Reshaping lives After laying a firm foundation of redevelopment, Acknur Constructions has branched out to build villas and luxury apartments. Acknur At a Glance Origin 1984 Business Real estate Headquarters Mumbai Built-up area 5 lakh sq ft Ongoing development 15 lakh sq ft ................................................... ................................................... ................................................... ................................................... Deepak Rao: Designing a simple and successful model AMIT BRAHMABHATT F inally, Deepak Rao is set to taste victory in his 30-year- long battle. The chairman of Acknur Constructions is pleased that his stalled dream project will see the light of day soon. The project in ques- tion is M N Koli Cooperative Hous- ing Society in Mahim, Mumbai's first slum redevelopment endeavour. "The Mahim project was taken up at a time when the term slum rede- velopment was unheard of. Unfortu- nately, it got stuck in a maze of com- plicated norms and polices," recalls the 56-year-old builder, who has about 15 lakh sq ft of projects under various stages of development across Mumbai and Dubai. It was way back in 1984 that young Rao, fresh out of college with a BCom degree, was preparing the blueprint of his career. He had just floated Accanoor Associates and was looking at striking it big in Mumbai's realty. "Manohar Joshi (former Maharashtra chief minister), who was then an MLA, asked me to rede- velop the sprawling over 4,000-sq m slum in Mahim," adds Mr Rao. Mr Rao could barely contain the excitement of bagging his first project. He was required to rede- velop the vast slum and rehabilitate about 350 slum-dwellers. But soon, initial excitement gave way to unend- ing hurdles. A portion of the slum land was reserved for the fire bri- gade. The then chief of Mumbai Met- ropolitan Region Development Au- thority supported the project and got the proposed fire brigade shifted to Bandra Reclamation," recalls the Acknur chief. Despite all support from the offi- cial machinery, it took more than six years to start work on the country's first slum redevelopment project. Just as everything was going smoothly, hurdles reappeared. Norms related to the Coastal Regu- lation Zone (CRZ) came into exist- ence and stalled the project. But fi- nally, the authorities have conceded to Mr Rao's argument and the matter is likely to be settled soon. Moving on The Acknur chief's imminent triumph is more than symbolic. It will trans- late into a tidy fortune for the Mumbai-based realty company. The stalled Mahim project, which has al- ready housed some 186 slum-dwell- ers in neat apartments, will soon see two towers coming up - a 23-storey tower for rehabilitation of slum- dwellers and another 24-storey tower for commercial sale. Moreover, the Mahim saga high- lights Mr Rao's grit, determination and perseverance, the qualities that have ensured Acknur a stream of suc- cesses. Incidentally, the long-pend- CORPORATE REPORT 20 MAY 2013 INDIA BUSINESS JOURNAL
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Reshaping lives
After laying a firm foundation of redevelopment,Acknur Constructions has branched out to build villasand luxury apartments.
Acknur At a GlanceOrigin1984
BusinessReal estate
HeadquartersMumbai
Built-up area5 lakh sq ft
Ongoing development15 lakh sq ft
...................................................
...................................................
...................................................
...................................................
Deepak Rao: Designing a simple and successful model
AMIT BRAHMABHATT
Finally, Deepak Rao is set totaste victory in his 30-year-long battle. The chairman of
Acknur Constructions is pleased thathis stalled dream project will see thelight of day soon. The project in ques-tion is M N Koli Cooperative Hous-ing Society in Mahim, Mumbai's firstslum redevelopment endeavour.
"The Mahim project was taken upat a time when the term slum rede-velopment was unheard of. Unfortu-nately, it got stuck in a maze of com-plicated norms and polices," recallsthe 56-year-old builder, who has
about 15 lakh sq ft of projects undervarious stages of developmentacross Mumbai and Dubai.
It was way back in 1984 that young
Rao, fresh out of college with aBCom degree, was preparing theblueprint of his career. He had justfloated Accanoor Associates and waslooking at striking it big in Mumbai'srealty. "Manohar Joshi (formerMaharashtra chief minister), whowas then an MLA, asked me to rede-velop the sprawling over 4,000-sq mslum in Mahim," adds Mr Rao.
Mr Rao could barely contain theexcitement of bagging his firstproject. He was required to rede-velop the vast slum and rehabilitateabout 350 slum-dwellers. But soon,initial excitement gave way to unend-ing hurdles. A portion of the slumland was reserved for the fire bri-gade. The then chief of Mumbai Met-ropolitan Region Development Au-thority supported the project and gotthe proposed fire brigade shifted toBandra Reclamation," recalls theAcknur chief.
Despite all support from the offi-cial machinery, it took more than sixyears to start work on the country'sfirst slum redevelopment project.Just as everything was goingsmoothly, hurdles reappeared.Norms related to the Coastal Regu-lation Zone (CRZ) came into exist-ence and stalled the project. But fi-nally, the authorities have concededto Mr Rao's argument and the matteris likely to be settled soon.
Moving onThe Acknur chief's imminent triumphis more than symbolic. It will trans-late into a tidy fortune for theMumbai-based realty company. Thestalled Mahim project, which has al-ready housed some 186 slum-dwell-ers in neat apartments, will soon seetwo towers coming up - a 23-storeytower for rehabilitation of slum-dwellers and another 24-storeytower for commercial sale.
Moreover, the Mahim saga high-lights Mr Rao's grit, determinationand perseverance, the qualities thathave ensured Acknur a stream of suc-cesses. Incidentally, the long-pend-
CORPORATE REPORT
20 MAY 2013 INDIA BUSINESS JOURNAL
Acknur's project-cost-plus pricing formula has brought it good business, both inboom and bust.
The Group is also developing a slewof projects in and around Dubai.
ing slum redevelopment project wasMr Rao's maiden venture. The ava-lanche of obstacles in his firstproject did not discourage theAcknur chief. Mr Rao continued tobattle even as he moved ahead withnew projects.
"Though the Maharashtra SlumArea (Improvement, Clearance andRedevelopment) Act, 1971, has beenin force for a long time, a lack ofclear rules and presence of vagueprocedures had kept builders awayfrom redevelopment. Acknur ven-tured into this uncharted territory andbecame successful pioneers of rede-velopment," stresses Mr Rao, aworkaholic, whose typical workingday stretches between 9 am and 9 pm.
The risks involved in redevelop-ment paid off and today Acknurboasts of having built over 5 lakh sqft, especially encompassing redevel-opment projects across Worli,Andheri, Borivali and other suburbsof Mumbai. "We often settled spatsbetween husbands and wives, solvedpetty, day-to-day problems of slum-dwellers and won their trust. At theend, smiles on slum-dwellers' facesas we handed them keys to a decentlife encouraged us to take on newerprojects," adds Mr Rao.
Acknur has always been guided bya simple policy of delivering itsprojects on time. "I am not your so-called, ISO-certified builder. I nevergo by market rates. I may be a smallbrand, but my project-cost-plus pric-ing formula has brought me goodbusiness, whether in boom or inbust," underlines Mr Rao, sitting inhis modest, but neatly-furnished,office in Bandra, Mumbai.
New projectsOver the past three decades, Acknurhas laid a firm foundation as a rede-veloper. Besides, the realty companyhas branched out and developed manyvillas, bungalows and luxury apart-ments. Today, the company success-fully straddles across both high- andlow-cost housing sectors with a
sound reputation and a unique busi-ness model.
"Not much has changed in thecountry's real estate sector in the pastthree decades. All talk of a single-window clearance opens into some60-odd windows for approvals andno-objection certificates, leading tolong delays and cost escalation, ruesMr Rao. Yet, unfazed by a strangesystem, archaic norms and bureau-cratic hurdles, Acknur has grownagainst all odds.
In 2006, Acknur made its globalforay by entering the lucrative Dubaimarket. An acquaintance had invitedMr Rao to the Gulf emirate for con-structing villas. Soon, the companyincorporated Acknur Contracting, its
subsidiary in Dubai, to operate con-struction business in the United ArabEmirates.
Beginning with a maintenance, re-pair and reconstruction project in BurDubai, Acknur Contracting has builta strong reputation in the Arab coun-try. Today, Acknur is developing aslew of projects, including luxuryvillas in Al Rashidiya, a twin villaproject in Al Satwa, a 12-storeybuilding in Al Nahada - all in Dubai -and a three-storey project in Sharjah,a neighbouring emirate.
Mr Rao is also planning to enterthe infrastructure sector and in theprocess of setting up Acknur Devel-opment and Infrastructure. Besides,he will be developing bungalows ona 15-acre plot in Karjat, nearMumbai. "For 12 years, I have beenpaying non-agriculture tax on myplot. Now, when I try to get approvalfor developing it, I am told that theplot in question is a private forest.Ironically, not a blade of grassgrows on that piece of land," revealsthe Acknur chief. Looks like Mr Raois readying for another battle,hopefully not a long-drawn one thistime around.
INDIA BUSINESS JOURNAL MAY 2013 21
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