INTEGRATE & SUCCESSFULLY CONTROL YOUR VALUE CHAIN: SOBHA’S SECRET TO QUALITY
This model is not about partial integration, as a multidisciplinary service provider, for example. Rather, it
necessitates full integration at the developer level, including
production factories, all key design and engineering disciplines,
as well as sales and marketing. This approach may not work for
all companies, but most don’t dare to find out. One innovative
developer, however, has mastered it to perfection: Sobha
Group, a Dubai-based real estate developer that is active in the
Middle East, India and other markets worldwide.
HOW DOES INTEGRATION
WORK FOR SOBHA?
“The cornerstone of our quality-centric focus is our backward
integration model, which spans multiple activities: design,
engineering, civil, MEP, glazing, shell structures, aluminum,
heavy metal, joinery, landscaping and infrastructure,”
Ajay Rajendran, Co-Chairman, Sobha Group.
Sobha delivers a fully-integrated model of real estate
development, focused on quality and on-time delivery,
addressing the higher end of the market. The model,
mastered over 40 years, can be summarized by the following
eight key points:
1. DELIVER THE HIGHEST QUALITY
FOR THE MOST DEMANDING CLIENTS.
“Quality is workmanship. When you put it all together, it has to
be perfect. The quest for perfection must be a core aspect of
your DNA,” PNC Menon, Founder and Chairman, Sobha Group.
Quality is what has distinguished Sobha and its Indian founder
from the outset. Dropping out of school aged 10 following
the loss of his father, PNC Menon went on to start an interior
decorating business in Kerala before leaving for Oman—a
country of which he is now a citizen—at just 26 years of age.
There, with a focus on high profile interior design projects, he
founded Services & Trade Company (STC). As STC began to
achieve market dominance, the business ultimately became a
part of Sobha Group.
In his early days in Oman, Menon was commissioned to
develop the interiors of a royal palace—a project that
demanded not just the highest quality of work, but the trust of
the Omani royal family. On successful completion, he rapidly
secured further projects in the sultanate as well as in the UAE,
Bahrain, Qatar and Brunei. Working on royal residences and
other demanding projects, PNC Menon’s company developed
the ability to deliver consistent value, and in doing so, secure
high-end clients that shared his obsession with excellence
and uncompromising commitment to quality.
Menon quickly realized that controlling the value chain was key
to ensuring consistently high standards and on-time delivery.
This meant that every building component and every discipline
involved in a project needed to be thoroughly coordinated. From
doors and roofing to concrete blocks, and from architecture to
mechanical and electrical engineering, Menon began taking
control of every link in the chain. For the Gulf during the 70s
and the 80s—a time when standards were low and reliable third
party providers scarce—Menon’s approach was revolutionary.
That same approach is integral to Sobha’s success today.
The Lessons Beyond Real Estate:
• Determining the quality of your products will determine
the quality of your clients.
• Demanding clients will help you push the boundaries and
develop new capabilities.
2. SEE OPPORTUNITY WHERE OPPORTUNITY IS.
“There is a thin line between a fool and a visionary—you
need to be able to see around the corner. Don’t become
complacent, otherwise you will get lazy and lose focus on
quality. It is equally important to stay abreast of new trends
and innovative practices in our industry. This helps us to be a
part of the evolution,” PNC Menon.
“In 2011, during severe economic recession, Sobha purchased
eight million sq. ft. of land in the heart of Dubai. People thought
we were crazy,” Raj Chinai, Managing Director, Sobha Group.
Within its overarching focus on quality, Sobha has always
strived to identify opportunities for innovation. Despite its
early successes in Oman, Sobha was always hungry for more,
and with steady growth achieved in the Gulf region, the next
challenge was to pursue opportunities in PNC Menon’s home
country of India. Sobha’s founder saw in 1990s India, similar
54 Emerging Markets Business Summer 2016 • Issue No. 1