Sobha Limited: Backend Dynamics of Real Estate Firms

Beautiful luxury flats, premium homes, furnished apartments, high end residential projects, exclusive apartments, luxury homes and so on, a big real estate firm always puts these images in mind. It is easy to associate the two, merge the images of luxury penthouses and apartments with those of the firm. But for a real estate firm, in order to put out remarkable residential properties, luxurious apartments and affordable homes, a lot happens behind the scenes. Sobha Limited is one of the real estate firms that excel in backend dynamics. They have had first mover advantage and with their actions have given a new dimension to real estate in India. They created history when they launched their IPO in 2006 and showed real estate firms a path that had yet not been traversed in the industry.

Today, Sobha Limited is chartering new territories with backward integration. Integration, backward and forward, are forms of vertical integration, but serve different purposes. While, backward integration involves purchase of suppliers, forward integration deals with the purchase or control of distributors. To make the concept simpler, imagine a bakery instead of a real estate firm. If the bakery business went ahead and purchased a wheat processor and a wheat firm, it would count as backward integration. But, if the bakery actually sold its goods at local farmers markets or owned a chain of retail stores, through which it sold the goods, then that would count as forward integration.

Companies generally pursue backward integration if it results in improved efficiency and saves cost. For instance, controlling the backend of production may result in cutting transportation costs and improve profit margins. Sobha Limited has been pursuing backward integration with immense success for years. Its backward integration involves an interiors division, which also prides itself with one of India’s largest woodworking factories, a glazing and metal works factory, and a concrete products factory. All these services have made it possible for Sobha Limited to deliver their residential apartments and flats, high-rise apartments, with utmost quality control and on time.

Their new housing project at NIBM road, Kondhwa Pune is a brilliant example of backward integration providing the best results. This new residential project christened, Sobha Garnet, is a marvel in terms of luxury homes. Its unique and intricate detailing of interiors, clearly show the care with which the work has been done. This could be made possible because Sobha Limited controlled a highly talented interiors division. This project also enjoys the most breathtaking view and pleasant climate, being settled in the adobe of nature, near the Katraj Ghats.

To build properties in such challenging locations is not easy and having a backend team that is willing to put in that extra effort goes a long way in overcoming those challenges. Since, Sobha Limited owns the backend chain, the dedication and task becomes that much easier. Sobha Limited’s success with backward integration has changed the dynamics of the real estate industry in India and propelled other developers to take a similar route.

For more info visit: http://www.sobha.com

Sobha Limited is a real estate developers in India having its several real estate projects in Various cities in india. It is an organisation where quality meets excellence, technology meets aesthetics and passion meets perfection.