G Haribabu, Naredco National President
Q: Could you tell us about your family, your childhood, your education, and so on?
A: I am from a small village in Repalle Mandal, Guntur district. I spent my childhood there. I studied in a private school in Telugu medium. After that, I did my PU (Pre-University) in JKC College, Guntur. My batch at JKC College was the last batch for PU. In 1971, my family moved to Hyderabad. Here, I completed my degree at Badruka College, Kachiguda. We come from an agricultural family. My elder brother, G. B. K. Rao, is the Chairman of Pragati Resorts. My younger brother is settled in Bangalore and is in the aqua business. I have been in the real estate industry since 1978.
Q: You completed your degree between 1971 and 1974 and entered the real estate industry in 1978. What did you do during the four years in between?
A: After completing my degree, I set up a sericulture farm in Kavali, Nellore district. However, I incurred losses in that venture and closed it down in 1977. So, my life began with a business failure. From that failure, I learned a lot. After that, in 1978, I entered the real estate business. I worked in real estate from 1978 to 1982, and then I officially entered the industry.
Q: What did you do in real estate between 1978 and 1982?
A: In 1978, I launched my first real estate venture in Medipalli, a village panchayat in Firzadiguda. I developed a 15-acre layout on Survey Number 101. Initially, I had bought the land to set up a poultry farm, but later I decided to develop it into a real estate venture. During this time, I came across another 70 acres of land, and by 1979-1980, we expanded the project. After that, I realised that West Hyderabad was becoming better than East Hyderabad.
Q: Why did you feel that West Hyderabad was better than East Hyderabad? There wasn’t much real estate at that time, right?
A: It’s not that there was no real estate at all, but the market was limited. What I observed was that employment opportunities were increasing in the West. Over time, industrial estates like Patancheru Industrial Estate, Balanagar Industrial Estate, Sanath Nagar Industrial Estate, Jeedimetla Industrial Estate, and Bollaram Industrial Estate started to emerge. Most of the manufacturing industries began to shift towards the western part of Hyderabad. As a result, the highest employment generation was coming from the western region. That’s why I shifted from East to West, thinking that wherever there is employment, real estate would prosper. After that, I never looked back.
Q: When you purchased land in Medipalli in 1978, what were the prices like, and how much did you sell the plots for in your venture?
A: In 1978, I bought land in Medipalli for Rs 9,000 per acre. I sold the plots at Rs 23 per square yard. Back then, getting permission for a venture was very easy. All you needed was approval from the village panchayat and the sub-registrar. But today, getting permission for a real estate project requires approvals from numerous agencies and organisations.
Q: In 1982, you entered the western part of Hyderabad. What was the first venture you launched in the West?
A: The first venture I launched in the West was an industrial estate. I started the Bollaram Industrial Estate venture, which was developed on a 125-acre plot. When we started Southern Formations Limited, we initiated the industrial estate project there. At that time, NTR (Nandamuri Taraka Rama Rao) became the Chief Minister, and he inaugurated our project. Later, in 1984, we launched two industrial estate ventures in Kazipally and Gaddapotharam, covering 400 acres. Even today, industries like Mylan are situated there. From there, we continued to develop residential ventures in areas like Jeedimetla. In 1989, we developed a massive real estate project on 360 acres in Pragathi Nagar, right opposite JNTU.
Q: Did you launch the Pragathi Nagar venture? Oh, great! How much did you buy the land for in Pragathi Nagar, and how much did you sell the plots for?
A: In Pragathi Nagar, we bought land for Rs 80,000 per acre, and some of the land we bought for as low as Rs 60,000 per acre. We sold the plots at Rs 110 per square yard. Even back then, we developed 100-foot-wide roads in the Pragathi Nagar venture. We also developed internal roads with widths of 60 feet and 40 feet. By planning ahead with wider roads, we ensured that today, Pragathi Nagar has good opportunities for building apartments. If we had opted for smaller roads like many others, Pragathi Nagar would have become a slum area by now.
Q: After the Pragathi Nagar venture, what other ventures did you undertake?
A: We have undertaken many projects. Before Pragathi Nagar, we developed the Usha Mullapudi Hospital, then the Surraram Industrial Estate, Jeedimetla Industrial Estates, and the Lahari Green Park project in Bowrampet. We also launched real estate ventures in Bhanuur, Kondakal, Nandigama, and Shankarpalli areas. Wherever we launched ventures, we did so on a large scale. In our Lahari venture in Pragathi Nagar, we still have land available. We are planning construction projects there. It’s an ongoing process. We also have some land in Bowrampet, where we have plans in place. In total, we have developed around 3,500 acres across industrial and residential ventures.
Q: What are the current land prices in Pragathi Nagar and Bowrampet?
A: In Pragathi Nagar, the land where we sold plots for Rs 110 per square yard earlier is now priced at Rs 70,000 to rs 80,000 per square yard. For a 100-foot-wide road, the price is now around Rs 1.2 lakh per square yard. In the first phase of Pragathi Nagar, we allocated an 80-acre venture for Alvin employees. At that time, we sold 250 square yards for around Rs 20,000, but now the price for that land is Rs 2.5 crore. For those who bought there, it has become a big asset. Every person who bought a plot from me has become a millionaire. In Medipally too, the plots we developed are now priced at Rs 60,000 per square yard. In our venture in Bowrampet, we sold land for Rs 600 per square yard, and today the price there is Rs 50,000 per square yard. In other words, everyone who bought a plot from our ventures has now become a millionaire. If I calculate, we have sold land to about 35,000 people across 3,500 acres, and its current value is almost Rs 35,000 crore.
Q: You created assets for 35,000 people. You also established Lahari Resort, right? Why did you want to set up a resort?
A: I bought about 1,500 acres in Shankarpalli. Initially, when I was buying land there, some people couldn’t understand the reason behind it. At that time, there were no proper roads or infrastructure there. Some even laughed behind my back. But once the roads were laid, everyone started to realise the potential of that land.
Q: When did you start purchasing land for Lahari Resort? When was it completed?
A: We started purchasing land for Lahari Resort in 2002. The resort project work began in 2004. In this process, we developed a residential project with 150 villas, along with a commercial complex, a petrol bunk, a bank, a school, and other facilities, making it a fully developed residential area. The construction of houses started there in 2005, and now there are nearly 2,000 independent houses.
Q: How much did you pay for the land at Lahari Resort, and how much did you sell the plots for?
A: When we initially started the Lahari Resort project, we sold plots for Rs 400 per square yard. But now, the same plot in an HMDA layout costs around Rs 35,000 per square yard. At Lahari Resort, we developed plots starting from at least 500 square yards. For the first time, we developed plots as large as 3,333 square yards. At the time, we wondered if such large plots would sell, but they sold out quickly. Even today, there is a strong demand for larger plots.
Q: What is the current situation in that area? What are you working on now?
A: Currently, independent houses are being built extensively in the area. I estimate that in the next five years, apartment construction will also start. This is because Hyderabad’s population is increasing by 2.75 lakh people every year, and 60% of this population is moving to the western part of the city. They are particularly looking for residential areas between the Financial District and Shankarpalli. There are nearly 10 villages in this area, which provides great potential for construction. For example, in Mokila, only villas were being constructed in the past, but now several apartment buildings are coming up. Similarly, in Kondakal, apartment construction is expected to begin in the next five years. Because we developed 100-foot, 60-foot, and 40-foot roads earlier, constructing apartments has become easier, and approvals for such projects are now obtained with ease.
