But these two functions did not find much importance in the Indian property market during past half decade. It was a period of real estate boom when marketing and innovative expertise did not matter. When everything made was sold at handsome margins irrespective of the quality builders could manage their profits on their own.

As a leading builder Niranjan Hiranandani rightly says, ``Earlier, the market was a seller's market. Everything bad or good was sold quickly without any problem. Quality was not considered. Even a poor quality house with leakages and cracks in the wall and without amenities was sold at almost the same price or at a very low difference from the price of a quality housing. But now the situation has changed.''

While quality consciousness has now increased, with the market facing a severe recession, prices have nosedived and margins have almost disappeared. According to Hiranandani, margins have come down from 150 per cent during the boom period to 15 per cent. And RNA Builders director Anil Agarwal feels that builders are selling at loss. Meanwhile, low margins have necessitated innovations and marketing, which can be brought about by professionals only.

Opinions are, however, divided on the need for professionalism in the industry. Many leading builders feel that professionalism will help in gradual development of brands, which will help at a later stage allowing them to command a better price in the long run. Some builders like Anil Agarwal, however, opine that professionalism will not work in this industry. There are intricacies of this business which can be handled more efficiently by undergraduates than by MBAs.

He says that a builder has to complete hundreds of formalities in order to secure a no-objection-certificate from municipal agencies and different government organisations. Everywhere, builders have to deal with all kinds of people, right from a peon to a senior officer, to obtain clearance for their papers and take care of other objections. A job profile which, he feels, is not suitable for the highly educated MBAs whose skills lie elsewhere. Moreover, why pay huge sums to professionals when the same job can be carried out more efficiently by even undergraduates he asks.

Niranjan Hiranandani begs to differ. He feels that professionals can do a lot in this business which needs people with multiple skills. A professional in this industry needs to possess entrepreneurial, administrative and organisational skills while being conversant with the rapid changes in technology. He tells about his business, ``Professionals in this business at entry level can do better in areas like marketing, quality, finance, etc. But they do have limitations and cannot change much the existing systems. Various management tools and techniques which can be used in other industries may not be applicable to this industry.''

According to Colliers Jardine CEO Akshay Kumar, ``Builders and professionals have different approach towards customers. A builder is not customer-friendly and is only concerned about selling his property. His dealings are not transparent and may create problems for his customers afterwards.'' He further adds, ``We professionals have a different approach. We understand the need of customers and pay attention to their requirements. Our dealings are transparent. Right from identifying place to final possession, we provide quality service.''

Multinational consultants in this business employ a large number of professionals. Brook International has 41 professionals, Knight Frant about 27 and Colliers Jardin 17. Corporate builders like Godrej also employ several professionals.

According to KalpaTaru director Parag Mehta, there is a good potential for professionals in this industry. Though he admits that a professional in this business may find it difficult to switch to any other industry later. While there is a lot of potential in this industry for professionals, there are certain disadvantages too. One of the biggest being the unattractive packages offered to them compared to other industries.

At present, a well-experienced chief executive officer (CEO) with reasonable experience can secure a job at Rs 7-8 lakh a year as an upper ceiling. An entry level MBA has to struggle for Rs 10,000 to Rs 15,000 per month which is below par.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.