At Aavas Financiers Limited, the exigency to transform our organisation
around future-readiness is derived from a rapidly evolving India story
OVER VIEW
There is an unprecedented optimism related to India's economic
direction. There is a growing consensus that the complement of India's reforms,
long-term policies, accelerating consumption and demographic dividend is coming together
to create a noticeable momentum.
Much of this momentum is being catalysed by the need for affordable
homes – directly in the form of building materials and lifestyle supports needed in
homes and indirectly in the form of enhanced aspirations translating into wider
consumption. The result is that India's affordable housing sector is emerging as
possibly the country's most extensive economic growth driver. The importance of this
sector in the country's economic growth puts a premium on its capability to
commensurately respond. The sector's priorities comprise the ability to think big,
think long and think sustainable. A complement of these priorities will enhance the
sector's capacity to be at the right place at the right time with the right
competencies.
At Aavas, we addressed this priority from the time we went into
operations. Your Company outlined a growth trajectory for the benefit of its direct
stakeholders and addressed this as priority with the objective to widen the benefit of
home ownership for a large number including women. I am pleased to communicate that the
outperformance that followed across the decade was largely a result of the big picture
orientation and commitment to be completely aligned with the housing needs of the country
cum governance-driven needs of the corporate world and creating an institution for
eternity.
Besides, the Company created a broad-based organisational structure,
built a robust leadership pipeline, widened its geographic footprint and created a prudent
risk management matrix. Across the decade, Aavas deepened its presence; a fledgling
service provider transformed into a growing organisation with roots embedded in
governance, culture, process, sustainability and progressive practices.
At Aavas, we recognise that sustained growth in our business is also
derived from the capacity to invest proactively. First-movers will capture markets faster
and retain customers longer by building a digital platform to enhance scalability and
customer experience ahead of industry peers. In view of this, Aavas announced a watershed
– Aavas 3.0 - in its existence. This watershed represents a distillation of the
proposed initiatives, exigency and perspectives of how we seek to grow in a sustainable
way. By leveraging the power of Aavas 3.0, the Company intends to deepen geographical
penetration to achieve pan-India presence, sustain its percentage growth rate (albeit on a
progressively larger base), moderate its cost structure to protect profitability across
market cycles, enhance lender confidence with the objective to mobilise a progressively
lower cost of funds and enhance technology-driven convenience that makes it possible to
service customers better.
A critical factor that is expected to drive Aavas 3.0 will be the
organisation's culture. At Aavas, our competitiveness has been drawn from the ability
to collaborate, innovate and accelerate. The result is an organisation that is engaged in
building today for tomorrow. By the virtue of this encompassing culture, Aavas will
comprise an institutionalised body of knowledge, priorities, processes and practices,
influenced by the prevailing culture and by enhancing its brand and respect. In Aavas 3.0,
this institutionalised culture will be driven by the selective recruitment of subject
matter champions, the right person for the right role, intensive training across
culture-competence-mindsets, creation of leaders at every level and a structured
succession plan across roles and functions. Such an organisation – I count Aavas as
one - will not only generate sustainable momentum; such companies will also lead.
It is with this optimism that I present my overview to shareholders:
that after having completed a decade in existence where our practices and processes were
launched, observed and reinforced, we are at a point where they are ready to be scaled for
wider benefit, enhancing value for all stakeholders.
SANDEEP TANDON
Chairperson and
Independent Director