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ON
SUCCESS STORY OF AN
ENTREPRENEUR
COURSE CODE: IBM 902
COURSE NAME: PROJECT MANAGEMENT AND ENTRPRENEURSHIP
PROGRAM NAME: BE+MBA
SEMESTER: 9TH 2014-15
SUBMITTED BY
Panjab University
Sector-25, Chandigarh -160014
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CHAPTER 1
REAL ESTATE MARKET IN INDIA
Scenario of Real-estate market in pre recession periodCommercial real estate sector was in boom in India. In the last fifteen years, post
liberalization of the economy, Indian real estate business had taken an upturn and is expected
to grow from the USD14 billion to a USD102 billion in the next 10 years. This growth canbe
attributed to favourable demographics, increasing purchasing power, existence of the new
customer friendly banks &housing
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Cause-effects
This scenario is leading to the emergence of organized real-estatemarket in India.The
property market in India has traditionally been unorganized and fragmented. However, the
recent past has seen a consolidation of positions in the market asdevelopersare stretching
theircapacitiestothemaximuminordertomeetthegrowing
marketdemand,whichinturnhasencouragedlargeprojectswithsourcedfinancing.The
IPOsbylargerealestatedeveloperslikeSobha,RahejaandDLFhaveledtoorganization
ofthemarketintheTier-Icities,buttheTier-IIandTier-IIIcitiesstilldemonstratethe traits of an
unorganized
market.
Whilst
the
Indian
real
estate
market
still
lacks
transparencyandliquiditycomparedtomorematurereal-estatemarkets,theincreasing
requirementsofmultinationaloccupiers,aswellastheinfluxofinternationalproperty
consultancieshasledtothe
introductionofgreateravailabilityofmarketinformation,
both
in
DrivingForcesStatedbelow are the reasons that have led to the real estate boomin the country; booming
economy; accelerated GDP to 8% p.a.
Indias emergence as an attractive off-shoring destination and availability of pool of highly
skilled technicians and engineers. Development of large captive units of major players
includes GE, Prudential, HSBC, Bank of America, Standard Chartered and American
Express;
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Rise
in
disposable
income
and
growing
middle
class,
increasing
the
CategorizationThedemandfornewofficespaceinIndiahasgrownfromanestimated3.9millionsq.ft
in1998toover16millionsq.ftin2004-05.70%ofthedemandforofficespaceinIndia
isdrivenbyover7,000IndianITandITESfirmsand15%byfinancialserviceproviders
andthepharmaceuticalsector.In2005alone,IT/ITESsectorabsorbedatotalofapprox30millionsq.ft
andisestimatedtogenerateademandof150millionsq.ft.officespace
acrossmajorcitiesby2010.Thisdataclearlydemonstratesthegrowthofthereal-estate sector in the
country.
Withreferencetotheavailabilityofinfrastructurefacilities,followingcitiesarecurrently attracting
MNCs/corporate/real-estatedevelopers:
Tier-I cities, Mumbai (Commercial hub), Delhi (Political hub) and Bangalore present day
Bengeluru(Technologicalhub):
i.
ii.
iii.
iv.
v.
Yield of 10.5-11.5%
Offer competitive business environments, human resources
telecommunications connectivity, quality of urban infrastructure
Attract high value IT, ITES and biotech corporate houses
availability,
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SpecialEconomic Zones:
i.
28 operational SEZs in the country, including those converted from Export Processing
Zones (EPZ) to SEZ.
Development of SEZs in various segments such as multiproduct, Information
ii.
Attractbothdevelopersandcorporatehouses.
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CHAPTER 2
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PROJECTSa)
b)
c)
d)
e)
f)
WHISPERING VILLAS
Whispering Villas are built up houses constructed by Bajwa Developers. These villas are
developed for sophisticated lifestyle. With ultra modern amenities Whispering Villas is ready
to set high standards for life luxury.
FLOOR PLANS:
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JASMINE VILLAS
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Jasmine Villas are built up houses constructed by Bajwa Developers Ltd. The vision of the
company is to provide the customers with very best of facilities and amenities available till
date. Each and every requirement of the end-user was kept in mind while designing the villa.
Floor Plan
PALM VILLAS
Palm Villas are built up houses constructed by BajwaDevleopers Ltd. These villas been
planned ensure the very best of the ultra modern amenities. With state-of-the-art design both
in interiors and exterior Palm Villas is ready to be the benchmark for modern lifestyle.
Floor Plan-
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DAFFODIL VILLAS
Daffodil Villas are developed by Bajwa Developers Ltd. Superior construction material and
state of the art design are key features of these villas. The vision of the company is to develop
strong faith by providing the best of facilities to the commuter.
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CHAPTER 3
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CHAPTER 4
To create a progressive organization that provides affordable housing and self contained
mega townships, exhibiting state-of-the-art infrastructure and world-class amenities.
Mission
To contribute towards sustainable development in the region by creating affordable homes for
the larger section of society with emphasis on efficiency, reliability and development.
CMDs PROFILE
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Marketing Department
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Headed by GM (Sales): AdvSumeet Singh. He Joined the group in 2003 and sales
department is responsible for achieving the sales targets in the different regions.
Promotion departmentdecides on the type of promotion method for the products, arranges
advertisements and the advertising media used. This chore has been outsourced to BR
Advertising Services(advertising agency & marketing consultant).
Expansion Strategies-Current ProjectsEnclave is now expanded to a sprawling 1800 acres to 2200 acres (approx.) NRI Project
targets at providing space and services such as House-keeping to NRIs from Canada and the
USA. Apart from this, the enterprise also boasts of a wide overseas presence in major
countries such as Canada, the USA and the UK, and involved in the development of
residential towers as well as industrial skyscrapers in addition to infrastructure schemes and
retail marts. NowBajwa Developers plan to repeat the history in PATIALA, KARNAL.
Upcoming endeavours in Patiala and Karnal for areas over 100 acres and 25 acres
respectively.
Expansion Strategies-Projects in Pipeline1.A proposal of Dedicated R&D Centre to study, analyze secondary data available and
collection of primary data of their concern. Such sort of move would be 1st of its kind
amongst its close competitors in Punjab Region.
2.Based on secondary data from IBEF, Bajwa Developers Ltd has kept provision of at least 1
world class malls to be built in each Commercial Project they undertake after Dec 2014.
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3. Based on secondary data of IBEF, Bajwa Developers Ltd has kept provision of at least 2
world class Educational hubs to be built in each Commercial Project they undertake after Dec
2014.
4.Amazon's Decision to Open First Brick and Mortar Storewhile $150 billion more will be
spent online between now and 2018, $300 billion more will be spent offline during that same
time. Clearly, the physical store is alive and well. Retailers are only beginning to capitalize
on the tremendous opportunities for optimizing this channel.Bricks-And-Mortar Retailers
Have One Big Advantage Over E-Commerce Companies. With no competitor not even
thinking about this big drastic change which might boom the Retail Sector in Real Estate, we
are planning to prepare a blueprint of such possibility Amazon, E-Bay, Flipkart opening its
Brick and Mortar Showrooms in our commercial Real Estate Projects.
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According to officials, the search and seizure operations were still on till the filing of this
report at 8 pm and they claimed that several incriminating documents had been seized and
sealed.
SWOT analysis
Strength
i.
ii.
iii.
Construction of the multi building projects on the feasible locations in the country.
iv.
v.
Low cost well- educated and skilled labour force is now widely available across the
country.
vi.
vii.
Real estate development is on high and it is attracting the focus of the industry
towards construction.
Weakness
i.
ii.
iii.
iv.
Changing skills requirements and an ageing workforce may accentuate the skills gap.
v.
vi.
vii.
Lack of clearly define processes and procedures for construction and its management.
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viii.
Huge amount of money need to be invested in this industry and inefficiency may lead
to high level of risk.
Opportunity
i.
Continuous private sector housing boom will create more construction opportunities.
ii.
Public sector projects through Public Private Partnerships will bring further
opportunities.
iii.
iv.
Renewable energy projects will offer opportunities to develop skills and capacity in
new markets.
v.
vi.
Financial supports like loan and insurance and growth in income of people is in
support of construction industry.
vii.
Historical cultural heritages like the TAZ MAHAL encourage and provide a creative
platform for the industry.
viii.
Remote areas in the country are easily accessible and plenty of land is available in the
country.
Threat
i.
Long term market instability and uncertainty may damage the opportunities and
prevent the expansion of training and development facilities.
ii.
iii.
Political and security conditions in the region and Late legislative enforcement
measures are always threats to any industry in India. Infrastructure safety is a
challenging task in construction.
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CHAPTER 5
Regulatoryrisks
Intermsofpropertyownership,permissionfromtheReserveBankofIndiaisrequired
forforeigninvestors.Forcapitalrepatriation,investorsneedtoapplyforapproval
from
theRBI,andforeigndirectinvestmentislimitedtoalimitedsetofopportunities(e.g. townships).The
REMFsworkwithintheSEBIframework.Beingadevelopingand growing sector, the rules,
regulations and legalities demonstrate frequent changes, making it seemas a cumbersome
investment option to the investors.
and
consistentinformationontheIndianpropertymarketisstillnoteasilyavailable.There
arealsomoreprofessionalduediligenceand valuationinstitutionsneeded.Thisholds true even for
the Tier I cities.
Macroeconomic risks
Interestrates, inflation and exchange rate risks are amongst the important macroeconomic
indicatorsandhaveshowndecreased
volatility.
Theprovisionoffacilitiesisinmany
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the
semi
urban and rural areas thus slacking an overall growth of the realestate sector.
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CHAPTER 6
Conclusion
Bajwa Developers has become a name to be reckoned with.
The company has not only covered many milestones in the real estate business but also
proved itself in colonization and building dream homes for people at large.
The company has added many feathers to its cap by constructing multitudes of projects
and many others are underway.
Sales, Finance Dept. at BDL seems in good shape, but H.R. Dept. at BDL needs to go
more professional. No layoffs even during the recession period raise many eyebrows.
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Annexure-1
Questionnaire(these replies were given by GM as Mr. Bajwa himself was not available.)
Q.1 How frequently do layoffs occur at BDL?How does it affect the morale of
employees?
Reply- Rare. Our organization is quite small(as I consider) as compared to other Real Estate
Firms in this domain. We select our employees very carefully. So, people hired way back in
2003 are still working with us with same grit & determination which they had when newly
hired.
Q.2 What is the educational background of most senior level executives?
Reply- Earlier we used to hire Managers just on basis of recommendation of our kith & kin,
though all are post graduated either from Indias reputed B-Schools or from abroad.
Q.3 In future,if real estate boom comes,what qualifications do you seek in new hire?
Reply-All new manager level employees to be hired in near future would be MBAs from
reputed firms. Earlier we even used to hire Managers just on basis of recommendation of our
kith & kin (luckily it has worked for us till now),but now we aim to go more professional and
inject our Organization with young blood from reputed B-Schools.
Q.4 Considering all the people youve met in your line of work, what personal attributes
are essential for success?
Reply-As per me, Pin-pointed Focus on what you want to achieve is the only mantra to
success.
Q.5 Industry has changed dramatically in past 5 years. What have you seen from inside
of your company?
-Trend of nuclear families
-A shift of mindset from PAY RENT to PAY EMIs
-A shift from Individual houses to Flats
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Q.6 Wheredo you think the changes will happen in next 5 years?
All above mentioned changes assumed to happen for next 5 years(unless some drastic
technological change occur),other changes possible in Real Estate Sector in next 5 years are:
Amazon's Decision to Open First Brick and Mortar Store
Bricks-And-Mortar Retailers Have One Big Advantage Over E-Commerce Companies
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Q.9 Does your organization allow Flextime/Staggered Work Time for its employees?
Reply-Our H.R. department is working on this new concept to implement it at the grass-root
level, at managerial level,it has already been implemented since 2010.
SOURCE OF INFORMATION
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