ICS group

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Kunal Premnarayen - Interview with NBM Media

Could you please start with a brief note on the evolution of ICS Group including the inspiration behind the launch of this group?

ICS Group was founded in 1998 by Mr. Deepak Premnarayen, Executive Chairman.  Mr.Premnarayen saw that the infrastructure development was lagging far behind the exponential growth India has witnessed post 1991. The need was to develop and strengthen the physical infrastructure in the country. ICS Group was initially focused on heavy infrastructure like roads, power, water etc., but over the years, it has strategically shifted its focus to Real Estate and hospitality. ICS’ vision is to be an integrated player in this sector and to create value for all its stakeholders.

ICS Group companies are involved in real estate, hospitality, assets management, and financial services. What are the services being offered by your various verticals? Please tell us about some of the prestigious projects executed by your Group?

ICS Group has interest in real estate, asset management, financial services and hospitality,

Real Estate:

Pioneer Property Zone – is the property development and management business of the Group. PPZ is unique in its offering of complete end-to-end property solutions, with the objective of creating successful assets and providing a comprehensive experience to the end customers.

Bentel Associates Realty Design Consultants Private Limited – is the architectural design and development division. It offers a host of services including master planning, project concept and development, architectural design and development, interior design, graphic design and store planning.

Secure Parking Solutions – is the car park management division. It provides end-to-end solutions, right from the conceptualization or design stage up to the actual management of car parks. Secure also provides equipments. 

Financial Services:

 Asset Management - ICS asset management arm provides investment management/ advisory services to institutions/ funds focused on the Indian real estate sector.

Corporate Finance - provides comprehensive and wide range of financial services to its clients. It has a dedicated team of senior professionals who bring forth a combination of strategic, operational and corporate finance skills.

Hospitality:

Ayana Hospitality – ICS has forayed into the luxury boutique hospitality segment. Currently Ayana has operational and upcoming properties in Goa, Maharashtra and Madhya Pradesh.

Some of our prestigious projects are:

Bentel: Oberoi Mall - Mumbai, South City Mall - Kolkata, U B city - Bangalore, D B Mall – Bhopal, Pacific Mall – Dehradun, Thane One - Mumbai (LEED Platinum certified and Asia Pacific Property Awards winner in 2013)

Pioneer Property Zone:  Trillium Mall – Amritsar, Capitol City – Delhi, Pacific Mall – Delhi, Majeera Mall – Hyderabad, Bailey Square - Patna

Secure Parking:  Inorbit Mall- Mumbai, High Street Phoenix -  Mumbai, Lulu Mall – Kochi, Orion Mall – Bangalore, Viviana Mall - Thane, Trident Hotel - Mumbai.

Asset Management: ICS has partnered Prozone Capital Shopping Centre to develop 3 large mixed use developments in Aurangabad, Nagpur and Coimbatore. The total investment is INR 375 crores and the total developable area is in excess of 6 million sq ft. Aurangabad Mall is operational from last 3 years while the Nagpur and Coimbatore projects are in various stages of development. 

Ayana Hospitality: Ekaant the retreat - Lavasa

 Is the Group looking to spread its horizon in other sectors also? If so, please shed some lights on this new development and its progress so far.

Currently the Group is not looking at diversification. It is focusing on consolidating and growing its existing businesses. 

Why does ICS believe in collaborating mainly with the leading global players? Please enumerate on your various partnerships and their contribution toward the development of your firm.

Yes, ICS has partnered with international domain leaders for its businesses.

The key reasons for allying with these specific partners are that they have the functional expertise and deep domain knowledge of the respective businesses. ICS has been successful in setting up businesses with these partners, which have truly Indianized and are adding significant value to projects across the country using the technical expertise of the partner and ICS’s the deep understanding of the local market. 

Our partners are:

Property Management & Development and Asset Management – Old Mutual Property (part of           

               Old Mutual Plc listed on FTSE)

Architecture -Bentel Associates International, South Africa ( has more than 50 years of designing experience)

Car Park Management - Secure Parking International, Australia (largest car park operator in Australia, SE Asia, India and Middle East region)

Hospitality -  Mantis Group, South Africa (owns and operates a diversified global portfolio of 73 properties)

Real estate market has witnessed a marked business spurt in the recent past.  How do you expect it to grow in the next two-three years?

Real Estate business is cyclical in nature. The way we see it now, is that with a stable majority government which is pro-development the sector will get the right impetus. Overall economic growth and development, will also spur demand for quality residential, commercial and retail space will increase.

Currently, the realty sector is recording a brisk business in tier II and tier III cities. Do you have any future plan to extend your building business to these areas?

We hope for an all inclusive and balanced growth. Tier II cities have not developed to their full potential and there is opportunity.  We have a number of projects across our businesses in tier II cities such as Nagpur, Ranchi, Vadodara to name a few. The key challenge is not with demand and prosperity in these markets, but the need for a cultural shift in mindset of people, particularly in some micro-markets, to embrace more ways of living, working and recreation

What are various business values the Group cherishes and how are these being translated into practice to deliver assured end results to the clients?

ICS aims to institutionalize the process of development and management of Real Estate. Each business follows a regimented process with due governance and transparency so as to deliver projects on a timely basis; the ultimate objective being to create value for all stake holders.

How do you rate your current business growth?  A word about your strategic market plans to stay ahead in the business.

 We have been quite fortunate in being able to capitalize on our early entrant advantage in different businesses. With a strong base created, our focus is to consolidate and to fast track growth by capitalizing on the synergies offered by our complementing businesses.

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Design Directions

Mr. Stephen Roberts article in Retail Today in February 2013 issue

Stephen Roberts lists the things to remember when developing retail centres

By Stephen Roberts, Managing Director of Bentel Associates, a joint venture between ICS Realty and Bentel Associates International.

While the basic design principles remain constant, it is the local issues that remain a challenge. That is why it is essential for any architectural firm to have local presence in the area they plan to work in.

Consumer Psyche

Retail design is far from static, it changes not only with the times, but with the location, the local community it serves, the size of the centre and the tenant mix. Since India is a nation of such social diversity, the first challenge is to understand the psyche of the clients and future customers of the particular town or city in which the centre is to be established. One cannot safely assume that the correct formula for Mumbai will necessarily be the same in Chennai or Bengaluru.

Clear Deliverables

Whether the requirement is for a mega mall or a convenience centre, it is imperative to ensure that the deliverables are clear. This may seem an obvious point, but since retail design is still relatively new to India, one finds that prospective clients are not always familiar with the finer issues that can make a difference between a successful centre and a white elephant. A retail centre is not simply the traditional street centre with a roof over it. You cannot simply put a few thousand feet of retail area together and expect a thriving centre. It is first necessary to understand that success means success for all the interested parties, from the client, who wants to make a good return on his investment, the retailer, who wants a profitable turnover, the customer, who wants a pleasant shopping experience, to the local authority, who are interested in a centre that is both attractive and traffic friendly.

In the development stage of retail projects, the inclusion of Property Managers and Leasing Agents, who both understand the finer points of retail development and the local market, is a great benefit.

High Real Estate Cost

A particular challenge in designing for the developer is the high cost of land, which forces the developments to be multi-level, with the parking on basement or upper decks, which adds to the capital cost, negatively affecting the viability and forcing higher rentals. International retail designs usually have 2 levels, with the parking all on grade. However in India there is a need to adapt to the multi-level designs, which are made easier by the popularity of the cinemas and large food courts that provide the bulk for the upper levels.

Parking System and Construction Time

It is somewhat of a challenge to convince some developers of the need for well designed parking areas, with good ingress and egress and circulation. Automated parking areas are a definite no-go for retail centres. Customers need the convenience of easy parking to contribute to the whole feeling of a satisfying shopping trip. Another challenge facing retail development is the speed of construction, due to two factors - the necessity for parking basements and the high labour content as opposed to more modern forms of construction. Parking basements always take time depending on ground conditions, and using buckets to haul concrete up 2 storeys and transporting materials through the site manually is time consuming. When developments get to site, there needs to be a construction programme that is detailed to the nth degree, so that the ordering of materials and equipment is coordinated to avoid unnecessary delays in delivery.

Budgets and cost control are other challenges that are unique to India. The use of professional cost consultants, otherwise known as ‘Quantity Surveyors’, would in my opinion be of great value to any project. To begin the project with calculated costs, including all land costs, professional fees, municipal fees, rentals, interest charges and returns, eases the request for finance and enables the investors to sleep easier.

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Kunal Premnarayen Interview with Business Bhaskar

Right time for expansion of real estate in small and medium towns

ICS Group,  engaged in real estate, hospitality and financial services sector has planned major projects of expansion in realty and hospitality business. Holding company of the Group, ICS Realty has collaboration with Old Mutual Property, Bentel Associates, Mantis International of South Africa and Secure Parking of Australia. Kunal Premnarayen, CEO, ICS Group, while talking to Business Bhaskar's Ajay Kumar, elaborated in details about his  expansion plans. Here are the excerpts :

Please tell about your Group in detail.

The group was established by my father. He is possessed with the expertise to select the sector for business where potential for future expansion is available. We have already engagaed in road construction. Six years back we left road projects. This was the NOIDA Toll Road Project where my father is still on the Company's Board of Directors. This being a very tough sector, our decision to come out of road projects was a strategic one. At present, we are engaged in financial services, real estate and hospitality sectors.

There is much emphasis on infrastructure sector in India and yet you say road construction is a  tough sector. Any specific reason behind it?

This is a different industry. Bureaucracy plays a major role here. We have the Chinese example before us where huge investment is being made in road projects. India is yet to reach that level. Our Chairman explored different areas for development. Real Estate is one of them. Although we are there in this sector, but we are not developers. We are in businesses which are complementary to each other.

You said, you are in real estate sector but not a developer. What type of services do you provide?

We are engaged in the activities like designing, property management and development, car parking management, asset management, corporate finance and hospitality.

  Does the car parking management also form part of real estate business?

In Mumbai, Delhi and other metro cities, car parking is already is an issue. We took it as a profitable and independent service business. Even if you are able to manage your car park well, there are other challenges due to lack of better design and construction. Hence, on the design level we incorporated the best international methods in car parking business. We entered into car parking business about 10 years back. We have tie-up with Secure Parking Corportation, an excellent car parking solution company of Australia. In India we have clients like,  EMMAR-MGF, Sahara, Inorbit, Oberois and Phoenix High Street. In this sector we have almost 45 operational projects.

Did you constituted joint venture in architecture for this reason only?

ICS Group has tie-up with South Africa's leading retail architecture company, Bentel Associates International. In the year 2002, Bentel Associates India was established. Bentel is presently providing its services to projects spread over more than 4 Crore sq ft in retail space. Projects like Retail, IT Park and Mixed Use Properties are included in it.

Who are your big clients?

We have many big corporate clients. We are working with big developers like Prestige Group, DB Corp, Sudhil Mantri, South Consortium, etc. Some of these projects have been completed, while some are under construction. We have about 30 clients accross the country.

How do you visualise the growth of real estate business  in India?

Real estate business has vast potentials to offer in India. Huge potential can be seen in residential sector. As a company we are focusing on real estate space. There has already been improvements in office space. As such, this is the right time to invest in office space in Delhi or Mumbai. As regards shopping malls, high cost of commercial property in large cities is causing impediments. However in the secondary and tertiary cities the situation is not similar.

Is your Real Estate Fund capable for investment in the Indian projects?

We  developed our first retail focused real estate fund in the year 2008 in collaboration with Old Mutual Property of South Africa.The fund known as Triangle Real Estate India Fund LLC presently possesses an amount of US$ 70 mn (approx Rs.375 Crores). Listed on Mauritius Stock Exchange, Triangle fund has invested in three major retail projects in Aurangabad, Nagpur and Coimbatore. At Nagpur we have received great pre-launch response. In the next two years we will have other nine sites.

How much amount of money you plan to collect from foreign for the future projects?

We are in the process of raising US$ 200 mn (approx Rs.1350 Crores) with our associate Old Mutual Property. We will mainly concentrate on institutional investors. We are focusing on Asia, Middle East and South Africa. But due to the downslide in value of Indian rupee this process might be tough.

Do you believe that the international economic depression has affected the Indian real estate business?

Certainly, the Indian business has been affected. Foreign investors are looking towards the risks of their investments. However, with opening of retail sector for the foreign investors the situation will change. Keenness in the policy decisions is a good thing. But it will take at least two years for its effect to become visible. Both the hospitality and shopping centre business are extremely dependent on debts. However the good thing is that India is still growing at a rate of 5-6 per cent.

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Kunal Premnarayen Employment Information

Kunal Premnarayen serves as the Group CEO and is the board member in the ICS Group.

Having completed his BA (major in communications and international studies being the minor subject) from the Wake Forest University, he worked with firms in the USA like Merrill Lynch and Lucent Technologies.

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Kunal Premnarayen Educational Qualification

Kunal  Premnarayen went to Wake Forest University and completed his BA (major in communications and international studies being the minor subject). 

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A link to Kunal Premnarayen on BrandYourself. Please have  a look at this link for some more information about Kunal Premnarayen

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Interview of Kunal Premnarayan - Group CEO, ICS Group

Kunal Premnarayan, CEO of the ICS Group was interviewed by Anil Mascarenhas of IIFL. The Interview is featured in the ‘Leader Speak’ section of the website. Click on the following link and know more about Kunal Premnarayen and ICS Group,

Interview of Kunal Premnarayen by Anil Mascarenhas of IIFL

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Corporate Finance

ICS Corporate Advisors Pvt. Ltd. (ICA) is the financial services arm of the ICS Group. It has an extensive network and decade long experience to provide comprehensive services to its clients.

ICA has a strategic alliance with the FirstRand Group, a leading banking and financial services group from South Africa, listed on the Johannesburg Stock Exchange.

ICA provides comprehensive and wide range of financial services to its clients. It has a dedicated team of senior professionals who bring forth a combination of strategic, operational and corporate finance skills.

Over the years, ICA has been instrumental in successfully effecting strategic alliances between large international institutions and Indian companies. A few of them are listed below:

1. Strategic alliance between Intertoll (part of Group 5, South Africa) and IL&FS India for installation of Noida Toll Bridge.

2. Creation of Prozone‐ Liberty, a joint venture between the India listed Provogue Group and Liberty International (now known as Capital Shopping Centres).

3. US$ 15 million investment by Rand Merchant Bank, into an India focused fund managed by ICICI Ventures Fund Management Company.

4. US $25 million by First Rand Group into a Private Equity Fund, promoted by IL&FS.

The company has also been a strategic advisor to institutions like Citibank (UK), Kleinwort Benson and FirstRand Merchant Bank, among others.

Kunal Premnarayan is the CEO of ICS Group.

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Who we are

ICS Group is a leading company that has real estate, hospitality, asset management and financial services. It endeavorsto provide innovative services and set a benchmark to the property services space in the country. It has been successfully heading projects in over 25 cities across the country employing more than 750 people and has hands on experience in handling diverse business.  It has its headquarters located in Mumbai along with offerings in Delhi, Mumbai and Bangalore.

ICS has partnership with international companies that enable it to being international best practices and techniques in the country. It’s partnership with companies likeOld Mutual Property, South Africa for property development and management& Asset Management, Bentel Associates, South Africa for architectural business,  Mantis International, South Africa for hospitality in the boutique luxury space and Secure Parking, Australia for car park management has enabled it todiverse in various fields of real estate.

 ICS Realty is its holding company that caters to real estate ventures. It is a renowned consultant and provides substantial guidance to varied real estate businesses.