PROJECT FOR- BUSINESS STRATEGY'S

TOPIC:

List recent instances (wef 1st April, 2013) of at least one Indian Companies that adopted Joint Venture strategies.

Contents
Executive Summary....................................................................................................................................... 3 History ........................................................................................................................................................... 3 Mahindra Lifespace Developers................................................................................................................ 3 SCM REAL ESTATE ..................................................................................................................................... 5 Mission and Vision ........................................................................................................................................ 6 MISSION .................................................................................................................................................... 6 VISION ....................................................................................................................................................... 6 There vision focus on these points ................................................................................................................ 6 Objectives of this Joint Venture .................................................................................................................... 6 Research Methodology ................................................................................................................................. 7 External Analysis: Industry Analysis .............................................................................................................. 7 SWOT Analysis of the Real Estate Industry ............................................................................................... 7 PEST Analysis of the Real Estate Industry ................................................................................................. 9 Major Players In the Industry...................................................................................................................... 10 THE CHALLENGES ........................................................................................................................................ 10 SWOT Matrix ........................................................................................................................................... 11 Findings and Conclusion ............................................................................................................................. 12

Executive Summary
Mahindra Lifespace Developers Limited (MLDL), the real estate business of the Mahindra Group, has entered into a joint venture with SCM Real Estate (Singapore) the investment arm of Standard Chartered Bank, to develop residential projects in India. There new company will be operating under the name of WATSONIA DEVELOPERS Pvt. Ltd. The company is headquatered at Mahindra Towersworli,, Mumbai . The company Mahindra and scm real estate which is a Singapore based subsidiary of standard chartered adopted a joint venture strategy . This report tells us how this strategy was devised and why implementing of this strategy was odopted by both the companies and how this venture would prove to be beneficial for both the companies. In this report we analyze that major initiatives are taken by a company's top management on behalf of both the companies by studying the EXTERNAL and INTERNAL environment of the company. We are also analyzing the competitors of the company, to know if the strategy adopted by both the companies i.e Mahindra and standard chartered is profitable or not. To analyze this we have used the concepts which learnt during the lectures. This report gives us a clear picture that how this joint venture strategy will benefit them in future.

History
Mahindra Lifespace Developers
GESCO Corporation Limited ("the Company") was incorporated as a Private Limited Company on March 16, 1999 and converted to a Public Limited Company on August 18, 1999. Pursuant to the Scheme of Arrangement between the Company, The Great Eastern Shipping Co. Ltd., (the Demerged Company) and their respective shareholders, as approved by the Hon'ble High Court at
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Bombay on August 26, 1999, the assets and liabilities pertaining to the business activity of managing, developing and operating of commercial properties of the property development division of The Great Eastern Shipping Co. Ltd. (the demerged undertaking), were transferred to and vested on demerger in the Company with retrospective effect from April 1, 1999. During the transition period from the Appointed date to the Effective date i.e. April 1, 1999 to February 9, 2000, The Great Eastern Shipping Co. Ltd. carried on the aforesaid business activities of managing, developing and operating commercial properties in "trust': on behalf of the Company. The Scheme has, accordingly, been given effect to in these accounts. 2001- The company has informed that, Eastern Resin & Allied Products Ltd. (Sikkim) has acquired 17,75,185 (6.17%) shares of the company. 2001- The Sikkim-based Eastern Resin & Allied Products Ltd on Friday acquired 17,75,185 shares of GESCO Corporation Ltd. 2003 -Mr Suvir Ahuja, Managing Director of the Mahindra Gesco Developers Ltd has expressed his desire to resign from the services of the Company with effect from August 27, 2003 and has tendered the required notice. The matter will be formally placed before the Board at its next proposed meeting to be held in the last week of July 2003. -i) Mr. Sudhir Mulji, Non-Executive Chairman of the Company resigned as a Director with effect from October 17, 2003; ii) Mr. Sanjiv Kapoor has been appointed as an Additional Director at the Board Meeting held on October 31, 2003. 2007 - Company name has been changed from Mahindra Gesco Developers Limited to Mahindra Lifespace Developers Ltd. 2008 - IGBC Green Homes Precertified Platinum. - AESA Gold Award, 2008 for The Woods, Wakad, Pune, The Best Project in Group Housing Category in Pune. 2009 - Mahindra Splendour awarded winner in the category of Best Developer Green Future Development" by Cityscape Real Estate India. 2010 - Mahindra Lifespaces wins The Economic Times ACETECH award under the category Excellence in Mid Segment (Exterior Architectural Design) for project Eminente Wings Vervian & Veronica on the 11th November, 2010.

- Wins Gold for Refresh Newsletter Design and Silver for Aqualily Brochure Design at the 50th Annual Awards of the Association of Business Communicators of India (ABCI) . - Mahindra Lifespaces Awarded "One of India's Top 10 Builders 2010" by Construction World. 2011 - For the second consecutive year, MLDL has been voted as one of Indias Top 10 Builders by CONSTRUCTION WORLD and CW INTERIORS. - Splendour was the Second Best of the top three Finalists in KPMG-Qimpro Convention 2011 under Category Green Initiatives in Service Sector. 2012 - Mahindra Lifespaces enters Nagpur - launches a premium residential project, "Bloomdale". - Mahindra Lifespaces releases first ever Global Reporting Initiative report. - Mah.Lifespac - Mahindra Lifespaces debuts in Hyderabad with Ashvita - a premium residential complex.

SCM REAL ESTATE

Gary Walker, Founder and President of SCM Real Estate, is one of Dallas/Fort Worth's leading real estate minds and has represented tenants and owners in major lease and sale transactions for over 25 years. He started his career in the mid 1980s at the start of the historical real estate collapse in Texas. Despite the market slowdown, Walker thrived with a hard work ethic and was able to reach unthinkable goals in the industry. In 1992, he founded SCM and has led the company to a point that today it is a "need to know name" for corporations growing and moving within the DFW area. Walker has represented such major clients as Tenaska Power Services, Mercantile Bank and Alpha Mortgage. He has expanded his ventures into real estate ownership, investment analysis, property management for commercial properties, and project leasing.
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Walker is also notable for his work to fuel economic development and sustain the interests of public projects in Arlington and Fort Worth. He has recently formed Citizens United for Barnett Shale (CUBS), a group to protect the area's new oil investments. He is the former Commissioner on the Board of the Arlington Housing Authority and a former Precinct Chairman for the Republican Party of Tarrant County. He currently serves on the Board of Directors of the Downtown Revitalization Council for the Arlington Chamber of Commerce and the Board of the Central Arlington Initiative. He has been active with the Fort Worth Chamber, Meals on Wheels, Big Brothers & Sisters, YMCA, Youth With A Mission, and the Levitt Foundation. Walker graduated from Baylor University with a Finance degree. He and his family live in Fort Worth.

Mission and Vision

MISSION
"Transforming urban landscapes by creating sustainable communities."

VISION
There vision focus on these points

Objectives of this Joint Venture

For the purpose of developing residential projects in India. Foreign funds to invest in Indian properties. Because of the opportunities for sustainable residential developments in India.

Research Methodology
To check whether the joint venture should be carried out or not and to see if this joint venture will work in the future or not, both the companies did research work. For doing this they need to do the external and internal analysis of the company by doing the industry analysis and the company analysis.

External Analysis: Industry Analysis

SWOT Analysis of the Real Estate Industry
Strengths o Employment and training opportunities in the field of construction. o Private sector housing boom and commercial building demands Construction of the multi building projects on the feasible locations in the country. o Good structured national network facilitates the boom of construction industry. o Low cost well- educated and skilled labour force is now widely available across the country. o Sufficient availability of raw material and natural resources in the country is supportive for the industry. o Real estate development is on high and it is attracting the focus of the industry towards construction. Weakness o Distance between construction projects reduces business efficiency. o Training itself has become a challenge. o Changing skills requirements and an ageing workforce may emphasize the skills gap. o Improvement in long-term career prospects is highly required to encourage staff retention and new entrants. o External allocation of large contracts becomes difficult.
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o Lack of clearly defined processes and procedures for construction and its management. o Huge amount of money needs to be invested in this industry. Opportunities o Continuous private sector housing boom will create more construction opportunities. o Public sector projects through Public Private Partnerships will bring further opportunities. o Developing supply chain through involvement in large projects is likely to enhance the chances in construction. o Renewable energy projects will offer opportunities to develop skills and capacity in new markets. o More flexible training delivery techniques are now available. o Financial supports like loan and insurance and growth in income of people is in support of construction industry. O Relaxation in FDI norms. Threats o Long term market instability and uncertainty may damage the opportunities and prevent the expansion of training and development facilities. o Current economic situation may have an adverse impact on construction industry. o Political and security conditions in the region and Late legislative enforcement measures are always threats to any industry in India. o Infrastructure safety is a challenging task in construction industry. o Lack of political willingness and support on promoting new strategies. o Natural abnormal casualties such as earth quake and floods are uncertain and can prevent the construction boom. o Inefficient accessibility in planning and concerning the infrastructure. o Competitors are emerging in the industry by leaps and bounds.

PEST Analysis of the Real Estate Industry

The various factors which influenced the Real Estate segment are Political, Technological, Social and Economical factors. POLITICAL FACTORS:

Governments regulations and policies in favour of real estate sector. Heaviest tax imposed on the construction industry. FDI experience in Indian real estate market.

ECONOMIC FACTORS:

Controlled Inflation levels. Low Interest Rates. Provides further Liquidity

SOCIAL FACTORS:

Increase in consumption. Urbanization. Increase in per capita income (current prices). Rise in Demand for Quality Housing Projects.

TECHNOLOGICAL FACTORS:

Internet revolution Media

The analysis of the external environment shows that there is a great potential in the real estate sector in India. The analysis shows that the construction industry is the second largest industry of the country after agriculture accounting for 11 percent of Indias GDP. Due to significant
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investment opportunities emerging in this industry, a large number of international real estate players have entered the country. FDI inflows into this sector are estimated to be between Rs. 209.59 billion and Rs. 244.50 billion.

Major Players In the Industry

1) DLF Ltd 2) OMAXE LTD 3) UNITECH 4) ANSAL API 5) PARSVNATH DEVELOPERS LTD 6) GODREJ PROPERTIES LTD 7) K RAHEJA CORP 8) KALPATARU GROUP 9) DB REALTY 10) SOBHA DEVELOPERS LTD 11) BRIGADE GROUP 12) PURAVANKARA GROUP 13) NITESH ESTATES 14) PRESTIGE ESTATES PROJECTS LTD 15) AMBUJA REALTY 16) MERLIN GROUP

THE CHALLENGES
The key challenges that the Indian real estate industry is facing today are: Lack of clear land titles, Absence of title insurance, Absence of industry status, Lack of adequate sources of finance, Shortage of labour Rising manpower and material costs, Approvals and procedural difficulties.

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Internal Analysis
SWOT Matrix
Strength Known Brand Names Liberalized Govt. Rules Huge Capital Weakness Global recession. Large number of established players.

Opportunity Booming Real Estate Sector Investment through FDI. Increasing Urbanization. Increased Demand

Threats Competition From Major National and International Players. Increased prices of Raw Materials.

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Findings and Conclusion

On the basis of the above done external analysis ie the environmental analysis and internal analysis ie the company analysis, the following observations can be made: The increase in the limit for FDI has opened gates for foreign companies to enter India. The urbanization is also rapidly taking place. Easy availability of finance for the companies makes it easy for them to start the projects. Rise in the income level of the residents of India is there which makes the demand of property to increase. The joint venture has taken place between two known companies which are already doing great in their respective countries. Supplier capabilities are also increasing as more number of raw material manufacturing companies is increasing their operations, thus assuring greater and timely availability of materials. However the number of players already existing in the market is large but there is still a huge scope for new companies. In such a situation, when the scope is there, two companies which are already performing good in their respective countries are coming together for the development of the business in India. So, it can be said that this joint venture will be successful in future.

Recommendation
On the basis of the above observations and findings, it is recommended for the companies that they should try to tap the potential of the booming market. Initially they are planning to invest in residential projects in Bangalore and Gurgaon but at a later stage they should also look at the other Tier 2 cities like Pune where probability of developing and earning profits from residential projects is high.
They should also try to enter in the commercial projects business where there is a huge potential.

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