From the ET profile:
We were on a roll till 2008, signing several similar joint ventures for luxury construction projects, but then the recession resulted in losses worth Rs 1.5 crore. This is when we decided to reinvent and enter the affordable housing space. We found a good construction site close to Pune, which was available for Rs 3.5 crore.Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.
At the time of signing the deal, we had no funds, so we requested the option to pay in instalments every quarter. The seller agreed on the condition that the first two instalments be paid upfront and we had to take a Rs 2 crore loan to facilitate this transaction. We also made the financier our partner. The AnandGram project was an instant success; we sold around 400 flats in two days. As a result, our profit in 2009 was around Rs 10 crore. We used the money to buy land and, since then, have purchased land blocks on the Pune-Solapur highway, Pune-Satara highway, Pune-Nashik road, and at Bhoisar near Mumbai.