The article outlines how real estate players can keep the cost under control without compromising on quality

  With the weak monsoon forecast and increasing cash flow problems, it can be predicted that only the fittest will be able to survive and all others will perish as far as Indian real estate sector is concerned. In the business world, those who have a high quality product at a subsequently lower price will be called as the fittest. They will be able to do the business in this tough environment. All those who do not possess both the parameters “high quality and low price” will fail. Even if one parameter exists, survival will not be for long-term. High quality products at a higher price will have limited market and will not be able to generate big volumes. The cheap products will also find it difficult to survive with many complaints and replacement cost will soon put an end to their business. Information technology is a boon to consumers who can search, compare, modify and finally buy the product, sitting at home.

Producing a high quality product at an optimum price
To product a high quality product and subsequently ensuring that the costing is lower appears to be an impossible task. Lot of hard work is required to identify resources which can deliver raw material at a lower price without making compromise on quality. Efforts will also have to be taken to make changes in the product by reducing the bill of quality without changing the function. Finding new markets will also add to volumes taking load of the fixed cost. To sum up, the consumer will buy only the best product at the best price.

Walplast is a building material manufacturing company which has factories in six locations in India and does business in more than 100 cities and towns with its strong network of distributors. The company continuously takes efforts to ensure that its customers can get a better product at an optimum cost.

The real estate industry is facing a sort of crisis today. Thousands of flats are lying unsold. The pressure from government, legal, labour etc. are continuously increasing. Regulations such as forest, costal, highways, railways make demands and all the land available cannot be used for construction. In such a tough scenario the business is still growing. Home loan companies are showing growth in sales as well as profits. The only reason for this miracle to happen is that a few have understood the fact that only the high quality and optimum price products will survive. They are taking enough efforts to ensure that they use the right products at a right price. Keeping the other expenses under control is also very important.

Recommendations
Avoid paint where possible
Walplast has a product called Rangeela Putty. This is a unique combination of cement based putty and colour pigments in a powdered form. Common areas such as staircases, parking lots etc. are places where painting can be avoided. Walplast offers this product in four basic colours. Walplast Rangeela Putty can be also be used as a final finishing layer at low budget hotels, temples, hostels, theatres etc. However it is important to note that this product needs to be used in internal surfaces only. Such savings can help keep the final price of project in control.

Use dry powder products over liquid-based products
Walplast produces only dry products such as putty, crack fill, primers, plasters etc. These products are easy to use and have no wastage. Each packing can be stored if not completely consumed for later use. The product which come in paste form have to be completely consumed as they will dry up quickly once the pack is opened. On a project site, such small savings ensure that a culture is created amongst the workmen as well as the supervisors.

Reduce transportation costs
In most cases, manufacturers of building materials create a large single manufacturing unit and set up transport system to deliver at each corner of the country. It gives an advantage of mass production to the manufacturer but is not a favourable feature for the buyer. Cement-based products also have a shelf life and large transportation distances with multiple handling facilities creates reduction in the shelf life. Realising this, Walplast has created a multi-location manufacturing at six locations across India. Therefore the products from Walplast will have lesser component of transport and much more shelf life.

Reduce labour by increasing speed
Projects which get delayed cost much more and wipe out the profit margins of the promoters. Walplast introduces machine plaster. It is a high speed plastering technique with slurry pump and a specially created ready mix. This method can triple the speed of plastering as well as reduce the requirement of labour. The slurry pump mixes dry mix plus water and sprays the output through compressed air. The spray gun is held by the operator & the controls are in the spray gun so that the operator can conveniently cover the wall and achieve the necessary thickness in lesser time.

In conclusion, Walplast Products Pvt. Ltd. offers products for producing a high quality product at an optimum price.

Authored by__

Mandar Chitre,
Vice President,
Walplast Products Pvt. Ltd.
Email: mandar.chitre@walplast.com