PUNE: In a globalised environment, the way forward is through strategic alliances, a phenomenon which is spreading from sector to sector.
The latest is an alliance between two firms of architects, an Indian and a British. Under the terms of the agreement, the Indian firm will involve the British firm in large projects, builder willing, and the latter will be the consulting architect while the Indian firm will be the project architect.
"This is not a senior-junior kind of arrangement.
We do not pay them. The builder has to agree to involve the UK firm and he pays them. We are already working on a 20 lakh sq ft residential-cum-commercial project in Thane and there are others in the pipeline, including a mall in Pune," said Vishwas Kulkarni, proprietor, Vishwas Kulkarni Architects (VKA), an architect firm in Pune. VKA has entered into a strategic alliance with Stubbs Rich Architects of Bath, UK. SRA are the 15th largest firm of architects in the UK.
The agreement preceded the central government’s clearing 100 per cent foreign direct investment (FDI) in the construction/ real estate sector. The benefit from this move, for the alliance partners, will be that global majors tend to feel more comfortable when an overseas company is already involved in the project.
"It will offer comfort to foreign companies that the consulting architect is a well known UK entity," Mr Kulkarni said.
Pointing to the fierce competition among builders, Mr Kulkarni said they are all looking for a differentiating point. A foreign firm of architects will certainly add the `cachet’ and increase the saleability of the project.
The inclusion of a foreign firm will only add between 0.5-1 per cent to the project cost, which would be factored in and not likely to be passed on to the eventual buyer. Hence the focus on large projects only: the costs being spread over the larger volume. If the project were small, Mr Kulkarni estimated the cost would go up by 20 per cent.
While the out-sourcing of architectural design from UK and the US is gaining in importance, Mr Kulkarni was categorical that this alliance did not fall in that category.
"We are not out-sourced draughtsmen. We will not be executing the drawings for design conceptualised overseas. That has become a huge business and a lot of companies in Mumbai, Pune and Bangalore are doing it," he said.
The partnership envisages the UK firm developing a master plan, in consultation with the Pune firm, who will then design the buildings.
Admitting that cultural issues will make architectural design a very localised activity, Mr Kulkarni said in the globalised environment, as everyone sought bigger markets, it was better to be the first to establish a relationship.
"We hope at some point to be able to do the same thing in reverse: that we get to design some of their projects," he said. It would take time for Indian architects to increase their design capabilities to be able to design for western markets.
Among the projects in the pipeline are a mall and an IT building, both in Pune.