Arvind Subramanian

Managing Director & CEO

Dear Stakeholders,

I am pleased to present to you our first Integrated Report highlighting the key milestones and significant developments over the past financial year. This Integrated Report showcases business practices that we are confident will result in continued healthy business and operational performance and significant beneficial social and environmental impact.

Shrugging of the impact of a severe second wave of COVID at the start of the year, FY 2021-22 has been a year of strong growth at Mahindra Lifespaces across our residential and industrial businesses. Taking inspiration from our vision and values, we embarked on a journey to introduce a new brand promise – “Crafting Life”. Taking a long-term view on design and development, we remain committed to crafting sustainable, resilient, and vibrant spaces, that deliver positive outcomes over a long term. The integrated reporting process was initiated within Mahindra Lifespaces in FY 2020. It helps investors understand the performance of the Company across the six capitals and materiality of ESG issues, providing a fuller picture of the way in which we create value. Adopting integrated thinking is helping us prepare better for the future.

Year in brief

Despite the ever-present shadow of the pandemic, India’s real estate sector witnessed marked improvement in consumer sentiment and business confidence as the year progressed. Historically low interest rates combined with enhanced household savings bolstered affordability in the residential segment. Some states provided support to the sector in the form of development cost and duty waivers. These demand and supply side actions, taken together, provided a much-needed fillip to pre-sale of apartments in all major cities. With the shifting geo-political tides and redesign of global supply chains, manufacturing investment in India also witnessed an upswing.

Timely investments in talent, process and technology of the past few years helped Mahindra Lifespaces deliver superior performance on all operational and financial parameters over the year gone by. We are proud to have taken important strides, clocking record pre-sales and leasing in the Residential and Industrial Parks businesses respectively. This accomplishment has been underpinned by differentiated products, high-quality infrastructure, disciplined sales and an improved customer experience.

Strategic thrust

  We are committed to accelerating growth in our residential business. Our strategy in this business is built on four key pillars – design differentiation, a technology-enabled scalable sales model, rapid and high-quality construction, and optimal cost, and orchestrating an enhanced living experience. We will continue to serve the affordable and mid-market segments, as we seek to deepen our footprint in the chosen cities of Mumbai, Pune and Bengaluru. In our IC & IC business, our strategy will be to offer multiple destinations to prospective customers with plug-and-play infrastructure and ease-of-doing business. We believe our born-green industrial parks should be the preeminent choice for forward-thinking multinational and domestic companies seeking to expand their manufacturing presence in the country.

Net Zero plan

  Sustainability is a core part of our product differentiation and is woven into projects right from their conception. Being India’s first real estate company to have approved Science-Based Targets (SBTi), we aim to become carbon neutral as a part of our commitment to the Mahindra Group’s 2040 Carbon Neutrality Goals. As part of this commitment, we have taken a pledge to develop only Net Zero (energy, waste, and water) buildings by 2030, a full 20 years ahead of the Paris agreement.

Moving forward

  Our residential land acquisitions over this past year, with a combined development potential of 3.08 million sq. ft. and an estimated Gross Development Value of around ₹ 3,800 crore sets us up well for growth over the coming years. We are building the organizational muscle for significant growth in the residential business and gearing up for multiple launches across our priority markets. Similarly, our leasing pipeline for the industrial segment also continues to be strong. With both business engines poised to fire over the coming years, we are optimistic about charting a course for profitable growth.

At Mahindra Lifespaces, our corporate governance is the touchstone that embodies our culture, policies and our relationship with all stakeholders. Our multiple checks and balances, strong internal controls, and governance assures asset quality and create a platform for sustainable value creation. We are fortunate to have passionate leaders and industry-leading talent that is charged with our purpose and committed to deliver ongoing value creation to all stakeholders.

In closing, I extend my sincere gratitude to our customers for reposing their faith in us. Our associates have been instrumental in achieving our business goals. Our consultants, partners, suppliers and other stakeholders have provided the wind in our sails as we voyage on. We will continue to drive innovation and shape India’s built environment. We stand firm in our commitment to build a sustainable business, deliver value to all our stakeholders and contribute to India’s vibrant economy. Together, we hope to move ahead on our mission of crafting life and shape futures, creating value for the environment and the society at large.