Corporate governance is a fundamental framework that guides a company’s operational and organisational processes, says Abhishek Kapoor, CEO of Bengaluru-based Puravankara Limited, who talks about how this forms an integral part of the company’s internal and external stakeholder relationships.
Q:Â Indian real estate has been slow in catching up with corporate governance. How do you see this industry anomaly?
A:Â Over the past two decades, the real estate sector has continued to become more organised and regulated. This has resulted in an inflow of equity investments, FDIs into the business, the listing of entities and increased consolidation. These, in turn, have paved the way for greater transparency within the sector. The introduction of the RERA Act and the GST, have also contributed to a strong regulatory and taxation framework, which have helped inspire stakeholder confidence.
Collectively, these macro factors have fueled the evolution of the sector. However, being one of the oldest and, hitherto, a largely unorganised sector, the shift towards corporate governance has been comparatively slower.
It is prudent to note that the strengthening of regulatory bodies, increased professionalisation of the sector and more players being listed, have reinforced the importance of corporate governance across the real estate landscape. In fact, having an industry status would further goad the sector to greater adherence to compliance and disclosure and consequently, better governance and access to capital.
Q: How do you see the balance between corporate governance, ownership structure and capital/stakeholders’ interests?
A: Corporate governance is a fundamental framework that guides a company’s operational and organisational processes. Adherence to this helps bring greater transparency to all stakeholders – employees, promoters and customers. In addition, it contributes to bringing larger and cheaper capital, attracting top talent, gaining the trust of customers and shareholders and instilling a sense of pride within the workforce. Governance also puts healthy pressure on the business to continually improve and optimise its operations.
See also: What makes a real estate brand valuable?
Q:Â Corporate governance issues are larger than just compliances. What is the ideal form of corporate governance in real estate?
A:Â Corporate governance works like a moral compass for the organisation. At Puravankara, for example, we regularly monitor our controls and audit processes to ensure adherence to governance. To ensure compliance, we objectively and carefully gauge the relationship between the management and shareholders. This healthy checks-and-balance system enables us to create value for all our stakeholders.
Q:Â There is a general perception that the nature of the business is owner-driven and the world over real estate lacks professionalism compared to other industries.
A:Â Today, there is a significant shift in this perception in India. Many family-run realty businesses are deeply investing in professionalising their business. In parallel, professionals from diverse industries like banking, insurance, FMCG and top-grade educational backgrounds are choosing to build lucrative careers in the real estate industry.
By being listed and improving professionalism, a company becomes more transparent with its stakeholders, authorities, the public and the media. Today’s discerning customer is cognisant of these factors and prefers a certain level of professionalism while choosing a developer.
Q:Â How differently do you handle the corporate governance issues at Puravankara?
A:Â Since inception, we have ensured 100% compliance and adherence to the norms laid by the regulatory authorities. Transparency, integrity and respect are central to all our internal and external stakeholder relationships. Additionally, we have established a strong ESG framework that guides our decisions as a business and a responsible corporate citizen.
Q:Â Have you ever assessed your C-SAT (Consumer Satisfaction) Score?
A:Â We regularly assess the C-SAT score to identify areas that need improvement and ensure that our customers achieve more at every interface. The feedback from our customers helps us gauge their sentiment and this helps us to positively shape the customer experience we provide.
See also: Indian realty suffers from low C-SAT score shows Track2Realty survey
Q:Â How robust is the consumer grievance redressal of Puravankara?
A: Our grievance procedure is designed to offer quick and effective solutions to our customers’ concerns. The customers can reach us through various channels. Our nodal desk acts as a bridge between various departments and the customer service committees. The nodal desk is empowered to ensure that feedback is expeditiously implemented, while ensuring compliance with all regulatory guidelines while handling customer complaints. We also have escalation handles for the immediate resolution of queries.
See also: Puravankara announces first close of Rs 750-crore alternative investment fund
(The writer is CEO, Track2Realty)
