We follow centralised procurement for the sake of convenience. This is done for materials ranging from tiles to bathroom accessories in order to complete systematic operations in the stipulated time.
Sobha Limited is headquartered in Bangalore and primarily focused on residential and contractual projects. It is one of the largest and the only full-fledged backward integrated real estate player in the country.  Srikant Kulkarni talks on the company’s procurement strategies.
Current trendsTalking about the status on strategic procurement, Mr Kulkarni said, “In the last few years, we have witnessed the emergence of some useful trends. These include emphasis on green products, usage of precast technology and focus on waste reduction.”
He adds, “As more and more architects and designers are becoming conscious about the environment, usage of green products has also increased. This is certainly a good and healthy sign that helps the development of environment friendly projects on a large scale.”
India’s positionAs far as the Indian construction industry is concerned, most of the materials are available readily. “Nowadays, the companies are looking to build their network in other countries so as to get the required exposure to some of the latest construction technologies and processes. They are also evaluating procurement of materials from other countries. This not only helps them go global but also helps them strengthen their market position,”  Mr Kulkarni observes.
ChallengesInflation is considered a major challenge in construction industry. Rising prices can pose a problem in procuring the right materials. Mr Kulkarni points out, “Planning is also a major issue because lack of proper planning tends to delay project delivery. Labour component is another important detail that needs to be attended to. Getting skilled labour is very important in order to achieve the best results.”
In addition, procurement of the right materials at the right price is also a big challenge. Sobha believes that the government should take some steps to simplify the overall procurement process by addressing some of these pertinent issues.
Sobha’s way“We follow centralised procurement for the sake of convenience. This is done for materials ranging from tiles to bathroom accessories in order to complete systematic operations in the stipulated time. We also gauge the requirements and take all necessary steps to ensure that it is met,” says Mr Kulkarni.
There are more than 7,000 different materials needed for the construction of a building, right from nuts and bolts to marble.
There are many links involved in overall project delivery and a huge amount of coordination and cooperation is needed which is a big challenge. To counter this problem, Sobha has designed its own e-Portal for internal operations. The system ensures transparency in its operations and delivers faster results. “Over a period of time, our operations will only get better,”  asserts Mr Kulkarni.
 
-Srikant Kulkarni, Senior VP – Purchase, Sobha Limited