Developers Bulk Sourcing Raw Materials
Real estate developers across the country are joining hands to source raw material supplies in bulk from manufacturers at preferred rates as a cost-saving measure. Developers estimate the move to collate orders will fetch at least 5-7% cost-benefit to developers and ultimately to homebuyers. Apart f
Published -
May 29, 2020 11:57 AM
Real estate developers across the country are joining hands to source raw material supplies in bulk from manufacturers at preferred rates as a cost-saving measure. Developers estimate the move to collate orders will fetch at least 5-7% cost-benefit to developers and ultimately to homebuyers. Apart from large developers that already derive such benefits due to their scale of operations, smaller and mid-size entities will also be able to gain cost efficiency on this count. “We are planning to execute this at city and region level as each of these pockets will have different challenges to deal with in terms of payment terms, brand preferences, credibility of both material suppliers and developers. We will be passing on the cost benefit to homebuyers,” said Satish Magar, President of realty developers’ body CREDAI National. This bulk procurement mechanism will be used initially for most input materials including tiles, bathroom fittings, elevators, pipes, cable and electrical fittings. Cement and steel manufacturers, who have bulk supply arrangements with developers will be out of this arrangement for now.
Tags : News/Views Latest News Developers Real Estate Cement CREDAI Steel Satish Magar raw materials