NAFIS, Shabbir Husain

Learn, Develop, Share and Grow – Webjournal

Archive for the ‘India’ Category

Online advsertising market in India.

with one comment

Source startupdunia.com:

An insightful article by “Businessworld” on the scene of online advsertising market in India. Informative and interesting.

Advertisements

Written by shabbirhusain

April 25, 2007 at 5:23 am

Dawnay Day to invest $1.5 bn in Indian realty.

with 3 comments

Source Business Standard (India):

  • Dawnay Day International, the $10 billion UK-based investment company, is planning to invest $1.5 billion in the booming Indian real estate sector in the next two years.
  • Dawnay Day has entered into a joint venture with a Bangalore-based family to develop a mixed property development including office and retail on 16 acres with an investment of Rs 400 crore. Dawnay Day India Land, headed by MK Singh, will execute the project.
  • G Naggar, chairman of Dawnay Day International, said, “Though realty prices are cooling down and interest rates are going up, Indian real estate space is very interesting. We want to actively develop properties by forming JVs with landowners, apart from outright purchase, consortium tendering/auctions. We will be part of India’s development and growth and will invest in property and infrastructure projects across India’s geography.”
  • Unlike Europe where Dawnay Day is mostly into development of commercial space, the firm would focus on residential development in India, Naggar said.
  • “We like to invest mostly in commercial development. But, we want to focus on the enormous opportunity in the residential development equally in Tier-II and Tier-III cities. Finding the right partner and the right property is our priority,” he said.
  • Dawnay Day is even exploring possibilities in warehousing, as the group sees a lot of potential in the sector in wake of burgeoning organised sector in the country.
  • On the Indian real estate sector, Naggar said, “With rising interest rates and inflation on one side and rapidly developing Indian economy on the other, realty prices should soon stabilise. This cooling off and drop in the stock prices of realty firms provides an excellent opportunity for us to invest in realty projects, including integrated townships.”
  • The UK-based companies has three subsidiaries in India — financial services provider and advisory firm Dawnay Day AV India, Dawnay Day Hotels India and real estate development firm Dawnay Day India Land.
  • Dawnay Day Hotels India has plans to invest $200 million to build 10-15 hotels in the next three years. It has acquired properties in four cities — Pune, Ahmedabad, Delhi and Jaipur — and are close to finalising deals to buy properties in three other cities.

Dawnay is surely trying to capitalise on the shortage of ~19.4 million housing units, including ~6.7 million units in urban India, hence it makes sense for them to invest in residential spaces in India than in commercial.

Seems like foreign investors in the Indian reality sector are mushrooming at the same pace as Web 2.0 companies, both wanting a bite of their respective spaces.

With so much money and so many players, in the reality sector, it would be interesting to see how the developers differentiate themselves from one another based on cost, amenities, payment facilities, brand name, transparency, quality, customer service et… One’s mistake will be other’s advantage. I am sure the firms will be working hard not to make a mistake and loose credibility and market share.

Other posts related to Real-Estate.

Written by shabbirhusain

February 22, 2007 at 5:38 am

Posted in Business, India, Real Estate

Analysts build fortunes on realty boom

leave a comment »

Source Business Standard (India) :

  • India Inc’s booming realty sector is triggering an unprecedented demand for real estate analysts.
  • Demand for analysts, experts and consultants is not only emerging from brokerage houses and advisory companies, but also from merchant bankers, media, aviation and big corporate houses, which plan to develop their land-banks.
  • There, however, exists a shortage of professionals. According to Jai Mavani, executive director, KPMG India, “This is because, traditionally, the sector was opaque and did not have the scale and institutional involvement. After companies started hitting the markets and more realty-based financial products rolled out, the need for superior research and financial engineering arose.”
  • KPMG has a team of 25-30 professionals, who specialise in real estate.
  • This year, students of the Indian School of Business were flooded with lucrative offers from real estate consultancies and finance companies.
  • Mutual funds are also gearing up for infrastructure and real estate schemes, even though the latter has not yet received the regulator’s nod. UTI Mutual Fund has already hired experts for infrastructure and would be exploring real estate schemes, once permitted.
  • Leading private airline Jet Airways is also scouting for real estate experts to gear up its proposed pilot training institute project.
  • The demand for analysts grew significantly after the realty sector was opened to foreign investment and companies tapped domestic and global capital markets to raise funds. Kirti Dalvi of Angel Broking feels that compared with other sectors, real estate analysts have to focus more on valuation part of the company.
  • “Valuing a land bank is different from the process followed in other sectors. A fresh talent choosing this area has to spend much time in adopting these skills. Few years back, this was not seen as a drawback, but now companies highly appreciate these skills,” she said.
  • On the remuneration front too, analysts are having a good time. An analyst with 2-3 years of experience is drawing anywhere between Rs 8 lakh and Rs 10 lakh.

Seems like a boom time for analysts and real estate agents. Each time foreign money starts to flow in the country, the sector sees a growth in the demand for professionals – IT, real estate, tax planners, financial consultants are a few examples. A similar trend might be on the rise in the retail setor too. Professionals with sourcing, logistics and distribution experiences will in high demand.

Other posts related to Real-Estate.

Written by shabbirhusain

February 22, 2007 at 5:21 am

Posted in Business, India, Real Estate

$102 billion realty market by 2010

leave a comment »

Source Business Standard: 

  • Indian real estate market is expected grow from the current level of $14 billion to $102 billion in the next 10 years, according to Shyam Prasad Reddy, managing director and chief executive officer of Indu Projects Limited.
  • Reddy said that reforms initiated by the government, favourable demographics, increasing purchasing power, emergence of customer friendly banks and housing finance companies would fuel the growth rate of the real estate sector in the country.
  • Reddy said that the shortage of 19.4 million housing units, including 6.7 million units in urban India, and mushrooming of retail projects would provide a huge opportunity for domestic as well as global infrastructure players in the country.
  • He, however, pointed out that Indian real estate industry was ailed by lack of transparency and credibility, an acute shortage of data and academic research and a lack of uniform laws and regulatory systems.
  • Emphasised the need for more clarity and professionalism, particularly in the light of foreign funds and investors eyeing the Indian real estate market.

Written by shabbirhusain

January 24, 2007 at 5:24 am

Posted in Business, India, Real Estate

1 billion USD investment in Indian real estate.

with 3 comments

Are 1 billion USD investments in Indian real estate on it’s way? Seems so, based on the news by Economic Times.

I reckon real estate investments in India is outgrowing the investment happening in the IT sector.

Boom period for builders, investors and real estate agents.

So if you have a more than 3 million INR to invest in real-estate, you fill find yourself with a host of options to choose from. Something similar to what the automobile sector is these days, if you have a million bucks (INR) to spend on a car, you will have loads of options very unlike what it is used to be 10-15+ years ago.

And for those who don’t have that kind of a money to invest in a property, things aren’t going to get any cheaper in the near future either. So better grab one today, or settle for something more expensive, small or remote tomorrow.

Written by shabbirhusain

January 22, 2007 at 10:08 am

Posted in Business, India, Real Estate

Global prices of iPod.

with one comment

Source here:

One of Australia’s biggest banks, the Commonwealth Bank, has used the latest version of Apple’s music player—the slimline Nano—to compare global currencies and purchasing power in 26 countries.

Along the lines of the Big Mac index launched 20 years ago by The Economist magazine, the survey prices the 2GB Nano in U.S. dollars and found Brazilians pay the most for an iPod, shelling out $327.71, well above second-placed India at $222.27.

Canada was the cheapest place to buy a Nano at $144.20, while Australia ranked 19th at $172.36, cheaper than Germany ($192.46), France ($205.80), South Korea ($176.17) and China where the machine is manufactured. The U.S. was fourth cheapest at $149.

Prices of iPod globally (sorted in descending order of price):

  1. Brazil $327.71
  2. India $222.27
  3. Sweden $213.03
  4. Denmark $208.25
  5. Belgium $205.81
  6. France $205.80
  7. Finland $205.80
  8. Ireland $205.79
  9. UK $195.04
  10. Austria $192.86
  11. Netherlands $192.86
  12. Spain $192.86
  13. Italy $192.86
  14. Germany $192.46
  15. China $179.84
  16. South Korea $176.17
  17. Switzerland $175.59
  18. New Zealand $172.53
  19. Australia $172.36
  20. Taiwan $164.88
  21. Singapore $161.25
  22. Mexico $154.46
  23. U.S. $149.00
  24. Japan $147.63
  25. Hong Kong $147.35
  26. Canada $144.20

Why is China ranked 15th? If iPods are made out China, shouldn’t they be priced lowest in China. If this is an Apple pricing policy, then I reckon it would really pay off being an iPod dealer or retailer in China. Don’t you think so! One would assume that things in Hong Kong will be very reasonably priced due to its proximity with China, but that is not true either for quite a few items. In fact same is the case in Japan for global electronic models. To many it is a shock to find out electronics (other than Cameras I believe) is expensive in Japan.

I believe digital cameras too are comparatively more expensive in India. Nice to know Hong Kong is the second best place to buy an iPod from :). So plan your trip accordingly guys, visit Hong Kong (unless Canada is closer 😉 ) and take a trip to the Peak.

Wonder what the price of an iPod would be in places like the Gulf. Dubai and Kuwait have always been famous for reasonably priced electronics, in fact many more things in that matter.

Written by shabbirhusain

January 22, 2007 at 8:01 am

Posted in Business, Hong Kong, India, IT

Morgan Stanley invests INRs 675cr in Oberoi Construction of India.

with 2 comments

Source Times of India:

  • In the single largest FDI in the country’s booming real estate sector, Morgan Stanley has invested $152 million (Rs 675 crore) in a city-based firm, Oberoi Construction.
  • The world’s largest private equity realty fund, which manages $100 billion (one-seventh of India’s GDP), will in return get a 10% stake in the three-decade-old unlisted company which has a land bank of 15 million sq/ft, most of it in western suburbs of the city. The deal has valued Oberoi at Rs 6,750 crore.
  • Anand B Madduri, an ED at Morgan Stanley, said the three drivers that attracted the fund were the property developer’s execution of projects, entrepreneurial vision of promoter and delivering housing and commercial establishments to a community.
  • Oberoi said the money can be leveraged to raise around Rs 2,500 crore of debt for speedy execution of projects that will give him a cash flow of $1b in 3-4 years.
  • The scramble for buying assets was evident recently when three prominent real estate companies-Hirandani Constructions, Rahejas and Unitech raised close to $2.3 bilion from the London market.
  • Last year, US’s Farallon Investments along with LN Mittal had invested close to Rs 1,429 crore in four real estate companies of IndianBulls, a financial services firm which diversified into property development.
  • Ten Indian real estate companies have raised money by selling shares to the public, which eagerly lapped up the issues.
  • Industry sources say around 150 foreign PE have lined up nearly $10 billion to invest in real estate in the next two years as government relaxes norms to ramp up the country’s inadequate infrastructure. Indian and multinational institutions such as J P Morgan, Falcon, 3i, Blackstone, Carlyle, Kotak Real Estate, IL&FS, ICICI and HDFC are some of them who are waiting to storm the sector.
  • ICICI Realty fund is learnt to be raising $1 billion and Kotak Mahindra $500 million.

Seems like more investment is on its way. This will lead to price hikes and beyond reach to even think of buying a house for a normal person. Are these price hikes justified? Is this organic growth or hyped? Is it in any way benefiting the common man of India?

Written by shabbirhusain

January 19, 2007 at 10:16 am

Posted in Business, India, Real Estate