SUMMER TRAINING REPORT

On

THE STUDY OF OPERATIONAL STRATEGY OF

REAL ESTATES INDUSTRY AT THE SHUBHAM
GROUP

Submitted in partial fulfilment of the requirement of Bachelors of

Business Administration (BBA)

Guru Gobind Singh Indraprastha University, Delhi

Session 2018-19

Under the Guidance of Submitted by:

Mr.Vikram Kumar Sharma Sana Iqwal
BBA-V Semester
Assistant Professor Enrolment no.-45425501716

JIMS ENGINEERING MANAGEMENT TECHNICAL CAMPUS

48/4 Knowledge Park III, Greater Noida-201306 (U.P.)

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 DECLARATION
I hereby declare that this Summer Training Report titled THE STUDY OF
OPERATIONAL STRATEGY OF REAL ESTATES INDUSTRY AT THE
SHUBHAM GROUP submitted by me to JEMTEC, Greater Noida is a bonafide work
undertaken by me and has not been submitted to any other University or Institution for the
award of any degree diploma / certificate or published any time before.

(Signature of the Student) Date: 10/09/2018

Name: Sana Iqwal

Enrollment No.: 45425501716

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 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled The Study of Operational
Strategy of real estate industry at Shubham Group is the bonafide research work carried
out by Sana Iqwal, student of BBA, JEMTEC, Greater Noida, in partial fulfillment of the
requirements for the Summer Training Report for the Degree of Bachelor of Business
Administration.

She has worked under my guidance.

I wish him/her a success in all his/her future career endeavors

Faculty Guide

Mr. Vikram Kumar Sharma

Assistant Professor

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 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to JEMTEC, Greater Noida for imparting us
very valuable professional training in BBA.

I pay my gratitude and sincere regards to Mr.Vikram Kumar Sharma, my project Guide for
giving me the cream of his knowledge. I am thankful to her as she has been a constant
source of advice, motivation and inspiration. I am also thankful to her for giving her
suggestions and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and
library staff for providing me opportunity to utilize their resources for the completion of
the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment, which enhanced my knowledge.

Date: 10/09/2018
Name: Sana Iqbal
Enrollment No.: 45425501716
Course: BBA (V- Semester)

(Signature of the Student)

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INTERNSHIP CERTIFICATE

5
 EXECUTIVE SUMMARY

This report is aimed to investigate the Operational Strategy at the Shubham Group. Operations is
where the rubber meets the road, it's actually doing it. However, in competition and interaction with
others, nothing ever goes as planned! The best strategy and tactical plans break down, it's inevitable.
Clausewitz, the Prussian strategist, blamed this on the "fog and friction" of the intelligent clash of
wills. So, in the actual performance of an organization's strategic and tactical plans, expect the
unexpected. The key to operational effectiveness and success is constant feedback from the frontlines.
This requires that the organization place a high value on open and honest communication. Everyone
in the organization needs to have permission and opportunity to talk to anyone else in the
organization.

It is recommended that an operations council or team be formed to monitor and correct any problems
in communication within the organization and to constantly ask how to improve operations and make
them more efficient. It must be on guard for "High-Level Dumb" - a condition characterized by a
large and growing gap between the beliefs of those at the top of the organization and the reality in
the trenches.

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 TABLE OF CONTENTS

S. No. Topic Page No.

1. Declaration

2 Bonafide Certificate

3 Acknowledgement

4 Company Summer Internship Certificate

5 Executive Summary

6 Chapter-1: Introduction

7 Chapter-2: Company Profile

8 Chapter-3: Literature Review

9 Chapter-4: Research Methodology

10. Chapter-5: Data Analysis and Presentation

11 Chapter-6: Finding and Conclusions

12.. Chapter-7: Conclusion

13. References/Bibliography

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 CHAPTER – 1
INTRODUCTION

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The real estate sector is one of the most globally recognized sectors. In India, real estate is the second
largest employer after agriculture and is slated to grow at 30 per cent over the next decade. The real
estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of
this sector is well complemented by the growth of the corporate environment and the demand for
office space as well as urban and semi-urban accommodations. The construction industry ranks third
among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the
economy. It is also expected that this sector will incur more non-resident Indian (NRI) investments
in both the short term and the long term. Bengaluru is expected to be the most favoured property
investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

India's rank in the Global House Price Index has jumped 13* spots to reach the ninth position among
55 international markets, on the back of increasing prices in mainstream residential sector.

The Indian real estate market is expected to touch US$ 180 billion by 2020. Housing sector is
expected to contribute around 11 per cent to India’s GDP by 2020. Retail, hospitality and commercial
real estate are also growing significantly, providing the much-needed infrastructure for India's
growing needs. New housing launches across top seven cities in India increased 27 per cent year-on-
year in January-March 2018. India is expected to witness an upward rise in the number of real estate
deals in 2018, on the back of policy changes that have made the market more transparent.

Sectors such as IT and retail, consulting and e-commerce have registered high demand for office
space in recent times. Office space demand in the country increased 23 per cent year-on-year in
January-March 2018 with office space absorption at 11.4 million square feet during the quarter.
Private equity inflows in office and IT/ITES real estate have grown 150 per cent between 2014 and

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Investments/Developments

The Indian real estate sector has witnessed high growth in recent times with the rise in demand for
office as well as residential spaces. Private equity investments in real estate are estimated to grow to
US$ 100 billion by 2026 with tier 1 and 2 cities being the prime beneficiaries. Private equity
investments in Indian real estate increased 15 per cent year-on-year in January-March 2018 to Rs
16,530 crore (US$ 2.56 billion). According to data released by Department of Industrial Policy and
Promotion (DIPP), the construction development sector in India has received Foreign Direct
Investment (FDI) equity inflows to the tune of US$ 24.67 billion in the period April 2000-December
2017.

Some of the major investments in this sector are as follows:

In May 2018, Blackstone Group acquired One Indiabulls in Chennai from Indiabulls Real Estate for
around Rs 900 crore (US$ 136.9 million).

In February 2018, DLF bought 11.76 acres of land for Rs 15 billion (US$ 231.7 million) for its
expansion in Gurugram, Haryana.

In February 2018, Japanese conglomerate Sumitomo Corporation announced its US$ 2 billion
partnership with Krishna Group to develop real estate projects in the country.

KKR India Asset Finance Pvt Ltd has invested over US$ 500 million in residential real estate projects
in India in 2017, taking its total investments in real estate projects in India to US$ 1 billion.

Government Initiatives

The Government of India along with the governments of the respective states has taken several
initiatives to encourage the development in the sector. The Smart City Project, where there is a plan
to build 100 smart cities, is a prime opportunity for the real estate companies. Below are some of the
other major Government Initiatives:

In May 2018, construction of additional 150,000 affordable houses was sanctioned under Pradhan
Mantri Awas Yojana (PMAY), Urban.

In February 2018, creation of National Urban Housing Fund was approved with an outlay of Rs
60,000 crore (US$ 9.27 billion).

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Under the Pradhan Mantri Awas Yojana (PMAY) Urban 1,427,486 houses have been sanctioned in
2017-18. In March 2018, construction of additional 3,21,567 affordable houses was sanctioned under
the scheme.

Road Ahead

The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate
Investment Trust (REIT) platform which will help in allowing all kinds of investors to invest in the
Indian real estate market. It would create an opportunity worth Rs 1.25 trillion (US$ 19.65 billion) in
the Indian market over the years. Responding to an increasingly well-informed consumer base and,
bearing in mind the aspect of globalisation, Indian real estate developers have shifted gears and
accepted fresh challenges. The most marked change has been the shift from family owned businesses
to that of professionally managed ones. Real estate developers, in meeting the growing need for
managing multiple projects across cities, are also investing in centralised processes to source material
and organise manpower and hiring qualified professionals in areas like project management,
architecture and engineering.

The growing flow of FDI into Indian real estate is encouraging increased transparency. Developers,
in order to attract funding, have revamped their accounting and management systems to meet due
diligence standards.

Exchange Rate Used: INR 1 = US$ 0.0155 as on March 30, 2018

Real Estate Scenario in India:

The year 2017 as we all know has set a new benchmark for the Indian real estate sector. The
implementation of demonetisation in November 2016 had the entire economy reeling until the first
quarter of 2017 and the realty segment was not pardoned either, with land sales reaching stagnation
due to more involvement of cash transactions. However, this eventually helped reduce land prices
thereby making the end products more affordable to the consumers. By April 2017, when the markets
were looking to stabilise, RERA and GST were announced in succession which again caused some
inertia due to confusion among buyers and developers alike, with both awaiting the final set of RERA
notifications/legislation from their respective state regulatory bodies.

While business cycles have been affected this year due to buyers holding back purchases in
anticipation of regulatory changes, and sales are still witnessing a slowdown, we are observing signs
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of recovery as the triple effects of demonetisation, RERA and GST have begun to shape up the sector
with new standards of delivery, accountability and transparency. Post implementation of these
reforms, the following impacts have been observed in the market so far:

1. More demand for 2 BHK & 3 BHK segment - apparent by a steady surge in site visits.

2. Preference for ready to move-in properties that are hassle-free of any compliance issues.

3. Willingness to pay a premium for long-standing reputed developers.

2018 is expected to be a year of consolidation of products and services in the sector - with the impacts
of all policy initiatives taken in 2016-17 beginning to take shape in the coming year. More joint
ventures/joint developments will be the order of the day with financially distressed developers being
taken over by larger players and presenting the industry with a fresh line up of
competitors. Completion of existing projects will be prioritised over launching new ones, hence,
2018 looks promising for a good supply of houses across major Indian markets. In order to achieve
this, developers will be remodelling their business processes to streamline delivery and allied
services, without stretching themselves too much in terms of debt or scope of work.

The Government's efforts to boost "affordable housing" by conferring "infrastructure status" to this
segment and announcing various tax incentives will continue to attract more prominent developers
to realign their products to compete in this category. The Union Cabinet's decision to increase the
carpet area of affordable units to 120 sq.m and 150 sq.m for MIG-I (income category 6-12 lakhs per
annum) and MIG-II (income category of 12-18 lakhs per annum) segments respectively, coupled with
an interest subsidy of upto 4%, will benefit both buyers and sellers as options increase for the former
and inventories are cleared for the latter. Affordable housing will therefore become an important
segment in every developer's portfolio in 2018. Developers could also be focusing on their niche
expertise in the New Year, specialising in the various segments of real estate, e.g., plotted
developments, residential projects, townships, and commercial spaces; and hence, specialist service
providers could be emerging in each of these categories.

Housing growth trajectory

Phase I (2013-2014) was an initial growth phase with stabilizing residential real estate prices
following the global recovery post the “dot com” bust and 9/11 terrorist attacks in New York. At the

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same time, there was steady growth in Indian economic activity, noteworthy recovery in IT/ITES
industry, growing urbanization and a rising trend towards nuclear families.
Phase II (2014-2015) was a high growth phase where high demand for residential real estate led to
doubling of housing prices. Demand rapidly increased due to India‟s growing population,
accentuated urbanization, rising disposable incomes, rapidly growing middle class and youth
population, low interest rates, fiscal incentives on interest and principal payments for housing loans
and heightened customer expectations.
Phase III (2015-2016) witnessed substantial slowdown and part recovery in demand because of the
global economic downturn, which led to a decline in affordability and tight liquidity. The retreat of
various real estate investors, accompanied by slowdown in the capital markets, has resulted in
oversupply and falling prices.
Phase IV (2016-2017) is expected to remain a consolidation phase after slowdown. Demand is
expected to remain strong with capital values witnessing modest rise. This period is expected to
witness substantial supply of housing especially in urban areas.
In spite of the stupendous growth witnessed in the past 10 years, substantial housing shortage is still
prevalent in India. Housing shortage in India is estimated at 78.7 million units at the end of Phase II.
The overall housing shortage in India is likely to decline to 75.5 million units by the end of Phase IV.
However, housing shortage in urban areas will continue to rise owing to migration towards urban
areas and NCR easing trend of nuclear families. Housing shortage in urban areas is estimated at 19.3
million units at the end of 2008, up from 15.1 million units at the start of 2005. Housing shortage in
urban areas is likely to touch a walloping 21.7 million units by the end of 2014.
Rural areas, on the other hand, will witness a reduction in housing shortage due to migration and
conversion of kutcha houses into pucca houses. The government’s continuous focus on improving
the housing situation, especially for population below poverty line, under schemes like Indira
Awasa Yajna, Rajeev Gandhi Awasa Yajna, Two Million Housing Programme, is expected to
reduce housing shortage in rural areas. Rural housing shortage is expected to decline to 53.8 million
units by 2013-14 from 59.4 million units at the end of 2008.
Recent industry trends

Despite strong fundamentals backing the residential real estate, the segment is highly influenced by
economic cycles.
Owing to global meltdown, the residential real estate market in India too witnessed an astounding fall
in demand and capital values, between first half of 2008 and first half of 2009. However, the sector

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experienced a pickup in demand during the second half of 2009 across major cities mainly attributed
to improvement in economy. Residential projects across cities saw several new mid-income housing
projects being launched by developers to attract potential buyers.
Demand for houses mounted as the global economy improved bringing back financial confidence to
the home buyers along with low interest rates. End-users, who had put their purchasing plans on hold
due to the fall in affordability levels and job-related uncertainties, started booking houses.
Delhi
An approximate 75% end-user presence makes this a largely end-user driven market. However, there
is a heavy financier presence in this micro market. Across Delhi it has been observed that the
transactions are at rates much higher than the designated circle rates. Circle rates are the minimum
rates for the valuation of land and immovable properties in Delhi. These rates are taken into
consideration for registration of instruments related to land and immovable properties in Delhi by all
the registering authorities. Land transactions are estimated at rates over 10 times of the circle rates in
most parts of the capital city.
According to the Delhi Master Plan 2021, 'greater efficiency and benefits through a unified metro
transport authority' are being targeted. Acknowledging the increased vehicle density, the government
is trying to rope in the private sector to develop parking facilities through multi-level and underground
parking spaces. It is also planning an integrated multi-modal public transport system to reduce the
pressure of private transport on the road. Cycle tracks, pedestrian- and disabled-friendly features in
the arterial and sub–arterial roads are also being planned.

Gurgaon:

Gurgaon markets have reached a high level of appreciation. This year launches have been slow and
the transaction volumes have been low. However, over a 4-5-year period the Gurgaon market will
see good appreciation. This will be because of employment opportunities, heavy investor appetite
and a strong broker community presence in this micro market. While Golf Course Road (GCR) and
Golf Course Road Extension areas are seeing the launch of a few high-end properties and builders
are looking at higher margins, areas like Dwarka Expressway are seeing interest on account of
affordability and the bet on the future infrastructure in that area.
Price Trends in Gurgaon

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Noida,

Infrastructure issues

The market has ample supply and the demand has moderated. While the fall of Greater Noida and
Noida Extension markets has benefited Noida (rates have moved up marginally in certain projects),
the situation is one of wait and watch. Over a long-term horizon, the Noida markets will see a 10-
15% YoY appreciation on the basis of the healthy infrastructure story in Noida and its heavy end-
user base.
Farmer protests over land acquisition in Greater Noida and Noida Extension have slowed down the
market. We see a downside risk in capital value over the one-year horizon due to land issues and an
oversupply situation. However, over the long term this sector will recover on account of good
infrastructure and continued demand from the sub INR 3,000/sq. Ft.
category home buyer.

The Gurgaon real estate market falls under the jurisdiction of the Haryana government whereas the
Noida market comes under the purview of Uttar Pradesh. Buyers tend to invest their money based on
the comfort level with the respective governments.

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Greater Noida and Noida Extension:

The real estate markets in Gurgaon and Noida are driven by very different dynamics; they
are in fact at contrasting ends of the real estate spectrum in certain aspects.
The Haryana government in Gurgaon allows developers to directly acquire land from farmers. Later,
the builder applies to the government for infrastructure support for his project. So here, acquisition
is followed by the completion of the project and subsequently, infrastructure support from the
government.
However, the Uttar Pradesh government in Noida follows a different model. Here, the government
directly acquires land from the farmers, after which it draws a plan in terms of infrastructure support
for the area, and earmarks plots. The last stage involves auctioning the plots to builders. So,
infrastructure support comes before the residential project.
Gurgaon's infrastructure issues in terms of water, power and roads are a cause of concern. The city
lacks proper amenities to support the rising new supply. In comparison to Noida, the degree of
planning and road connectivity in Gurgaon appears to be flat. As discussed earlier, this comes from
the model of land acquisition followed by the government. In Noida many of the erstwhile
infrastructure issues have been resolved with better road connectivity, better water supply in most

17
pockets, well laid out drainage systems, and reduction of load shedding from 8-10 hours to just 1-2
hours. The Metro has penetrated till sector 50, with the end station being 'Noida City Centre'.

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 CHAPTER – 2

COMPANY PROFILE

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2.1 Overview of Industry as Whole

The real estate industry encompasses the many facets of property, including development, appraisal,
marketing, selling, leasing, and management of commercial, industrial, residential, and agricultural
properties. This industry can fluctuate depending on the national and local economies, although it
remains somewhat consistent due to the fact that people always need homes and businesses always
need office space.

In the United States, real estate has a long history. After the Revolutionary War, no longer under
England's thumb, the federal government sold and granted land to private owners for their own use.
This practice continued as the country expanded westward, most notably starting in 1862 with the
Homestead Act, which allowed private ownership of U.S. land in exchange for improving and
developing the land for at least five years. The U.S. government distributed more than 300 million
acres of public property to private landowners through the Homestead Act, creating the basis for the
real estate market.

The real estate industry evolved as the United States evolved from an agricultural society to an
industrial one. Several shifts occurred during the transformation of the Industrial Revolution. For
one, urban centers swelled as people moved to cities to work in factories. These workers needed
places to live, and they had money to spend. In addition, as the United States increased its wealth
through industry, banks and other financial institutions stopped their practice of lending only to the
wealthy. Suddenly, the middle class and blue-collar workers were able to secure mortgages. Home
ownership became more common.

As cities developed, the need for real estate transactions increased. Office buildings, retail centers,
hotels and restaurants, and residential housing boomed, and someone was needed to develop, sell,
and manage it all. Soon, urban sprawl would create the need for suburbs, and with that more housing,
town centers, and eventually, businesses.

Today, the real estate industry is one of the most lucrative sectors of the U.S. economy, and it
continues to provide opportunities for interested and motivated individuals. Since many professions
within real estate are based on sales, success depends on effort. This is an industry for hardworking,
goal-oriented people who are always ready to take on more. However, the hard-charging lifestyle is
balanced by some flexibility: Those who succeed in the real estate industry often set their own hours,
are not limited by a fixed salary, and can be their own boss.

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Professions within the real estate industry vary. Brokers and agents lease and sell properties. Real
estate developers buy land, build property on it, and sell it to interested parties. Building managers act
on the owner's behalf and deal with day-to-day issues of properties. Appraisers must assess the value
of properties before they can be sold. In addition, support staff, office managers, real estate attorneys,
loan officers, and others are essential players in every real estate transaction.

The real estate industry is an important element of the economy. In the mid-2000s, the industry faced
major challenges when the commercial real estate market peaked and then fell in step with the
recession. The economy has strengthened in the years since, however, and the real estate market
continues to rebound. In 2014, real estate construction alone contributed nearly $1.1 trillion, more
than 6.1 percent, to the nation's economic output as measured by Gross Domestic Product. Whether
the economy is strong or weak, people will always need a place to live, work, and shop, and there
will always be a steady need for real estate professionals. Their degree of success simply depends on
their motivation, geographic location, and the tides of the market.

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Market Size/ Growth Prospects

The total revenue of the real estate sector was US$ 66.8 billion during 2017-18. By 2020, the sector
is expected to earn a revenue of US$ 180 billion. In fact, the demand is expected to grow at a
compound annual growth rate (CAGR) of 19 per cent between 2012 and 2016, with tier I
metropolitan cities projected to account for about 40 per cent of this. Growing infrastructure
requirements from sectors such as education, healthcare and tourism are providing numerous
opportunities in the sector. Further, India is going to produce an estimated two million new
graduates from various Indian universities during this year, creating demand for 100 million square
feet of office and industrial space. In addition, presence of a large number of Fortune 500 and other
reputed companies will attract more companies to initiate their operational bases in India thus,
creating more demand for corporate space.

Investments

Real estate investing is a broad category of operating, investing, and financial activities centered
around making money from tangible property or cash flows somehow tied to a tangible property.
There are four main ways to make money in real estate:
Real Estate Appreciation: This is when the property increases in value. This may be due to a change
in the real estate market that increases demand for property in your area. It could use be due to
upgrades you put into your real estate investment to make it more attractive to potential buyers or
renters. Real estate appreciation is a tricky game, though.
Cash Flow Income (Rent): This type of real estate investment focuses on buying a real estate
property, such as an apartment building, and operating it so you collect a stream of cash from rent.
Cash flow income can be generated from apartment buildings, office buildings, rental houses, and
more.
Real Estate Related Income: This is income generated by brokers and other industry specialists who
make money through commissions from buying and selling property. It also includes real estate
management companies who get to keep a percentage of rents in exchange for running the day-to-
day operations of a property.
Ancillary Real Estate Investment Income: For some real estate investments, this can be a huge source
of profit. Ancillary real estate investment income includes things like vending machines in office
buildings or laundry facilities in low-rent apartments. In effect, they serve as mini-businesses within

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a bigger real estate investment, letting you make money from a semi-captive collection of
customers.
The purest, simplest form of real estate investing is all about cash flow from rents rather
than appreciation. Real estate investing occurs when the investor, also known as the landlord,
acquires a piece of tangible property, whether that's raw farmland, land with a house on it, land
with an office building on it, land with an industrial warehouse on it, or an apartment.
He or she then finds someone who wants to use this property, known as a tenant, and they enter
into an agreement. The tenant is granted access to the real estate, to use it under certain terms, for
a specific length of time, and with certain restrictions -- some of which are laid out in Federal, state,
and local law, and others of which are agreed upon in the lease contract or rental agreement. In
exchange, the tenant pays for the ability to use the real estate. The payment he or she sends to the
landlord is known as "rent".
For many investors, rental income from real estate investments has a huge psychological advantage
over dividends and interest from investing in stocks and bonds. They can drive by the property, see
it, and touch it with their hands. They can paint it their favorite color or hire an architect and
construction company to modify it. They can use their negotiation skills to determine the rental
rate, allowing a good operator to generate higher capitalization rates, or "cap rates."
From time to time, real estate investors become as misguided as stock investors during stock market
bubbles, insisting that capitalization rates don't matter. Don't fall for it. If you are able to price your
rental rates appropriately, you should enjoy a satisfactory rate of return on your capital after
accounting for the cost of the property, including reasonable depreciation reserves, property and
income taxes, maintenance, insurance, and other related expenditures. Additionally, you should
measure the amount of time required to deal with the investment, as your time is the most valuable
asset you have -- it's the reason passive income is so cherished by investors. (Once your holdings are
large enough, you can establish or hire a real estate property management company to handle the
day-to-day operations of your real estate portfolio in exchange for a percentage of the rental
revenue, transforming real estate investments that had been actively managed into passive
investments.)

Government Initiatives
According to the latest reforms, FDI up to 100 per cent is allowed under the automatic route in
townships, housing, built-up infrastructure and construction development projects to increase
investment, generate economic activity, create new employment opportunities and add to the
available housing stock and built-up infrastructure
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The Ministry of Housing & Urban Poverty Alleviation has planned to introduce a single-window
system for clearance of all real estate projects across the country. The system could bring down the
average approval time from the current 196 days to 45-60 days
 The Government of India has sanctioned projects worth Rs 41,723 crores (US$ 7.51 billion)
for building of 1,569,000 houses/dwelling units for economically weaker/lower income group
sections under the Ministry’s flagship Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) programmes
 Housing finances are becoming feasible with the housing loan limit being raised to US$
52080 for priority sector lending Some of the initiatives taken in the union budget 2015-16 include
:
 For homes and flats with a carpet area of 2,000 square feet or more or of a value of Rs 1
crore (US$ 180,213) or more, which are high-end constructions, where the component of services
is greater, rate of abatement reduced from 75 to 70 percent
 Rs 6,000 crore (US$ 1.08 billion) were given to Rural Housing Fund
 National Housing Bank plans to set up Urban Housing Fund. Rs 2,000 crore (US$ 360.47
million) will be provided to the fund in the current financial year

Real Estate Developments in India

India is emerging as one of the places to live in with tranquillity and a better social life. India now is
not only a place to find greenery and an enriched culture but also it is the place to find various
opportunities in terms of jobs and money. Metropolitan cities like Delhi, Bangalore,
Mumbai, Gurgaon etc are the centre of attraction to all those who are looking forward to live in the
milieu of all the possible amenities and a good environment. These cities are well equipped with high
tech opportunities and a well maintained social atmosphere. Days are gone when India was
considered to be the country of farmers and agriculture now it is well known because of its high tech
companies and software professionals. Delhi being the capital of India offers all the advantages to
the people from India or abroad to find themselves at home. This is the basic reason why real estate
India along with real estate investors and developers in Delhi has been on a wild ride recently. The
main reason behind a sudden increase in real estate rates is the development of NCR and growing
population in Delhi. Due to a higher standard of living and higher economy rate of people in Delhi
and NCR the property rates are also increasing exponentially. For those who want to buy rent or sell
property in Delhi or other metro cities in India some real estate communities have been made whereby
people can openly discuss about their needs and demands. These real estate communities
are accessible through both ways: physical contact addresses and through web sites. Real
Estate Agents are good option as well, for those service class people who hardly have enough time
to search for place to put up in. One can easily visit the different real estate communities in order to
24
get a wider knowledge about the current scenario of the location and the availability of place. At the
same time these real estate communities offer a wider range of location depending on the budget and
requirements of an individual which eventually helps a person to locate the best place according to
his/her own choice. He real estate developer is stands by three words real estate developer
which means-Real=actual, Estate positions, and Developer builder, means actual positions of builder,
by builder. So the real estate developer in India means the activity of India builder by which the value
of property in India reach so high and builder also make their existence in the history of India. But in
real sense µThe person who develop the property of India and make it usable for men with the main
sense of gaining more profit. The process of property development by developer is dealing, buying,
constructions, building selling and so on. In India there are many estates which are constructed by
famous builder and in every famous estate there are so many builders which are known for their
art. So real estate of India is the name of a building whose strong pillar is estates and foundation
or base is developer or builder.

Advantage of Real Estate Market

After taking a turn for the worse during the recession, it appears that L.A.is commercial real estate
market is finally poised for a rebound. Banks are cautiously considering new loans, life insurance
companies and institutional investors are wading back into the market and the FDIC plans to close
its Irvine office in early 2012, which points to the improving health of the regions banking industry.
But high unemployment, rent concessions and shifting consumer preferences could sabotage
uninformed investors who inadvertently venture into unstable submarkets. It seems that while
investors were napping, the rules changed, and big returns in commercial real estate are no longer
guaranteed.³Overall, commercial real estate is heading in the right direction, but it is not the heyday
of 2005to 2006 when virtually every investment paid off,´ says Rocco Parrott, senior vice president
and manager of the Commercial Real Estate Group for Wilshire State Bank. ³Investors need to do
their homework and partner with a creative banker because, this time, your mistakes will definitely
come back to haunt you.´

Smart Business

Spoke with Parrott about the opportunities and pitfalls awaiting local investor’s into days commercial
real estate market.

Which submarkets offer the best deals?

After falling precipitously during the recession, several submarkets are starting to gain traction. First,
the recession virtually halted the construction of new apartment buildings and condos, so apartment
vacancies are starting to decline and rents are inching up, which will ultimately increase owner cash
flow and may even boost property values. Second, retail sales were up in the fourth quarter and
landlords are granting fewer rent concessions, but consumers now prefer the convenience of one-stop
retail centres and success hinges on local demographics as well as tenant mix and longevity. Industrial
properties have been steady performers and container volume continues to rise at our local ports, but
investors should be cautious about purchasing office buildings, as companies are still reluctant
to hire, vacancy rates are high and experts say it will take two to three years to absorb the existing

25
excess space. Finally, avoid the hospitality sector, car washes and gas stations, because many of
these businesses are still struggling.

What is the key to evaluating prospective deals?

Investors cannot rely on superficial analysis; they must review data and confirm anecdotal market
intelligence supplied by owners and brokers to accurately estimate their ROI

Rent roll
Review a six-month collection history to see if tenants are making their scheduled payments and to
expose disparities between scheduled and collected rents, which may indicate concessions. On the
one hand, investors may be able to boost cash flow as rent concessions expire, but on the other hand,
financially strapped tenants may be unable to pay the higher rents and they might request
additional concessions if economic conditions don’t improve.

Tenants
Are apartment dwellers working? Are suitable jobs available in the local area? Do retail centres have
financially sound anchor tenants like banks and grocery stores that draw traffic and provide critical
services? Centres could be in trouble if tenants rely on discretionary consumer spending, especially
in economically depressed areas. Consider the local demographics along with each tenant’s business
model and customer base as these underlying factors influence a property’s return.

Lease terms
Banks have historically preferred long-term leases when evaluating commercial deals, because
tenant longevity favours the buyer. Now most commercial leases average one to two years, which
could be advantageous if tenants renew at higher rates, but short-term leases also allow viable tenants
to negotiate a better deal or shop the competition and defect to other properties.

What else should investors consider before making a commitment?

Investors should ignore the national trends and focus on local economic conditions that directly
impact commercial real estate submarkets, since our recovery is lagging behind other parts of the
country. They should also spend an entire day at the property to assess the neighbourhood, traffic
flow, vacancies and competing projects to see if the property attracts an ample number of customers
and prospective tenants. Finally, examine the owner’s recent marketing expenditures, because
abundant giveaways and free rent could be a sign of a troubled property
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How can investors partner with bankers to secure a loan?
In this age of cautious underwriting, investors need a creative financial partner who understands the
need for liquidity and is willing to consider options that satisfy the needs of both parties. For example,
bankers used to consider future cash flow when determining funding limits, because they assumed
the owner could raise rents to cover the increased debt. Now, bankers may need to offer a smaller
loan, such as an earn-out loan, where future time-sensitive benchmarks allow them to increase
the loan as occupancy rates or rents rise. The lender usually agrees to fund future loan increases at
today’s rates, which protects investors in a rising rate environment. Collaborative evaluations and
creative financing protect both investors and lenders in this new world of commercial real estate,
where not every deal is a guaranteed winner. The real estate market is one of the most complex
markets in the entire world due to the fact that it is in a continuous change, thus making it a very
dynamic market. The internet has a lot to offer consumers regarding real estate and as a result it is a
great place to start shopping. Some of these advantages are:

1- It is inexpensive, if not free to list your home in an online property listing service.

2- It is a quick and easy method to advertise your property that is for sale/lease or if you
would like to buy a property.

3- The buyer and seller have direct access to information about the property in question.
This makes other forms of communication between the buyer and the seller obsolete.
The internet is easy in comparison to the old-fashioned method of answering dozens of
phones calls or setting up numerous meetings.

4- Many websites that deal with real estate allow you to include up to 5 photos of your
property. This is a lot more in comparison to a regular newspaper and you have
complete control over the photos¶ quality. In addition you can highlight specific
features about your property with the potential buyers. This can be very helpful if you
are working to attract buyers from outside your local geographic area whom potentially
need more explanation of certain elements.

5- Once listed, your home is available until you will sell the property. This is a big
advantage if you consider that for a newspaper ad you will systematically have to pay a
fee week after week.

6- These online real estate listing services have a nation-wide audience which will make
your advisable to the entire country.

7- Searching for the right house is very easy as these websites have filters which will allow
you to only see the houses that meet your specific requirements. Therefore you can
spend time looking only out houses that meet your needs without having to waste time
looking at houses you aren’t interested in.

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Using the Internet for real estate will make you your own real estate agent without having to pay a
great sum of money to an agent and also you will have full-control of the entire activity. Whether you
are a home buyer or seller, it is very easy to search for the perfect house as the online offers are
endless. Or, if you would like to sell a piece of real estate, there is no safer and quicker way to do it.

Online real estate has become popular and is consuming are looking to the internet more each day as
an easy place to get good information. As a matter of fact, more than 5 million people use the internet
for real estate issues every month. With numbers like this it is easy to see how the internet can
improve your chances for selling or buying a home

Another major advantage of real estate moving to the internet is that you won’t need a real estate
agent to start your search. This is very important because we all know that real estate agents are of
value but sometimes you just want to look.

All in all, there is no better, safer and easier way to search for a home or to sell one than online as the
internet has a lot to offer in the real estate market and it is rapidly developing, gaining more and more
consumers every day and thus improving your chances for a profitable buy/sell.

Like most people, you work hard during most of the time and enjoy the chance to take a week or two
to recuperate and rejuvenate your body and spirit. So ask yourself, where and how do you want to
spend your vacation? More individuals are looking into taking part in a time-sharing
arrangement. Here are a few reasons to consider time-shares for your vacation as well.

As a concept, a time-share property is fairly simple. It begins when you purchase the time-share,
which gives you the right to use the vacation property for a certain amount of time each year.
Basically instead of renting a beach house for a week during August, you actually own a part of the
beach house. The cost may be high at first, sometimes thousands of dollars. There are some good
points that could make it an excellent option for you.

One advantage is that these time-share vacation properties are usually very comfortable properties or
apartments. Depending on what you buy, there could be two to four bedrooms, a full kitchen,
bathroom, and possibly even a deck for your enjoyment. Why is this a exceptional thing? As any
family will tell you, living out of a hotel room during your vacation isn’t very much fun. Even the
closest of families will need some space away from each other from time to time, as well
as privacy. A time-share property gives you the space you need, unlike a hotel room.

Besides having the creature comforts of home, time shares are also an excellent financial
investment. The thing to keep in mind is that buying a deeded time-share property is still a real estate
transaction. This indicates that you will own that portion of the vacation home, and may sell, give it

28
away, or keep it as you wish. However it is best to make certain that your time share is a deeded
one. Make sure you read the contract to ensure that there is a deed involved.

Another advantage of investing in a time share is their flexible options. When a person buys a time-
share, they obtain the right to exchange it for another resort within the collection provided. Generally
speaking, time share memberships allow you to choose from a few different homes. By purchasing
one share, you have the versatility to choose from many options.

Indian real estate sector continued to remain on the radar of several global realtors. International
developers originating primarily from Middle East, South East Asia, and Europe have been hunting
for business opportunities in India and several strategic tie-ups were announced in the year 2006-07.
Prominent Middle East based developers such as Nakeel Group (Dubai); Signature Group (Dubai)
announced their plans or projects in India. Technology and Media Free Zone Authority (TECOM) of
Dubai has also entered into a MOU with the State Government of Kerala to develop the ³Smart City´
project near Kochi city in Southern India.

Real Estate Facilitating Indian Economy Growth

Speaking at the ³National Convention µNATCON 2008, Kamal Nath, Union minister for commerce
and Industry said that developments in the Indian real estate sector symbolizes the changing face of
nation and is a reflection of the growth in the Indian economy brought about by high rates of GDP
and also by India’s integration with the global economy. The minister further added that in recent
years real estate sector has been the main driving force of the Indian economy.

Describing the present upswing in the economy Kamal Nath emphasized the requirement of creating
international standard infrastructure and residential real estate to sustain the growth rate projected in
the 11th Five Year Plan.

The Minister further stated that we have already opened construction development sector for FDI and
the policy permits wholly owned subsidiary in this sector in India by a foreign company. ³Of course,
there are conditions regarding minimum area for real estate development and minimum capitalization
to be brought in by the foreign investor. A number of global players have entered the Indian market
and many more have shown interest. Growth and investment have also created opportunities for
investment in real estate sector, his said.³

29
While the role of the Government is expected to be primarily as a facilitator to the
development process, the private sector participation is aimed at bringing technical and managerial
expertise in delivering good quality mass housing projects. It is a good sign that many State
governments are joining hands with private entrepreneurs in resolving the acute scarcity of residential
real estate in urban areas. The private sector and Government has to work in tandem towards a
common goal. It is equally important to address the institutional and regulatory aspects as well as
strengthen and expand the capacity of financing institutions for further growth of the sector,´ Nath
said.

Role of Major Industries in India GDP

The Gross Domestic Product popularly known as GDP of an economy requires contribution from
major industries to be healthy. India is largely an agrarian economy; so agriculture makes the major
contribution to the GDP. Role of major industries in India GDP is important as based on this only the
total GDP is calculated. In terms of US Dollar exchange rate India's economy is the twelfth largest.
Despite witnessing a slowdown, due to the global recession, India's economy has huge potential of
expansion.

Major industries that contribute to India's GDP

There are various sectors that contribute to India's GDP. Some of the major sectors are Automobile
Industry, Steel Industry, Real Estate Industry, Tourism Industry, Energy Sector, Textile Industry,
Airlines Industry, Medical Industry, Biotechnology Industry, Electronics and Hardware and the
power industry. Besides these industries, there are several other sectors that are important
contributors to the GDP of India.

GDP: $1.209 trillion (2008 Estimate)

GDP growth: 6.7% (2009)

GDP per capita: $1016

Inflation (CPI): 7.8% (CPI) (2008)

Unemployment: 6.8% (2008 Estimate)

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Main Industries: Textiles, Chemicals, Food Processing, Steel, Transportation Equipment, Cement,
Mining, Petroleum, Machinery, Software

The fertilizer industry of India makes more than a 20% contribution to the GDP. Another sector that
seems very promising for the future is biotechnology. This sector is very young, but it is growing at
a very fast pace and will undoubtedly become one of the leading sectors contributing to the GDP in
the near future. Currently this sector generates $ 2 billion revenue for the Indian economy. The real
estate sector has witnessed a huge boom of late and has made significant contributions to the GDP of
India.

The real estate sector is one industry that has made significant contribution to the country's GDP.
Due to the enormous demand in the retail and other sectors of the economy, more demands are being
created for real estate. The automobile industry is another sector that makes good contribution to the
Indian economy. Due to the changed lifestyle of the consumer the demand for vehicles is increasing
at a huge pace.

Trend of Growth Rate of India's GDP

1960-1980: 3.5%

1980-1990: 5.4%

1990-2000: 4.4%

2000-2009: 6.4%

The trend of growth rate of India's economy demonstrates an upward trend. During the period of 1960
± 1980 the economy saw a growth rate of 3.5% due to the roles of major industries in India GDP. In
the years from 1980 to 1990 the growth rate showed a marked improvement of 5.4%, while it was
slightly lower in the period from 1990 to 2000 which was at 4.4%. The phase 2000to 2009 saw a
huge improvement and the growth rate of GDP were marked at 6.4%

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6.3 Real Estate Planning in India

Real estate planning in India has been introduced as a separate chapter by the Planning Commission of India in the tenth five
year plan (2002-2007).

The chapter on India Real Estate planning covers shopping malls, residential townships, multiplexes, entertainment centres,
hotels, factories, and industrial building as activity related to real estate. The real estate sector is one of the fastest growing
sectors of India and provides many employment opportunities as well. More than 250 industries indirectly or directly
depend on the Indian real estate industry.

The Indian real estate sector contributes 6.5% to the country's GDP. This shows the importance of the real estate sector
in the Indian economy. This is the reason that the government of India is making more efforts in order to organize
this industry which is at present largely unorganized. In order to increase planning of real estate in India, the National
Building Organization has been setup. This is an agency which is under the Housing and Poverty Alleviation Ministry of
India.

According to the Indian Planning Commission, around 61.8 million people lived in urban slums in 2001. This means that
there is need millions of houses with basic civic facilities. In the

Indian real estate planning, a National Housing and Habitat Policy- 2006 had been formulated, which aimed at providing shelter
for all slum-dwellers by 2010. Under this policy, the government plans to provide 2 million dwelling houses per year. All
these plans have given a major boost to real estate planning in India.

The planning of real estate in India has increased in recent years for it have been found that the majority of people are evading
taxes related to real estate. The government of India plans to make the tax regime more rationalized in this sector, so that
the evasion of taxes becomes less.

Real estate planning in India has begun only recently. The government needs to make diligent efforts to ensure that this sector
grows and realizes it full potential in the near future

Embassy Property Development is understood to be raising private equity even as it is awaiting Securities & Exchange
Board of India (SEBI) clearance for a planned public offer of Rs 2,400core which is expected during this calendar. The
issue is expected to be managed by investment banks UBS, Citigroup, Nomura and Edelweiss. While
Blackstone could not be reached for comments, Embassy denied any such plans of raising funds from
Blackstone. According to recent reports, Embassy was also in talks with Tease and HDFC Property
Ventures for a $100million private equity infusion, the status of which is not yet clear.

Estate planning refers to the process by which an individual or his/her family arranges the transfer of assets to the legal
heirs in the event of death or disability of the individual. It includes the distribution of the real and personal
property of an individual to his/her heirs

An estate is the total of all personal and real property owned by an individual. Real property is real
estate and personal property is everything else such as cars, household items, shares, units, and bank
accounts.

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Estate planning refers to the process by which an individual or his/her family arranges the transfer of
assets to the legal heirs in the event of death or disability of the individual. It includes the distribution
of the real and personal property of an individual to his/her heirs.

2.2 Profile of the Organization

Mr AGAM AGGARWAL is the Chairman and Managing Director of THE SHUBHAM GROUP OF
COMPANIES which is working in the field of Real Estate. Over the decade, Agam’s vision and
leadership skills have given the group a strong sense of purpose and clarity of thought. The aim of
the company is to be a professional and responsive corporate entity which positively transforms the
quality of life for those who are looking for premium second homes. The projects are located in select
destinations across the country. Agam is clear that the Group's values lie in the happiness of its
employees and appreciation from the customers.

His message spells out the essence of his work "My projects are very exclusive and are meant only
for the nature lover who dreams of a home in the lap of nature, or for the person who is looking for
spiritual peace at divine destinations. I believe it is a worthwhile attempt for us to build happy second
homes for you.

We have options which are comfortable for every pocket and for every need. The projects are mostly
ready-to-move-in so that a customer does not have to wait endlessly. But of course in some of my
projects I also provide the option of customization as per the specific needs of our clients.

My primary aim is to build a relationship of trust with my customers. I know that when I provide
premium construction, the best locations, and value for money, then our work speaks for itself. In
future I am planning to diversify across various locations of the country and it makes good business
sense to have happy customers because I truly believe that they are the best advertisement for my
company”.

THE SHUBHAM GROUP was established in 2007, with the aim of developing residential projects
and hotels.

The residential projects are ideal as premium holiday homes, getaway homes, retirement homes, and
are the best gift that one can give to loved ones.

33
The company started its first project by the name of INDUS VALLEY MUKTESHWAR
NAINITAL. The second project was INDUS VALLEY SHIMLA and has a third ongoing
project AMBIKA DIVINITY HARIDWAR.

For this THE SHUBHAM GROUP has branched out into various companies-

SHUBHAMBUILDERS & DEVELOPERS,

SHUBHAM BUILDUP P LTD,

SHUBHAM BUILDTECH LLP,

SHUBHAM BUILDSTONE LLP.

The company has completed 10 years in the field and is proud to say that it has earned the respect
and goodwill of its customers. Handpicked locations, high quality construction, delivering on time to
clients, and complete value for money are the four guiding principles which make the organization
credible and reputed Real Estate Company in the market today.

34
2.3 Problem of the Organization

Major problem which the developers are as follows:

1. Meeting customers demands.

2. Timely Delivery
3. Quality of materials
4. Working Capital blockage
5. Environmental amd Legal issues

2.4 Competition Information

1. DLF Ltd

Headed by: Dr Kushal Pal Singh, Chairman

With a track record of 64 years, DLF is India’s largest real estate company in terms of revenues,
earnings, market capitalization and developable area. It currently has pan India presence across 30
cities with approximately 238 million sq ft of completed development and 413 million sq ft of planned
projects, of which 56 million sq ft of projects are under construction during FY10.
Project Spectrum: Residential, townships, commercial complexes, IT Parks, hotels, multiplexes, etc.
Quick fact: Only listed real estate Company included in the BSE Sensex, NSE Nifty, MSCI India
Index and MSCI Emerging Markets Asia Index.
Latest: Will take its luxury mall DLF Emporio (already operational in New Delhi) to other big cities
such as Hyderabad and Chennai.

2. SIKKA GROUP

Headed by: Gurinder Singh Sikka

Over the past 22 years, Sikka has established itself through diverse range of residential and
commercial projects. The company at present has 53 projects under execution and planning. Sikka
Ltd was the first Construction Company of northern India to receive an ISO 9001:2000 Certification.

35
Project Spectrum: Integrated townships, Group housing, SEZs, Shopping malls & commercial
complexes and hotels. Latest: Has entered into infrastructure sector through Sikka Infrastructure &
Construction Ltd a wholly owned subsidiary. Sikka has bagged the first contract to construct
Highway and three high level bridges in Punjab. The contract is awarded by Greater Mohali Area
Development Authority and its value is pegged at Rs704 million.

3. UNITECH
Headed by: Ramesh Chandra, Executive Chairman
Established in 1972, Unitech is today India’s leading real estate developer in India. It is the first
developer to have been certified ISO 9001:2000 in North India.
Project Spectrum: Unitech offers diversified projects across residential, commercial/IT parks, retail,
hotels, amusement parks and SEZs segments. Unitech was the first real estate company to be part of
the National Stock Exchange’s NIFTY 50 Index. The company has over 600,000 shareholders.
Unitech and Norway based Telenor Group came together to build Uninor - a telecommunication
services company providing GSM services across India.
Latest: Has ventured into the infrastructure business by launching Unitech Infra.

4. ANSAL API
Headed by: Sushil Ansal, Chairman
Established in 1967 as a family business, Ansal API today is clearly amongst the real estate leaders
of India. Having established itself very strongly in the NCR region, Ansal API is now focusing on
ventures in cities like Bhatinda, Mohali, Amritsar, Ludhiana, Jalandhar, Jaipur, Jodhpur, Ajmer,
Sonepat, Panipat, Karnal, Kurukshetra, Faridabad, Gurgaon, Greater Noida, and Ghaziabad, Meerut,
Agra, Lucknow, to name a few. Ansal API has till date, developed and delivered more than 190
million sq ft. The company currently has a land reserve of about 9,335 acres.
Project Spectrum: Integrated Townships, Condominiums, Group Housing, Malls, Shopping
Complex, Hotels, SEZs, IT Parks and Infrastructure and Utility Services
Latest: Raised Rs231.4 crore through private placement of shares with institutional investors for
reducing its debt and execute ongoing projects.

36
5. PARSVNATH DEVELOPERS LTD
Headed by: Pradeep Jain, Chairman
Incorporated in July 1990 by Mr. Jain in New Delhi, Parsvnath today has a substantial pan India
presence in over 45 cities across 16 states. The company has emerged as one of the most progressive
and multi-faceted real estate and construction entities in India.
Project spectrum: Housing (premium, mid-market as well as affordable), office complexes, shopping
malls & hypermarkets, hotels, multiplexes, IT Parks and SEZs.
Quick fact: First real estate Company to have integrated with ISO 9001, 14001 and OHSAS 18001.
Latest update: Has partnered with Red Fort Capital to execute a Concession Agreement with DMRC
for development of a prime Grade an office project in New Delhi’s Connaught Place.

6. GODREJ PROPERTIES LTD

Headed by: Milind Korde, MD

Established in 1990, Godrej Properties Ltd (GPL) brings the Godrej Group philosophy of innovation
and excellence to the real estate industry. GPL aspires to be among India’s top three real estate
companies while continuing to be the most trusted name in the industry. GPL has completed several
landmark projects and is currently developing significant projects in 11 cities across India. Godrej
Properties Ltd is listed on the Bombay Stock Exchange (BSE) and The National Stock Exchange
(NSE).
Latest: Sold over 200 apartments within 2 days of launch of its project Godrej Frontier in Gurgaon.
This is the company’s first residential project in northern India.

7. K RAHEJA CORP
Headed by: Chandru L Raheja, Chairman
Incorporated in 1956, this Mumbai based real estate giant has been engaged in real estate
development for more than four decades. K Raheja Corp has built residences, commercial buildings
and hotels throughout India.The Group also diversified in the hospitality sector in 1981and in the
retail sector in 1991. The company has several landmark projects to its credits across cities.
Quick fact: K Raheja Corp has given a firm commitment to have all of its future projects undertaken
anywhere in India to be Leed Certified Green Building Projects.

37
8. OBEROI REALTY LTD
Headed by: Vikas Oberoi, CMD
Founded in 1998, the company was recently in limelight for its IPO. The Company’s consolidated
total income and consolidated net profit after tax and prior period items as restated were Rs8,054.95
million and Rs4,576.20 million for the year ended March 31, 2010 and Rs 1658.27 million and
Rs797.96 million for the three months ended June 30, 2010. The company has presence in Mumbai
and Pune.
Project Spectrum: Oberoi Realty focuses on premium, single space and mixed used development
across residential, office space, retail, hospitality and social infrastructure segments.

9. KALPATARU GROUP
Headed by: Mofatraj P Munot, Promoter
Established in 1969, Kalpataru is one of the leading real estate development groups in India. The
Group has been active primarily in the Mumbai Metropolitan Region (MMR) & Pune. It is also
undertaking projects in other key cities such as Hyderabad, Surat, Nagpur, Jaipur and Udaipur.
The Kalpataru Group has interests in real estate development, property and project management,
engineering, procurement and construction (EPC) contracting for power transmission and
infrastructure projects including road projects, warehousing and logistics.
Project Spectrum: The focus has been on the development of premium residential, commercial, retail,
integrated townships, lifestyle gated communities and redevelopment projects.

10. DB REALTY

Headed by: Vinod Goenka and Shahid Balwa

It is one of India’s fastest growing real estate companies headquartered in Mumbai. The Company
currently has more than 30 ultra-premium projects under various stages of planning and also
completion in both Mumbai and Pune. It has 20.5 million sq ft of saleable area of ongoing projects
with a projected area of 40.5 million sq ft in forthcoming and upcoming projects. DB Realty is
publicly listed company both on BSE and NSE with a market capitalisation of more than Rs10000
crore.
Latest: Few months ago, it bagged the right to redevelop a large chunk of the 100-acre PWD
government colony in Mumbai’s Bandra suburb. This will be one of the biggest redevelopment
projects in the city.

38
2.5 S.W.O.T. Analysis of Organization
Strengths 1. Diversified operations.
2. Right Mixture of young and experienced employees.
3. Improving standard of living of peoples.
4. Projects for both Elite families as well as for middle class
families.

Weakness 1. Limited global exposure.

2. Lack of regulations and policies.
3. Lack of financial support.

Opportunities 1. Tax incentives for housing investments.

2. Shortage of houses in urban areas.

Threats 1. Increasing interest rates.

2. Competitive environment.
3. Volatility in financial markets.

39
 CHAPTER – 3
LITERATURE REVIEW

40
Operations strategy is a valuable resource that offers many advantages to organizations that fully
embrace and integrate the formation process with existing corporate strategy. In changing
environments where companies are looking for ways to increase their competitive edge while
decreasing operating expenditures, a successful formation of an operations strategy will provide a
stabilized long-term competitive advantage for the majority of organizations. Over the past 50 years,
hundreds of articles have been written on the subject. These writings act to shape what we know
about the development of operations strategy, planning, and the opportunities for future
implementation and research. This paper examines the argument that exists throughout the literature,
that forming an operations strategy and integrating it with the organizations corporate strategy can
significantly improve the efficiency of an organization and reduce costs. The paper concludes that
the literature clearly supports the premise that implementing an operations strategy is becoming
increasingly important in a global business environment.
Increased globalization, constant improvement of information technology, and the evolving business
environment has forced managers to take a strategic approach to operations (Hayes, Pisano, Upton,
& Wheelwright, 2005). Operations strategy is defined as “the pattern of decisions which shape the
long-term capabilities of any type of operations and their contribution to overall strategy, through the
reconciliation of market requirements with operations resources” (Slack & Lewis, 2002, p. 16). The
current competitive business environment has caused a shift in the operations strategy and planning
process and calls for updated research on the subject.
The term operations strategy has taken on two definitions in literature, and the current form is often
interchangeable with the term manufacturing strategy. The underlying theme that exists within
literature is the emphasis placed on developing an operations strategy that aligns with the corporate
strategy. The resulting strategy provides a framework for management to utilize when creating the
organizational design and structure that will be most effective within the strategy.
The objective of this study is to provide a current literature review on operations strategy, and identify
common themes that exist in recent research. Three themes exist throughout the literature, which will
provide the organization for this review: (a) there are multiple accepted methods to form an operations
strategy, (b) the literature content of operations strategy vastly outnumbers the available literature
addressing the process, and (c) linking corporate strategy and operations strategy improves company
performance. Over the last ten years, operations strategy has begun to play a more significant role in
the overall strategies of organizations, with an increase of process knowledge throughout the industry,
and research with proven evidence of improved efficiencies following implementation.
The process and methods used by an organization to develop an operations strategy have varied
throughout the literature, and no consensus exists supporting a singular method of formation that is
41
more effective than another. The process of operations strategy consists of the action and intricacies
of forming and implementing the strategy, while the content includes the actual decisions made to
address the priorities, objectives, and direction of the strategy (Kim, Sting, & Loch, 2014). Most
debates concerning the strategy formation process are split between the formation and
implementation from senior management or the on-going approach formed by the actions and
decisions of persons spread horizontally within an organization. Since Skinner (1969) argued that
manufacturing (operations) should support corporate strategy, the operations strategy formation
process has been dominated by a top-down approach that originates with corporate leadership. The
top-down approach has historically been the most studied method, however, a bottom-up strategy has
been documented as an alternative when a defined corporate strategy does not exist (Slack & Lewis,
2011).
A third method of formation that integrated the top-down and bottom-up approach was proposed
following a study of the internal process of operations strategy in six German manufacturing plants
with 111 strategic action plans (Kim et al., 2014). This study consisted of data collection and personal
interviews focused on competitive priorities and organizational structure to analyze the individual
strategies of each manufacturing plant, and how the strategies originated. The data provided a stark
comparison between approach methods utilized by the centralized and decentralized organizational
structures included in the sample. The decentralized organizations fostered a bottom-up approach
with significant employee involvement, and the centralized organizations imposed strict guidelines
controlling daily operations.
Support the claim that organizational theory and design influences the approach taken when forming
an operations strategy. The empirical studies and research on the three approaches to operations
strategy formation will be reviewed further in the following sections.
This “macro-level” process is described as the planned coordination of intentions and actions from
upper level management to achieve specific outcomes and goals imposed by a central authority (Kim
& Arnold, 1996). Senior management within an organization determines the long-term goals and how
they intend to meet them prior to actions being taken, with little to no discretion provided. Research
shows a difference exists between the planned strategy and what actually occurred, although some
strategies have resulted in the desired outcome being achieved upon implementation. Following the
outcome results, management then reinforced or adjusted the plan to meet desired goals. The trend
of organizations in the current market is to transition into more decentralized structures that offer the
ability to remain flexible as the business climate changes. A top-down approach with strict guidelines
creates the potential for incompatibility with other strategies within the organization such as
marketing, and is a risky proposition. The importance of adopting a strategy that has support from
42
the workforce while also aligning and integrating with other organizational strategies is paramount
in the current environment.

Patterns of unplanned actions resulting in realized outcomes that were not originally intended by
senior management provide the basis of the bottom-up “micro-level” approach process.
Loose guidance and direction is provided by top management without specific details, empowering
middle managers to develop strategic initiatives that will serve their objectives while also supporting
the direction of leadership. Slack and Lewis (2011) described the principle governing a bottom-up
perspective of operations strategy as “shaping objectives and action, at least partly by the knowledge
it gains from day-to-day activities” (p. 13). A practical exercise study demonstrated in Rytter, Boer,
& Koch (2007) advanced the effectiveness of a bottom-up approach to operations strategy
formulation when collaboration is achieved from multiple stakeholders using a constant flow of
dialogue followed by action. The collaboration between members of an organization towards a
unified goal acts as motivation and positivity towards the operations strategy formulation process.
This subject, and future research on the advancement of the bottom-up approach is important to the
overall improvement of operations strategy processes. A quality operations strategy is a key
component to the success of an organization and the improved viability of a smooth integration
between operations strategy and corporate strategy.
This model is a hybrid of the top-down and bottom-up approaches that provides a strategy supporting
the intentions of top management resulting from the actions of middle and lower management in
absence of, or despite top management intentions. Integration between the two approaches provides
guidelines for operations strategy development while also encouraging creativity and input from
middle management and individuals throughout the organization.

Barnes (2001) previously acknowledged the viability of a hybrid model of process formulation when
stating “it is the pattern of decisions actually made that constitutes a function’s strategy, not what is
said or written in annual reports or planning documents” (p. 1077). The integrated model has garnered
curiosity in recent literature despite the lack of a substantial amount of research or data that supports
or refutes its effectiveness.
Recent contributions to the literature on operations strategy have continued to focus on the top-down
approach of formulate-then-implement in spite of the growing number of firms transitioning to the
learning organization principles of operation. Nielsen-Englyst (2003) outlined a strategic
43
management process that continuously managed strategy formation and how it could be designed and
communicated. The seven-year case study consisted of four overlapping and iterative phases of
learning, reviewing, aligning, and redirecting, and the results supported the claim that a continuous
strategy formation process is good practice. This study expanded upon, and advanced the proposed
manufacturing formulation processes of Platts, Mills, Neely, Gregory, and Richards (1996), which
called for an increased focus on how the process should be organized and executed rather than the
logic of the approach. This approach urged management to assume a coaching role and empower
others to take ownership of the mission and strategy process. The increasing number of centralized
hierarchal organizations that have transitioned into an organic or learning organization structure will
be attracted to the continuous process strategy formation. This attraction is a result of how the strategy
will allow the organization to remain flexible while constantly improving operations strategy through
a periodical assessment that will consider fresh proposals and ideas from across the organization.
Throughout the operations strategy literature, researchers tend to distinguish between content and
process approaches. Rytter et al. (2007) explains how content approaches are concerned with how
operations can design a competitive advantage.
This is achieved by providing normative guidelines on what to include when creating an operations
strategy. Process approaches focus on how to conduct operations strategy formulation and
implementation processes. The overwhelming majority of operations strategy publications are
focused on content instead of process. A recent review by Dangayach and Deshmukh (2001) revealed
that out of the 260 papers reviewed on manufacturing strategy, only 23 (9 percent) addressed process
issues.
The lack of process-focused literature was reiterated by Boyer, Swink, and Rosenzweig (2005), when
an examination of operations strategy literature in the Production and Operations Management
Journal revealed that out of thirty-one articles, only eight were process focused. An analysis of
differences between content and process is necessary to answer the question concerning why there is
such an imbalance between the two approaches, and how the issue may be rectified. Research and
understanding of the process surrounding a proper formulation of an operations strategy is essential
in the current volatile global business environment.
Given its role in supporting corporate strategy, an operations strategy is designed to make strategic
choices concerning the development of the structure, infrastructure, and capabilities to support
competitive priorities. The content dimension consists of strategic choices in structure (technology
process, plant capacity and location) and infrastructure (human resources, organizational design,
information technology, management systems) that directly impact the ability of a firm to

44
successfully achieve their competitive priorities (cost, quality, delivery dependability, delivery speed,
flexibility) (Garrido, Martín-Peña, & García-Muiña, 2007).
Content has been described in literature as the strategic choices in process and infrastructure, and
Voss (2005) introduced a concept recognizing three different paradigms of choice and content that
exists in manufacturing strategy:

(a) competing through manufacturing,

(b) strategic choices
(c) best practices. Garrido et al. (2007) agrees with the concept of three paradigms existing of choice
and content in operations strategy, but also contents that none of the paradigms can individually
explain how to develop an effective operations strategy.
Skinner (1969) was the first to observe that the manufacturing function of a company plays a more
significant role than just producing and shipping products. Wheelwright and Hayes (1985) introduced
the business strategy concept of competing through manufacturing when they recognized the
strongest competitors in the manufacturing industry had the greatest manufacturing capabilities. This
approach contends that firms should align their capabilities with identified key success factors,
corporate and marketing strategies, and marketplace demands (Voss, 2005). Researchers have
become increasingly interested in the study of the relationship that exists between operations strategy
and competitive advantage. Firms that attempt to implement a strategy of competing through
manufacturing place a much greater focus on operations strategy, and take a bottom-up approach to
the formation process which unites employees and management around a common vision for the
organization.
Five competitive priorities are recognized in literature as: (a) cost targets the production and
distribution of product at low cost, (b) quality ensures that products are manufactured with the highest
quality and standards, (c) delivery dependability reassures customers and clients that products will
be received, (d) delivery speed adds to the competitive edge when customer orders are processed and
delivered expediently, and (e) flexibility is essential in to remaining competitive by reacting to
changes in product, changes in product mix, modifications to design, fluctuations in materials,
changes in sequence (Koste & Malhotra, 1999). The importance of these five competitive priorities
is that they represent focus of the overall strategy of the organization, and how support

45
for the recognized priorities must be included in the operational strategy formation and
implementation process.

46
 CHAPTER-4
RESEARCH METHODOLOGY

47
Research title

To study on the topic customers satisfaction of the company SHUBHAM GROUP.

Purpose of the Study

1) The survey was restricted to selected areas in Delhi/NCR.

2) The time duration of this survey was 69 days only.

3) Rainy season was main hurdle for this survey.

4) The response from the respondents was fair enough but not up to the mark or good enough.

5) This project was only restricted to the residential properties of Shubham & not commercials &
others.

6) The survey area was too far as the city is big enough which caused many transportation problems.
7) The study conducted is Delhi / NCR reflects the market position of Kumar Builders Residential
Properties. It gives us the details of various factors of buying behaviour of customers. The study
enables the company to prepare marketing strategy and plan accordingly, so as to capture a greater
market share& the services provided by the company. It foresight the future requirement of the
market and thus helps the manufacturer to face the future completion in a fully prepared way.

8) Thus, it helps the company to have a good brand image and stepping toward success.

Objectives of Study

 To study the set of factors that a consumer takes into consideration while deciding of buying
a home in Delhi NCR Region.

 To find out the effect of brand preference on the buying behaviour of the consumer.

 Buying preferences of the consumers for the type of property.

 Preferences of consumers for the type of payment plan.

48
RESEARCH DESIGN: -
1. Exploratory research

2. Conclusive research

Exploratory Research:
•In exploratory design first collect the information about research.

•Understand Real Estate

•About Real Estate in India

•About Indian economy

•Impact of Real Estate market in Indian economy

•Collection of primary data from past research.

•Then collection secondary data from Books, Magazines, Internet etc.

•Then start qualitative research in this the interview of Manager of Investors Clinic.

Conclusive Research:
•In conclusive research main part is survey.

•In this research design we get perfect conclusion.

•It is structure.

In conclusive research design two types

a. Causal Research

b. Descriptive Research

In this research use Descriptive research

Descriptive research two types

a. Cross

49
 b. Longitudinal

In cross sectional

 In cross sectional use Single cross-sectional design because in our research the information
collects only one’s a time.

 In longitudinal design use panel.

Define the target population

1. Target population:
The collection of elements or objects that process the information sought by the researcher and
about which inferences are to be made.

2. Elements:
An object that possesses the information sought by the researcher

3. Sampling unit:
The basic unit containing the elements of the population to be sampled
.
4. Sampling frame:
A representation of the elements of the target population. It consists of a list or set of direction
for identifying the target population.

5. Extent:
Extent refers to the geographical boundaries.

6. Time: Time is time period under consideration.

I. Personal Interview with questions

II. Expert opinion

An exploratory survey, by way of extensive literature review of books, journals and other published
data related to the focus of the study, as also concerned websites, was carried out to gather background
information about the general nature of the research problem.

1. Sources of Data

The main part of the Study deals with Indian Real Estate’s awareness of and attitudes to Investments
in Real Estate. The required data was collected through the pre-tested questionnaire administered on
a judgement sample of some Estates, located in different parts of the country. The administration of

50
the questionnaire was done through multiple channels, which included surface mail, e-mail and
personal involvement. Information relating to contemporary practices abroad was obtained from
published sources such as journals, reports, and from related websites.

2. Sample for the Study

The survey was accomplished with the pre-tested questionnaire administered on some Real Estate
Company in India, having Infrastructure exposure. A combination of simple random and judgement
sampling was used for selecting the corporate enterprises for the exploratory Study. As against the
questionnaires circulated, few responses were received. Of these, 37 had to be eliminated, as they
were incomplete in many respects. The respondents are spread over 18 different major industry
classifications. The sample covers both old economy corporate like Manufacturing, and new
economy corporate including Information Technology (IT), Information Technology Enabled
Services (ITES), Business Process Outsourcing (BPO) etc., and they vary notably in size. The
respondents to the questionnaire are financial executives with responsibility for FERM and for risk
exposure by use of derivatives. The Study is exploratory in nature and aims at an understanding of
the risk appetite and FERM practices of Indian corporate enterprises. It also embraces an
understanding of the policy or other constraints or impediments faced by the enterprises in managing
exposure. The Study has its focus on the activity of end users of derivatives and, hence, is confined
to corporate enterprises. Since banks both use and sell derivatives, they have not been included in the
scope of the Study. Risk management practices of Indian subsidiaries of MNCs are determined by
their parent companies and, hence, they do not form part of this Study. In analysing the responses,
the Microsoft Excel Spreadsheet and the Statistical Package for Social Sciences (SPSS) have been
used. Factor Analysis, using Principal Component Method, was done wherever there was need to
reduce variables into factors. Correlation analysis was also done, as needed.

Result Analysis:

I. Profiles of Respondents

The Study covers responses from Real Estate. The sizes of the enterprises, in terms of turnover as
well as international involvement (expressed as the sum of values of investment in infrastructure in
commercial and non-commercial) varied considerably. Maximum number of responses came from
the IT category, reflecting the dominance of international transactions in that sector.

II. Why do household/company invest in real estate?

51
Responding to the question as to why companies invest, the most important reason adduced is ‘to
reduce the volatility of the cash flows’. Next in importance comes, ‘maximising shareholder
value’ and then, ‘reducing volatility of reported accounting earnings’.

III. Types of Derivatives Used

The First-generation derivatives instruments are the most popular, the greatest preference being for
simple Forward contracts. This is followed by Second-generation instruments, namely Swaps and
Futures. Some corporate also used structured derivatives, which come in the Third-Generation
category. The Rupee-Dollar Options would have been largely preferred, but they were not available
at the time of response to the questionnaire.

IV. Investments for Indian Firms

The recent period has witnessed amplified volatility in the Real Estate market in the backdrop in the
Indian Market and increased infrastructure into the Indian markets. In this context, the paper has
attempted to study the choice of instruments adopted by prominent firms to stem their Real Estate
investment exposure.

1. According to the real estate experts, the prospect of getting superior returns in the U.S
combined with less asset price distort the risk-reward balance in opposition to upcoming
realty markets of India. Thus, there is a high probability of foreign investors avoiding the
Indian real estate market.

2. Real Estate has contributed in a long way in attracting funds from small investors who
emphasize on certain return. Another impediment that can be eased on the discretion
of government is the existing tax laws and other complex regulations relating to
multidimensional real estate’s such as industrial parks and SEZs.

3. According to another expert in real estate, there is no developmental liability in other markets
as these are existing properties. Further, the absence of political or currency risk and the
prospect of approximately 18-20% returns in the US make it very attractive for investment
and, they are not particularly eyeing for additional 5% they may gain coming to India.

4. According to the real estate experts, the prospect of getting superior returns in the Indian
market. Combined with less asset price distort the risk-reward balance in opposition to
upcoming realty markets of India. Thus, there is a high probability of foreign investors
avoiding the Indian real estate market.

5. The real estate market in India is yet in a nascent stage and the scope is simply unlimited. It
does not resemble a bubble that will burst. An unhindered growth for the next twenty years is
52
 almost sure. This is because the outsourcing business in India is going in great guns and this
entails a huge demand for commercial buildings and urban housing besides improvement in
infrastructure.

6. A price index for the housing market to track price movement must be incorporated. The
government must ensure that there is no shortage of funds. SEBI (Securities Exchange Board
of India) recent harbinger of permitting real estate mutual funds in both private and public
sector will go a long way in attracting funds from small investors who emphasize on certain
return.

Hypothesis

H0: There is not a significant relationship between the type of property preferred and Income level of
the person . HA: There is a significant relationship between the type of property preferred and Income
level of the person. H1: There is not a significant relationship between type of payment plan preferred
and income level of the customer. H2: There is a significant relationship between type of payment plan
preferred and income level of the customer.

53
 CHAPTER – 5
ANALYSIS / STUDY OF TOPIC

54
1. What type of property you want to reside in?

Type No. of Respondents % of Respondents

Ownership 70 70%

On Rental 28 28%

Others 02 02%

Total 100 100%

NO. OF RESPONDENTS

OWNERSHIP ON RENTAL OTHERS

FINDINGS:

The above table shows that, maximum no. of respondents want to stay on ownership basis i.e.70%
and 28% of the respondents want to stay on rent and 02% of respondents are in others category,
which include residence on lease or staying at relatives.

55
2. What type of property do the people actually own?

Investment No. of Respondents % of Respondents

Ownership 35 35%

Rent 58 58%

Others 07 07%

Total 100 100%

No. of Respondents

Ownership Rent Others

FINDING:

The above table shows that maximum no. of respondents i.e. 58% are staying on rent despite the fact
that 70% of people want to reside in their own homes.

This is due to the increasing rate of land acquisition and greater rate of inflation in the country. The
prices of the building materials and labour is also increasing rapidly.

56
3. Is Subham group providing a leading edge over its competitors?
Environment No. of Respondents % of Respondents
Yes 60 60%
No 40 40%
Total 100 100%

NO. OF RESPONDENTS

Yes No

FINDINGS:

Above table shows that it 60% of the respondents are happy and satisfed with the
environment of the flats provided by the company ,but still 40% of respondents are
against this view.

57
4. From which real estate company have you purchased before?

Company Name No. of Respondents % of Respondents

DLF 25 25%

Shubham Group 17 17%

Super Group 15 15%

Jaypee Group 25 25%

Amrapali Group 18 18%

Total 100 100%

NO. OF RESPONDENTS

DLF SUPERTECH SUPERTECH JAYPEE GROUP AMRAPALI GROUP

FINDINGS:

The above table shows that maximum no. of respondents i.e. 25% of people have purchased from
DLF and Jaypee, Amrapali has 18%, Super tech has 15% and Shubham Group has around 17%.

It means company needs more promotion by advertisement, etc.

58
5. Are you aware about the services provided by The Shubham Group?

Awareness No. of Respondents % of Respondents

Yes 67 67%

No 33 33%

Total 100 100%

NO. OF RESPONDENTS

YES NO

FINDINGS:

The above table shows that maximum no. of respondents i.e. 67% were aware about the various
schemes offered by The Shubham Group whereas 33% of respondents were not aware about various
schemes offered by The Shubham Group.

59
6. Which source do you prefer for getting the information about the property?

Sources No. of Respondents % of Respondents

Hoardings 13 13%

Newspapers 17 17%

Agents/Consultants 33 33%

Relatives/Friends 28 28%

Others 09 09%

Total 100 100%

NO. OF RESPONDENTS

HOARDINGS NEWSPAPERS AGENTS/CONSULTANTS RELATIVES/FRIENDS

FINDINGS:

Above table shows that 33% of the respondents get their information from Agents /Consultants,
where as 28% of the respondents get information from Relatives/ Friends while 17% of respondents
get information from Newspapers whereas 13% of respondents get information from Hoardings and
09% of respondents get their information through Other Sources like Local News Channel, Radio,
Internet etc. for Purchasing Residential Properties.

60
7. Is the staff friendly and supportive?

Facilities No. of Respondents % of Respondents

Yes 65 65%

No 35 35%

Total 100 100%

NO. OF RESPONDENTS

YES NO

FINDINGS:

Above table shows that 65% of the respondents say that the staff of Shubham Group provides good
advice as compared to others.

61
8. You will like to purchase which type of Residential property?

Type No. of Respondents % of Respondents

1 BHK Flat 18 18%

2 BHK Flat 48 48%

3 BHK Flat 24 24%

4 BHK Flat 06 06%

Bungalow/Row house 04 04%

Total 100 100 %

NO. OF RESPONDENTS

1 BHK FLAT 2 BHK FLAT 3 BHK FLAT 4 BHK FLAT BUNGALOW/ROW HOUSE

FINDINGS:

Above table shows that maximum no. of respondents that is 48% would like to purchase 2 BHK Flat,
whereas 24% respondents prefer 3 BHK Flat, while 18% respondents prefer 1BHK Flat whereas 4%
of respondents prefer Bungalow/Row house and 06% respondents prefer others which include
Duplex, Terrace Flat, Attached Flat etc. for purchases of residential property.

62
9. Which mode will you choice while purchasing a residential property?

Mode No. of Respondents % of Respondents

Home Loans 57 57%

Lump-sum 06 06%

Instalments 33 33%

Others 04 04%

Total 100 100%

NO. OF RESPONDENTS

HOME LOANS LUM SUM INSTALMENTS OTHERS

FINDINGS:

Above table shows that maximum no. of respondent’s i.e.57% would prefer Home
Loans whereas 33% of respondents would prefer Instalments while 06% of
respondents would prefer Lump-sum and 04% of respondents prefer others.

63
10. Which are the factors that encourage you to make an investment in real estate?

Factors No. of Respondent % of Respondent

Increase in income 20 20%
Reduction in home 20 20%
loan int. rates
Greater Investment 25 25%
Opportunities
Lower of prices by 25 25%
builders
Reduction in 10 10%
Property Registration
Total 100 100%

NO. OF RESPONDENT

INCREASE IN INCOME REDUCTION IN HOME LOAN INT. RATES

GREATER INVESTMENT OPPORTUNITIES LOWER OF PRICES BY BUILDERS
REDUCTION IN PROPERTY REGISTRATION

FINDINGS:

Above table shows that out of total 20% are of increase in income, 20% are reduction
in home loan int. rates, 25% are greater employment opportunities, 25% are the lower
of prices by builders and the rest are reduction in property registration.

64
11. What is your level of income in a year?

Level of Income No. of Respondent % of Respondent

Up to Rs. 5 lakhs p.a. 35 35%
5 lakhs-10 lakhs p.a. 35 35%
10 lakhs-20 lakhs p.a. 20 20%
Above 20 lakhs p.a. 10 10%
Total 100 100%

NO. OF RESPONDENT

UPTO 5 LAC P.A. 5 LAC-10 LAC P.A. 10 LAC-20 LACP.A. ABOVE 20 LAC P.A.

FINDINGS:

Above table shows that the level of income of the respondents. 35% of the respondents
have up to Rs. 5 lakh p.a., 35% of respondents have 5 laks-10 lakhs p.a., 20% have 10
lakhs-20 lakhs p.a. income and 10% of the respondents have above than 20 lakhs of
income per annum.

The level of income helps the company in knowing about consumer buying behaviour
of the respondent.

65
12. Are the banks providing loan against flat easily?

Taking Loan Easy No. of Respondents % of Respondents

Yes 30 30%
No 70 70%
Total 100 100%

% OF RESPONDENT

YES NO

FINDINGS:

Above table shows that out of 100, around 70% of respondents are find it difficult to
take loan from the banks. Which means only 30% of people are getting loan without
any problem.

This can be a one of the reasons due to which investment in real estate are not as much
as it should be.

66
13. Do you think the company needs any improvements?

Improvements No. of Respondents % of Respondents

Yes 30 30%
No 70 70%
Total 100 100%

NO. OF RESPONDENTS

YES NO

FINDINGS:

Above table shows that the company don’t need much improvements. But for the
company to be more efficient and effective it still needs improvement

67
 CHAPTER – 6
FINDINGS / OBSERVATIONS

68
1).During the survey, it was found that maximum no. of respondents stay on rental basis and while

most of them want to stay in their own houses they can’t afford them. Also some people are staying

with their relatives as well and they are happy with it.

2).It was found that almost equal no, of respondents want to and don’t want to invest in real estate

as the market is very fluctuating and the risk is very high but it is because of this risk the profits are

also higher.

3). It was found that most of the respondents are happy and satisfed with the environment of the

flats provided by the company ,but still some of them are against this view.

4).It was found that the maximum no. of respondents i.e. 25% of people have purchased from DLF and
Jaypee, Amrapali has 18%, Super tech has 15% and Shubham Group has around 17%

5).It was found that that maximum no. of respondents i.e. 67% were aware about the various

schemes offered by The Shubham Group whereas 33% of respondents were not aware about various

schemes offered by The Shubham Group.

6).It was found 33% of the respondents get their information from Agents /Consultants, where as 28%
of the respondents get information from Relatives/ Friends while 17% of respondents get information
from Newspapers whereas 13% of respondents get information from Hoardings and 09% of
respondents get their information through Other Sources like Local News Channel, Radio, Internet
etc. for Purchasing Residential Properties.

7).It was found that maximum no. of respondents i.e. 65% says that Shubham Group provides good
facilities as compared to others. Which is good for the company.

8).It was found that demand of the 2 & 3 BHK flats were more to comparing other types

9).It was found that maximum no. of respondents that is 48% would like to purchase 2 BHK Flat,

whereas 24% respondents prefer 3 BHK Flat, while 18% respondents prefer 1BHK Flat whereas 4%

69
of respondents prefer Bungalow/Row house and 06% respondents prefer others which include

Duplex, Terrace Flat, Attached Flat etc. for purchases of residential property.

11).It was found that the he level of income of the respondents. 35% of the respondents have up to
Rs. 5 lakh p.a., 35% of respondents have 5 laks-1lakhs p.a., 20% have 10 lakhs-20 lakhs p.a. income
and 10% of the respondents have above than 20 lakhs of income per annum.

12).It was found that out of 100, around 70% of respondents are find it difficult to take loan from the
banks. Which means only 30% of people are getting loan without any problem

13) .It was found that 70% of the respondents are satisfied with the company where as 30% of the
respondents are not satisfied with the company.

70
CHAPTER – 7
CONCLUSION

71
1. It can be seen that the investment in real estate is not much because of many factors like risky
investment, changes in policies of the government.

2. The company has a good reputation in real estate.

3. The Shubham Group has awareness among the respondent, but it should be improved

4. Agents and consultants helps the company most in promoting than the other promotional things.

5. It provides good facilities than its competitors.

6. People prefers to take home loans for purchasing in real estate

7. Adverting and other sales promotion tools should be undertaken for often for better results.
8. Now a days, consumer have become very much decision maker they took into consideration so
many aspects like increase in income, reduction in home loan int. Rates greater employment
opportunities, lower of prices by builders and the rest are reduction in property registration.

9. Only 30% of people are getting loan without any problem. This can be a one of the reasons due to
which investment in real estate are not as much as it should be.

10. Level of the customers satisfaction plays an important role in taking the decision because it is a
long term decision so people become very much cautious before taking such decision and in most of
the cases they feel safe by taking the properties built by the branded and big developers.

11. Satisafaction level of customers is high .

72
BIBLIOGRAPHY

73
Referred Books:

 Kothari C.R.- “Research Methodology” New Delhi Tata McGraw Hill in (95-102)
 Kotler Phillip – “Marketing management “analysis, planning implementation and control.
 Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behaviour”, Prentice Hall of India “6th
edition
 Singh Harpreet– “Research Methodology”-Kalyani Publishers. (page no. 1-8, 68-102)
 Global Real Estate Investment – Trends and Experiences Book by Sujatha
 Development and Redevelopment of all Real Estate Properties by Narwade Prashant

Referred Websites:

 www.dlf.com
 www.shubhamgroup.com
 www.trustedproperty.org
 www.indianrealestateforum.com
 www.google.com
 www.scribd.com
 www.propertywala.com
 www.indiatimes.com
 www.buisnessstanderd.com
 www.economicstimes.com

Referred Pamphlets & Broachers:

Pamphlets and broachers of Shubham group provided by the company for further explanations.

74
APPENDIX

75
 Personal Details

1. What type of property are you currently having?

Ownership On rental

Others

2. Have you purchased any flat or commercial shop from real estate?

Yes No

3. From which real estate company have you purchased before?

DLF Super tech Shubham Group

Jaypee Group Amrapali Group

4. Are you aware about the services provided by the Shubham Group?

Yes No

5. Are they provide good facility comparison to others?

Yes No

6. Which source do you prefer for getting the information about the property? (Choose any one)

Hoarding Newspapers

Agent Relatives

Others

7. Which are the factors that encourages you to make an investment in real estate?

 Increase in income lowering of prices by builders

Reduction in home loan int. rates Reduction in Property registration

 Greater Investment opportunities

8. What is your level of income in a year?

76
 Up to Rs. 5 lakhs per annum Rs 5 lakhs-Rs 10 lakhs per annum

Rs 10 lakhs-20 lakhs per annum Rs 20 lakhs per annum +

9. Which mode will you choice while purchasing a residential property?

Home Loans Lump sum

Instalments Others

10. Are the Banks provide loan against flat easily?

Yes No

11. You will like to purchase which type of residential property

1BHK Flat 2BHK Flat

3BHK Flat Bungalows/Row

House

Others ____________________________________________

12. Have you got good environment around the flat?

Yes No

13. According to you are you satisfy with Shubham Group?

Yes No

14. Have you purchased another flat from any Real Estate?

Yes No

15. If yes, then from which company?

____________________________________________

77
78
.

79
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3