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SUMMER TRAINING PROJECT REPORTON
“ANALYSIS OF RETAIL ESTATE DEVELOPMENT IN CONTEXT TO BIG
APPLE REAL ESTATE PVT LTD”
SUBMIT REQUIREMENTS FOR THE MASTER’S DEGREE IN INTERNATIONAL BUSINESS
OF
H.N.B. GARHWAL UNIVERSITY, SRINAGAR
SUBMITTED TO:INTERNAL GUIDE EXTERNAL GUIDE
MS PARVI BHARTI MR ABHISHEK
LECTURER MANAGEMENT TRAINEE
IMS BIG APPLE REALESTATE
DEHRADUN LUCKNOW
SUBMITTED BY:
MOHIT SINGH
( MIB 0914)
INSTITUTE OF MANAGEMENT STUDIES-
DEHRADUN
BATCH 2009-2011
1
2
ACKNOWLEDGMENTBefore I go into the details of my study, it will not be fair on my part if I fail to
acknowledge the helping hand considerably supported me for summer project.
I express my profound sense of gratitude to SANJAY BANERJEE, GM of Big
Apple for giving encouragement in taking up the project.
A special mention of Mr. Abhishek (Finance Manager) and Mr. Sumit Jalota
(Marketing Manager), Big Apple, for their valuable guidance throughout the
training. It would be my privilege to thank the whole team of Big Apple,
Luknow, for being cooperative and extremely helpful through out the tenure of
the internship.
It would be my pleasure to grant the sincere word of gratitude to my teacher and
internal guide Ms. Parvi bharti guiding me all through the 1st and 2nd semester of
my M.I.B. in IMS without whom this project would not have been a success.
At last but not the least, I express my indebtness to my parents, friends and other
trainees who provided me support throughout this project. They have been a
perennial source of inspiration for me.
MOHIT SINGH
MIB- 2nd Sem
IMS Dehradun
3
CERTIFICATE
I have the pleasure in certifying that Mr./Ms. ...…………..……........………..……...
…………………
is a bonafide student of III Semester of the Master’s Degree in International Business
(Batch 2008-2010), of Institute of Management Studies, Dehradun under H.N.B.
Garhwal University Roll No. ………..……. .
He/She has completed his/her project work entitled
………………........................................................
……………………………………………………………………………………………
……….……..
under my guidance.
I certify that this is his/her original effort & has not been copied from any other source.
This project has also not been submitted in any other Institute / University for the
purpose of award of any Degree.
This project fulfils the requirement of the curriculum prescribed by this Institute for the
said course. I recommend this project work for evaluation & consideration for the award
of Degree to the student.
Signature : ……………………………………
Name of the Guide : ……………………………………
Designation :…………………………………….
Date : ……………………………………
4
EXECUTIVE SUMMARY
A summer Training of two months is an integral part of M.I.B. programme. It
provides the student with opportunity to experience the market condition in
which the company works in a war zone of rapidly changing competitions.
The project undertaken by me at Big Apple Real Estate Co., Lucknow as part of
Summer Internship Program provided me an opportunity to understand about the
real estate construction industry and to gain an insight into the various strategies
employed to cater this segment of the industry. The project deals with the
housing, hospitality, retail construction industry. There are many companies in
the world that are involved in the construction of these things but still Big Apple
is able to maintain a good position amongst all.
In today’s competitive world the topper is always doing something different from
others or may be the same thing in a much more different way. The same logic
goes for the business world too. With new competitors coming every now and
then the field of business, the company positioning should be strong enough to
retain its position in business.
The main aim was to study the Indian market in context to future prospects and
comparative analysis of the companies with Big Apple involved in construction
industry. It also comprises of the study about the customer satisfaction,
government policies and market opportunities in the real estate sector. The
analysis of Indian market reveals the useful data to evaluate the Indian Market for
entry and investment by foreign companies.
5
The conclusions drawn from the study clearly indicate that in today’s scenario
somewhere or the other Big Apple is playing a very important role in the
development of the infrastructure in India but still needs a proper planning and
better strategies to reach the top. Indian industry has a potential for international
markets like USA, U.K, Germany etc. so it should adopt more reliable strategies
and sophisticated technologies.
6
INDEX
TITLE PAGE. 1
ACKNOWLEDGEMENT. 3
INTERNAL GUIDE CERTIFICATE. 4
COMPANY TRAINING CERTIFICATE. 5
EXECUTIVE SUMMARY. 6
LIST OF CONTENTS. 7
LIST OF TABLES AND FIGURES. 8
OBJECTIVE OF THE STUDY. 10
INTRODUCTION. 12
COMPANY PROFILE. 36
RESEARCH METHODOLOGY. 50
FINDINGS. 58
DATA ANALYSIS. 72
CONCLUSION. 87
SUGGESTIONS. 88
BIBLIOGRAPHY OR REFERENCES. 89
ANNEXURES. 91
7
LIST OF TABLES & FIGURES
page no1) Graph representing visit to Malls 78
2) Graph representing visit to particular malls 79
3) Graph representing preference of shopping at malls 80
4) Graph representing different influential decisions involved while 81
purchasing in malls
5) Graph representing about the feedback of PHOENIX mall 83
6) Graph representing purpose of visiting malls 84
7) Graph representing feedback of the time to visit malls 85
8) Graph representing feedback regarding visits to malls 86
8
OBJECTIVES
9
OBJECTIVES
I have been given this project titled “ ANALYSIS OF RETAIL ESTATE
DEVELOPMENT IN CONTEXT WITH BIG APPLE REAL ESTATE PVT
LTD. LUCKNOW”
The key areas of the project are:-
Identifying the major competitors of real estate in the global market.
Identifying the prospective areas for project
Comparison of different services provided by big apple with there
competitors
identify the need & wants of the real estate customers
knowledge of the government policies and norms
knowledge of the FDI Regulations
Identify the market opportunities of big apple
10
INTRODUCTION
11
INTRODUCTION
The Indian economy has transformed substantively over the last two decades,
growing consistently at an average of 8 per cent and is poised to take its place
among the leading economies in the years to come. Strong performance of the
economy can be particularly attributed to healthy growth in manufacturing and
services sectors. The economic performance of India has provided strong impetus
to the real estate sector, which has been witnessing heightened activity in the
recent years. Substantial end-user and investor interest, large scale investment in
infrastructure and rapid urbanization have contributed to the growth trajectory of
Indian real estate. The real estate growth story is clearly visible in urban centres
such as Delhi, Mumbai and Bengaluru which have acquired global character and
recognition.
Indian Real Estate: Riding the growth wave
The strong fundamentals of the Indian economy are having a favorable impact on
all asset classes of Indian real estate viz. housing, commercial – office space and
retail and hospitality. In recent years, the growth has spread out to tier-II and III
cities as well. High growth in services as well as manufacturing sector has
resulted in high demand for commercial and industrial real estate. Further the
economic growth has trickled down to the large Indian middle class increasing
affordability and affluence. Improving living standards are driving the demand
for better quality housing and urban infrastructure. In fact, housing in India is
today moving from being viewed as a purely basic need to an aspirational
purchase. Though high interest rates coupled with soaring property prices have
temporarily impacted affordability of home buyers the demand-supply mismatch
12
and low home loans to GDP ratio in India (a meager 5 per cent as against more
than 50 per cent in US, UK and Germany) are expected to fuel demand for
housing in the medium long run. The growth of the sector has been
complemented by favorable policy changes like liberalization of Foreign Direct
Investment (FDI) guidelines and significant increase in investment on physical
infrastructure.
Booming Indian real estate
Demand Pull Factors Resultant Impact Supply push Factors Resultant Impact
Robust and
sustained
macro
economic
growth
Upsurge in
Industrial
business
activities, esp.
new economic
sectors
Favourable
demographic
Parameters
Significant
rise in
consumerism
Rapid
urbanisation
Gamut of
financing
options at
Increasing
occupier base
Significant
rise in demand
for
office/industri
al space
Demand for
newer
avenues for
entertainment,
leisure &
Shopping
Creation of
demand for
new housing
Policy &
Regulatory
reforms (100
per cent FDI
Relaxation)
Positive
outlook of
global
Investors
Fiscal
incentives to
developers
Simplification
of urban
development
guidelines
Infrastructure
support &
development
by
government
Entry of
number of
domestic &
foreign
players
increasing
competition
& consumer
affordability
Easy access
to mean of
project
financing
Increases
developers
risk appetite
& allows
large scale
development
Improved
quality of
real estate
13
affordable
interest rates
assets
Booming Indian Real Estate
REAL ESTATE
The recent times have also witnessed an evolution of the sector - towards greater
institutionalization and corporatisation. With the entry of global players, inflow
of foreign capital, evolution of capital markets, geographical diversification and
introduction of reforms, the sector has undergone some significant structural
changes. Even critical concern areas like transparency in the sector is also
improving significantly. The trend is expected to continue in the coming years.
Market Size and Growth
Estimate provided by ASSOCHAM, a leading industry body, suggest that the size
of the Indian real estate sector is around US$ 16 billion, growing at the rate of 30
per cent per annum. According to a recent estimate by UBS the total size of the
Indian real estate market in terms of total economic value of development
activity, is US$ 40-45 billion representing5 - 6 per cent of GDP.
Key Trends
This section discusses some of the notable trends observed in Indian real estate in
the year 2006-07.
Rush to raise capital
Last two years have been eventful years for the Indian real estate sector on the
capital markets, with the IPO Market witnessing the shifting focus towards the
realty sector .In a bid to raise their capital base and fund ambitious project
pipeline, real estate companies approached both the domestic and international
14
stock markets. Close to20 real estate and construction companies opted for stock
exchange listing since August 2006 to August 2007. Cumulatively, these
companies were able to raise around US$ 4356.3 million from the public for
various projects .Several prominent real estate players such as DLF, Parsavnath ,
Purvankara, Sobha, Kolte Patil and Omaxe came up with their public issues
during the last 18 months .Another trend that seems to find favour with Indian
realty developers is listing on the offshore exchanges like AIM, Singapore listed
REIT, Singapore Stock Exchange and Dubai International Financial Exchange.
India’s largest real estate developer DLF’s group company DLF Assets has filed
for REIT IPO in Singapore stock exchange.
Strategic alliances
Strategic alliance for synergetic benefits and capacity augmentation, a trend that
started in the year 2005-06 continued throughout the year 2006-07. The year saw
several regional, national and international players partnering for the objective of
fulfilling the funding requirement, mitigating risk in projects with high gestation
periods, obtaining technical expertise, brand equity etc. Several tie-ups to
enhance execution capability were also forged in the form of Joint Ventures with
the large national and international contracting Companies. Some prominent such
tie-ups included Emmar-MGF 50:50 joint venture with a leading Australian
contractor Leighton Holdings Ltd. and DLF’s joint venture with Laing 0’ Rourke
of UK.
Foreign developers in Indian real Estate Market
Investor Company Project Locaton(s)
Kontur Bintang / WestportKeppel Land Singapore Housing BoardSalim Group Indonesia Kolkata
MalaysiaSingaporeSingapore Hyderabad , ChennaiIndonesia SingaporeMalaysia
GurgaonBengaluruSingapore Hyderabad , ChennaiKolkataChennai MumbaiHyderabad,Mohali
15
Lee Kim Tah HoldjngsIJM Berhad Malaysia Hyderabad, MohaliUniversal Success EnterpriseEmaar Group Dubai Hyderabad
IndonesiaDubai
KolkataHyderabad
Global realtors in India
Indian real estate sector continued to remain on the radar of several global
realtors. International developers originating primarily from Middle East, South
East Asia, and Europe have been hunting for business opportunities in India and
several strategic tie-ups were announced in the year2006-07. Prominent Middle
East based developers such as Nakeel Group (Dubai); Signature Group (Dubai)
announced their plans or projects in India. Technology and Media Free Zone
Authority (TECOM) of Dubai has also entered into a
MoU with the State Government of Kerala to develop the “Smart City” project
near Kochi city in Southern India.
Diversification of Indian conglomerates
Several Indian corporate have evinced interest to garnera share of Indian real
estate pie in the recent past. Like in the year 2005-06, last year also witnessed
diversification of Indian conglomerates to include real estate sector into their
respective portfolios. The table below captures the foray of some leading Indian
conglomerates into Indian real estate.
16
Indian Corporates Forway into real Estate
Firm Current Acctivity
THDC Ltd.(Tata Group Company)
The Company has entered retail and commercial real estate development with projects such as the Imperial mall (Bengaluru) and Eruchshaw Building and the Technopolis Knowledge park in Mumbai.Further the THDC is now involved in the development of residential townships largely in the Tier II and III cities including Pune, Cochin and Goa.
Big apple Big apple has emerged as one of the leading commercial developers in Pune, Mumbai and Kolkata. The group also undertakes residential construction and has developed over 5 large residential complexes and Malls in Uttar Pradesh. The company has also entered the retail space with its flagship Kolkata Mall in association with Uppal group. The company has proposed two IT parks in Kolkata.
TCG Urban Infrastructure Holdings Limited(The Chatterjee Group Company)
The Group has thus far developed more than a million square feet, largely comprising commercial property, across five cities, Bengaluru, Delhi, Calcutta, Chennai, Pune. The Company reportedly has plans to develop 4-5 million square feet across asset classes over the next 2-3 years. The group proposes to invest in a proposed 330-acre IT hub at Jagdishpur near Kolkata.
Andani Group The group has recently closed US$ 365.9 million deal in Mumbai’s Bandra-Kurla Complex, where it plans to build a hotel, service apartments, a shopping complex and residential complexes. The company has also acquired 2.5 million square yards of land at Dantali (Gujarat) for setting up an integrated township. The company also plans to set up several townships in Gujarat.
Sahara India Group Sahara City Homes, one of the group companies of Sahara Group is developing a chain of well-planned self-sufficient high quality townships across 217 cities across India. Each township has been planned on 100 to 300 acres of land parcels. Further, the group has also entered into retail segment with large retail malls in cities such as Gurgaon , Lucknow etc. The Group has alsodeveloped one of India’s finest townships called “Aamby Valley” spread over sprawling 10,000 acres near Mumbai.
Reliance Industries Limited
Reliance Industries has recently inked a Memorandum of Understanding with Government of Haryana to develop a US$ 24.4
17
billion SEZ between Gurgaon and Jhajjar. The proposed SEZ is proposed to have its own airport, rail line, power plants and a metro line to Manesar.
Moving up the value chain
As the Indian real estate continues to chart its high growth trajectory and
continues to grow and evolve the trend Of increasing backward and forward
integration by real estate developers continues to remain an
important trend in the sector. Several domestic players initiated action to increase
their presence across the
real estate value chain. Several leading construction and infrastructure giants are
emerging as integrated
real estate developers. Infrastructure and construction giants such as L&T,
IVRCL, IDEB Inc, Lanco, Maytas,
Madhucon, GMR, Nagarjuna Constructions amongst others gearing up to play a
definitive role in the Indian
realty space
Opportunity Spectrum
The phenomenal growth witnessed in Indian real estate has widened the opportunity spectrum of the sector even beyond the established asset classes viz. commercial, retail ,residential, industrial and hospitality. This section maps the opportunity in both the asset classes and the emerging asset classes
.Commercial Real Estate
The boom in the Commercial Real Estate (CRE) segment is being fuelled by a
robust demand from MNCs and corporate India alike, particularly from IT/ ITeS,
18
BFSI, Telecom and Pharma companies. In the year 2006 supply of commercial
grade A office space, remained concentrated in the top seven cities. According to
E&Y Estimates total supply of commercial office space (grade A, non captive) in
the National Capital Region (NCR),
Mumbai, Hyderabad, Bengaluru, Pune and Chennai together was recorded in the range of 40-45 million sq. ft. The absorption was primarily driven by the IT/ITES industry accounting for almost 70-75 per cent of total\absorption. The supply format was primarily in the form of IT Parks, integrated campuses and a few SEZ development.
Commercial office Space Absorption
Total ~45 million sq.ft (2006)
Estate
Key Growth Drivers
Growth in IT/ITES Sector
The primary growth driver of commercial real estate is the IT/ITES sector, which, is growing at 25-30 per cent annually. Further according to NASSCOM estimates, India’s IT/ITES industry is expected to grow to US$ 148 billion
Bangolre 26%
NCR 23%
Mumbai 14%
Chennai 11%
Pune 10%
Kolkata 8%
Hyderabad 8%
19
by2012. As per E&Y estimates this translates into in excess of250 million sq. ft of commercial office space requirement by 2012-13
20
Growth in knowledge and technology intensive Sectors
Several other sectors such as financial services, biotechnology, telecom, pharma, insurance, and consultin businesses are witnessing strong growth and have added to the rising demand.
Significant growth in FDI
Progressive liberalization and easing of FDI norms in various sectors have paved the way for growth in FDI. This has further led to burgeoning demand for office space from multinational companies and other foreign investors.
Out look
Over next five years, the commercial real estate market is expected to grow at a CAGR of 20-22 per cent and would continue to derive its growth from the thriving off shoring industry. Over the medium term, the further opening up of the economy is expected to lead to a broader occupier base. The supply of
21
commercial office space will remain concentrated in the suburban areas and in the form of IT Parks and integrated campuses. Large supply of commercials pace is also expected from SEZs over the next few years.
Residential Real Estate
Driven by increasing urbanisation, rising incomes and decreasing household sizes, the residential segment in India has been on an upswing over the past few years. In terms of value, the residential property market Constitutes almost 75 per cent of the real estate market in India .The Working Committee of the 11th Plan (200712) has concluded that the total shortage of dwelling units at the beginning of Eleventh Plan Period i.e. 2007 was 24.7 million. E&Y estimates that more than 70 per cent of the shortage of dwelling units is for middle and low income brackets. Several policy interventions and initiatives are expected to correct this demand- supply gap
Key Growth Drivers
Rising urbanisation
22
According to the United Nations Population Fund (UNFPA), India is getting
urbanised at a faster rate than the rest of the world and by 2030 more than 40.7
23
per cent of the country’s population would be living in urban areas. Presently,
more than 28.7 per cent of India’s area is urban as against the global average of
48.7 percent. However the growth rate of urban areas was 2.3 per cent in 2005, as
against the world average of 2 per cent. The urban population of India was
estimated to stand at 316 million in 2005 and is the second largest in
the world after China. It is estimated to reach 590 million by the year 2030
retaining its second position. India’s cities have been the driving force in shaping
India’s socio-economic profile. Urban areas which constitute only 28.7 per cent
of the population, have been a major contributor to the GDP with a major share
of industry and almost the entire services sector concentrated in the urban
agglomerations. During the last sixty years, post independence the population of
India has grown two and a half times, whereas urban India has grown by nearly
five times.
According to Census of India 2001 estimates, 30 per cent of the total population
of India would be living in urban areas by 2011. The number of cities with one
million plus population is further expected to double from 35 in 2001 to 70 by
2025.India’s ‘Mega-Cities’ of Mumbai and Delhi would be the world’s 2nd and
3rd largest cities by 2015. With a rapid influx of migrants in these cities there is a
corresponding increase in the demand for space. Rapid urbanisation is fostering
real estate growth in India.
Increasing number of households
24
The growing popularity of nuclear families in India has decreased the average
household (HH) size in the country, leading to an increase in the number of
households in the country. The average HH size in India has declined from5.4
persons per HH in 1981 to 5.1 persons per HH in 2001.In 2001, there were
roughly 192 million HH in India, about 40 million more than those in 1991
Growing number of first-time home buyers
India has a much younger population compared to most other economies.
Currently the population in the working age group (16-65 years) is about 700
million representing about 64 per cent of the total population of India is expected
to emerge as the highest contributor to the global work force by 2010. Given that
a majority of the population would still be young the per capita income
generation capability of India would continue to remain obust. With the average
age of home buyers declining fast the young working population would further
push demand for housing units higher. First-time home buyer numbers have
multiplied over the years and the median age of home buyers has reduced from
38 years in the early 1990s to about 28 years today.
Increasing income levels
25
The per capita disposable income has grown manifold in the past one decade. The
current annual per capita disposable income stands at around US$ 693 and is
further expected to grow by 8-13 per cent in the next five years. Robust economic
growth, particularly in the services sector has led to an increase in income levels
in the country. Several studies have indicated that salaries in India have been
increasing by an average of 10-15 per cent on a year on-year basis. This has
increased the affordability of homes in spite of higher property prices and has
further created more discerning buyers.
Penetration of mortgage finance
Over the past five years loan disbursals by housing finance companies have
grown by 30-40 per cent annually.However, despite such growth, mortgage loans
are presently only 4-5 per cent of GDP, primarily due to the low penetration of
mortgage financing. Banks and housing finance companies have planned to
increase penetration aggressively. Most of the growth is expected to take place in
the midmarket and premium/luxury sub-segments. With the Government
promoting low-cost housing, developers may also start investing in the
budget sub-segment. Overall as housing supply catches up with demand in the
next few years the residential prices are expected to stabilise.
Out look
26
Government of India habitat policy envisages that by the year 2012 the housing
shortage should be removed and everybody should have a house of his own.
Fructification of such a policy will translate into large scale development in this
segment. Due to availability of land and proximity to upcoming knowledge
industries, peripheral regions of major metropolitan cities (Bengaluru-Whitefield,
Delhi – Greater NOIDA and Gurgaon, Kolkata- Rajarhaat, Chennai-along OMR)
are expected to attract maximum development. Though national developers are
expanding their geographical base, regional developers are expected to dominate
supply in short term, especially in mid-segment category. Several satellite cities
on the lines of Navi Mumbai for Mumbai, NOIDA and Gurgaon for Delhi are
expected to emerge to offer housing to burgeoning population and demand for
affordable housing.
Retail Real Estate
The Indian retail industry is witnessing a structural change with individual small
format stores making way for large format shopping malls and hyper-markets. On
the policy front, the partial relaxation in FDI regulation (51 per cent FDI in single
brand retailing) has provided a boost to the retail segment. Presently the top
seven cities of India account for a dominant share in mall space. The total
organised retail space absorbed for the year 2006-07 in the top seven cities was
around 19 million sq. ft. The following chart depicts the absorption scenario of
organised retail space for the year 2006-07. National Capital Region (NCR), one
of India’s most affluent urban centres, dominates the absorption scenario
followed by Mumbai and Kolkata. Bengaluru is also
27
Key Growth Drivers
Rising Consumerism
With growth in India’s economy over the past two decades, the spending power
of Indians has also increased manifold. Real average household disposable
income has roughly doubled since 1985. The combination of rapidly rising
household incomes and a growing middle-income population has led to a striking
increase in overall consumer spending which in turn has been driving the
exponential growth of the Indian retail industry
Growth in Organised Retailing
28
Retailing in India is witnessing a huge makeover. In recent years, retail has
emerged one of the fastest growing industries in the Indian economy. The
industry is currently estimated to be about US$ 240 billion in size and is growing
at over 6-7 per cent annually. Organised retailing accounts for a small but fast-
growing share of the total industry; its share has more than doubled from 2 per
cent in FY2003 to 4.4 per cent (US$ 10.5 billion) in FY2006. Several factors
such as increasing disposable incomes, rising consumption due to increasing use
of credit cards and easy finance options and shopping convenience have further
driven the growth of organised retail.
Entry of international retailers into India
India is attracting large international retailers to its doorstep. As per the latest AT
Kearney Global Retail Index 2007, India has been ranked the most attractive
country for international retail expansion. Large international retailers are
attracted by the huge potential of the Indian retail industry and steady opening up
of the sector for FDI. Many international retailers are already present in the
country primarily through the franchisee route and are actively considering
expansion. Besides several other large retailers are planning to enter the country.
These include Woolworths and Wal-Mart, who have already tied-up with Indian
partners and Carrefour and Tesco, who are finalising their plans. In addition to
larger retailers entering the market and new retail formats being introduced,
growth in demand is also expected to gain momentum.
Entry of Indian corporates into Retail industry
29
Several Indian corporates including Reliance, Bharti, Tata amongst others have
diversified into the retail segment. Prozone, a 100 per cent subsidiary of
Provogue (India) Limited a joint venture agreement with the Omaxe Group, plans
to develop India’s largest shopping malls across the country focused on tier two
cities. In a bid to offer products directly to customers at a competitive rate, large
corporate are looking to control the entire retail supply chain by forging tie-ups
and opening company owned outlets having footprints across the country.
Concept of specialised malls gaining popularity
The concept of specialised malls is gaining popularity with several auto malls,
jewellery malls, furniture malls and electronics malls coming up. Many
developers are further setting up mixed-use projects offering hotels, amusement
facilities and commercial space.
Out look
Market estimates put the growth of organised retail in the range of 25-30 per
cent annually. However, several policy initiatives (51 per cent FDI in single brand
retailing) and ongoing policy debate to allow 100 per cent FDI in organised
retailing (in both single and multiple brands) holds out lot of promise of the
Indian retail. The organised retail can attain a higher annual growth rate and is
expected to contribute 10 per cent of total sales by 2010. Several national and
international corporates have either made a foray into the retail segment or
firmed up plans to enter the retail segment. This will bring the much-needed
corporatisation into organised retail with enhanced operational efficiancy. This
30
will also result in greater geographical reach and diversification into tier-II and
III cities.
Hospitality Real Estate
With growth in inbound tourism and increase in business travel led by growth in
the services sector, India’s hospitality sector is experiencing a significant
demand. As per FHRAI estimates in the year 2006 there were close to 100,000
hotel rooms in India in various categories with Five Star and Five Star Deluxe
contributing close to 30,000 rooms. Estimates indicate that India would need an
additional 50,000 rooms in the next 2 to 3 years to cater to the projected tourist
arrivals into the country
Occupancy rates are at an all-time high with luxury hotels in Mumbai, New Delhi
and Bengaluru quoting room rates higher than the Average Room Rate (ARR) in
31
the US. The chart below shows the Revenue per Available Room (Rev PAR)
across five prominent cities in India.
Key Growth Drivers
Increase in International tourist arrivals
India has emerged as a major international tourist destination. International
tourist arrivals in India increased by over 13 per cent in 2006 to reach 4.4 million
and foreign exchange earnings from tourism increased by over 17 percent to US$
7.22 billion. The Indian Government has realised that tourism is not only a
significant revenue earner but also a core employment generator. It has launched
various global campaigns such as Incredible India!, Colors of India, Atithi Devo
Bhavah, and Wellness Campaign to promote inbound tourism.
With India attracting increasing foreign interest in terms of trade and investment,
international business travel to India is also on a steady rise.
Growth in domestic tourism
Domestic tourist visits in India were over 430 million in the year 2006. Increased
affordability and increasing trend of leisure travel are driving the domestic
tourism in the country. Moreover, India’s strong economic development and the
growth in its services industry has led to increased corporate spending on
business travel. Domestic business travellers.
Growth in domestic tourism
32
Domestic tourist visits in India were over 430 million in the year 2006. Increased
affordability and increasing trend of leisure travel are driving the domestic
tourism in the country. Moreover, India’s strong economic development and the
growth in its services industry has led to increased corporate spending on
business travel. Domestic business travellers account for about 40 per cent of
total room revenues in India.
Low cost airlines and improvement of airports
Another catalyst for the hospitality industry’s growth in recent years is the entry
of several low cost airlines in the country. It has led to a considerable
improvement in the connectivity between most of the major cities at an
affordable price. Further the increased focus of the Government on improving
airport infrastructure has pushed demand for the hospitality real estate.
Medical tourism
The hospitality industry is witnessing an emergence of unconventional forms of
tourism such as medical tourism. Underpinned by India’s low-cost advantage and
the emergence of new high-quality healthcare service providers, medical tourism
has already gained momentum in India over the past few years. Wellness spas,
hospitals etc. are some of the emerging trends. In 2005, the medical tourism
market in India was US$ 33 million with 150,000 foreign patients visiting India
annually. The medical tourism market is expected to grow to over US$ 2000
million by 2012, providing boost to the hospitality industry.
International events
33
The hospitality sector is expected to gain further momentum with India hosting
international events such as the Commonwealth Games. The country’s increased
recognition as a preferred destination for global business conventions is expected
to place India on top of global business traveller’s itineraries. These
developments are sustaining the growth of hospitality linked real estate in the
country.
MICE (Meeting Incentive Conference Exhibition)
Inbound MICE segment is estimated to be growing at 15 to 20 per cent annually,
with India ranking 27th in the Global Meetings market. Emergence of India as an
important MICE destination can be attributed to improving domestic and
international air travel and many new world class convention centres, hotels and
meeting facilities.
Out look
According to the Ministry of Tourism, Government of India, it has been
forecasted that that there will be a total of 2.9 million and 6.6 million hotel rooms
in India by 2010 and 2020 respectively. As per CRIS-INFAC, demand for hotel
rooms in the country will continue to grow at a CAGR of 10 per cent over the
next 5 years. The rapid growth in number of visitors has most cities facing a
severe shortage of quality hotel rooms. Currently, the room shortage is estimated
at around 27,000 rooms. These include luxury hotels as well as mid-tier budget
hotels and service apartments.
Some Notable Real-Estate Investments in Hospitality
34
Foreign Investor Indian Partner Type of Alliance Project Details
Hillton Group DLF Group 24:76 Joint
Venture
Develop and own 75
Hotels and service
apartments by 2013
Port land Bigapple Tie-up Development of 43
budjet hotels and
apartments at a cost
of US$ 140 million
Accor Hotels,
france
GMR Tie-up Setup a business
hotel near new
international airport
at Hyderabad
As within other sectors in the Indian economy, one of the key drivers has been
the changes in policy of the Indian Government to a more liberal model. There
has been a drastic curtailment in restrictive policies such as the Urban Land
Ceiling and Regulation Act, accompanied by major reforms in the Integrated
Township Policy. These changes have allowed the real estate development
industry to take a significant step forward, whilst international investors have
brought both capital and expertise. With the liberalisation of FDI rules and the
emergence of real estate funds, the options available to both domestic and
international investors will continue to grow. Continuing the reforms agenda for
the sector, the Securities and Exchange Board of India (SEBI), vide its press
release dated June 26, 2006 has approved the guidelines for Real Estate Mutual
Funds (REMFs) wanting to set up shop in India and may possibly introduce Real
Estate Investment Trusts (REIT) thereby continuing to widen the source of
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capital for the sector. The sector has further benefited by a range of Government
incentives including residential tax breaks and the Special Economic Zones.
COMPANY PROFILE
36
Big Apple Real Estate Private Limited is a holding company for
development of Shopping Malls, Multiplex and other real estate projects in
India. This holding company is promoted by two major business houses of
the country in their field i.e. The Phoenix Mills Ltd. Mumbai, the largest
mall developer of the country by the name of High Street Phoenix which is
spread over in an area of about 21 acres in Lower Parel, Mumbai, this is
largest Real Estate development in the country and UPAL Group,
Lucknow, one of the largest manufacturer and market leader of Roofing
Sheets in India having factories at Lucknow, Dadri and Nagpur.
The Company has been formed to develop quality malls by Phoenix
United brand name across the country. The first phase of development is
taking place in the state of Uttar Pradesh with a vision to give the much
needed organized retail segment which the state of U.P lacks and going
further to other states of the country.
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The company is going on with a project of development of a Mall /
Multiplex in the city of Lucknow situated on CP-8, Sector-B, LDA Colony,
Kanpur Road, Lucknow. The construction is going on in full swing. The
land area of the project is about 14,000 square meters.
The mall shall have Retail outlets, Hyper marts, Anchors, Entertainment
center, large food court, fine dine specialty restaurants and a 6 screen
PVR multiplex. The mall development is about 4.92 lac sq.ft. which
includes a triple basement dedicated towards the parking. We are
continuously negotiating with some of the major and the top brands of
country for the space in our mall.
PROMOTERS OF BIG APPLE
The major promoters of BIG APPLE, Real Estate are:
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The PHOENIX
UPAL
PHOENIX MILLS LTD.
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“A mythical bird that never dies, the phoenix flies far away
ahead to the front, always scanning the landscape and distant
space. It represents our capacity for vision, for collecting
sensory information about our environment and about the
events unfolding within it. The Phoenix , with its great beauty,
creates intense excitement and deathless inspiration
Phoenix Mills Ltd is poised to carve a niche in the booming Indian
real estate sector. Led by a young Managing Director, Atul Ruia and a
team of professionals, the Phoenix Group is set to take on the
challenge of redefining life style in Indian cities. Be it mega retail
malls, entertainment complexes, commercial space or hospitality
units, the Group are determined to make its presence felt in India.
Phoenix Mills Ltd. Are the India’s leading developer /operator of “iconic
large format retail-led mixed used developments? With High Street
Phoenix, the Phoenix Mills Ltd was the first in Mumbai to transfer a
textile mill to modern retail led, mixed use development. Group plans to
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foray into developing real estate in India across cities including Mumbai,
Bangalore, Chennai, Pune, Raipur, Agra, Indore etc.
The plan includes retail units, entertainment complexes, commercial units
& hotels.
Phoenix Mills Ltd has professional experience of execution and marketing
of projects through a team of competent managers.
UPAL
U.S. Asbestos Ltd. is a leading player in manufacturing & marketing of asbestos
cement sheets in India & is presently manufacturing AC sheets in Lucknow,
Nagpur & Dadri. The company is expanding aggressively across North India with
plans of Developing malls encashing upon its local expertise in project
management. In a partnership with Phoenix & kshitij, UPAL will manage its
existing & forthcoming projects while the partners will play a more active role in
planning & marketing.
Upal is a leading player in manufacturing and marketing of roofing sheets
in India, having factories in Lucknow, Nagpur and Dadri.
The company has a wide dealer network in North India.
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The company has made about 300000 Sq.m. of factory sheds including
infrastructure development during their expansion program.
Upal is aggressively diversifying into development of shopping malls,
multiplex’s and other real estate projects
KSHITIJ
Kshitij investment advisory co. ltd. (kshitij) advices on investment in &
development of retail real estate in Tier I,II & III cities . The company has been
promoted by Future Capital Holdings Ltd. Kshitij is currently associated with the
development of 21 million square feet of malls & “Market Cities” across India
CURRENT COMMERCIAL PROJECT
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Big apple real estste, a joint venture between upal group & phonix mills,will
invest thousand crores in next three years to develop five project in four cities in
the uttar Pradesh.The company will evelop retail project in cities across up.Of
the five projects lucknow , bareilly and agra are under various stages of
development and the lucknow mall had commence operation by the third
quarter of 2009.the brief description of the project undertaken in
lucknow,bareilly and agra are as under:
uTITLE: PHOENIX UNITED - LUCKNOW MALL
Project Brief
Thishopping Mall has over 5.5 lac sq feet of covered area plus 3 levels of car
parking. This Mall will have large anchors, vanilla shops, a hypermart, a family
entertainment centre with modern food court, speciality restaurants, a pulsating
night club and 6 - screen multiplex
Primary catchments of over 1.5 million in south Lucknow. No other mall is
present in a radius of 8 km presently.
Lies in close proximity to Piccadilly 5 star Hotel, Amausi International Airport,
Charbagh Railway station and inter state bus terminal.
The Mall is designed by M/s P.G Patki renowned Architect of Mumbai and
constructed by M/S B.E. Billimoria, a well known construction company of
Mumbai.
TITLE: PHOENIX UNITED AGRA MALL
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Project Brief
The property shall have 700,000 sq feet covered area with over 1000 cars
parkings.Shall cater to a local population of over 1.5 million people plus 10,000
tourists a day who come to visit the Taj
This Mall will have large anchors, vanilla shops, hyper marts, craft bazaar,
multiplex food court, speciality restaurants and a cultural centre will be part of
this development.
Designed by Inhouse Architects and team of renowned Consultants.
A 5 star deluxe hotel is planned besides this property by GANGETIC
DEVELOPERS wholly owned subsidiary of BIG APPLE REAL ESTATE
PVT. LTD.
TITLE: PHOENIX UNITED BAREILLY MALL
Project Brief
One of the biggest Mall of Bareilly having approx. 5.5 lac sq feet covered
area and ample car parking.
Located on the main Pilibhit Bypass and well connected with catchments
area of over 1 million populations.
This mall will have a large anchor store, vanilla shops, multiplex, food
court, specialty restaurants and hyper marts.
Designed by M/s P.G Patki and Associates of Mumbai and team of
renowned Consultants. Construction to start soon.
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MARKET RESEARCH
45
DEFINITION
Marketing Research is the systematic gathering, recording, and
analysis of data about issues relating to marketing products and
services. Marketing research may also be described as the systematic
and objective identification, collection, analysis, and dissemination of
information for the purpose of assisting management in decision
making related to the identification and solution of problems and
opportunities in marketing. The goal of marketing research is to
identify and assess how changing elements of the marketing mix
impacts customer behavior.
According to Clifford Woody- Research comprises defining and
redefining problems. Formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deduction and
reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypotheses.
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OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions
through the application of scientific procedures. The main aim of
research is to find out the truth which is hidden and which has
not been discovered as yet. Every research study has its own
specific purpose: Research methodology is wider than that of
research methods. Thus, when we talk of research methodology
we not only talk of the research methods but also consider the
logic behind the methods. Following order concerning various
steps provides a useful procedural guideline regarding the
research process:-
Formulating the research problem
Extensive literature survey
Developing the hypothesis
Preparing the research design
Determining design
Collecting the data
Execution of the project
Analysis of data
Hypothesis testing
Generalizations and interpretation
Preparation of the report of presentation of the results,
i.e. formal write-up of conclusions reached.
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CLASSIFICATION OF MARKETING
RESEARCH
Organizations engage experts in marketing research for two reasons:
(1) to identify and (2) solve marketing problems. This distinction
serves as a basis for classifying marketing research into problem
identification research and problem solving research.
Problem identification research is undertaken to help in identifying
problems which are, perhaps, not apparent on the surface and yet
exist or are likely to arise in the future. Examples of problem
identification research include market potential, market share, brand
or company image, market characteristics, sales analysis, short-range
forecasting, long range forecasting, and business trend research.
Once a problem has been identified problem solving research is
undertaken to arrive at a solution. The findings of problem solving
research are used in making decisions which will solve specific
marketing problems. More than two-thirds of companies conduct
problem solving research.
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ROLE OF MARKETING RESEARCH
The task of marketing research is to provide management with
relevant, accurate, reliable, valid, and current information.
Competitive marketing environment and the ever-increasing costs
attribute to poor decision. Sound decisions are not based on gut
feeling, intuition, or even pure judgment, but should be based on
sound information’s as a result of marketing research.
Marketing managers make numerous strategic and tactical decisions
in the process of identifying and satisfying customer needs.
Marketing research helps the marketing manager link the marketing
variables with the environment and the consumers.
Traditionally, marketing researchers were responsible for providing
the relevant information and marketing decisions were made by the
Managers. However, the roles are changing and marketing
researchers are becoming more involved in decision making, whereas
marketing managers are becoming more involved with research. The
role of marketing research in managerial decision making is
explained further using the framework of the DECIDE model:
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D —- Define the marketing problem
E —- Enumerate the controllable and uncontrollable decision factors
C —- Collect relevant information
I —- Identify the best alternative
D —- Develop and implement a marketing plan
E —- Evaluate the decision and the decision process
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RESEARCH
METHODOLOGY
51
TYPES OF RESEARCH DESIGN
1. Exploratory Research :- The main objective is to
provide a basic or preliminary understanding of the problem.
It is generally carried out when the problem is not clear or the
no. of out comes of possibility is very large. It is unstructured,
qualitative, versatile and used for developing a hypothesis or
discovering new relationships. It is of three types-
.Study of Secondary data
.Survey of knowledgeable people
Case study
2. Conclusive Research :- Information collected from
exploratory research is verified from conclusive research. It
involves testing of hypothesis .It is structured, quantitative &
formal. The conclusive research is of following types-
Descriptive Research
Experimental Research
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a. Descriptive Research: Descriptive research involves
describing something like characteristics of consumers etc. and
making prediction.
Method’s of descriptive research
Case Study
Statistical Techniques
b. Experimental Research: - It involves studying affects of one or
more variable by manipulation them under artificial or real situation.
Experimental research is used for obtaining the following
information:
To identify which variable is the cause and
what is the effect
To determine the nature of relationships
between the customers.
Sample design census and sample survey: all items in any field of
inquiry constitute a “universe” or “population”. A population
complete enumeration of all in the “population” is known as a
census inquiry.
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In this project the above method of research is adopted
TYPES OF MARKET RESEARCH
Marketing research is often partitioned into two sets of categorical
pairs, by methodological approach:
Qualitative marketing research, and
Quantitative marketing research
QUALITATIVE MARKET RESEARCH
Qualitative marketing research is a set of research techniques, used in
marketing in which data is obtained from a relatively small group of respondents
and not analyzed with inferential statistics. This differentiates it from quantitative
analysis for statistical significance. Generally Qualitative marketing research is
used for exploratory purpose
The main types of qualitative research are:-
o Depth interviews
o Focus Groups
o Projective Techniques
o Random Probability Sampling
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QUANTITATIVE MARKET RESEARCH
As opposed to qualitative research, quantitative research is mainly concerned
with numbers and data easily quantified. The most popular quantitative technique
is the survey, often based on a large number of cases, where a broad overview of
a market is required. Surveys can be administered by mail, telephone, face to
face, or more recently by the Internet or World Wide Web.
They usually take less time to complete by the respondent and most often require
choosing between several responses rather than long verbal responses. In market
research, surveys often aim to understand a target market better by breaking
down the sample by demographics, lifestyle and usage behavior. The main types
of quantitative research are -
SURVEYS
Surveys are the primary method of quantitative research – research with some
claim to statistical accuracy. There are several types of surveys and several key
considerations within each. This segment includes two important factors in
surveying – sampling and return rate with pros & cons and cautions.
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TYPES OF SURVEYS
There are four basic types of surveys:
Survey by Mail
Survey by Telephone
Survey online and
Survey in person
Researchers often use more than one research design. They may start
with secondary research to get background information, and then
conduct a focus group (qualitative research design) to explore the
issues. Finally they might do a full nation-wide survey (quantitative
research design) in order to devise specific recommendations for the
client.
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SAMPLING DECISION
The target respondents are the people of Lucknow City who are
the existing customer or having the willingness to be a customer of
real estate
DATA SOURCES : Primary & Secondary data.
DATA COLLECTION METHOD : Survey
RESEARCH INSTRUMENT : Questionnaire
SAMPLE SIZE : 100
SAMPLING UNIT : Business man, House wife,
Student, Service man
SAMPLE PROCEDURE : Convenience Sampling
SAMPLING METHOD : Personal Interview
Identification Business man House wife Student Salaried Total Govt. Pvt.
No. of People 24 28 22 12 14 100% 24% 28% 22% 12% 14% 100%
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FINDINGS
58
FINDINGS
COMPETITORS OF BIG APPLE
Sahara DLF ParsvanathEndelco
SAHARASahara Infrastructure & Housing is India’s best & the largest realtor with leadership in offering innovative products to our customers. They offer broad range of houses, commercial & retail spaces, office spaces and luxurious penthouses & villas.
The world's largest chain of townships in 217 cities all over India making more than 7 lac (0.7 million) houses, best quality mega township on around 100 to 300 acres of land in each city, offering amenities superbly matched to international standards that include :-
A chain of 217 centrally air-conditioned school imparting a thoughtful combination of academic curriculum, personality development & extra-curricular activities.
219 Hospitals providing multi-speciality high-end secondary care with state-of-the-art medicine facilty centre.
A chain of 219 Malls with an ideal combination of lavish showrooms, designer outlets and conveniences stores.
A chain of multiplexes with over 651 screens in major cities of India having a combined seating capacity of 217,000 with tastefully decorated interiors and luxurious seats.
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A chain of 218 Hotels having state-of-the-art international class facilities with dedicated executive clubs.
A chain of 434 well-equipped Clubs and 217 Community Centres having facilities for indoor/outdoor games, swimming pool and a fitness centre.
Residential & Commercial Building Projects
Major housing and commercial building projects in India including brand super
malls, luxary apartments and high-tech townships
SAHARA Grace - Gurgaon
Sahara Grace township launched in April 2003, popularly known as the residing
place of the Modern Maharajas has shaped new parameters of excellence. The
project is a phenomenon, specifically designed as a status symbol for all those
who have excelled in life with a penchant for the best and an attitude of no
compromise. With an impeccable blend of premium apartments, magnificent
villas and exclusive pent houses, it is an address that matches their style. With
optimum quality and durability that exudes the majestic touch of value added
living, it is spread over an area of 10.98 acre and covers around 207 units. It is
strategically located in the vicinity of Delhi on the main Mehrauli-Gurgaon Road
besides the famous Sahara Mall. This is the most irresistible home ever offered in
India. Comprehensive security measures are an integral part of this township with
dome cameras, separate entry/exit for the residents, panic buttons in each
apartment etc.
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Sahara Grace offers one of the biggest clubhouses. Be it the ayurvedic massage
parlour, Olympic size swimming pool, squash court, gymnasium or the restaurant
and the bar all symbolize a royal lifestyle at the disposal of the esteemed
residents of the township. Majority of the area is dedicated to lush green
environment-friendly avenues. An expansive open area in the form of a theme
park, comprehensive basement parking, impressive elevation of each block with
ultra modern diverse components, large size carpet area for each unit are
designed to match the international benchmarks of housing.
SAHARA STATES
Sahara States are developed in a step with the avowed objective of the company
to promote urban development in a planned manner to fulfill existing gap
between demand and supply.
It is the commitment of Sahara India Pariwar to build a better India that reflects
clearly in every project of Sahara Infrastructure & Housing. Sahara States is a
techno-residential township providing an ideal living environment to all at an
affordable cost.
Developed infrastructure, environment friendly avenues, playgrounds, parks,
greenery, meticulously planned houses and buildings are the exclusive highlights
of this township. The 1, 2 & 3 bedroom houses in three storied blocks and 3-4
room independent-expandable bungalows have been specifically designed to
meet the requirements of the people. The names of these residences based on the
ragas of Indian classical music resonate symphony.
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Sahara States aims at the realization of modern living facilitated by quality
construction, value enhancing conveniences - fully secured by round-the-clock
security assuring peace of mind - all at an affordable price. Therefore the 4
earmarked cities: Lucknow, Hyderabad, Bhopal & Gorakhpur have become
landmarks and revolutionized the real estate scenario as a whole in India.
SAHARA MALL –(Gurgaon)
This is India's first Brand Super Mall launched in March 2001 having built up
area of 394 Thousand sq. ft. on the main Mehrauli-Gurgaon road. It comprises
company owned brand outlets and flagship stores promising complete range of
products and latest offerings. A Shopping Mall that has set new standards in
contemporary design and latest facilities making it one of the most preferred
shopping zones for the consumers, with international class retailing environment.
From ground floor to the third floor there is an array of international brands
witnessing the paradigm shift in Indian habitats. The grand atrium welcomes the
customers & invites them to experience a world of class & lavishness. From
scintillating jewellery to glamorous apparel stores all are there. Pantaloons,
Raymonds, Lotus feet, Zaver, Tanishq, Big Bazaar etc. offer biggest scope to
explore the world in the limited boundaries of Sahara Mall.
The most reputed food chains like Crave, Odyssey, Haldiram etc. find best
location in Sahara mall. Matching the occupants it has been built with full dignity
& grace. The façade has been expertly designed by W.S. Atkins, global leader in
architecture and engineering consultancy. The construction is done by the
renowned firm M/s Larsen & Toubro - E.C.C. Division. For managing the
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overall mall, services of renowned firm Jones Lang LaSalle Meghraj have been
taken. The enormous parking is looked after by Interpark ICS.
There is also a multiplex managed by PVR for recreational and leisure activities.
Therefore, it's a heaven for not only the cine-buffs but also for those who find
solace in entertainment of all sorts. The latest and the classics are what the
viewers find irresistible in this multiplex. All construction is done resistant to
earthquake by following norms of BIS at one level higher seismic zone than in
which Gurgaon is located.
SAHARA SHOPPING CENTER
Launched in April 1994 in Lucknow, this shopping centre was among the first
commercial projects of Sahara Infrastructure and Housing. Located in the prime
commercial location of Indira Nagar, Sahara Shopping Center has a mix of local
Retail outlets, Cosmetic stores, Fitness zones, Clinics and offices.
SAHARA TRADE CENTER
Launched in April 1999 in Lucknow, this trade centre is another
commercial outlet in the vicinity of Sahara Shopping Center. It has
the same kind of tenant mix as the later
SAHARA PLAZA
Sahara Plaza was launched in Oct. 2001 at Gomti Nagar area in Lucknow. Built
with the concept of serving daily needs of the near-by residents, it offers apparel
shops, jewellery shops, restaurants and other such shops.
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SAHARA GANJ - LUCKNOW
Lucknow is going through a transformation in its lifestyle with Sahara
Infrastructure & Housing generating ample avenues. Be it residential or
commercial, our projects are making a statement that is bound to turn eyes. In the
same lines the recent project Sahara Ganj, opened in November 2005 to provide
the city with the best entertainment arena. A brand Super Mall, it is self sufficient
in its offerings & specifications of the highest order. The built up area of
approx 525 Thousand sq. ft. Matching international standards & having the best
value additions, it truly orchestrates a synergistic symphony of retailing amidst an
environment of recreation and pleasure with state-of-the-art facilities. With its
majestic elevation, massive atrium, spacious corridors, multiple escalators &
designer capsule lifts it is altogether a different world. The façade comprising of
ground plus 4 floors all imbibed with the highest order of security provide the
customers a safe environment to shop, relax, enjoy & is a part of the modern
world. Big Bazaar & Pantaloons are the anchors along with the other occupants
who are in the sections of garments, entertainment, furniture etc. Further, the
food chain McDonald is an integral part of the Mall.
The attached 4 screen multiplex by PVR is a value added attraction of its own
kind.
An epitome in majestic stylish designing and incorporating all the parameters of a
world class mall, Sahara Ganj has been crafted by W.S. Atkins and construction
carried by a renowned company called Nagarjuna Construction Company
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Ltd. It is poised to become a pioneer in its class which shall set the
standard in terms of quality of design development, construction,
technology and services.
ELDECO GROUP
The Eldeco group has been at the forefront of real estate development in North India since 1975. The group has pioneered organized sector real estate development in this region. The main companies in the group are Eldeco Housing and Industries Ltd. (EHIL) : Incorporated in 1985,
EHIL has held an uninterrupted market leadership position in most major towns of UP, most notably Lucknow and Kanpur. EHIL is listed on the Bombay Stock Exchange and has had an uninterrupted dividend paying record since inception. Eldeco Infrastructure and Properties Ltd. (EIPL) : Incorporated in
2000 to professionally undertake projects in the NCR, EIPL in recent years has had rapid growth in other regions as well. EIPL is a closely held unlisted company that also acts as the promoting company for many project specific special purpose companies
Management
The group is professionally managed under the chairmanship of Mr. S K Garg, who has over 30 years experience in real estate business. He has received several awards acknowledging his and Eldeco's contribution in the field of construction and housing. Mr. Pankaj Bajaj is the Managing Director of both EIPL and EHIL. He is an MBA from Indian Institute of Management, Ahmedabad with over 10 years experience in construction and real estate development. Business heads and other senior managers in the group are all well-qualified professionals with wide experience in their respective fields.
ELDECO BRAND
Eldeco Brand is highly regarded and has the highest recall in Lucknow Kanpur
Agra
Greater Noida
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Noida
Eldeco is arguably the biggest and strongest developer in these markets. Apart from these markets where the brand is well-entrenched, the Group has entered a number of new markets in North India and planning to expand its operations. We have started showing our presence in Haryana at Gurgaon, Sonipat & Panipat. Our next expansion will be in Punjab at Ludhiana & Jallandhar.
Eldeco projects have a highly evolved value – added positioning. Every project is well conceived to give you the best in living
BUSINESS ACTIVITIES
The Eldeco Group has till date executed more than 150 real estate and construction projects. Currently it is developing 35 projects in Noida, Greater Noida, Faridabad , Gurgaon, Sonepat, Panipat, Ludhiana, Jalandhar, Lucknow, Kanpur, Panchkula and Sitarganj.
The group has a presence in all the major real estate classes - multi storey group housing, residential townships, shopping malls, industrial parks, SEZs, office buildings and hotels.
Group Capabilities and Future Plans
The group has undertaken development of residential development of approx. 15000 residential units, Commercial spaces and has deep expertise in building economic housing and commercial space in tier 1, tier 2 and tier 3 towns. It has a unique industrial park project with a footprint of approx. 1196 acres, as a joint venture with SIDCUL, the government of Uttarakhand undertaking entrusted with industrial development of the state.
Now the group is looking forward to diversify in East and Central India, in addition to its current strengths in UP, NCR, Haryana, Punjab
Current Commercial Projects
NCR DELHI
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SUSHANT GOLF CITY
Sushant golf city is a hi-tech residential township sprawling across 5000 acres. A world class international championship golf course surrounds residential and commercial areas, making life on the greens a reality. Luxury villas, designer landscaping, state-of-the-art infrastructure, excellent entertainment and healthcare facilities, lush greens, everything here is specially designed to excel even under the most discerning eye.
GOLF CITY VILLAS
Charmwood Villa
Larchwood Villa
Olivewood Villa
Pinewood Villa
Redwood Villa
Rosewood Villa
Features:
• With Gomti Nagar on one side, and the city's airport on the other.
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The location for Sushant Golf City will set new standards for all that is progressive and elegant.
• Well equipped offices and commercial spaces
• Strategically located on the Lucknow-Sultanpur National Highway on Amar Shaheed Path, Ring Road.
• Township is divided into manageable and compact sectors with regulated single entry/ exit points.
• Paved roads with high quality riding surfaces.
• Banks and insurance companies
• Underground optical fibre cables for telecommunication, electricity distribution, storm water drains and sewer systems.
• Efficient power distribution network.
• Cyber cafes, BPOs etc.
• Solid waste management with participation of residents
• Commercial Zones
• Shopper's Delight
• Educational institutions for generations etc.
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Parsvnath
Parsvnath Developers Limited is the most diversified and widespread real estate
developer in India. It has 115 continuing projects with a developable area of over
191 msq .ft. Parsvnath Developers has been in the market for more than 20 yrs.
The amazing projects undertaken by Parsvnath Builders are not limited to any
particular state or region rather they are scattered all over India like Delhi,
Haryana, Punjab, Rajasthan, Gujarat, Maharashtra, Goa, Karnataka, Kerala,
Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Uttaranchal, Tamil Nadu,
Jharkhand, Jammu & Kashmir, & West Bengal. Very soon Parsvnath Developers
will be venturing into projects abroad due to international recognition for its
impressive infrastructures.
Parsvnath India undertakes construction of housing societies, commercial hubs,
townships & shopping malls beside IT Parks & Hotels. Recently Parsvnath
Builder joined the newly hot favorite SEZ bandwagon. The Metro mall culture
i.e. shopping mall with metro station, was started in Delhi by Parsvnath
Developers Ltd.
New Ventures
Parsvnath Mall, Ahmedabad
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Parsvnath Mall cum Hotel, Ahmedabad has been designed with rare distinction. It
takes into account the minutest details of a modern business-n-leisure
environment and makes provision for a seamless functioning of facilities. It’s a
distinct array of architecture design to facilitate a world class family shopping
and entertainment experience and high tech specifications.
Parsvnath Mall cum Hotel, Ahmadabad will have 150 super deluxe rooms and
suites. Tastefully furnished and draped in high tech sophistication, it will present
the corporate visitor as well as tourist a distinct choice of luxurious lifestyle.
Parsvnath Mall Matrix, Mohali
Close to the beautiful capital city of Chandigarh, Mohali, is all set to unleash an
ultra-modern commercial landmark called the ‘Mall Matrix.’ Already recognized
as the silicon valley of north India , wherein multinationals like ‘Dell & Quark’
have made their base. Mohali serves as the perfect host for Parsvnath ‘Mall
Matrix’ which is going to be the ultimate shopping, leisure & entertainment zone
for the huge population having high disposable income, high literacy rate & a
spirit to live life to the fullest.
Strategically located at the base for the base for the headquarters of Punjab Urban
Development Authority (PUDA), and close to the picturesque Mohali Cricket
stadium, ‘Mall Matrix’ promises to be the cynosure for commercial activity in
near future. Some of the corporate giants who have already arrived here include
Reliance Infocom, HFCL, Infotel, Spice Telecom, Bharti Telecom, Semi
conductor Complex Ltd., Ranbaxy, National Institute of Pharmaceutical
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Education and Research, Godrej & Boyce, ICICI India Ltd, Punjab Tractors and
PCA.
Just as Water & Earth create the base for life, just as Red, Blue & Green form the
base for a spectrum, Entertainment Hospitality & Retailing form the base for
‘Mall Matrix’ which is all set to convert Mohali into a new living Planet. This
gigantic commercial hub seamlessly converges within its complex- a mall, a
multiplex and a luxury star hotel of international standards.
Parsvnath Mall, Rohini
Parsvnath Mall, Rohini is located at one of the most potential locations of North
West Delhi. It has a huge catchment area in the form of HIGH INCOME GROUP
of more than 10 lac people in Rohini, Pitampura, Shalimar Bagh, Punjabi Bagh,
Lawrence Road, Vikaspuri, etc., who are lifestyle savvy and have huge
disposable income. With its unique character, multiple pull factors and global
brand mix, it will ensure enormous attraction value and footfall consistency for
the prospective business outlets.
Located at the most happening and premium Commercial Centre of
Rohini next to Metro station
Largest project of the District Centre with biggest floor plates
Maximum visibility to the traffic flow of Ring Road, resulting in
attraction value
Multiple pull factors
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Global matrix of mall management
Parsvnath Metro Malls
Shopping is one of the most vivid form of community activity, which dates back
to the ages of caves and stones. By whatever name it has been known, shopping
has always played a pivotal role in changing the face of society, its choices and
habits. Shopping in Delhi dates back to the era of Mughals when the same took
place amidst the hustle and bustle of the narrow streets of Balli Maran and around
the glitters of Chandni Chowk.
After Independence, the growth of Delhi was characterized by Delhi being
recognized as the as the political hub growth of population and conglomeration of
people from all sectors of India demanded that the Delhi market being
categorized into sectoral modes like Sarojini Nagar, Lajpat Nagar, and Gandhi
Nagar Markets etc. With the government opening up the economy in the early
90s, Indian market got fresh impetuous. Integration of shopping hubs led to shops
being converted into Plazas, and finally in the fast decade the new shopping
extravaganza “The Mall” was unleashed.
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COMPERATIVE ANALYSIS
The prices of the Housing and Apartments available for the customers are
4.5% lower than other companies like Sahara, Parsvnath, Eldeco and Sushant. Real Estate Companies.
Big Apple provides 875 sq. ft. where as all the other companies provide
800 sq. ft. of the accommodation at the same price.
Big Apple provides its services at the place or in the area where the other
real estate companies don’t even provide nor think of construction and the people of such areas are in need of such construction.
None of the projects of the Big Apple are not less than 200 acres where as
Sahara are constructing in 100 acres and Parsvnath are constructing in 90 acres.
Big Apple is coming up with projects involving in construction of
Hospitality, Housing and Multiplex in many of the states of India like U.P., Chennai, Mumbai, N.C.R., Bangalore where as others are involved in one or the two of the projects at one place.
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GOVERNMENT POLICY AND INITIATIVE
Rationalisation of processes
The Government has moved towards modernising and rationalising other areas of
regulation impacting real estate, which are perceived to being barriers to further
investment and growth. To date this has included simplification of urban
development design guidelines and a trend towards reducing and rationalising
stamp duties across the states. Steps are being taken to address the record
keeping of land ownership and transaction records, thus improving transparency
and possibly reducing transaction costs.
Snapshot of Key regulations in the real estate sector
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In India, residential housing is a state subject and federal government can only
provide policy guidelines on the. Some of the key legislations that have
significant impact on the real estate market are described as under.
Union budget 2008: Impact on Real Estate
Policy Impact Direct Tax Impact Indirect Impact Tax
• NHB to introduce reverse mortgage• Senior citizens to receive monthly incomeagainst their property• They do no have to repay the loan• Regulations for mortgage guaranteecompanies• Guaranteeing mortgages on the behalfof the banks and finance companies
• No extension of tax holiday for small sizedhousing units• Increase in tax deduction from 20 to 40per cent for Public company finance forconstruction/purchase of houses• No ‘pass through’ status for venture capitalinvestments• 100 per cent tax holiday for 5 years for hotels& convention centres in NCR if they startfunctioning before March
• Excise duty decrease on cement costing lessthan US$ 4.6 and increased duty for cementcosting more than US$ 4.6 per bag• Service tax proposed to be levied on servicesrelating to renting of immovable property• Service tax is proposed to be levied on servicesrelating to execution of a works contract as anadditional service category• Levy of ‘Secondary and Higher Education Cess’
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31,2010• Corporate tax increases from 33.66 per centto 33.99 per cent due to Secondary & HigherEducation Cess• Fringe Benefit Tax (FBT) imposed on ESOPs• Tax holiday conditions made stringent toprevent existing business to migrate to SEZ
at the rate of 1 per cent on customs, excise andservice tax
FDI Regulation
GUIDELINES FOR FDI IN REAL ESTATE IN INDIA
Conditions for Development
Conditions for investment Miscellaneous Conditions
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• Minimum 10 hectares to be developed for serviced housing plots
• For construction-development projects ,minimum built-up area of 50,000 sqaure meters prescribed
• In case of a combination project, any one of the above two conditions should suffice
• At least 50 per cent of project to bedeveloped within 5 years from date ofstatutory clearances
• Minimum capitalisation of US$ 10 million forwholly owned subsidiaries & US$ 5 millionfor joint ventures with Indian partners
• Infusion of funds within 6 months ofcommencement of business
• Original investment cannot be repatriatedbefore a period of 3 years from completionof minimum capitalisation
• Investor may be permitted to exit earlier withprior Government approval
• Investor not permitted to sell undevelopedPlots
• Project to conform to norms and standards laid down by respective State authorities
• Investor responsible for obtaining all necessary approvals as prescribed under applicable rules/by-laws/regulations of the State• Concerned Authority to monitor compliance ofabove conditions by developer
Government now allows 100 per cent FDI for townships ,housing, built-up
infrastructure and construction development projects (including commercial
premise hotels , resorts, hospitals, educational institutions, and recreational
facilities), subject to certain guidelines.
Urban Land (Ceiling and Regulation) Act 1976/Rent Control Act
ULCA was enacted primarily with the objective of preventing land hoarding by
developers and to increase supply. The Act imposes a ceiling on ownership and
hoarding of land in cities and towns
Rent Control Act
Various states and Union Territories have formulated their own rent control
legislation with respect to regulating chargeable rents, recovery and possession of
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property, and tenancy rights. These laws act as disincentives towards investment
in housing for rental purposes.
Regulatory and Policy Interventions
Special Economic Zone: Growth Engine of India
One of the principal interventions in regional development and the attraction on
investment has been the formation of Special Economic Zones (SEZs). The term
SEZ is widely used in international regional policy and many countries have
developed variations on the model The SEZ Act of Government of India, 2005
has presented a lucrative development alternative for all the realty players. SEZs
are specifically delineated, duty- free enclaves outside the customs territory of
India. SEZs are approved by the Ministry of Commerce and can be set up by
private developers or by central/state government or jointly by any two or more
of these. Government now allows 100 per cent FDI for townships, housing, built-
up infrastructure and construction development projects (including commercial
premises, hotels, resorts, hospitals, educational institutions, and recreational
facilities), subject to certain guidelines.
Minimum Area required for Various Types of SEZs in India
Type Minimum Area Requirement
Minimum Processing Area Requirement
Multi Product 1,000 Hectares 50 Per cent
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Multi Service 100 Hectares 25 Per cent
Sector Specific 100 Hectares 50 Per cent
IT, Gems and Jewellery, Bio-tech and and non Convectional energy
10 Hectares withminimum built uparea of:- IT : 100,000 sq mtrs- Gems & Jewellery:50,000 sq mtrs- Bio-Tech & Nonconventional energy:40,000 sq mtrs
50 Per cent
Free Trade warehousing Zone
40 Hectares(minimum built uparea of 1 lakh sqmtrs)
50 Per cent
Businesses operating in SEZs enjoy a corporate tax holiday on export earnings,
indirect tax exemptions and liberal exchange controls. Developers also receive
several fiscal benefits. The income-tax incentives for a SEZ developer include a
10-year tax holiday; exemption from dividend distribution tax; tax-exempt
interest on long-term financing; tax-exempt long-term capital gains arising on the
transfer of shares in the developer’s company and no minimum alternative tax.
GUIDELINES FOR FDI IN REAL ESTATE IN INDIA
ANALYSIS OF FINDINGS
(1) How often do you visit Malls?
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Options Percentage
Weekly 50
Fortnight 20
Monthly 20
Rarely 10
INTERPRETATION:-
As par the sample size, 50% respondent were weekly visit the mall, 20% of the
respondent were like to visit fortnightly, 20% like to visit monthly & remaining
10% like to visit occasionally
(2)Which of the following Malls do you visit frequently?
Options Percentage
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Sahara Ganj 60Fun Mall 17
Wave 23River Site 10
INTERPRETATION:-
60% of the respondent visit Sahara Gunj mall, 17% visit Fun mall, 23% visit wave & remaining respondent i.e. 10% visit River Site
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(3)Rank your preferences for shopping at the above mentioned malls on the basis of different parameters i.e. Proximity, brand mix, Zoning :
Name of the Mall Least satisfied Satisfied Highly satisfied
Sahara Ganj 20% 50% 35%
Fun Republic 22% 15% 22%
East End Mall (Wave) 28% 25% 25%
River site 30% 10% 18%
INTERPRETATION:-
from the above data, it is concluded that satisfaction level of people those are visit to Sahara Gunj is very high as compared to other malls.
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(4) Does advertising and promotion influence your shopping decisions at these malls
Option PercentageYes 62No 38
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(a) If yes then which type of advertising
Options PercentageT.V. 28
News Paper 48Radio 24
INTERPRETATION:-
24% from T.V. and 48% from News paper and 28% of the people give pre frences for this
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(7)How do you feel now, the Phoenix United Mall is launched in your area?
Option Very happy Happy Neutral Not Happy
% of Costumer 76% 12% 7% 5%
INTERPRETATION:-
from the above data, it is concluded that satisfaction level of people those are visit to Sahara Gunj is very high as compared to other malls.76% are very happy 12% are happy 7% are the netural and 55 are not happy
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(8)What is the purpose of visiting the Malls?
Purpose Shopping Entertainment Fooding others
% of Custmer
34% 32% 28% 6%
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(10) Which time do you prefer to visit the mall?
Time Preference 5pm-7pm 7pm-9pm 9pm-11pm others
% of Customer
18% 28% 44% 10%
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(9) What will be your preference to the following:
(a) Bowling Alley
(b)Night Club
(c) Bar
(d)Family Entertainment Centre
Response Bowling Alley
Night Club Bar Family Entertainment
% of Customer 18% 34% 26% 22%
INTERPRETATION:-
from the above data, it is concluded that satisfaction level of people those are visit to Sahara Gunj is very high as compared to other malls.18% people prefrences for Bowling Alley and highest 345 people prefer for night club.
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10. Are you satisfied with the facility of sanitation and cleanliness in the mall?
From the above data, we have known the satisfaction level of 100 respondents regarding the cleanliness and sanitation facilities of the mall.
11. Are you satisfied with the parking facilities in the mall?
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From the above graphs, we have concluded that satisfaction level of 100 respondents where 85% are satisfied and the remaining are not.
12. How will you rank the security procedures in the mall?
From above graph,we have concluded that 100 respondent who were asked the question about the security had ranked the security procedure according the above graph
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CONCLUSION
A project is not considered completed unless and until it is concluded. Based on
the title “ ANALYSIS OF RETAIL ESTATE DEVELOPMENT IN CONTEXT
TO BIG APPLE REAIL ESTATE PVT LTD LUCKNOW”, it is concluded that
Big Apple is playing a very vital role in Indian economy. The Economy of India
is growing at an increasing rate with heavy investment in Real Estate Sector. As
more and more investment is being done in this sector the company is having
great opportunities for growth and so is having a bright future prospect.
Even after having so many competitors the company is able to grow itself at a
very good pace. Association with companies like Uppal Group, Kshitij
Edelweiss, the company has well established itself in India and with its offering
the company has a very long way to go. The projects that the company is
handling at present at places like U.P., Mumbai, Chennai and Bangalore the
company is attracting more and more customers. The technology and the
advancement used by the company are very advanced because of which also the
customers are being attracted.
The prospect of Big Apple is very bright as according to the survey the customers
are very happy because Big Apple is providing its customers what they want at
very cheap prices.
Everything has a positive and a negative side, India to have it. Other than
negative aspect the, the positive aspects attracted many foreign investors and
companies who are ready to work with Big Apple and are still attracting many
other foreign companies and investors to enter and invest in India.
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SUGGESTIONS
The water coolers provided in the malls should not be placed near the wash rooms.
The stair cases should be inside the malls and not outside the malls.
There should be a proper segmentation of the shops; shops on one kind should be at one place.
ATM Machines should not be inside the malls as due to this the place becomes much crowded.
There should be proper security and the Security Guards should keep on moving all over the mall.
Parking tickets should be provided by the machines.
Kitchens should be placed outside the malls as people face many types of problems.
There should be a proper and large area with more number of seating arrangement in the food court.
There should be proper instruction for entry, exit and way directions in the mall.
There should be proper arrangement of the lights in the basement and parking area.
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BIBLIOGRAPHY
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Companies literature and manual
International Marketing Research-V.Kumar
www.google.com
www.wikipedia.com
Bussiness Magizines
www.Bigapple realty.com
International business – Fancis Cerulinum. www.BusinessIndia.com
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ANNEXURES
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