Sreenidhi Group: Setting Benchmarks In Valuation Service Deliverability

Kumarenderan, Director,Ramamohan Reddy, Director

Kumarenderan, Director

Ramamohan Reddy, Director

Any kind of transaction, be it acquisition, disposal or merger, there are always some questions surrounding the fair value and the maximum or the least price one should pay. Hence, emphasising on the importance of valuation services has never been looked upon so critically than now. Also, the industry is robustly matured, with good quality controls in place. However, with the technology getting adopted at a rapid pace, the major expectation across the industry is the on time deliverability of services.

Speaking of which, one such company, who had already embraced technology a decade ago, wherein that point of time, the valuation software was considered to be something which was not even required for valuation is Sreenidhi Group, headquartered at Chennai. This group comprises a team of professionals comprising Structural, Mechanical, Civil Valuation Engineers, Risk Managers and Consultants bringing along several decades of experience in their respective areas of specialisation. These experienced professionals can provide customised solutions right from residential houses, commercial properties, from vacant lands, factories, Portfolio valuation, to Real estate Due Diligence, Feasibility study and Desktop valuations.

"Our flagship offering is our Valuation Module. If we look at it, our basket of services is by far one of the most widespread baskets across the industry and in terms of the assets that we have valued over the last decade or so is worth INR 600 billion rupees. So, we are by far widely diversified and looking at it in terms of volumes, in terms of the number of reports we process, I would rather see the financial sector as our primary focus area. We set it to most of the requirements emanating from the asset backed lending services," highlights Mr. Kumarenderan (Director). Having said that, with the passing of the insolvency act, our directors board are qualified under the Act and we are now actively involving our self in offering insolvency resolution related values as well," he adds.

Complex Value Determination Has Been Our Major Strength:
As a concept, Valuation is a very interesting. Its universal and applies to literally everything that we deal with. Even Humans have a value ascertained when taking an Life Insurance cover. When it comes to Real Estate Valuation, the complexity is unique. The value of property gets influenced not only by the Micro-Geographical Factors like the street or locality or area conditions but gets impacted significantly by Macro-Geo factors which includes the unemployment trends, SGDP and NGDP trends, Bull or Bearish movements in Stock / Bullion Markets etc. These aspects makes Real Estate Valuation more complex but equally exciting.

The fact that Sreenidhi Group has been so successful in delivering solutions to its optimum is that its reports are uniquely enriched with extensive research generated analysis. Such massive inputs significantly help clients to derive a microscopic perspective both about the property and the demographics of a particular locality.

Our Data - Our Backbone
"The differentiating factor that separates us from the rest of the players is the data strength that we have. I would say with reasonable levels of confidence at my end that no other institution across this country has as much data as we have. We have rich data of about 200,000 plus instances for sale
comparable and valuation comparable adds Mr. Ramamohan Reddy (Director). "We've got an unblemished track record over the last decade. We work with almost 47 odd financial institutions and we are spread across 13 branches with about 130 plus employees. And with this kind of run rate and low erroneous report is by far one of the best standards at any valuation firm could keep up," he adds.

With this kind of data at their disposal, they are able to build automated valuation models flawlessly with which the decision making process becomes a lot more easier. Furthermore, these models are also getting upgraded for prediction as well. For instance, what is likely to be the property value after the six months are analysed, based on the 10 years of collected structured data, wherein, it is not based on any hypothetical figures.

A Largely Decentralised Organisation
Another unique value proposition derived by the company's clients is the existence of strong regional level directors, each possessing extensive knowledge about the local real estate market. They also bring along several years of experience and a clear understanding of Developmental Control Regulations of that respective region. Thus delivering regional content in a largely standardised and superior reporting format.

Ramamohan Reddy, Director

Diverse & Experienced Partners
Collaboration has been-is-will remain our key Growth drivers. By strongly aligning with professionals who maintain and adhere to the highest standards of quality and integrity, we are able to satisfy a wide spectrum of valuation assignments. Starting from Estates, Theatres, to Malls to Plantations to Ships etc, our valuation portfolio is diverse.

We have partner professionals spread across the length and breadth of South India and hence we have no dearth of knowledge and quality. With their extensive localised knowledge, the partners and associates not only fulfil assignments but also provide valuable inputs or insights into a particular property. Moreover, the company has always been open for associating with more professionals with the same value systems and professional standards.

Provide customised solutions right from residential houses, commercial properties, from vacant lands, factories, portfolio valuation, to real estate due diligence, feasibility study and desktop valuations

On-Time Deliverability Ensured
With numerous successful case studies up their sleeves, Mr. Kumarenderan gave one instance stating, "One of the leading institutions actually wanted a quick valuation of their entire portfolio; a big sample of their portfolio comprising about 3000 odd properties just in South India. But the main pain point involved was that they just had about three day time frame as they had a board presentation to be done. So as per our competency in technology, we just completed the entire tasks in just about two days' time. Also, this was very well appreciated by the entire industry, as timely delivery of solutions has always been a major constraint in this segment."

Technology Aided Value Estimation (TAVE)
As a group, we are obsessed with technology. It's not just a policy, but Sreenidhi's philosophy, say Mr. Ramamohan Reddy. We follow "Never say No" policy when it comes to new technology, he adds. Our software is one of the most advanced software in the country developed with the latest technologies including AI powered Virtual Assistant. Our TAVE model, makes the internal reviews more scientific and eliminate subjectivity to the maximum extent. The TAVE model generates its own Automated Valuation Report and that aids us making informed decisions. As a matter of fact, technology is only behind employee costs in the annual budgetary allocation of several years now.

A Robust Road Ahead
Going forward, Sreenidhi Group will be focusing on two key areas, wherein, one would be IBBI and Companies Act Valuation. They are setting themselves to increase resources and more carry on with industry based training to keep their employees parallel with the changing market dynamics. And on the other side, they would be also looking at how technology will drive the supply, and how it can be optimally leveraged to solve every client's requirements. AI and ML algorithms will play a major role in role. We are looking forward the launch our first automated valuation model by Q2 of 2021-22 whereby with just the latitude longitude coordinates, any individual can get a full-fledged Value estimation report.