At 76, Puthan Naduvakkatt Chenthamaraksha (PNC) Menon remains as inquisitive as a toddler. The hearing aid and snow-white hair might suggest that the doting grandfather has other priorities, but beneath it all, Menon is still the razor-sharp and sagacious tycoon he has always been. His firm handshake is a testament to that.
Ravi PNC Menon, unlike his father, is reserved, perhaps even nonchalant, as Menon reveals his grand ambitions to expand Sobha into the US and strengthen its presence in India. “Currently, we do $5 billion, and the global dream is to reach around $15 billion. The India business should be getting closer to $4 billion,” Menon explains. “So, in total, it should be about $20 billion.”
“So long as you have the capability to deliver to high international standards, you can survive anywhere in this business,” Menon says about the US entry. “And we have that capability.” To solidify its brand in global markets, the luxury real estate company became the principal sponsor for English football club Arsenal, even renaming its training ground to Sobha Realty Training Centre in London.
To Mumbai, with Love
Even as Menon explores new ventures, it’s unlikely he will step away from overseeing Sobha’s strategic growth. This is especially important as Sobha Limited, the Indian arm, prepares for its major move into Mumbai’s lucrative housing market. The company has identified a 300,000-sq-ft plot to target the ultra-wealthy in the country. This project, expected to launch in mid-next year, marks a significant milestone in Sobha’s three-decade journey in the world’s fastest-growing large economy.
“We have to present something India has never seen before,” Menon says. “Mumbai is the only place where that opportunity exists. We can afford to invest the money, and Mumbai is the only city in India capable of providing the returns.”
“Their strategy seems to be focused on diversifying their geographical reach, with a significant push to expand their portfolio of luxury housing projects, integrated townships, and commercial developments in high-growth cities,” says Anuj Puri, chairman of real estate consultancy firm Anarock Property Consultants.
“We are looking to enter Mumbai because of its diverse micro-markets,” says Ravi, chairman of Sobha Limited. “We don’t have a specific preference and are exploring various options, including SRA (Slum Rehabilitation Authority) redevelopment or outright purchases. Transitioning from clean land developments in Bengaluru and other cities, we face unique challenges in Mumbai. We’re still evaluating costs and trying to understand the market.”
Mumbai is currently ranked among the top 10 luxury residential markets globally, standing eighth for price growth in luxury housing. In comparison, Delhi is 37th and Bengaluru 59th, according to Knight Frank’s The Wealth Report 2024. “We believe this move will significantly alter Sobha’s market dynamics and act as a key catalyst for a rerating, given Mumbai’s immense market potential and extensive infrastructure development,” stated a report by research firm HDFC Securities in June. “This positions Sobha to capitalize on premium pricing, leading to improved margins.”
“There are a few operators across India who focus exclusively on Mumbai and handle very large volumes,” Ravi says. “We are optimistic and hope to replicate the Dubai model in Mumbai, leveraging the city’s market capacity to absorb such pricing.”
The Dubai model entails strict regulations on altering the apartments, a common practice in India post-purchase. “We have one rule,” Menon says. “If you buy an apartment from us, you cannot modify it. We complete and deliver it fully finished. You cannot make changes, as it could damage your own apartment and those of others.”
Also read: Ultra-Luxury Real Estate: Crafting Homes for Generations
Building in the Desert
Menon entered the Dubai market in 2011 with the establishment of PNC Investments. The company initially partnered with Meydan Group on a property development before launching its own projects, including the luxury Sobha Hartland—a $4 billion mixed-use development spanning 183 acres.
Since then, Sobha has completed the second phase of Sobha Hartland, known as Sobha Hartland 2, also covering 183 acres with apartments and villas. The company has also developed other projects such as Sea Haven Tower and Sobha Reserve. As a result, Sobha Realty has become the third-largest real estate player in Dubai, trailing only Emaar and Damac, with annual revenues of $5 billion. The company is now gearing up for the launch of its flagship project, The S, located on the busy Sheikh Zayed Road, featuring four- and five-bedroom apartments with prices starting at an impressive $4.3 million.
Sobha’s rapid success in Dubai is attributed to the backward integration model pioneered in India in the early 2000s. This approach involves a network of associated arms operating independently yet complementing the core business. By eliminating outsourced vendors, Sobha developed in-house services such as design and engineering, cost consulting, plumbing, civil engineering manufacturing, landscaping, modular furniture, and facility management.
“We are fully backward integrated,” Menon says. “When it comes to backward integration in the real estate industry, we’re often cited as a prime example.” This integration is what provides the group with the resources and confidence to explore new markets, including its expansion into the US.
To the Land of Opportunities
Sobha’s major entry into the US is poised to be a game-changer, as no Indian real estate player has ventured there before. “In the US, we aim to achieve around ₹100,000 crore over the next 10 years,” Menon says. “We plan to enter hopefully next year. We’ve nearly completed our land acquisitions and expect to finalize the deals by year-end. After that, we’ll need to secure permissions, which typically takes about a year in America.” The company will focus primarily on residential properties in Dallas and Austin, where it is negotiating for 700 acres. “Currently, these are the hottest markets in America. The potential is enormous,” Menon adds.
The US expansion will see Sobha leverage its established backward integration model, manufacturing everything from toilet fittings to aluminum for construction. Menon believes this approach provides a significant advantage in maintaining quality and controlling costs. “For the next 15 years, we won’t need to look beyond this opportunity,” Menon says. “The US spans nine million square kilometers, has 330 million people, and a per capita GDP exceeding $8,000. With all this, reaching $15 billion in 15 years is achievable. Ravi is 40, and he has plenty of time.”
Menon didn’t have the privilege of a smooth start—his father passed away when he was just 10, and he had to leave college for reasons he keeps close to his heart, before enduring hardships in the Middle East. Despite these challenges, Menon’s meticulous attention to detail, commitment to quality, and relentless drive to provide value have transformed Sobha into a global luxury powerhouse. “I would say it’s a gift from God and nothing else,” Menon reflects.
In the late 1970s, Menon moved to Oman after a serendipitous encounter with Brigadier General (Retired) Sulaiman Al Adawi, then a captain in the Sultanate of Oman’s army, at a hotel lobby in Kochi. Al Adawi, in search of a fishing boat, struck up a conversation with Menon, who was then running a small furniture-making business. Their discussion soon turned to work opportunities in Oman.
“It was a chance meeting,” Menon recalls. He soon relocated to Oman to establish a furniture, interior, and fit-out company in partnership with Al Adawi, which eventually went on to build palaces in Oman, Bahrain, Qatar, and Brunei, among other places. “I arrived with only $7 and a lot of dreams,” Menon says, reflecting on his early days.
By 1995, Sobha entered the lucrative Indian housing market with its first residential project, Sobha Sapphire, in Bengaluru, completed in 1999. In 2000, the company undertook a contract to build an office complex for Infosys in Bengaluru, followed by another project for the IT giant in Mysuru. Since then, Sobha has completed 206 real estate projects and 340 contractual projects, covering approximately 136.25 million square meters of developable area. The company currently has 69 ongoing residential projects across 24 cities and 13 states in India.
“Sobha has demonstrated a strong commitment to green building practices and advanced construction technologies,” notes Anuj Puri of Anarock. “Their strategic acquisitions in prime locations ensure a steady project pipeline. Additionally, they are investing in brand development and customer relationship management to maintain their reputation for luxury and quality.”
Also read: Rizwan Sajan’s Journey: From Ghatkopar Slums to Dubai’s Luxury World
