PLEASE USE SLIDE SHOW MODE
1
Taking into account demographic factors, economic growth, financial factors and availability of housing and office space, the recommendation to execute the project or to put it on hold has been given for each state
From the lenders point of view, risks ofthe real estate project have beenidentified based on past projects of L&TRealty, construction period and theproject life span
After identification of risks, they have been classified based on when they are likely to occur in the course of the project (pre,
during and post) and have been put under the headers of legal, labor, operational and maintenance risk
Each risk has been thoroughly assessed, with a detailed
explanation of mitigation, indicators, solutions and parties
involved along with the probable financial impact on the project
The correlation between various risks are found and these are used to identify the risk that would have maximum impact on the project. An integrated risk analysis is performed to assess the overall impact of the risks and the cash flow in case of worst case scenario is also calculated
A comprehensive pan India analysis of twenty states has been conducted including qualitative
and quantitative analysis like PESTLE, SWOT, Competitors analysis and analysis of all financial
factors to arrive at an NPV for each state
2Team: RadioActive
Maharashtra and Tamilnadu are the states with the highest urban population
It is to be noted that the urban population in southern India is higher than Northern India
Kerala, TN, Maharashtra, Gujarat and Haryana have the highest GDP per capita
The northern states have high agricultural dependence, and hence the low GDP per capita
The BIMARU states are still afflicted by poverty and lack of access to basic facilities
The coastal states of Maharashtra and Gujarat showcase high GDP growth
The northern states have shown insignificant growth, and the lack of human capital and technology is the reason for this
The recent state elections have resounded the strong support of the people to the National Democratic Alliance
A single majority ruling Alliance would ensure uniformity in policies, making trade and other related activities easier
INDIAN ECONOMY AT A GLANCE
3Team: RadioActive
4
PAN INDIA ANALYSIS
Click on the state to see theanalysis of the respective state.
Financial Risk
Legal Risk
Labor RiskOperational
Risk
Risk Correlation
Matrix
Maintenance Risk
Team: RadioActive
R
G M
RISK ANALYSIS
Click on the TAB to see the analysis
Conclusion
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
ANDHRA PRADESH
5
PESTLE
Demographics and Economic Indicators Porter’s 5 forces
APPENDIX FOR ANDHRA PRADESH (Click Here)
SWOT
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $77 Billion
GSDP/Capita $1,500
Area (Km2) 1,60,205
Population 49,386,799
Literacy Rate 67.41 %
HDI 0.6165
Government Majority (TDP)
Growth Rate 10.5%Capital: Amaravati (present)
Andhra Pradesh is one of the fastest growing state and will becomedeveloped state by 2029. Increase in demand and increase incompetition has led to the following forces of real estate
4
2
32
4
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition
Rivalry
Threats ofsubstitute
Demand Driver
Supply Driver
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities = 3.55Weakness + Threats = 2..35
S + O > W + TAs strength and opportunities overcome weaknessand threats , hence we should explore further
Strength + Opportunities
Weakn
ess + Threats
4.5
4
4.5
4.5
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Gross DomesticCapital Formation
Govt. Schemes likePMGSY and IAY
4.5
4.5
44.5
4
1.5
Political
Economic
Sociological
Technological
Legal
Environmental
3.5
3
34.5
4
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
ANDHRA PRADESH
6
City Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR ANDHRA PRADESH (Click Here)
Recommendation
City Area (Km2) Population REOR
Vishakhapatnam 681.96 2,091,811 4
Vijaywada 61.88 1,476,931 4
Tirupati 27.44 287,035 3
Guntur 168.41 743,354 4
Satellite images shows percentage of availableland for construction in above mentioned city
AP vision documents suggests rapid growth inabove mentioned cities
REOR* ratings positive growth prospects in AP
REOR = Real Estate Opportunity Rating INDIABULLS is the major competitor in residential cum commercial segment
0
1
2
3
4
5
6
7
8
9
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty ASC INDIABULLS M.V.V BUILDERS ARC ESTATES Others
0
50
100
150
200
250
300
350
400
450
-18
06
.50
04
05
-15
75
.77
74
96
-13
45
.05
45
87
-11
14
.33
16
79
-88
3.6
08
76
96
-65
2.8
85
86
07
-42
2.1
62
95
18
-19
1.4
40
04
28
39
.28
28
66
11
27
0.0
05
77
5
50
0.7
28
68
4
73
1.4
51
59
29
96
2.1
74
50
18
11
92
.89
74
11
14
23
.62
03
2
16
54
.34
32
29
18
85
.06
61
38
21
15
.78
90
46
23
46
.51
19
55
25
77
.23
48
64
28
07
.95
77
73
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Description Occupancy Cost factor Revenue factor NPV
Most Adverse 70% 1.15 0.85 -298
Adverse 75% 1.1 0.9 -115
Moderate Adverse 80% 1.05 0.95 70
Minimum Favorable 100% 0.95 1.05 469
-400
-200
0
200
400
Most Adverse Adverse Moderate Adverse MinimumFavourable
NP
V in
Rs.
Cro
rers
Cash Flow Comparision for Cases
AFFO Net present value for different scenarios
Heat Map of Prices of Major City23 Districts
Back to Index
By 2029, expected contribution in GSDPby service and industries will be near 90%.Hence, more opp. for real estate.
×Though builders have not increasedconstruction cost, the land price hassignificantly gone up and this has resultedin higher prices
Greenfield international airport isproposed near Bhogapuram and as aresult, State registration revenue hassignificantly increased.
RECOMMENDATION: EXECUTE
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
BIHAR
7
PESTLE
Real Estate related Data Demand Drivers Porter’s 5 forces
Supply Drivers
APPENDIX FOR BIHAR (Click Here)
SWOT
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
Population 103,804,637
Literacy Rate 63.8 %
HDI 0.447
Government Coalition
Growth Rate 17.06%
Bihar is one of the fastest growing state but, high state has made itdifficult for government to find investment opportunities. TheState Government is setting up an Information Technology (IT) Cityat Rajgir in Nalanda district. This may be one of the forces
3
4
22
4
Threats of newentrants
Buyer's Power
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
Capital: Patna
Strength + Opportunities = 2.4Weakness + Threats = 4
S + O < W + TAs weakness and threats overcomes strength andopportunities , hence we should not explore further
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
3.5
4
4
3
3
2.5
Political
Economic
Sociological
Technological
Legal
Environmental
2
4
2.5
1
3.5
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
2
3
2
2
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
Capital Formation
Govt. Schemes likePMGSY and IAY
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
BIHAR
8
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR BIHAR (Click Here)
Recommendation
City Area (Km2) Population REOR
Patna 234.96 2,046,652 3
Gaya 90.88 470,839 2
Bhagalpur 110 410,210 1
Muzaffarpur 160 393,724 1
REOR = Real Estate Opportunity Rating
Low GDP/Capita shows people will pay less.Land is used for agriculture mostly
Cheap labor and material cost can bebeneficial.
REOR* ratings-negative growth prospects inBihar.
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Rukmani Buildtech Shravani Engicon
AGR Estates Badal Construction Others
Rukmani & Shravani are the major competitors in residential cum commercial segmentPatna is the target city, other cities prefer contractor based construction
0
50
100
150
200
250
300
350
400
-26
07
.13
23
61
-23
44
.61
62
4
-20
82
.10
01
19
-18
19
.58
39
98
-15
57
.06
78
77
-12
94
.55
17
56
-10
32
.03
56
35
-76
9.5
19
51
36
-50
7.0
03
39
25
-24
4.4
87
27
15
18
.02
88
49
61
28
0.5
44
97
07
54
3.0
61
09
18
80
5.5
77
21
28
10
68
.09
33
34
13
30
.60
94
55
15
93
.12
55
76
18
55
.64
16
97
21
18
.15
78
18
23
80
.67
39
39
26
43
.19
00
6
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
About 35% of the simulation has shown negative NPV
Description Occupancy Cost factor Revenue factor NPV
Most Adverse 70% 1.15 0.85 -245
Adverse 75% 1.1 0.9 -88
Moderate Adverse 80% 1.05 0.95 58
Minimum Favourable 100% 0.95 1.05 358
AFFO Net present value for different scenarios
-400
-200
0
200
400
Most Adverse Adverse Moderate Adverse MinimumFavourable
NP
V in
Rs.
Cro
rers
Heat Map of Prices of Major City38 Districts
Back to Index
× The state government, through anotification issued in December 2012,banned the approval of maps for anymultistorey building over 11 metres heighttill the proposed building bylaws come intoeffect.
× Due to some policy problems, thedemand isn't converting into actualmarket.
× The concept of township not present inthe state due to lack of electricity andwater provided by the state
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
GUJARAT
9
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR GUJARAT (Click Here)
SWOT
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $110 Billion
GSDP/Capita $1821
Area (Km2) 196,024
Population 60,383,628
Literacy Rate 79.31%
HDI 0.522
Government Majority (BJP)
Growth Rate 8%
Gujrat is one of the fastest developing state. With lots of FDIs andfavorable government regulations, it is expected that GSDP percapita will increase. It will increase the disposable income of thepeople and hence competition among the companies will increase
3.5
4
4
3
3
2.5
Political
Economic
Sociological
Technological
Legal
Environmental
4
3
3
4
3
Threats of newentrants
Buyer's Power
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Strength + Opportunities = 3.4Weakness + Threats = 2.8
S + O > W + TAs threats strength and opportunities overcomesweakness and, hence we should explore further
4
3
33
4
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
Demand Drivers
5
4
4
4
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
CapitalFormation
Govt. Schemeslike PMGSY and
IAY
Supply Driver
Capital: Gandhinagar
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
GUJARAT
10
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR GUJRAT (Click Here)
Recommendation
City Area (Km2) Population REOR
Ahmedabad 464 5,577,940 5
Surat 326.5 4,462,002 4
Vadodara 225 1,670,806 4
Rajkot 170 1,286,678 4
High GDP/Capita shows people have highdisposable income.
Good governance and friendly businessenvironment. Can charge higher price
REOR* ratings-positive growth prospects Heat Map of Prices of Major City
REOR = Real Estate Opportunity Rating33 Districts
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Iscon Group Deep Group
Shree Sharanam Group Siddhi Developers Others
0
50
100
150
200
250
300
350
400
450
-10
05
.87
49
23
-85
6.1
49
62
12
-70
6.4
24
31
94
-55
6.6
99
01
76
-40
6.9
73
71
57
-25
7.2
48
41
39
-10
7.5
23
11
2
42
.20
21
89
79
19
1.9
27
49
16
34
1.6
52
79
35
49
1.3
78
09
53
64
1.1
03
39
71
79
0.8
28
69
9
94
0.5
54
00
08
10
90
.27
93
03
12
40
.00
46
04
13
89
.72
99
06
15
39
.45
52
08
16
89
.18
05
1
18
38
.90
58
12
19
88
.63
11
14
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Description Occupancy Cost factor Revenue factor NPV
Most Adverse 70% 1.15 0.85 -354
Adverse 75% 1.1 0.9 -136
Moderate Adverse 80% 1.05 0.95 83
Minimum Favourable 100% 0.95 1.05 557
-400
-200
0
200
400
600
800
Most Adverse Adverse ModerateAdverse
MinimumFavourable
NP
V in
cro
res
NPV in crores
Back to Index
Iscon group is the major competitor in residential cum commercial segment
AFFO Net present value for different scenarios Being developed as India’s firstInternational Financial Service Centre,Gujarat International Finance Tech-City(GIFT) will revamp the real estate scenarioof Ahmedabad and Gandhinagar.
× Certain modifications are required in thesystem by AUDA, GUDA, and CityDevelopment Cells so that they can beinvestor friendly
× A recent study conducted byASSOCHAM, noted that outstandinginvestments attracted by the real estatesector in Gujarat have dropped 20 per cent
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
HARYANA
11
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR HARYANA (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $58 Billion
GSDP/Capita $2100
Area (Km2) 49,212
Population 27,61,063
Literacy Rate 76.6 %
HDI 0.644
Government Majority
Growth Rate 6.5%Capital: Chandigarh
Strength + Opportunities = 3.4Weakness + Threats = 3.4
S + O ~ W + TAs weakness and threats is almost equal to strength andopportunities , hence we should not explore further
SWOTSupply Driver
Demand Drivers
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Haryana, the land of agricultural activities and pilgrimages, hasbeen witnessing a fast paced infrastructural development.Sudden boost in the real estate of Haryana has attracted severalmultinational companies to bring industrial revolution.
Back to Index
2
3
54
2
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition
Rivalry
Threats ofsubstitute
3
4.5
3
4
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3 2
43
3
Urbanization
DemographicDividend
Middle IncomeGroup
Growth ofservices sector
Growth of retailand SEZs
4
3
3
4
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
Capital Formation
Govt. Schemeslike PMGSY and
IAY
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
HARYANA
12
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR HARYANA (Click Here)
Recommendation
City Area (Km2) Population REOR
Faridabad 742 1,404,563 4
Gurgaon 732 901,968 5
Panipat 64 442,277 3
Ambala 62 407,934 3
High GDP/Capita shows people have highdisposable income and can spend more
Higher growth prospects due FDIs andeconomic growth
REOR* ratings-positive growth prospects inBihar.
Heat Map of Prices of Major City21 Districts
Back to Index
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty DLF Mahindra Lifescape Sobha Limited Ansal Builwell Others
Cities in Haryana has very stiff competition and hence coming up with a right price andcorrect value proposition is a challenge
050
100150200250300350400450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Description Occupancy Cost factor Revenue factor NPV
Most Adverse 70% 1.15 0.85 -315
Adverse 75% 1.1 0.9 -122
Moderate Adverse 80% 1.05 0.95 91
Minimum Favourable 100% 0.95 1.05 579
-500
0
500
1000
Most Adverse Adverse ModerateAdverse
MinimumFavourable
NP
V in
cro
res
Scenarios
NPV in crores
AFFO Net present value for different scenarios
REOR = Real Estate Opportunity Rating
× Union water resources ministry hasasked Haryana to make districts ofGurgaon, Faridabad, Mewat, Rewari andMahendragarh — to be a no constructionzone as it is an important groundwaterrecharge zone of NCR.
×The decision by the Government toimpose value added tax (VAT) ondevelopers operating in the state ofHaryana is likely to push the overall pricingof developed units higher.
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
JHARKHAND
13
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR JHARKHAND (Click Here)
SWOT
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $26 Billion
GSDP/Capita $780
Area (Km2) 79,714
Population 32,988,134
Literacy Rate 67.6 %
HDI 0.376
Government Majority
Growth Rate 6.06%
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
It has some of the most industrialized cities like Jamshedpur,Bokaro and Ranchi that have been attracting people fromvarious states, thus providing a platform for the real estateindustry to thrive on the migrant population.Capital: Ranchi
Back to Index
Demand Drivers
Supply Driver Strength + Opportunities = 2.4
Weakness + Threats = 3.2S + O < W + T
As weakness and threats overcomes strength andopportunities , hence we should not explore further
3
4
33
4
Threats of newentrants
Buyer's Power
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
4
4
2
3
3
4
Political
Economic
Sociological
Technological
Legal
Environmental
3
4
33
4
Urbanization
DemographicDividend
Middle IncomeGroup
Growth ofservices sector
Growth of retailand SEZs
3
3
4
4
Foreign DirectInvestment
Lending patterns ofbanks/NBFCs
Plan Outlay & GrossDomestic Capital
Formation
Govt. Schemes likePMGSY and IAY
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
JHARKHAND
14
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR JHARKHAND (Click Here)
Recommendation
24 Districts
Back to Index
City Area (Km2) Population REOR
Jamshedpur 742 1,337,131 3
Dhanbad 732 1,195,298 2
Ranchi 64 1,112,677 2
Bokaro 62 563,417 3
Heat Map of Prices of Major City
Low GDP/Capita shows people have lowdisposable income and will spend less
Cheap labor and material cost can bebeneficial.
REOR* ratings-positive growth prospects inJharkhand
REOR = Real Estate Opportunity Rating
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession Product Range
L&T Realty S K Construction Rameshwaram Projects Vasundhra Homes J D Infra Others
Cities in Jharkhand has very stiff competition and hence coming up with a right price andcorrect value proposition is a challenge
0
50
100
150
200250
300
350
400
450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -343
1b Adverse 75% 1.1 0.9 -128
1c Moderate Adverse 80% 1.05 0.95 74
1d Minimum Favourable 100% 0.95 1.05 524
-500
0
500
1000
Most Adverse Adverse Moderate Adverse MinimumFavourable
NP
V in
cro
res
Scenarios
NPV in crores
AFFO Net present value for different scenarios
× Rising costs of construction, higherinterest rates on housing loans, landacquisition problems had slowed down thepace of development for the last one year
× The Chotanagpur Tenancy Act (CNT) Actand the Santhal Pargana Tenancy (SPT) Actentail that tribal land cannot be bought bya non-tribal
There is steady rise in real estate activityon non-tribal patches in the areas .
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
CHHATTISGARH
15
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR CHHATTISGARH (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $27 Billion
GSDP/Capita $967
Area (Km2) 1,35,194
Population 27,928,015
Literacy Rate 71 %
HDI 0.537
Government Majority (BJP)
Growth Rate 7.5%
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Tremendous growth in all the sectors has made this state thehottest choice of property investors.Capital: Raipur
Back to Index
Demand Drivers
Supply Driver
Strength + Opportunities = 2.4Weakness + Threats = 3.1
S + O < W + TAs weakness and threats overcomes strength andopportunities , hence we should not explore further
SWOT
3
4
32
3
Threats ofnew entrants
Buyer'sPower
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
3.5
4
3
4
2
2
Political
Economic
Sociological
Technological
Legal
Environmental
2
3
2
3
3
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
3.5
3
4
2
Foreign DirectInvestment
Lending patterns ofbanks/NBFCs
Plan Outlay & GrossDomestic Capital
Formation
Govt. Schemes likePMGSY and IAY
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
CHHATTISGARH
16
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR CHHATTISGARH (Click Here)
Recommendation
27 Districts
Back to Index
City Area (Km2) Population REOR
Raipur 226 1,337,131 3
Durg 172 1,195,298 2
Bilaspur 345.8 1,112,677 2
Rajnandgaon 67 563,417 2
Medium GDP/Capita shows people have lessdisposable income and will spend less
Cheap labor and material cost can bebeneficial.
REOR* ratings-positive growth prospects inChhattisgarh
Heat Map of Prices of Major City
REOR = Real Estate Opportunity Rating
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty GT Capital Homes Shreeji Wallfort Balaji Others
Tremendous opportunity for real estate because of rapid growth, new market hencecompetition is stiff. New value proposition is required. Skimming strategy is beneficial
0
50
100
150
200
250
300
350
400
450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -368
1b Adverse 75% 1.1 0.9 -122
1c Moderate Adverse 80% 1.05 0.95 72
1d Minimum Favourable 100% 0.95 1.05 507
-500
0
500
1000
Most Adverse Adverse ModerateAdverse
MinimumFavourable
NP
V in
cro
res
NPV in crores
AFFO Net present value for different scenarios Real estate in Chhattisgarh is expectedto develop rapidly in the next decade dueto formation of the new capital “NayaRaipur”.
Apart from the regular IndustrialEstates, large tracts of land have beenreserved and earmarked in variousdistricts for mega-projects.
The future of the hospitality segment isbright, as the state’s dense forests, caves,waterfalls, rich bio-diversity andhandicrafts have the potential to developinto popular tourist attractions.
RECOMMENDATION: EXECUTE
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
MADHYA PRADESH
17
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR MADHYA PRADESH (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $75 Billion
GSDP/Capita $1036
Area (Km2) 308,245
Population 72,597,565
Literacy Rate 70.6 %
HDI 0.375
Government Majority
Growth Rate 5.16%
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
The potential of real estate in Madhya Pradesh is still notrealized by the property seekersCapital: Bhopal
Back to Index
Strength + Opportunities = 2.4Weakness + Threats = 2.9
S + O < W + TAs weakness and threats overcomes strength andopportunities , hence we should not explore further
SWOT
Demand Drivers
Supply Driver
4
4
3
4
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3
3
44
3
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
3
3
4
3
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
CapitalFormation
Govt. Schemeslike PMGSY and
IAY
3
3
4
3
2
Threats of newentrants
Buyer's Power
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
MADHYA PRADESH
18
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR MADHYA PRADESH (Click Here)
Recommendation
57 Districts
Back to Index
City Area (Km2) Population REOR
Bhopal 226 1,883,381 3
Indore 172 2,167,447 4
Gwalior 345.8 1,267,564 3
Jabalpur 67 1,101,981 3
Medium GDP/Capita shows people have lessdisposable income and will spend less
Cheap labor and material cost can bebeneficial.
REOR* ratings-positive growth prospects inMadhyaPradesh
REOR = Real Estate Opportunity Rating
Heat Map of Prices of Major City
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Man Developers Deveshi Infrastructure
SkyeEarth Developers APPOLO DB group Others
Stiff competition among the players. Skimming strategy is required. Man Developers is themajor competitor in Indore
0
50
100
150
200
250
300
350
400
450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -325
1b Adverse 75% 1.1 0.9 -134
1c Moderate Adverse 80% 1.05 0.95 65
1d Minimum Favourable 100% 0.95 1.05 546
-500
0
500
1000
Most Adverse Adverse ModerateAdverse
MinimumFavourable
NP
V in
cro
res
Scenarios
NPV in crores
20 Years
AFFO Net present value for different scenarios
Monte Carlo Simulation by varying cost and revenues
With many manufacturing giants settingshop here, Madhya Pradesh capital Bhopalis in the middle of a realty development.Expecting the city population to go upsubstantially due to this, many buildershave flown to Bhopal. The city has as manyas 70 under-construction projects.
× An ASSOCHAM study said real estateinvestments in the sector in MadhyaPradesh (MP) have declined at acompounded annual growth rate (CAGR)of 29% in past four years.
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
KERALA
19
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR KERALA (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $59 Billion
GSDP/Capita $1767
Area (Km2) 38,863
Population 33,387,677
Literacy Rate 93.8 %
HDI 0.790
Government Majority
Growth Rate 7.36%
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Kerala has rightly earned the sobriquet ‘God’s Own Country’ formany reasons but mainly on account of its natural lush greensettings and scenic landscape. The State has also attained aunique status on account of making it to the list of the top must-see global destinations
Capital: Thiruvananthapuram
Back to Index
Strength + Opportunities = 3.1Weakness + Threats = 2.2
S + O > W + TAs threats strength and opportunities overcomesweakness and, hence we should not explore further
SWOT
Demand Drivers
Supply Driver
2.5
4
4.5
3
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3
4.5
4
3
4
Urbanization
DemographicDividend
Middle IncomeGroup
Growth ofservices sector
Growth ofretail and SEZs
3.5
2
4
4
Foreign DirectInvestment
Lending patterns ofbanks/NBFCs
Plan Outlay & GrossDomestic Capital
Formation
Govt. Schemes likePMGSY and IAY
4
2
33
4
Threats of newentrants
Buyer's Power
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
KERALA
20
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR KERALA (Click Here)
Recommendation
24 Districts
Back to Index
City Area (Km2) Population REOR
Thiruvananthapuram 216 957,730 3
Kochi 95 612,343 3
Kollam 58 349,033 3
Thrissur 101 325,474 3
Heat Map of Prices of Major City
High GDP/Capita shows people have moredisposable income and will spend more
Cheap labor and material cost can bebeneficial.
REOR* ratings-positive growth prospects inKerala
REOR = Real Estate Opportunity Rating
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Nest Infra ABAD Builders VINAYAKA HOMES INFRA HOUSING others
Stiff competition among the players. Skimming strategy is required. Nest is the majorcompetitor in Kochi
050
100150200250300350400450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -343
1b Adverse 75% 1.1 0.9 -141
1c Moderate Adverse 80% 1.05 0.95 69
1d Minimum Favourable 100% 0.95 1.05 576
AFFO Net present value for different scenarios
-500
0
500
1000
Most Adverse Adverse Moderate Adverse Minimum FavourableNP
V in
cro
res
Scenarios
NPV in crores
The large scale tourism-enhancingactivities that are being undertaken inKerala have been attracting the attentionand interest of many real estatecompanies to invest in the State in orderto cater to the accommodation needs ofthe tourists on a larger scale.
Developments such as privatization ofthe international airport and upgradationof the sea port at Kochi have brightenedthe prospects of the real estate scene inthe city.
RECOMMENDATION: EXECUTE
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
KARNATAKA
21
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR KARNATAKA (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $100 Billion
GSDP/Capita $1658
Area (Km2) 191791
Population 61,130,704
Literacy Rate 75.6 %
HDI 0.508
Government Majority
Growth Rate 6.3%
Strength + Opportunities = 4Weakness + Threats = 2.1
S + O > W + TAs strength and opportunities overcomes weaknessand threats, hence we should not explore further
SWOT
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Demand Drivers
Supply Driver
Back to Index
Capital: Bengaluru
2.5
4
34.5
3
3
Political
Economic
Sociological
Technological
Legal
Environmental
4
2
44
4
Urbanization
DemographicDividend
Middle IncomeGroup
Growth ofservices sector
Growth of retailand SEZs
4.5
3
3
2
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
Capital Formation
Govt. Schemeslike PMGSY and
IAY
4
3
44
2
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition Rivalry
Threats of substitute
One of the major reasons for the growing property market in thecity is its well developed infrastructure and basic amenities.Bangalore has a much improved transportation system.
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
KARNATAKA
22
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR KARNATAKA (Click Here)
Recommendation
Back to Index
City Area (Km2) Population REOR
Bengaluru 539 8,520,435 4
Mysore 131 990,900 3
Mangalore 200 623,841 3
Belgaum 171 610,350 3
High GDP/Capita shows people have moredisposable income and will spend more
Cheap labor and material cost can bebeneficial.
REOR* ratings-positive growth prospects inKarnataka
REOR = Real Estate Opportunity Rating
Heat Map of Prices of Major City33 Districts
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Vandana Infra PURAVANKARA PROJECTS
KONCEPT AMBIENCE BRIGADE ENTERPRISES Others
Stiff competition among the players. Skimming strategy is required. Due to highdependence on service sectors, competition is heathy
050
100150200250300350400450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -397
1b Adverse 75% 1.1 0.9 -163
1c Moderate Adverse 80% 1.05 0.95 80
1d Minimum Favourable 100% 0.95 1.05 667
AFFO Net present value for different scenarios
-500
0
500
1000
Most Adverse Adverse Moderate Adverse Minimum FavourableNP
V in
cro
res
Scenarios
NPV in crores
Monte Carlo Simulation by varying cost and revenues
CREDAI to provide a platform forResource persons, including policy-makersand financial experts to discuss the state ofreal estate in the state
The state is witnessing a steep rise inprices as the demand for housing solutionsis increasing, and so is the interest of realestate builders to invest in this territory.
The overall picture of the real estatesector in the state constitutes a 5%increase in capital growth with a 14% hikein supply.
RECOMMENDATION: EXECUTE
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
RAJASTHAN
23
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR RAJASTHAN (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $85 Billion
GSDP/Capita $1139
Area (Km2) 342,239
Population 74,791,568
Literacy Rate 67 %
HDI 0.434
Government Majority
Growth Rate 5.4%
Strength + Opportunities = 2.6Weakness + Threats = 3.1
S + O < W + TAs weakness and threats overcomes strength andopportunities , hence we should not explore further
SWOT
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Demand Drivers
Supply Driver
Back to Index
2.5
3
23
3.5
4
Political
Economic
Sociological
Technological
Legal
Environmental
2
2.5
2.52
3
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
Capital: Jaipur
2.5
2
3
4
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
Capital Formation
Govt. Schemes likePMGSY and IAY
32
33
3
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition Rivalry
Threats of substitute
Rajasthan is the largest state of India and one of the richest incultural heritage. The property market in Rajasthan is flourishingso it is beneficial to invest in property here
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
RAJASTHAN
24
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR RAJASTHAN (Click Here)
Recommendation
Back to Index
City Area (Km2) Population REOR
Jaipur 484 3,525,000 4
Jodhpur 79 1,320,000 3
Kota 527 1,200,000 4
Bikaner 155 700,000 2
Medium GDP/Capita shows people have moredisposable income and will spend more
Dependent on tourism and lack of servicesector
REOR* ratings-positive growth prospects inRajasthan
REOR = Real Estate Opportunity Rating
Heat Map of Prices of Major City33 Districts
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty UNIQUE BUILDERS UDB UPASNA GROUP TRIMURTY GROUP OTHERS
Stiff competition among the players. Skimming strategy is required. New players arecoming with new value proposition
050
100150200250300350400450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -328
1b Adverse 75% 1.1 0.9 -135
1c Moderate Adverse 80% 1.05 0.95 66
1d Minimum Favourable 100% 0.95 1.05 552
AFFO Net present value for different scenarios
-500
0
500
1000
Most Adverse Adverse Moderate Adverse Minimum FavourableNP
V in
cro
res
Scenarios
NPV in crores
The immense business potential of thereal estate market of Rajasthan hasalready drawn large interests from someof the leading Indian real estatedevelopers who are entering thesemarkets to invest on cheaply availableproperties and make abundant profits.
The owner of property here does nothave to pay property tax
The establishment cost of setting up abusiness or residential property inRajasthan is very low as compared to othercities and states.
RECOMMENDATION: EXECUTE
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
UTTAR PRADESH
25
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR UTTAR PRADESH (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
Population 103,804,637
Literacy Rate 63.8 %
HDI 0.447
Government Coalition
Growth Rate 7.06%
Strength + Opportunities = 3.6Weakness + Threats = 2.2
S + O > W + TAs strength and opportunities overcomes weaknessand threats , hence we should not explore further
SWOT
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Demand Drivers
Supply Driver
Back to Index
3
2.5
2
3
3
2.5
Political
Economic
Sociological
Technological
Legal
Environmental
2
4
2.52
3.5
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retail andSEZs
2
4
3
3
Foreign DirectInvestment
Lending patterns ofbanks/NBFCs
Plan Outlay & GrossDomestic Capital
Formation
Govt. Schemes likePMGSY and IAY
4
3
43
3
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition
Rivalry
Threats ofsubstitute
Capital: Lucknow
Uttar Pradesh is one of the largest state of India. It has two ends,one very progressive end (near NCR) and other end which is notso progressive. Progressive end has huge growth potential forreal estate
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
UTTAR PRADESH
26
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR UTTAR PRADESH (Click Here)
Recommendation
Back to Index
City Area (Km2) Population REOR
Kanpur 404 2,920,078 3
Lucknow 2522 2,904,474 4
Ghaziabad 132 2,358,525 4
Agra 70 1,746,467 2
Low GDP/Capita shows people have lessdisposable income and will spend less
Few Cities have good growth prospects REOR* ratings-positive growth prospects in
UttarPradesh
REOR = Real Estate Opportunity Rating 75 Districts
Heat Map of Prices of Major City
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession Product Range
L&T Realty Amrapali Group GAURSONS INDIA LTD
IMPERIA STRUCTURES MAHAGUN INDIA Others
Stiff competition among the players. Penetrating strategy is required. Difficult to enterwithout new value proposition
050
100150200250300350400450
-10
45
.83
18
73
-89
2.4
90
77
22
-73
9.1
49
67
19
-58
5.8
08
57
16
-43
2.4
67
47
13
-27
9.1
26
37
1
-12
5.7
85
27
07
27
.55
58
29
65
18
0.8
96
93
33
4.2
38
03
03
48
7.5
79
13
06
64
0.9
20
23
09
79
4.2
61
33
12
94
7.6
02
43
15
11
00
.94
35
32
12
54
.28
46
32
14
07
.62
57
32
15
60
.96
68
33
17
14
.30
79
33
18
67
.64
90
33
20
20
.99
01
34
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -401
1b Adverse 75% 1.1 0.9 -165
1c Moderate Adverse 80% 1.05 0.95 80
1d Minimum Favourable 100% 0.95 1.05 673
-500
0
500
1000
Most Adverse Adverse Moderate Adverse Minimum FavourableNP
V in
cro
res
Scenarios
NPV in crores
AFFO Net present value for different scenarios Appointment of regulator and appellatetribunal delayed to 2017, giving enoughtime to builders to complete their existingprojects, thereby benefiting buyers whoare awaiting the possession of theirproperties.
× Currently the availability of plots is low inLucknow as the Lucknow DevelopmentAuthority (LDA) and Uttar Pradesh Housingand Development Board have beendeveloping residential units.
× Low purchasing power of the people andrural population above 30% in the state.
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
TELANGANA
27
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR TELANGANA (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
Population 103,804,637
Literacy Rate 63.8 %
HDI 0.447
Government Coalition
Growth Rate 5.06%
Strength + Opportunities = 2.4Weakness + Threats = 2.8
S + O < W + TAs weakness and threats overcomes strength andopportunities , hence we should not explore further
SWOT
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Demand Drivers
Supply Driver
Back to Index
4
3
44
2
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition Rivalry
Threats of substitute4
2
44
4
Urbanization
DemographicDividend
Middle IncomeGroup
Growth ofservices sector
Growth of retailand SEZs
4
4
3
4
4
3
Political
Economic
Sociological
Technological
Legal
Environmental3
3
4
4
Foreign DirectInvestment
Lending patterns ofbanks/NBFCs
Plan Outlay & GrossDomestic Capital
Formation
Govt. Schemes likePMGSY and IAY
As Telangana reached its one-year milestone, the real estatesector in Hyderabad appears to have given up hopes of a quickrecovery of fortunes and instead remains content with slow andincremental growthCapital: Hyderabad
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
TELANGANA
28
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR TELANGANA (Click Here)
Recommendation
Back to Index
31 Districts
City Area (Km2) Population REOR
Hyderabad 650 8,746,490 4
Warangal 407 811,844 2
Nizamabad 43 311,152 4
Khamman 97 305,000 2
Low GDP/Capita shows people have lessdisposable income and will spend less
Few Cities have good growth prospects REOR* ratings-positive growth prospects in
Telangana
REOR = Real Estate Opportunity Rating
Heat Map of Prices of Major City
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Mahindra Lifescape SMR Holdings APARNA Aditya Construction Others
Stiff competition among the players. Penetrating strategy is required. Difficult to enterwithout new value proposition
0
50
100
150
200
250
300
350
400
450
-11
09
.47
09
64
-94
9.8
24
32
16
-79
0.1
77
67
94
-63
0.5
31
03
72
-47
0.8
84
39
5
-31
1.2
37
75
28
-15
1.5
91
11
06
8.0
55
53
16
23
16
7.7
02
17
38
32
7.3
48
81
6
48
6.9
95
45
82
64
6.6
42
10
04
80
6.2
88
74
27
96
5.9
35
38
49
11
25
.58
20
27
12
85
.22
86
69
14
44
.87
53
11
16
04
.52
19
54
17
64
.16
85
96
19
23
.81
52
38
20
83
.46
18
8
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -289
1b Adverse 75% 1.1 0.9 -119
1c Moderate Adverse 80% 1.05 0.95 58
1d Minimum Favourable 100% 0.95 1.05 485
AFFO Net present value for different scenarios
-500
0
500
1000
Most Adverse Adverse Moderate Adverse MinimumFavourable
NP
V in
cro
res
Scenarios
NPV in crores
Whenever Metro rail is going to beoperational, it will improve all marketsalong the metro sector and will increasethe demand for housing and office space.
× Despite a very marginal rise in the lastone year, property prices in and aroundthe city continue to remain very lesscompared to most other metro cities.Apart from all other attractions, a builderpoints out, the icing on the cake herehappens to be the low pricing.
× Banks in the state have been non-cooperative in the past when it comes tofunding real estate projects..
RECOMMENDATION: CANCEL
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
TAMILNADU
29
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR TAMILNADU (Click Here)
MA
CR
O-E
NV
IRO
NM
EN
T A
NA
LY
SIS
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
Population 103,804,637
Literacy Rate 63.8 %
HDI 0.447
Government Coalition
Growth Rate 7.06%
Strength + Opportunities = 2.4Weakness + Threats = 4
S + O < W + TAs weakness and threats overcomes strength andopportunities , hence we should not explore further
SWOT
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities
We
akn
ess
+ Th
reat
s
Demand Drivers
Supply Driver
Back to Index
2.5
4
4.5
3
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
2
3
2
3
3
Urbanization
DemographicDividend
Middle IncomeGroup
Growth of servicessector
Growth of retailand SEZs
3
4
33
4
Threats of newentrants
Buyer's Power
Supplier'sPower
CompetitionRivalry
Threats ofsubstitute
4.5
3
3
2
Foreign DirectInvestment
Lending patternsof banks/NBFCs
Plan Outlay &Gross Domestic
Capital Formation
Govt. Schemeslike PMGSY and
IAY
Capital: Chennai
Much developed social sectors along with essential infrastructural facilities have made Tamil Nadu more ideal for building residential real estate. The capital value of properties in Tamil Nadu is found to be escalating in some parts due to rising housing demands
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
TAMILNADU
30
Site Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FIN
AN
CIA
L F
EA
SIB
ILIT
Y A
NA
LY
SIS
APPENDIX FOR TAMILNADU (Click Here)
Recommendation
Back to Index
32 Districts
City Area (Km2) Population REOR
Chennai 404 4,320,078 3
Coimbatore 246 1,622,474 4
Maduri 242 1,461,525 4
Tiruchirappalli 96.9 2,746,467 2
Low GDP/Capita shows people have lessdisposable income and will spend less
Few Cities have good growth prospects REOR* ratings-positive growth prospects in
Tamilnadu
REOR = Real Estate Opportunity Rating
Heat Map of Prices of Major City
0
2
4
6
8
10
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Mahindra Lifescape SMR Holdings APARNA Aditya Construction Others
Stiff competition among the players. Penetrating strategy is required. Difficult to enterwithout new value proposition
050
100150200250300350400450
-11
09
.47
09
64
-94
9.8
24
32
16
-79
0.1
77
67
94
-63
0.5
31
03
72
-47
0.8
84
39
5
-31
1.2
37
75
28
-15
1.5
91
11
06
8.0
55
53
16
23
16
7.7
02
17
38
32
7.3
48
81
6
48
6.9
95
45
82
64
6.6
42
10
04
80
6.2
88
74
27
96
5.9
35
38
49
11
25
.58
20
27
12
85
.22
86
69
14
44
.87
53
11
16
04
.52
19
54
17
64
.16
85
96
19
23
.81
52
38
20
83
.46
18
8
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -397
1b Adverse 75% 1.1 0.9 -163
1c Moderate Adverse 80% 1.05 0.95 80
1d Minimum Favourable 100% 0.95 1.05 667
AFFO Net present value for different scenarios
-500
0
500
1000
Most Adverse Adverse Moderate Adverse Minimum FavourableNP
V in
cro
res
Scenarios
NPV in crores
Chennai is also a major beneficiary ofthe flooding e-commerce investments andthus the demand for office space willdrastically rise over the next few years
The state is renowned for contemporaryinfrastructural developments, effectiveeducational facilities and rapidindustrialization in the past decade
Velachery, in particular has seen a 40%rise in capital values on a year-on-yearbasis as improvements in infrastructureand the ongoing metro work will providebetter connectivity and prices arewitnessing an upward trend in this micromarket.RECOMMENDATION: EXECUTE
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
31APPENDIX FOR ANDHRA PRADESHBack to Index
After analyzing all the major states, the shortlisted city for further construction is Bengaluru
4
3
4
3
3
Threats of newentrants
Buyer's Power
Supplier's PowerCompetition Rivalry
Threats ofsubstitute
2.5
4
34.5
3
3
Political
Economic
Sociological
Technological
Legal
Environmental
0
1
2
3
4
5
6
7
8
9
Price Quality CustomerService
Locality Amenities Possession ProductRange
L&T Realty Vandana Infra PURAVANKARA PROJECTS
KONCEPT AMBIENCE BRIGADE ENTERPRISES Others
PORTER 5 FORCES
PESTLE
Competitor Analysis
PRICE INDICATOR
One of the major reasons for the growing property market in the city is its welldeveloped infrastructure and basic amenities. Bangalore has a much improvedtransportation system. Every part of the city is well connected with each otherthus very easily accessible. The city boasts of 24hour water and electricity supply.Apart from this, Bangalore is abundant with super markets, malls, multiplexes,specialty healthcare centers, educational institutes having a positive influence onthe real estate scenario of the market. With the numerous opportunities availablefor the investment, the city has attracted a huge number of investors from all overthe world. The investment in the properties of Bangalore is assured of offeringmaximum return due to its thriving real estate market.
0
100
200
300
400
500
-500
0
500
1000
MostAdverse
Adverse ModerateAdverse
MinimumFavourable
NP
V in
cro
res NPV in crores
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
LEGAL RISK
32
PR
E P
RO
JE
CT
RIS
K A
NA
LY
SIS
Procurement of NOCs (L1) NOC for construction / augmentation of residential pool accommodation is required from the
Directorate of Estate, Ministry of UD. CPWD also needs to obtain in principle approval from the Ministry of UD for GPRA and later on case is sent to the Technical Committee of local body for approval.
NOC is required for height clearance of Buildings / Structures/ Masts from the Directorate of Air Traffic Management, Airport Authority of India (AAI), when the project lies within 20 kms. radius of air strips/ funnel.
NOC from coastal zone management authority No Objection Certificate is required from MCZMA, when the land is near the coast as construction
is not allowed up to 500 meters from the high tide line. No Objection Certificate is required from the National Monument Authority
(NMA) / Archeological Survey of India (ASI), when the entire project site or part/s of it is within 300 meter radius from the declared boundary of any monument protected under Ancient Monument Act.
NOC is required from the Railway Authority/Mumbai Port Trust/Defencewhen the project site is along the railway corridor / within the jurisdiction of Mumbai Port Trust respectively.
NOC is required from the Road Owning Agency when cutting of footpath or road or service lane or Right of way (ROW) is involved.
Parties Concerned MCGM, PWD, NHAI, MCZMA, AAI, Ministry of UD, ASI, NMA, Railway Authority, Traffic & Coordination Dept. and the Mumbai Port Trust
Timeframe 6months-1 year to obtain all NOCs. Any delay would lead to higher costs.
Indicators Delay in inter dept transfer of documents for approval from multiple depts
Mitigation Timely submission of documents and to ensure the surveying is quickly done
Solutions To reduce the costs due to delay by postponement of inventory and labour
Expected Shortfall 3.81 Crores
Value at risk (95%) 1047.79 Crores
Parties Concerned Ministry of UD, MHCC, Fire Department, MEF, Tree Authority Committee and the Municipal Corporation
Timeframe An average of 227 days to complete 30+ regulatory approvals
Indicators Order to review plans if found incompatible with any of the regulations
Mitigation Ensure that the plan is made in accordance with all the regulations
Solutions Work to be initiated after all the approvals are obtained to reduce costs
Expected Shortfall 2.94 Crores
Value at risk (95%) 1030.32 Crores
Land Approvals (L2)
Land use plan approval required from local body and the State Ministry of UD, when the land use is shown as Govt. land in the Master plan/Zonal plan of Mumbai.
Approval for change in land use required from local body and the State Ministry of UD, when the land use shown in master plan / zonal plan (where the plot is located)/ land allotment letter is to be changed (as the same is not permitted / not compatible with master plan/ zonal plan).
Relaxation in respect of density/ ground coverage/ FAR/ setbacks/ height prescribed in byelaws is required from concerned local body and the Ministry of UD.
Approval is required from the Tree Authority Committee of Municipal Corporation when there is a proposal for tree cutting/ felling and transplantation at the site & protection of the rare species of tree.
Approval is required from the Maharastra Heritage Conservation Committee (MHCC) or Appropriate Authority when the project has any link/ relation with any listed heritage building and precincts (as notified by local Body from time to time) and within their compound.
Approval /Fire Safety Certificate is required from Chief Fire Officer (CFO) for the proposals at layout plan stage as stipulated in the local building bye laws and National Building Code (NBC).
ENVIRONMENT CLEARANCE IS REQUIRED FROM MINISTRY OF ENVIRONM-ENT AND FORESTS (MEF)/
µ = 6% σ = 1 % µ = 8.5% σ = 1.2 %
1025 1035 1045
NPV for L2
1045 1050 1055
NPV for L1
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
FINANCIAL RISK
33
PR
E P
RO
JE
CT
RIS
K A
NA
LY
SIS
Debt and Interest Rate Risk (F1)
Parties Concerned Reserve Bank of India, banks and other lending institutions
Timeframe Over the lifetime period of the project(20years)
Indicators Churn of tenants and correlating it with the current state of the economy
Mitigation To predict the future of the market accurately and raise debt accordingly
Solutions To employ a competent financial institution to quantify and measure the risk
Expected Shortfall 39.66 Crores
Value at risk (95%) 317.441 Crores
Parties Concerned Reserve Bank of India, banks and other lending institutions
Timeframe This risk is inherent throughout the project lifetime period(20 years)
Indicators Returns on capital are much lower than what was anticipated
Mitigation To calculate cap rate not only based on the market, but also on tenant mix
Solutions To look at past projects and their cap rates and observe the actual inflows
Expected Shortfall 165.5 Crores
Value at risk (95%) -2181.9 Crores
Capitalization Rate Risk (F2) Of all the financial assumptions in a pro forma, cap rate risk is the most extreme since it has a
dramatic effect on an asset’s exit value, and that is why it is included in this list. Prevailing cap rates for different asset classes move in ranges and are subject to supply and
demand for that particular asset class. A small movement in a cap rate percentage can have a substantial effect on the residual value of
an asset and, in turn, the profitability (or loss) on a particular transaction. When an investment opportunity is analyzed, attention is to be paid to the entry and exit cap
rates and the following questions must be addressed: 1) Is the entry cap rate attractive for this asset when compared to its competitive set 2) Is the assumed exit cap rate is defensible over the prescribed holding
period? Artificially adjusted interest rates (such as those set by the RBI) can
artificially impact cap rates. In other words, with no underlying changes to the real estate asset or inherent risk to the deal, a property’s cap rate can fluctuate by 0.5% - 1.0% due to the change in interest rate. While that may not seem like a lot, it can have a heavy impact on the property’s value.
In commercial real estate, not all asset types are created equal when it comes to perceived risk. Multifamily assets consistently have among the lowest cap rates within a market, because they are considered to provide lower risk relative to other asset types.
Placing debt on a project is a common practice but placing too much debt on it or having it mature at an inopportune time can imperil it, particularly in the event of a market downturn (see market risk below). Debt risks can lead to foreclosure. Foreclosure isn’t as much of a risk itself but the unfortunate outcome of the incurred risks of over leverage, debt maturity or a combination of both.
Over leverage: If a property loses too many tenants its net operating income can drop to the point that its debt coverage service ratio can fall below 1.0, which now places the asset into risk of defaulting on its mortgage. Prudent leverage on an asset can range anywhere from 0% to 80% depending on the asset strategy. If an asset is leveraged in excess of 80% of value then it should have a compelling justification for the use of that much leverage. Otherwise, it may be overleveraged.
Debt maturity risk: If a property’s debt matures in a down market or at point when its net operating income is compromised, as noted above, then the project may be unable to obtain a new loan in the same amount of the outstanding debt. If investors are unable to infuse the additional capital necessary to refinance the project then the asset is now in risk of mortgage default. Debt maturity was one of the major culprits of why projects were lost during the financial crisis.
A number of Indian real estate firms saw a sharp rise in debt between 2012 and 2014 due to aggressive expansion plans, some of which failed to take off because of a weak economy and delayed project clearances.
µ = 1 σ = 10 %µ = 1 σ = 10 %
-2340 -1840
NPV for F2
285 385
NPV for F1
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
LABOUR RISK
34
PR
OJE
CT
PH
AS
E R
ISK
AN
AL
YS
IS
Wages and Productivity of the Workers (La1)
Despite being the second largest employer in the country, the construction sector as a whole faces manpower shortage. Further, the sector is heavily dependent on manual labour, faces longer time lines for construction completions, which results in supply getting deferred.
Worldwide, construction workers are three times more likely to be killed and twice as likely to be injured as workers in other occupations. The costs of these accidents are immense to the individual, to the employer and to society. They can amount to an appreciable proportion of the contract price.
In India it is estimated that up to 30 per cent of construction workers are women. They are integrated into the bottom end of the industry, as unskilled workers or head-load carriers. women are often employed as part of a family work unit, as the piece-rate system encourages workers to engage their wives and children to increase output, and in these circumstances women may work but may not(directly) receive any payment at all. Also, women are more likely to leave work midway due to health related issues, and thereby the construction work takes a set back.
Many labourers are forced to work 10 to 12-hour day, for six days /week, either because the rates of pay are so low or simply because they want to earn as much as possible while work is available. This is particularly the case of workers who have migrated from the countryside.
The on-site accommodation provided for workers is also rudimentary, with simple shacks with no running water or sanitation and poor ventilation.
Parties Concerned Contractual agencies, Department of Labour and the builder
Timeframe Over the construction period of 6 years for the project
Indicators Irregularity of workers, slow pace of work and more demands put by them
Mitigation Progress of work to be monitored using cctv and peptalk on fortnightly basis
Solutions Skill development, orientation programs, removal of piece wise wage system
Expected Shortfall 3.94 Crore
Value at risk (95%) 1061.128 Crores
Parties Concerned Contractual agencies, Department of Labour and legal agencies
Timeframe Over the construction period of 6 years for the project
Indicators Complaints filed in the labour courts by contractors or in grievance cells
Mitigation To make redressal of complaints easier by means of an online system
Solutions To approach the contractor to go for arbitration rather than go to the court
Expected Shortfall 1.96 Crore
Value at risk (95%) 1076.5 Crore
Contractual Laws (La2)
Building and other construction workers’ (regulation of employment and conditions of service) act, 1996 & Rules OF 1998 (workers safety, health & Welfare measures including necessary amenities). Every building worker registered as a beneficiary under this Act shall be entitled to the benefits provided by the Board from its Fund under this Act. Any person aggrieved by an order made under section 8 may, within thirty days from the date on which the order is communicated to him, prefer an appeal to the appellate officer.
Building and other construction workers’ welfare cess act,1996 (Cess Payment on cost of construction for workers welfare). This law is to provide for the levy and collection of a cess on the cost of construction incurred by employers. The cess rate not exceeding two per cent, but not less than one per cent, of the cost of construction incurred by an employer
THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 (regulate employments of contract labours & provide necessary amenities)..
THE PAYMENT OF WAGES ACT, 1936 (payment of wage in time). Any sum required to be paid by an employer, under this chapter but not paid by him shall be recoverable as delayed wages under the provisions of the Act(Sec 4)
THE MINIMUM WAGES ACT, 1948 (minimum wage rate fixed by govt. to be paid)
EMPLOYEES’ STATE INSURANCE ACT 1948 (scheme of health insurance for workers in case of sickness & injury)
µ = 4% σ = 1 % µ = 2% σ = 0.5 %
1055 1065
NPV for La1
1074.4 1079.4
NPV for La2
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
LABOUR RISK
35
PR
OJE
CT
PH
AS
E R
ISK
AN
AL
YS
IS
Strikes and Workers’ Union Power (La3)
The Government of Maharashtra has taken a decision to mandate payments to all labourers, including contract workers through cheque so that the full amount as stated on their pay record actually reaches them and the government is able to monitor the same.
Workers working as contract labourers under a contractor would directly register himself/herself with the respective State Contract Labour Board to help the Government on keeping a track on the number of workers employed in contract, formulating social security schemes and promoting effective implementation of the Act. The Board shall regulate social security benefits, regulate the employment of contract labourers and oversee functioning of the contract labour system in India. The Central and State Boards shall be governed by the three social partners i.e. Government, Employers and Workers representatives (Trade Unions).
Industrial Disputes Act, 1947 is an Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes. Where any employer discharges, dismisses, retrenches or terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute.
Indian Trade Unions Act, 1926 governs formation of unions in the state.
Parties Concerned State Contract Labour Board, Contractors, Labourers and legal agencies
Timeframe Over the construction period of the project(6 years)
Indicators Labourers going on strike and union leaders pressing for demands to be met
Mitigation To hold weekly meetings with the union leaders to address grievances
Solutions To negotiate with the union leaders and to make sure an impasse is avoided
Expected Shortfall 7.80 Crores
Value at risk (95%) 1017.15 Crores
Examples
17 buyers filled three cases in NCDRC for fraudulent practices adopted by M/S MVL Limited intheir project MVL Coral, Bhiwadi, Rajasthan. he project was planned with five towers namelyAvenue-1,2,3,4 and 5. Out of 5 towers, only tower no. 5 has been constructed at site as perapproved layout plan. The numbering and layout plans of all other towers were changed forunprecedented gains by the builder. 3 complainants had booked in tower-5 and all others in othertowers. MVL Limited could not obtain mandatory occupancy certificate for the said project. Forall other complainants commission noted MVL Ltd. had changed its original plans and increasedthe number of floors, flooring area, ratio and density per acre. It has caused inordinate delay incompletion of said projects. It has changed zoning plans, usage pattern, super area, carpet areaand alteration of structures.
MVL Limited was directed to furnish the occupation certificate, within 9 months from date oforders, as agreed, otherwise, it will carry additional penalty in the sum ofRs.2,000/ per day for each of the complainants, after the expiry of said 9 months.
This is an example of legal risk and maintenance risk being exemplified and causing addnl. costs.
Nine labourers were killed and two more injured after the slab of an under-construction buildingcollapsed at Balewadi in Pune. A team of thirteen labourers were working on the 13th floor of anunder-construction building which was part of a housing complex known as Park Xpress, a projectby the Pride Purple construction group. Most hailed from the Eastern state of Bihar. He said thecontractors and the project owners were being investigated to ascertain who was responsible forthe tragedy and questions like whether or not the labourers were wearing safety harnesses whileworking at that height or why was a safety net not erected below to preclude casualties werebeing probed. It was also a case of “illicit construction” as the builders (Pride Purple) had violatednorms by constructing an additional storey (the 13th floor) as permission to build only 12 floors,plus the basement, was given.
This is an example of legal risk and rules and regulations were being flouted, labour risk as thelabourers were not adequately paid and operational risk(safety risk) as the labourers were madeto work on a high elevation without any safety gear or a safety net.
µ = 10% σ = 2 %
1010 1020 1030 1040
NPV for La3
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
OPERATIONAL RISK
36
Safety Risk (O1)
The average Fatal Accident Frequency Rate (FAFR) in the Indian construction industries is 15.8 for 1000 employees as against 0.23 in the USA. Construction hazards are also rated as eight times more risky than those from manufacturing sector
A construction site is a cluttered workplace, having many types of hazards due to complexity of the work environment, coupled with involvement of unskilled, illiterate and mobile work force making it all the more difficult
45 per cent fatalities occur due to fall of persons, 12 per cent by fall of objects, 10 per cent hit and run by vehicle, 9 per cent by electrocution and 3.5 per cent by collapse of structure or wall
Parties Concerned Builders of the project, Labour Department and the labour unions
Timeframe Over the construction period of the project(6 years)
Indicators Collapse of structures, instances of accidents and equipment failure
Mitigation Have mock safety drills, one safety officer/1000 workers, provide headgear
Solutions To have medical services available on site, regular checking of the site
Expected Shortfall 7.50 Crores
Value at risk (95%) 1050.59 Crores
Parties Concerned Suppliers of material/equipment, buyers and the Electricity/Water Boards
Timeframe This risk is inherent throughout the project lifetime period(20 years)
Indicators Rise in material costs, rise in prices of electricity/water, less buyers/tenants
Mitigation To make a contingency fund to cover extra operational/material costs
Solutions To predict material and operational costs accurately for the project period
Expected Shortfall 7.52 Crores
Value at risk (95%) 1051 Crores
Inventory and System Risk (O2) Fluctuating input cost is a risk inherent to the real estate business. Company operations are subject
to budget overruns due to a number of factors like increase in construction costs, repair and maintenance costs, sub-contracted service costs and labour costs. Increased operating expenses may affect profit margins as the prices of properties sold cannot be altered.
Real estate companies often use an enterprise resource planning systems for integrating its core activities like architecture, engineering, projects and costing. A breakdown of existing IT systems or a delay in implementation could disrupt the company’s ability to track, record and analyse the work in progress, or result in loss of valuable data.
Inventory in the sector has risen to 2.9 years in first half of 2015-16 (April-March) compared to 2.6 years in 2014-15 and 2.2 years in 2011-12, which is a concern especially in the current scenario when sales are falling. Revival of property demand would depend on a meaningful reduction in prices or a drastic improvement in economic growth resulting in positive customer sentiments. This is unlikely until FYE17.
Energy insecurity risks—including higher electricity/diesel prices and shortages—will likely affect major cities in all the focus countries as energy demand is expected to outpace production capacity and energy infrastructure. India faces the greatest price and shortage risks, considering the already existing—and worsening energy supply-demand gap.
•
µ = 5% σ = 2 % µ = 5% σ = 2 %
State wise fall accidents in India (2015) Fatal fall accidents in India (2001) 1043 1063
NPV for O1
1043 1063
NPV for O1
PR
OJE
CT
PH
AS
E R
ISK
AN
AL
YS
IS
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
MAINTENANCE RISK
37
PO
ST
PR
OJE
CT
RIS
K A
NA
LY
SIS
Health Standards (M1)
Parties Concerned MCGM, MMRDA, NMMC and the CGWA
Timeframe This could pose a risk over the lifetime of the project i.e. twenty years
Indicators Failure of equipment, weakening of parts of building, wearing off of paint
Mitigation To have comprehensive project reviews yearly/bi-yearly to assess damage
Solutions To have a fund for maintenance of the building and levy fees from tenants
Expected Shortfall 0.07 Crores
Value at risk (95%) 172.936 Crores
Parties Concerned Municipal Corporation, legal bodies and the police department
Timeframe After construction(6 years) till lifetime of project (20 years)
Indicators Low occupancies, dissatisfaction of tenants with the services provided
Mitigation Diverse tenant mix where single tenant can own only ≤ 20% of property
Solutions Formation of a feedback and grievance redressal committee for tenants
Expected Shortfall 0.04 crore
Value at risk (95%) 270.53 Crores
Tenant Rates and Laws (M2)
Completion-cum-Occupancy Certificate is required from local body/ authority(MCGM/MMRDA/NMMC) before occupation of a building or part of a building for any purpose.The local body forwards the proposals to the various other concerned authorities (as mentionedat S.No. 8 – 21 and 23 & 24) in the city as required for issue of case specific approvals/ NOC beforegranting Completion-cum-Occupancy Certificate.
NOC is required from the Lift Inspector, before granting Completion-cum-Occupancy Certificate when lifts are installed in a building.
Potential that unexpected costs may arise due to the condition of the property itself. Aging assets tend to have more risk for unforeseen problems to surface, such as costly roof replacements or equipment failure.
The extent and type of after-sales / maintenance planned by the developer for the project needs to be evaluated. This is generally stipulated in the sale agreement and therefore a careful study of the sale agreement with regards to these aspects must be undertaken.
NOC is required from the Lift Inspector, before granting Completion -cum- Occupancy Certificate when lifts are installed in a building.
Permission is required from the Central Ground Water Authority (CGWA) to abstract ground water through any energized means i.e. fordigging / installation of a bore well water connection in the site fordrinking water
Assets that require individual customer service as an important part of executing a business plan (e.g. multifamily, senior housing, hospitality and storage) are highly dependent upon property management. In these scenarios, outstanding property management is critical as the day-to-day onsite operations of the asset will have a direct effect on its performance.
If a property has the risk of losing too many tenants its net operating income can drop to the point that its debt coverage service ratio can fall below 1.0, which now places the asset into risk of defaulting on its mortgage. Prudent leverage on an asset can range anywhere from 0% to 80% depending on the asset strategy. If an asset is leveraged in excess of 80% of value then it should have a compelling justification for the use of that much leverage. Otherwise, it may be overleveraged.
Rent roll quality refers to credit worthiness, stability and number of tenants. It questions if tenants of a particular property have staying power, or could the tenant go out of business, file bankruptcy or default on lease.
Single tenant vs. Multi-tenant . Single tenants can be 100% leased but if they default or vacate at expiration, your property is now 100% vacant but multi-tenant buildings are rarely 100% leased or 100% vacant.
Rollover risk refers to the remaining term left on leases at a property and it affects both single tenant and multi-tenant properties.
Demand and Supply Risk evaluates in terms of the existing supply and lease rentals for the different type of properties, the vacancies in the existing properties and disposable income of the consumers.
157 207
NPV for M1
µ = 17.5% σ = 2.5 % µ = 3.5% σ = 1.5 %
211 231
NPV for M2
Back to Index
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
RISK CORRELATION MATRIX
38APPENDIX FOR ANDHRA PRADESHBack to Index
Risk/Risk Legal Risk Labor Risk Operational Risk Maintenance risk Financial Risk
Codes L1 L2 La1 La2 La3 O1 O2 M1 M2 F1 F2
Lega
l Ris
k L1 - 0.8 0 0.2 0 0.2 0.2 0.2 0.2 0 0
L2 0.8 - 0 0.2 0 0 0 0.2 0.2 0 0
Lab
or
Ris
k
La1 0 0 - 0.8 0.8 0.6 0.4 0.4 0 0 0
La2 0.2 0.2 0.8 - 0.9 0.4 0.2 0.6 0 0 0
La3 0 0 0.8 0.9 - 0.8 0.2 0.8 0 0 0
Op
erat
ion
al R
isk
O1 0.2 0 0.6 0.4 0.8 - 0 0.8 0 0 0
O2 0.2 0 0.4 0.2 0.2 0 - 0.2 0 0 0
Mai
nte
nan
ce
risk
M1 0.2 0.2 0.4 0.6 0.8 0.8 0.2 - 0.6 0 0
M2 0.2 0.2 0 0 0 0 0 0.6 - 0.6 0.6
Fin
anci
al R
isk
F1 0 0 0 0 0 0 0 0 0.6 - 0.8
F2 0 0 0 0 0 0 0 0 0.6 0.8 -
Legend
L1 Procurement of NOCs
L2 Land Approvals
La1 Wages and Productivity of the Workers
La2 Contractual Laws
La3 Strikes and Workers’ Union Power
O1 Safety Risk
O2 Inventory and System Risk
M1 Health Standards
M2 Tenant Rates and Laws
F1 Debt and Interest Rate Risk
F2 Capitalization Rate Risk
• The correlationbetween various risksare calculated in orderto determine thecumulative effect ofthe risks if they occurtogether.
• It is seen that thehealth standards riskhas the maximumcorrelation with all theother risks, hence thisrisk when combinedwith others would leadto significant impacton the revenuesgenerated by theproject, and thisshould be given extraattention by thelender.
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
INTEGRATED RISK ANALYSIS
39APPENDIX FOR ANDHRA PRADESHBack to Index
Risk DefinitionOverall
CorrelationWeight Score
L1 Procurement of NOCs 1.8 7% 4
L2 Land Approvals 1.4 5% 3
La1 Wages and Productivity of the Workers 3 12% 3
La2 Contractual Laws 3.3 13% 4
La3 Strikes and Workers’ Union Power 3.5 14% 2
O1 Safety Risk 2.8 11% 4
O2 Inventory and System Risk 1.2 5% 3
M1 Health Standards 3.8 15% 3
M2 Tenant Rates and Laws 2.2 9% 3
F1 Debt and Interest Rate Risk 1.4 5% 2
F2 Capitalization Rate Risk 1.4 5% 3
Overall Risk Occurrence Probability 9%AFFO Net present value = Rs. -1937.7 crores
The integrated risk analysis is extremelycrucial from the lender’s point of view as itgives an overall picture of the risksassociated with the project and theirimpact.
The scores signify the impact the riskwould have on the revenues generated bythe project and the scores would indicatethe probability of the occurrence of therisk.
The probability of the all the risks occurringsimultaneously is 9 % and the NPV in theworst case scenario is given below:
PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
40APPENDIX FOR ANDHRA PRADESHBack to Index
× Investments attracted by real estate sector from various public and private sources across India have declined by 6% in past four years i.e. from a level of Rs 15.2 lakh crore as of 2011-12 to about Rs 14.3 lakh crore as of 2014-15
Private sector accounted a major share of 85% of the total investments attracted by the real estate sector across India while government or public sources accounted for the remaining share
× Real estate projects with about 76% of the total investments attracted by the sector across India remained non-starter during the aforesaid period
Five states namely Maharashtra (21%), Uttar Pradesh (14%), Gujarat (13%), Karnataka (12%) and Haryana (8%) have highest share in total investments of the real estate sector in India as of 2014-15
× Jharkhand (40%), Himachal Pradesh (37%), Madhya Pradesh (29%) and Haryana (16%) have registered maximum fall in real estate investments
In 2015, overseas PE players invested about $2.3 billion into the sector, as per a Knight Frank estimate . This indicates a positive economic climate and indicates more higher investments in the coming years, due to government policies favouring FDI.
It is favourable to set up a commercial realty project in Bangalore as the demand there is high for office space due to the boom in the startup industry and the opening of many IT offices in the area.s
APPENDIX FOR ANDHRA PRADESH
41Back
PESTLE ANALYSIS
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Political
Commitment to attain SDGs and poverty by 2030
Significant amount of investment from
Russia
Won accolades from NITI Aayog
for excellent governance
EconomicBorrowings of Rs.
21000 crore in annual budget
Setting up of industrial
townships of 100 acres in every constituency
Four new greenfield
airport projects to come up in
state
Sociological Creation of 5 lakh jobs in the state by
2020
CBDT extends 5 year tax sops to 7
districts
Issuance of special
securities worth Rs. 8,256 crore
under UDAY scheme
TechnologicalUDAY and DISCOMS
working toward "Power for All"
ADB to provide funding over $630
million for technological advancement
Amaravathi to become a tech hub and house
hunting business will be
'digital'
Legal
Dilution of powers of APIA results in
lesser time of clearance of
proposals
New act pertaining to industrial
corridors to be in place soon
Rs. 99.62 crore to be released under AMRUT
scheme
Environmental
NGT imposes strict orders on
construction in new Capital Amaravathi
Large areas of state are frequenty flood
hit
Dispute over the Krishna River
with Telangana
Competitors Price Quality
Customer
Service
Localit
y
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
ASC 1.5 0.6 1 0.75 0.4 0.15 0.15 ASC 4.55
INDIABULLS 1 1.6 1.2 0.9 0.8 0.3 0.2 INDIABULLS 6
M.V.V BUILDERS 1.75 1 0.8 0.6 0.1 0.25 0.15M.V.V BUILDERS 4.65
ARC ESTATES 1.5 0.8 0.8 0.6 0.1 0.15 0.15 ARC ESTATES 4.1
Others 0.75 0.6 0.8 0.75 0.3 0.25 0.25 Others 3.7
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 4 0.4 Government’s investment initiative 15% 4 0.6
Disruptive growth in construction equipment 10% 3 0.3 Stable Government 15% 4 0.6
Market leadership 20% 5 1
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing resilience 10% 3 0.3
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 2 0.3 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 2 0.2 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 3 0.3 Low R&D activities 10% 3 0.3
Insurance for project 15% 2 0.3 Approvals and procedural difficulties 20% 5 1
Team: RadioActive
APPENDIX FOR BIHAR
42
Political
NSDC along with Rise India to set up training centres to impart skills
to 50 lakh people
Bihar worst on key social welfare schemes
of Centre
Economic
Major progress in urban municipal reforms like e-governance, water and energy audit and 90% collection of municipal taxes and user chargesState with the youngest
population
Construction sector growth at 16.58 per cent annually and
banking and insurance sector at 17.7 per cent
SociologicalLaw and order situation
on the decline
Development work badly hit due to financial
constraints
Technological
MoUs signed up with NTPC and NHPC to set up greenfield power
plants
AAI to revive three airfields
Legal
Industry promotion policy in place including
land conversion fees and stamp duty
Scrapping 20 per cent capital subsidy to new
industries
Environmental
Madhav ChittleCommittee set up to
combat flooding due to Farraka barrage
CEE, along with UNICEF, to come up with new
hygiene model
Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 4 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing resilience 10% 1 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 3 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 3 0.3 Low R&D activities 10% 3 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitors Price Quality
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
Rukmani Buildtech 1.5 1.2 1.4 0.9 0.5 0.3 0.25Rukmani Buildtech 6.05
Shravani Engicon 1.75 1.4 1.2 0.9 0.6 0.3 0.25Shravani Engicon 6.4
AGR Estates 1 1 0.8 0.6 0.3 0.3 0.2 AGR Estates 4.2
Badal Construction 1.25 0.8 0.8 0.6 0.3 0.35 0.15Badal
Construction 4.25
Others 0.75 1 1 1.05 0.5 0.3 0.25 Others 4.85
Competitor Analysis Weighted Rating
Team: RadioActive
APPENDIX FOR GUJARAT
43Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 4 0.4 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.45
Market leadership 20% 3 0.6
real estate sentiments index showcase
high demand 5% 3 0.15
Diversified revenues providing resilience 10% 1 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 3 0.3 High inventory levels 10% 3 0.3
lack of adequate sources of finance 10% 3 0.3 Low R&D activities 10% 3 0.3
Insurance for project 15% 2 0.3 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
PoliticalAirbnb and the govt to
sign MoU to boost tourism
Vibrant Gujarat
Summit to attract more
than 120 Singaporean
investors
EconomicHighest tariff of Rs.
6.12 per unit of power
quoted for state
Govt identified more
than 200 hundred
infrastructure projects
for next six months
Sociological
RoPax service to come
up next year leading to
socioeconomic
development
67000 youths to be
appointed in state
services soon
Technological
Telcos like Airtel and
Vodafone recently
introduced 4G services
leading to improved
digitization
Extensive petroleum refining and port
activites lead to large technological developments
LegalADR mechanism to reduce pendency of
cases
Swaraj Abhiyan to set up district level legal
bodies
EnvironmentalTwo of five Swacch Bharat awards to be awarded to the state
State faces 20% deficit in seasonal rainfall
this monsoon
Competitors Price Quality
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 1 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.35
Iscon Group 1 1.4 1.2 1.05 0.5 0.25 0.4 Iscon Group 5.8
Deep Group 1.25 1 1.2 0.9 0.5 0.25 0.2 Deep Group 5.3
Shree Sharanam Group 1.5 1 1 0.75 0.4 0.35 0.2
Shree Sharanam
Group 5.2
Siddhi Developers 1.25 0.8 0.8 0.6 0.3 0.35 0.15Siddhi
Developers 4.25
Others 0.75 1.2 1.4 1.05 0.6 0.35 0.25 Others 5.6
Team: RadioActive
APPENDIX FOR HARYANA
44Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing resilience 10% 3 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 3 0.8
rising manpower and material costs 10% 3 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 3 0.3 Low R&D activities 10% 3 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
PoliticalHaryana Tourism to
go for public-private
partnership model
BJP government in
shambles, with
leaders being
attacked time to time
Economic
Centre to invest Rs.
15,000 crore to
extend Panipat
refinery
Chinese real estate
agent Dalian Wanda
to develop industrial
parks in the state
Sociological
Jaat agitaion in the
state led to losses
over Rs. 20,000 crore
and fear in the people
State is second in
terms of number of
police complaints
filed
Technological
Symposium on
MICDTI results in
large technology
transfer
High tech system for power transmission
to be set up soon
LegalSwaraj Abhiyan to set up district level
legal bodies
NITI Aayog persuades state to reform land lease
law
EnvironmentalNABARD takes steps to revive water table
NABARD sanction Rs. 205 crore loan for
environmental protection
Competitors Price Quality
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 1 1.4 1.6 0.75 0.6 0.4 0.3 L&T Realty 6.05
DLF 1.5 1.6 1.8 1.05 0.9 0.35 0.2 DLF 7.4
Mahindra Lifescape 1.25 1.6 1.6 0.9 0.8 0.3 0.2Mahindra Lifescape 6.65
Sobha Limited 1.5 1.4 1.6 1.05 0.8 0.35 0.2 Sobha Limited 6.9
Ansal Builwell 1.5 1 1.4 1.05 0.8 0.35 0.2 Ansal Builwell 6.3
Others 1.5 1.4 1.2 1.05 0.6 0.35 0.2 Others 6.3
Team: RadioActive
APPENDIX FOR JHARKHAND
45Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 3 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
PoliticalCM Raghubar Das
invites US industries to
‘Make in Jharkhand’
Jamshedpur, Dhanbad
and Bokaro to turn into
smart cities
Economic
CCEA approves Rs.
1,955-cr Bihar-
Jharkhand link road
project leading to more
development
Government to part-
finance GAIL's Rs
13,000-crore pipeline
project leading to
availability of gas for
projects
Sociological
Continuous protests
against projects on
acquisition of land, relief
and rehabilitation
The number of agrarian
riots in Jharkhand
increased by 4,950%
from 2014 to 2015
Technological
Single window clearance
and online application
and approval reduces
project development
time
Digital Jharkhand to lead to rampant data
driven change and transformation
Legal
Jharkhand Industrial and Investment Promotion
Policy, 2016 and Industrial Park Policy to
support the business community
Time bound grievance handling is one of the key initiatives of the
legal system
Environmental
Seraikela-Kharsawan is the first district to give
environmental clearance for small projects
Environmental protection an integral
part of ‘business reforms action plan’ to ease business climate
Competitors Price Quality
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
S K Construction 1.25 1.4 1.2 1.05 0.6 0.25 0.25 S K Construction 6
Rameshwaram Projects 1.75 1.4 1.2 1.05 0.8 0.25 0.3Rameshwaram Projects 6.75
Vasundhra Homes 1.5 0.8 1 0.6 0.3 0.25 0.15Vasundhra Homes 4.6
J D Infra 1.5 0.8 0.8 0.6 0.3 0.3 0.2 J D Infra 4.5
Others 0.75 1 1.2 0.6 0.5 0.3 0.25 Others 4.6
Team: RadioActive
APPENDIX FOR CHHATTISGARH
46Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 3 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
PoliticalAir services to be
developed in all four
corners of state
Govt obtained
investment
proposals worth Rs.
6,50,000 crore in the
current fiscal
Economic
High number of
thermal power plants
due to availability of
coal
Fivefold increase in
mineral revenue
leading to local
development
Sociological
High naxal activity
leading to
continuous
disruption of civilian
life
Education city
established at
Dantewada for
children afflicted by
Naxal violence
Technological
Companies like
MachineHire help in
easy procurement of
earth moving
machines
Telcos like Airtel launch 4G internet
leading to digitalization and people looking for
housing online
LegalBill passed for
privatisation of the Shivnath River
First State To Have Commercial Dispute
Resolution Centre And Commercial
Court
Environmental
CWC approves 12 projects on
Mahanadi leading to drying up of the
river by 2022
Govt set up panel to revamp forest law
Competitors Price Quality
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
GT Capital Homes 1 1.2 1.2 1.05 0.6 0.35 0.2GT Capital
Homes 5.6
Shreeji 1.25 1.2 1 0.9 0.5 0.25 0.25 Shreeji 5.35
Wallfort 1.75 1.2 1 1.05 0.7 0.25 0.3 Wallfort 6.25
Balaji 1.25 0.8 0.8 0.6 0.3 0.35 0.15 Balaji 4.25
Others 0.75 1.2 0.8 1.05 0.6 0.25 0.25 Others 4.9
Team: RadioActive
APPENDIX FOR MADHYA PRADESH
47Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 2 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Competitors Price Quality
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
Man Developers 1 1.4 1.2 1.05 0.4 0.25 0.15 Man Developers 5.45
Deveshi Infrastructure 1.75 1.4 1 0.9 0.7 0.3 0.1Deveshi
Infrastructure 6.15
SkyeEarth Developers 1.75 1 0.8 0.6 0.3 0.25 0.2SkyeEarth
Developers 4.9
APPOLO DB group 1.25 0.8 0.8 0.6 0.3 0.35 0.2APPOLO DB
group 4.3
Others 0.75 1.2 1.4 1.05 0.5 0.35 0.25 Others 5.5
Political
Long outgrown its "BIMARU" status and
experiencing fast-tracked growth
Stands in fifth position on ease of
doing business
Economic
Global Investment Summit(2014) saw investments worth
$66.1 billion, witnessing a $20
billion increase from previous year
Number one state in the country for
allotment of industrial land and online
construction permits
SociologicalTop 4 cities just
account for 11% of the state's population
Human capital and hman development
indices extremely low in the state
Technological
Promotion of solar power by having
biggest solar park in India
Private intra state air service to be in operation soon
Legal
Swaraj Abhiyan to set up district level legal bodies to complete
backlog of cases swiftly
The Code of Criminal Procedure (Madhya
Pradesh Amendment) Act, 2007 has ensured
swift justice to victims, thereby making the state
more safer and crime free
Environmental
Failure in obtaining required
environmental clearances have led to cancellation of MoUs
Air Toxicity levels exceed permissible limits in the city of
Gwalior
Team: RadioActive
APPENDIX FOR KERALA
48Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 2 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 3 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 2 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 2 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Political
Allegations of violence
against political
representatives under
LDF rule
The Government has
laid down the roadmap
for India, signifying a
major support to
manufacturing and real
estate sector.
Economic
Opposition of Regional
Comprehensive
Economic Partnership
(RCEP) agreement
State with the high
state GDP per capita
Sociological12.6% of the
population of the state
is elderly.
100% literacy in the
state, with 11% of
businesses being run
by women
Technological
Partnership with UK to
avail of technical
assistance in smart
cities and infrastructure
development
Collaboration with Costford on cost-
effective and energy efficient housing and usage of renewable
materials
Legal
New legal assistance facility provided for NRIs in matters of
property
Vigilance and Anti-Corruption Bureau is an extremely strong
and reliable institution in the state
Environmental
Environmental survey of 200 acre land to to faciliate development
of buildings and commercial complexes
Drought-like situation in Palakkad district
due to acute deforestation and
reversal of action of AHADS
Competitors Price Quality
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 1.5 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.85
Nest Infra 1 1.4 1.2 1.05 0.7 0.3 0.25 Nest Infra 5.9
ABAD Builders 1.75 1.2 1 0.9 0.6 0.3 0.3ABAD
Builders 6.05
VINAYAKA HOMES 1.75 1 0.8 0.6 0.3 0.25 0.15VINAYAKA
HOMES 4.85
INFRA HOUSING 1.25 1.4 1.4 0.9 0.7 0.35 0.15INFRA
HOUSING 6.15
others 0.75 0.8 1 0.6 0.5 0.35 0.25 others 4.25
Team: RadioActive
APPENDIX FOR KARNATAKA
49Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.4
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 3 0.4
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 1 0.5
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 3 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.2
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Political
State faces water dispute
issue with six states
Development sluggish in
North Karnataka due to
delay in proper
implementation of the Dr
Nanjundappa Committee
recommendations on
regional imbalance
EconomicKarnataka to foster
economic ties with Polish
region
NHAI has issued letter of
award (LOA) for two
national highways
sections in Karnataka on
engineering-procurement-
contract (EPC) mode
SociologicalRiots on political issues
are commonplace in the
state
State has a Total Fertility
Rate(TFR) lesser than 2.1
indicating an ageing
population
TechnologicalIsraeli Technology to
resolve the water crisis in
the state
VTU, Karnataka Mines Department sign MoU to test suitability of M-sand
for construction
Legal
State law makes it mandatory for builders
developing a project where the land exceeds
500 square metre to register themselves with the regulatory authority
Several DisputesTribunals set up to tackle the cases
dealing with water
Environmental
Untreated garbage piling up at waste management
centres and state directed by NGT to tackle
this
Grey water to be recyledto reduce demand in
homes
Competitors Price QualityCustomer
ServiceLocality Amenities Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
Vandana Infra 1 1.4 1.2 1.05 0.4 0.25 0.15 Vandana Infra 5.45
PURAVANKARA PROJECTS
1.25 1 0.8 0.75 0.7 0.3 0.2PURAVANKARA
PROJECTS5
KONCEPT AMBIENCE 1.75 1.6 1.6 1.05 0.7 0.4 0.35KONCEPT
AMBIENCE7.45
BRIGADE ENTERPRISES 1.25 1.2 1.2 0.9 0.6 0.35 0.25BRIGADE
ENTERPRISES5.75
Others 0.75 1.2 1.4 1.05 0.5 0.35 0.25 Others 5.5
Team: RadioActive
APPENDIX FOR RAJASTHAN
50Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 2 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 3 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 2 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
PoliticalThe state is still a part of
the "BIMARU"Club
Govt fixed a minimum
wage of US$ 85 (Rs
5,642) for domestic
workers per month in
January 2016
EconomicBetween 2005 and 2014,
the economy just grew at
a CAGR of 18%
L&T synchronises 660
MW unit at Rajasthan
project
SociologicalGrowth in jobs between
2001 and 2011 only a
mere 2.6%
Rural poverty is above
30 per cent of population
Technological67% of houses in
Rajasthan use electricity
for lighting purposes
NLC India abandon plans to set up solar power project in the state
Legal
Rajasthan Urban Land (Certification of Titles) Act, 2016 sets the legal framework for granting of legitimate rights to a property owner in that
state.
High Court of Rajasthan has become the fourth
in the country to provide E-stamp facility
Environmental
Ministry of Environment and Forests relaxes rules
for small Rajasthan projects following NGT
order
"Digital Rajasthan" to ensure environmental
clearances are obtained speedily
Competitors Price Quality
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 1.25 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.6
UNIQUE BUILDERS 1 1.4 1.2 1.05 0.5 0.25 0.15UNIQUE
BUILDERS 5.55
UDB 1.75 1.4 1 0.9 0.7 0.3 0.1 UDB 6.15
UPASNA GROUP 1.75 1 0.8 0.75 0.3 0.25 0.15UPASNA GROUP 5
TRIMURTY GROUP 1.25 0.8 1 0.6 0.4 0.35 0.15TRIMURTY
GROUP 4.55
OTHERS 0.75 1.2 1.4 1.05 0.5 0.35 0.25 OTHERS 5.5
Team: RadioActive
APPENDIX FOR UTTAR PRADESH
51Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 2 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 2 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 2 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 3 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
PoliticalThe state to set up skill
development centres in
every district
Communal Strife and
Disturbances a major
source of disturbance in
the society
EconomicNLC begins
construction work for
1980-MW project in UP
Indian Oil to lay India's
longest LPG pipeline
from Gujarat coast to
Gorakhpur in eastern
Uttar Pradesh
SociologicalState with the youngest
population
Largest population in
the country
TechnologicalNumber of fast trains to
increase over the next
few months
BHEL commissions another 660 MW
thermal unit in Uttar Pradesh
LegalSwaraj Abhiyan to set up district level legal
bodies
Centre sets up panel to draft an exclusive law
on river Ganga
Environmental
Floodplains have been encroached to build
apartments and housing societies and
NGT to tackle this
75% of all environmental crimes in India are reported
from Uttar Pradesh and Rajasthan, data released by the
National Crime Record Bureau (NCRB)
indicates.
Competitors Price Quality
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 1.25 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.6
Amrapali Group 1 1.4 1.2 1.05 0.5 0.25 0.35 Amrapali Group 5.75
GAURSONS INDIA LTD 1.25 1.4 1.4 0.9 0.7 0.3 0.25GAURSONS INDIA LTD 6.2
IMPERIA STRUCTURES 1.25 1.2 1 0.9 0.6 0.25 0.3IMPERIA
STRUCTURES 5.5
MAHAGUN INDIA 1.25 1.2 1.2 1.05 0.6 0.35 0.3MAHAGUN
INDIA 5.95
Others 1 1.2 1.4 1.05 0.5 0.35 0.25 Others 5.75
Team: RadioActive
APPENDIX FOR TELANGANA
52Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 2 0.2
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 2 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Competitors Price Quality
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 1 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.35
Mahindra Lifescape 1 1.4 1.2 1.05 0.8 0.35 0.2Mahindra Lifescape 6
SMR Holdings 1.25 0.6 1 0.9 0.7 0.3 0.1 SMR Holdings 4.85
APARNA 1.75 1 0.8 0.6 0.3 0.25 0.15 APARNA 4.85
Aditya Construction 1.25 0.8 0.8 0.6 0.3 0.3 0.15Aditya
Construction 4.2
Others 0.75 1.2 1.4 1.05 0.5 0.35 0.25 Others 5.5
Political
Telangana to propose
new districts and
formation of new
administration
"Mission Kakatiya" is an
ambitious project
launched by the Govt to
rejuvenate 47,000 tanks
in the state by 2020.
EconomicReal estate rally boosts
Telangana's stamp
revenue by 31%
Tax incentives for 9
backward districts of
Telangana
Sociological
Worst South Indian state
in terms of female
literacy, education,
advancement and health
Survey showcase poor
welfare indicators and
living conditions in the
state
TechnologicalHP to develop a smart
city in Telangana
Sagar Cements to set up coal based power plant at company's unit and expand the capacity of
the grinding unit
Legal
Setting up of Municipal Building Tribunal to deal
with cases related to encroachments in urban
areas
8,000 court, judicial dept employees go on strike in Telangana affecting
legal services throughout the state
Environmental
20 per cent of the countrys coal deposits in the country are found in
the state
Meetings with US Environmental
Protection Agency for efficient methods to
curb industrial pollution
Team: RadioActive
APPENDIX FOR TAMILNADU
53Back
PESTLE ANALYSIS
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 3 0.3 Government’s investment initiative 15% 3 0.45
Disruptive growth in construction equipment 10% 2 0.2 Stable Government 15% 3 0.6
Market leadership 20% 2 0.4
real estate sentiments index showcase
high demand 5% 3 0.1
Diversified revenues providing resilience 10% 2 0.1
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial flexibility 15% 3 0.45 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 4 0.3 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 4 0.3 Low R&D activities 10% 4 0.3
Insurance for project 15% 3 0.45 Approvals and procedural difficulties 20% 5 1
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Competitors Price Quality
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 1 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.35
Mahindra Landscape 1 1.4 1.2 1.05 0.8 0.35 0.2Mahindra Landscape 6
TVS Emerald 1.75 1.4 1 0.9 0.7 0.3 0.1 TVS Emerald 6.15
Shobha 1.75 1 0.8 0.6 0.3 0.25 0.15 Shobha 4.85
DLF 1.25 0.8 0.8 0.6 0.3 0.35 0.15 DLF 4.25
Radiance Realty 0.75 1.2 1.4 1.05 0.5 0.35 0.25 Radiance Realty 5.5
Political
Political strife between
Karnataka and TN
leading to political
instability
Rail and road traffic hit by
regular agitations and
strikes
Economic
Tamil Nadu government
has assured full
cooperation to German
investments in the state
Tamil Nadu’s spending
on public projects like
road and other
infrastructure fell 33 per
cent year on year in the
first four months of 2016
SociologicalHome to more than a
million migrant workers
Total Fertility Rate(TFR)
below 2.1% indicating
that the state has a fast
ageing population
Technological
Manufacturing
industries in state hit by
economic slowdown,
drop in demand and
delayed payments
Tamil Nadu Adi Dravida Housing and
Development Corporation to provide financial
assistance online
Legal
Plea on establishing a hi-tech industrial park in
Nanguneri SEZ in Tirunelveli district
rejected by the court
Over 10,000 cases settled in lok adalats in Tamil
Nadu with award amount of Rs 91.48 crore held on
October 8th
Environmental
Almost all districts received below average rainfall, to be declared
"drought hit"
Madras High Court Bench held that it is not
competent to entertain public interest litigation
(PIL) petitions on environmental issues
Team: RadioActive
Thank
You
Anupreet Choudhary
1st Year
Indian Institute of Management, Rohtak
B. Tech (Civil),
Indian Institute of Technology, Guwahati
Shubham Aggarwal
2nd Year
Indian Institute of Management, Rohtak
B.E. (Mech) PEC University of Technology
Swastika Singh
1st Year
Indian Institute of Management, Rohtak
B. Tech (Civil) National Institute of Technology Karnataka
TEAM: RadioActive
54