13:46.240 --> 00:13:49.320
<v Speaker 1>and markets have seen that story. You have been communicating

280
00:13:49.720 --> 00:13:54.559
<v Speaker 1>but as we look ahead, where do you see this

281
00:13:54.720 --> 00:13:58.600
<v Speaker 1>group in terms of continuing to take forward the legacy

282
00:13:58.639 --> 00:14:00.600
<v Speaker 1>that your forefathers have in place.

283
00:14:00.919 --> 00:14:03.480
<v Speaker 3>Yeah, you know, I think the restructuring was a great

284
00:14:03.679 --> 00:14:06.679
<v Speaker 3>example actually of the legacy in action, right. We wanted

285
00:14:06.720 --> 00:14:08.600
<v Speaker 3>to do it in a way that showed trust, that

286
00:14:08.639 --> 00:14:12.240
<v Speaker 3>showed respect, that showed fairness, that didn't get messy in public.

287
00:14:12.600 --> 00:14:14.600
<v Speaker 3>And we're very happy, I think on both sides of

288
00:14:14.639 --> 00:14:17.320
<v Speaker 3>the family that we were able to do that. Relationships

289
00:14:17.360 --> 00:14:21.000
<v Speaker 3>remain very strong. We've been on holiday with each other since.

290
00:14:21.080 --> 00:14:26.559
<v Speaker 3>I think business each side strategically exactly and most and

291
00:14:26.600 --> 00:14:29.240
<v Speaker 3>both sides of the business now get the agility and

292
00:14:29.279 --> 00:14:31.879
<v Speaker 3>freedom to kind of operate as they choose to do so.

293
00:14:31.879 --> 00:14:34.159
<v Speaker 3>So I think that was a great example of actually

294
00:14:34.200 --> 00:14:36.960
<v Speaker 3>the values of the group. You know, we're very clear

295
00:14:37.279 --> 00:14:40.360
<v Speaker 3>that at the group we are talking about values, we're

296
00:14:40.399 --> 00:14:43.360
<v Speaker 3>talking about valuation. We never want to be in a

297
00:14:43.360 --> 00:14:45.559
<v Speaker 3>position where we're looking at just one and not the other,

298
00:14:45.639 --> 00:14:49.799
<v Speaker 3>because frankly, valuation without taking forward the values of the group,

299
00:14:50.039 --> 00:14:52.080
<v Speaker 3>I think will leave us all very dejected. We all

300
00:14:52.120 --> 00:14:56.159
<v Speaker 3>feel hugely proud, hugely blessed to have inherit inherited this

301
00:14:56.240 --> 00:14:59.879
<v Speaker 3>incredible system of values this culture, and it's incumbent of

302
00:15:00.240 --> 00:15:02.639
<v Speaker 3>on us to make sure this next chapter celebrates that

303
00:15:02.799 --> 00:15:06.039
<v Speaker 3>and strengthens that. But equally, you know, it's not just

304
00:15:06.159 --> 00:15:11.279
<v Speaker 3>that valuation without values is meaningless. Values without valuation is also, frankly,

305
00:15:11.279 --> 00:15:13.159
<v Speaker 3>at the end of the day, quite meaningless, because if

306
00:15:13.159 --> 00:15:15.799
<v Speaker 3>we're not able to perform, nobody is really going to

307
00:15:15.879 --> 00:15:18.480
<v Speaker 3>care very much what our values are. So I think

308
00:15:18.840 --> 00:15:21.600
<v Speaker 3>the marriage of those two things, which we've managed in

309
00:15:21.639 --> 00:15:24.639
<v Speaker 3>the past and that we want to add more momentum

310
00:15:24.639 --> 00:15:27.279
<v Speaker 3>to going forward, is really where the magic can get created,

311
00:15:27.320 --> 00:15:28.639
<v Speaker 3>and that's the aspiration we have.

312
00:15:28.919 --> 00:15:32.279
<v Speaker 1>You've given me a fantastic ending line. Value and valuation

313
00:15:32.440 --> 00:15:36.720
<v Speaker 1>go together, Perushia. I issue all the way best to you,

314
00:15:36.720 --> 00:15:39.919
<v Speaker 1>your family, and that fantastic management team that you're built

315
00:15:39.919 --> 00:15:42.480
<v Speaker 1>over the years to take this journey forward all the

316
00:15:42.480 --> 00:15:44.639
<v Speaker 1>way best and thank you very much for spending time

317
00:15:44.679 --> 00:15:47.240
<v Speaker 1>with us today. With that, it's a wrap on this conversation.

318
00:15:47.320 --> 00:15:49.360
<v Speaker 1>We'll see you again. Until then, good bye.