Saturday, September 29, 2007

Did you know that DSK has acquired about 18 acres of land in New Jersey and construction of over one lakh sq ft is on?

Yes! Pune-based D S Kulkarni Developers has floated a fully-owned subsidiary in Delaware, USA, to develop residential and commercial projects. DSK is the first organized sector real estate player from India to make a foray in the US market.

DSK family houses are selling for USD 1.3 to 1.5 million which is quite a big amount even by American standards.

Company chairman D S Kulkarni told PTI the idea was to cater to the demands of the Indians settled there. However, a large number of non-Indians have also queued up to buy the houses being constructed by the company.

The company has already invested Rs 80 crore on the US foray and plans to invest another Rs 100 crore over the next one year. Incidentally, the company had posted turnover of over Rs 300 crore last fiscal and about Rs 80 crore in the first quarter this year.

Kulkarni conceded the profit margin in the US market is much less compared to what it is in India. But felt it is steady and reasonable.

When asked about the experience of doing business in the US, he said it was quite hassle-free. The country has the best regulations. Rules are clear cut. And standards already set. If you follow the rules, doing business is easy, he said.

When asked as to why he opted to go to US when the market here is booming, Kulkarni said though the land is difficult to come by, the land prices have gone down there recently and thus it is right to buy land there. We wanted to go international anyway.

"If I were a manufacturer, I would have exported my products. Since I am a developer, I have opted to construct houses there," DSK said.

He said the company has plans to enter the UK and Australia and expects a much larger part of the company's turnover to come from the overseas activities.

As regards its domestic operations go, the company has completed about 12.5 mm sq ft of development and is presently close to 30 mm sq ft of area under development. The group currently has 12 projects in various cities like Pune, Mumbai, Nasik and Bangalore, Kulkarni added.

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