Practus assisted the real estate company in reducing dependence on private funding from 100% to 63% and generating MIS relating to size and quality of sales inquiry pipeline, competitive pricing.
|No. of Employees
|ROI On Fee
|A Real Estate Company
About The Company
RealBuild is a Promoter owned, managed, and privately funded mid-sized real estate company headquartered in Mumbai. RealBuild had developed approximately 10 lakh square feet of residential and commercial space in and around Mumbai immediately before Practus’ involvement with the Company and developed around 5 lakh square feet of commercial real estate during the time of our involvement.
- Practus was involved with RealBuild in two phases. In the first phase, the mandate was to:
- Study the business processes of the company, make recommendations for improvement, and recommend a suitable ERP package for implementation.
- Development of a comprehensive SOP document covering land acquisition, broker appointment, project evaluation, contracting and sub-contracting, financing and accounting, and reporting controls and processes.
- Study the financing structure of RealBuild and recommend strategies to move away from a personal relationship drive approach to fundraise to a more professional basis to raise funds from formal, institutional sources.
- Timely generation of MIS relating to size and quality of sales inquiry pipeline, competitor pricing, helped management take timely decisions.
- Helped RealBuild reduce dependence on private funding from 100% to 63%, on a larger funded base.
- Reduction in time for ERP implementation by a minimum of 8 weeks on a conservative basis, with a smooth M+8 day first month closing on ERP.
- Involvement helped improve margins by about 2% through better controls over procurement processes.
- Practus’ lease rent discounting solution reduced the weighted cost of funding from about 17.5% to about 13.8%.