business plan sky city
TRANSCRIPT
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PARADISE SKYCITY
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Executive summary
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The Company
Paradise Builders is a Cochin-based pioneer Architectural
and Engineering builders and Consultant who succeeded in
revolutionizing the field of construction in Kerala. Realestate business services are among the fastest growing and
healthiest areas of the economy, and Paradise builders
intends to capitalize on the opportunities in that area.
Paradise does everything from landscaping to designing tobuilding to interior decoration and that too for all types of
structures like Apartments, Shopping Complexes, Hospitals,
Educational Institutions and Places of Worship.
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Mission
Our mission is to ensure the greatest
good to the greatest number of people
through all activities that it undertakesin all possible ways.
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Management
Miss Reshma M Nath(Managing Director)
Miss Nandini Nandakumar (Director)Mr Anish Vijay(Director)
Miss Maithreyi M.S. (Director-Finance)
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Increasing urban population, increasing vehicular traffic and increasing
pressure on urban road infrastructure have been problems faced by
metropolises all over the world, especially in the developing countries.
The problem is further compounded by the unavailability of adequate
space for horizontal expansion. Vertical expansion is the only solutionfor creating more residential and commercial space in cities like Kochi
that are flanked by the ocean on one side and hills on the other.
We, Paradise Builders, has come out with a novel solution to Kochis
infrastructure problem. The 30 ft high SkyCity flyover as it is called
is designed to consume very little urban space while still solving thetraffic problem to a large extent. Besides, all vehicles will be allowed
toll free passage through the Sky Citys road. The construction cost,
financing cost, maintenance costs and returns to the investor will come
from the sale of commercial space that will be developed above the
flyover.
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PARADISE SKYCITY
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PARADISE SKYCITY
Paradise Skycity is a Flyover, designed with the prime
intention of reducing traffic in Kochi City and for boosting
tourism and economic activity of the region.
The Skycity will extend from Kundannoor near NH 47
Byepass in the south to Sahodaran Ayyappan Road in the
north, passing above the Chilavannoor Bund Road and the
Backwaters.
Another stretch of the Skycity will extend from theSahodaran Ayyappan Road to the Subhash Chandrabose
Road.
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Features
Flyover bridge that runs 30 ft above land and backwaters.
3 storied shopping complexes.
residential apartments and commercial hubs
Supermarkets, community halls,
entertainment multiplexes, restaurants, hotels,
garment and jewellery showrooms,
two and three wheeler automobile showrooms etc.Corporate offices, business centres, IT/ITES and BPO
operations,
Banking and financial institutions etc.
Amusement centres, health centres,
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water sports facility and oceanarium, theme park,
12 m wide 4 lane expressway,
5 m wide car parking on both sides of the road andadditional car parking on the building top facility
can accomodate 7,500 cars in all,
2 m wide footpaths on both sides,
6.6 m wide building on base floor and 8.6 m widebuilding on the first and second floors on both sides,
Cable car at an 80 ft height offering panoramic view
of Kochi city.
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Industry Analysis and Trends
Currently there is very high demand for real estate space, both
of the residential and commercial type.
The yield on the commercial space is much higher than that of
residential real estate.
The overall confidence level created in the city has started
continuous stream of incoming MNCs.
Uncertainties in the Middle East following the war in Iraq and a
rejuvenated environment created by the dynamic changes in theIndian Banking industry have also added to the push in the
demand for real estate.
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The BPO sector is also likely to add to the demand for office
space, with the bandwidth connectivity luring business
enterprises to look at Kochi as a potential investment
destination. Besides local developers, some developers from Bangalore and
Nagpur are also investing in Kochi.
The Sahara group has finalized the land in which it plans to
develop a township. Emaar, a Dubai based developer is scoutingfor large areas in the city. A Saudi Arabian delegation has also
shortlisted Kochi as one of the cities for huge realty
development.
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Analysts have estimated that unlike the unprecedented boom
that gripped the market a decade ago, the growth trend in the
property sector will hold out this time because there are more
real buyers this time. Waterfronts are the most-sought-after real estate zones,
because the charm of living in a flat overlooking one of the
city's watery expanses is special. Views that will remain
unhindered and the steady breeze that blows through theseflats are attractive features.
And builders have found that waterfront properties sell well
and command premium prices.
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With increasing demand coupled with unavailability of
space, Kochi is now expanding towards the east to
Kakkanad, a hilly village that fast becoming a new city
hub.
Now, with new projects such as the Smart City (a project of
Dubai International Holdings) in the offing, the eastern
suburbs of Ernakulam, including Kakkanad, are
experiencing unprecedented spurt in land purchase and
construction.
Another major project, the Vallarpadom Container terminal
project has also caused an increase in demand for realestate space.
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TARGET MARKET
The size of Indias retail sector stands at about Rs. 900,000 crores. Within
this, the organized retail sector forms a small part at Rs. 33,000 crores. It is
now expected to grow at the rate of 25 20% per year.
The extension of concessional import duty scheme for organized retailers
with a minimum area of 1000 sq. meters and the implementation of VATwill also significantly help retailing.
Clothing and textiles account for 36% of the organized retail market
followed by watches and jewelry (17%) and then food and grocery (14%).
Kochi, one of Keralas major retail hubs will gain significantly from the
retail boom.
The Indian hospitality industry has also felt the impetus of economic
liberalization. Currently occupancy levels stand at 60%, 5% higher than that
of last year. In Kochi, the occupancy level stood well above the average at
69%. There was also a significant increase in the revenue per availableroom.
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The Indian Entertainment industry, is growing at a CAGR of
about 18% and is expected to increase from the current Rs.
20,000 crores to Rs. 45,000 crores by the year 2009. With the
film industry trend moving towards digital films, the end of
piracy is near and hence added growth potential. In spite of the significant growth in the number of educational
institutions, there is always an insatiated demand for more and
more graduate as well as post graduate educational institutions.
With more than 4 million employees, the Indian healthcare
industry is one of the largest service sectors in the Indianeconomy. It is expected to grow to the size of Rs. 270,000
crores by the year 2012.
The coming of several large multi and super speciality hospitals
has indicated that Kochi is a good location for setting up top
end health care facilities.
A study conducted by ICICI Property Services has identified
Kochi as the No. 1 location for locating ITES / BPO operations
in the country. This industry is also a large-scale consumer of
real estate space.
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All these industries contribute to real estate space requirement in
Kochi, where the demand is already high due to its burgeoning middle
class with a high purchasing power:
Super market and hyper market chains
Garment and Jewellery shops
Restaurants and Hotels
Two and Three wheeler dealers
Entertainment Multiplexes
Educational Institutions and hospitals
Community halls and Convention centers
IT /TES and BPO operations
High profile real estate investors in Kerala and also in other parts
of India (secondary real estate market
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COMPETITION
Clearly, the sky rocketing prices of urban commercial real
estate all over the world indicate a huge mismatch between
demand and supply.
We do not perceive too much competition from existingreal estate space as the way Sky City is positioned clearly
differentiates it from existing real estate space either in
Kerala or for that matter, India.
However, considering the fact that we are targetinginternational commercial real estate shoppers, competition
may come from high quality commercial space offered by
South East Asian and Middle East countries.
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Marketing Plan
Place : Kochi, Kakkanad
Price: lease and rent
Promotion : advertisements, publicity
activities, print ads, hoardings.
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Web Plan
Creating an official website
through social networking sites
Advertising in other prominent websites as
well.
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PROJECT SCHEDULE
The acquisition of land and buildings will be completed in
the first three months by govt. of kerala.
Piling of will start in Q-2 of the first year. 75% of the
piling will be completed by the end of the 1st year and theremaining 25% in Q-1 of year 2.
Construction of utilities (electric and water works) and the
amusement park will start in Q-1 of the first year along
with piling and will continue till Q-2 of the third year. Construction of the flyover will start in Q-2 of year 2 and
will be completed in Q-1 of year 3 and that of the buildings
from Q-2 of year 3 till Q-1 of year 4.
C t ti f th h li d ill b d i th thi d
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Construction of the helipad will be done in the third
year, covering all the four quarters.
An Oceanarium, also planned to be part of the project
will be started in Q-1 of the second year and will be
commissioned by the end of the 4th year.
Painting and finishing work will be completed in the
4th year.
Project design, management, execution and co-
ordination would be undertaken by Paradise Builders.
After the detailed project plan is made, the various
project components would be sub contracted to various
contractors or to a consortium.
The finalization of the contracts would be through a
system of international bids.
The bids would only be for work execution and all
purchases and inventory control would be handled
directly by Paradise Builders.
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Opportunities
Problems and opportunities
State consumer problems, and define the
nature of product/service opportunitiesthat are created by those problems.
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Goals & Objectives
Five-year goals
Providing job opportunities for 10 lakh
people.
Make Paradise builders one among the
trusted global builders.
Make Kochi into the most preferabletourist and industrial destination by
2021.
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Financial Plan
A high-level financial plan that defines the
financial model and the pricing assumptions
and that reviews yearly expected sales andprofits for the next three years.
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Sources required
Total capital :=3000 crores
Bonds -2000 crores 1000@8%
Bank loan -1000 crores
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Cost required during phases
Intial phase -10 crores
Second phase -750 crores
Third phase 800 crores
Forth phase 1200 crores
Fifth phase 240 crores
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Cost pattern
Net profit expected =450 crores
Total project cost =1800 crores
Tax = 450 crores
Interest rates= 300 crores
Break even period 6.6 years.
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Total sqfeet : 75348 sqfeet
Total cost involved 3000 crores
Return = 7000 crores
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