Malls for small towns

Mr Pranav Ansal`s  story of success and prominence clearly shows how determination and perseverance, when coupled with knowledge, clear vision and proper planning, enable one to reach the peak of success and leadership. He joined the family business as a management trainee. A graduate from Hans Raj College of Delhi University, Mr Ansal is a straight forward person, associates quality with integrity and is an absolute workaholic. According to him hard work is the only way to success and survival in a competitive environment. A tough employer, he expects his employees to be competent and does not tolerate incompetence.  As a person he is supportive, modest and respectful who believes in equality and respect to individual.

With his strong foundations based on the real estate business, Mr Ansal’s vision goes much beyond the brick and mortar concept. He is engaged in various charitable trusts run by the group in the field of education and social uplift projects. For him, living in the right perspective, is a synthesis of well being and growth for both body and mind. Personally, Mr Ansal is known for his humility and helping mentality. He is an active philanthropist and a member of various trusts.

The projects in small cities

He is the driving force behind Ansal Plaza, Delhi which sparked off the mall revolution in the country. He has taken upon the mantle of expanding the group’s business to new horizons and is responsible for extending the Ansal’s brand name to new geographies in the areas of township development and innovative commercial set ups with international standards. Always on the move, making an impact and excelling in whatever he does, this clear thinking risk taker has changed the face of the Indian real estate industry.

His ideas and thought processes are perfect for turning dreams into reality for his customers as well as for the group. For example the group has constructed fully integrated hi-tech townships in Lucknow and Greater Noida, and also the affordable housing projects in Punjab, Haryana, Rajasthan, UP and NCRs.

Even during this recession period, wherein the real estate sector is also affected, he has come with an innovative concept of “Affordable Housing “or “Value Housing” and launched “Abhilasha Homes - Ek Awaaz Sab Ke Paas” at Jaipur, Jodhpur and Ajmer, and “Aastha” in Lucknow during December 2008. The response to these projects is overwhelming and Ansal API gained the first mover advantage under his guidance as all its competitors have only started talking about the concept but have not implemented it. The one bedroom houses - Abhilasha Homes, unpredictably priced at Rs 5 lakh and located in the high-end townships of Ansal API is like a dream come true for the huge middle class section of India. The real estate industry is taking this project as a driving force in this time of recession and as always Ansal API has created a benchmark for other real estate developers.

The growth in the number of Ansal API projects over the last couple of years proves the increasing confidence of the people in the company. Under his dynamic leadership all the projects are running at a healthy pace with serious plans for many innovative projects in northern India.

Why the mall culture is to stay?

While explaining the factors that are driving real estate developers to set up malls in tier II and tier III cities, Mr Ansal says, “ We are mainly present in Rajasthan, Haryana, Punjab and Uttar Pradesh, with more than eight malls in tier II and tier III cities, such as Kundli, Ajmer, Jodhpur, Ludhiana, Jalandhar, Meerut, Lucknow and Mohali. Scopes of organised retail are the main driving factors for any real estate developer to set up malls in tier II and tier III cities. As the end consumer is very much aware of their surroundings and developments world over, they are accustomed to the organised retail format. Moreover, education, travel and disposable income has played an important role for the acceptance of the masses to shop at malls. The advantage with Ansal API is that we develop townships in an integrated manner, and malls become more of an amenity of the projects we develop too.” He also informs, “General facilities are more or less comparable with some of the malls in metros, may be even better. Just to quote, our Jodhpur Mall, for instance, has one of the best façade and great architecture. In Ajmer, the mall is along with 4 star hotel, where the tourists’ needs are also addressed.” Specialised organisations are hired to do the market scoping, site selection, analysing the gaps present in the present location, and alternate derived. The decision of setting up a mall is based on these findings and future projections.

Selecting a mall, selecting a brand

While selecting a mall, a brand looks into the segment the mall will cater to, parking space it has got for potential customers, whether the zoning done by the mall management is conducive to their business,  surveying the catchment area, operating hours, facility management, power back-up and security system, convenience of supplies being taken to the store, leasing terms, etc. “Same ways, when we finalise the brand, we look at the stability of the brands operations and its perceived value in the market, whether they are right fit in the zoning area, effect to the other brands and footfalls in the mall”, he adds. Food brands, apparel brands, footwear brands, watches and shades brands, electronics product brands are willing to have their retail space in these small town malls. In these small cities local, national and international brands are present in several of the malls in various formats, addressing the local market aspirations. However, these international brands are coming up with different formats for various locations as per the aspiration and market potential of the city.

Ensuring financial viability

“It starts with the right price for the land, controlled construction cost followed with right brand, right zoning, right ambience and perfect pricing for the end customer which determine the financial viability of the mall. Hence from the selection of site, brand, encouraging footfalls, and the ultimate purchasing by the end customer, the real estate developer is involved for the viability of the mall”, comments Mr Ansal.

For tier II and tier III cities, Ansal API has developed 1 lakh to 2 lakh sq ft. of area for a mall, with a specific retail-mix and local flavour. Based on the city and customer mix, the mall zoning is decided and accordingly the floor design is developed.

“Great detailing is done before a brand is placed in our mall. From taking into the aspect of the brand image to that of the return on investment the brand will generate in the mall, all these factors are crucial for us. Given the fact, the zoning, the brand mix and promotional activities are minutely co-ordinated for mutual benefits. Leasing team in coordination with the operation team study the logistics and viability of effective operations of the brand before signing any agreement”, reveals Mr Ansal.

Franchising: an easy way to grow

For the brands to expand their retail points across India, franchising is a convenient business model. So, many reputed national and international brands are coming up with this business model eying a vast untapped market in India. “Franchise system plays a very important role for the brands to access the tier II and tier III markets. Local franchisee knows the market well, and with the franchisor’s process and systems, quality product is presented to the market”, views Mr Ansal.

Promotion and management

“Promotional activities are focused for desired footfalls and at times joint events are organised to promote the business of all stake holders in the organised retail. Mall management is an integral part of the success of the mall, and we strive to provide best facilities and amenities for all in the mall”, explains Mr Ansal.

 Prospect of organised retail

Mr Ansal ushers the advent of organised retail in undaunted spirit, so true to his nature. “We are the pioneers in the organised retail segment with our Ansal Plaza completing a decade, turning into a landmark for Delhi and India. We are very confident in our journey in the organised retail domain and foresee very bright future”, he says.