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Summary
Group 4 :
Amit Ranjan Gupta
Ashish Khandelwal
Bhupendra Malviya
Jagdish Agrawal
Mukunda Ramamurthy
Agenda
Introduction of EFAS
Brief Overview of Real Estate Industry
Opportunities for Real Estate Industry
Threats for Real Estate Industry
EFAS Analysis of DLF Pvt Ltd
EFAS Analysis of Shobha Developers
Conclusion
Advantage of EFAS
Two level of analysis
Study of Threats and Opportunities
Study of ability of the organization to respond to
above factors
External
Strategic Factors
Opportunities
Weight
1
Rating
2
Threats
1.00
Weighted
Score
3
Comments
4
Residential
Commercial
Key
Drivers
Rapid urbanisation
Decreasing household
size
Easy availability of
home loans
Trends
Demand expected to
grow at a CAGR of 19
per cent between 2010
and 2014 - Tier 1
metropolitan cities are
expected to account for
about 40 per cent of
this.
Demand-Supply gap is
highest in low and mid
income segments.
Demand exceeds supply
3 to 4 fold in low and
mid income segments.
Key
Drivers
Rapid growth in services
sectors: IT/ITeS, BFSI
and Telecom
Demand for office space
in Tier 2 cities
Increase in tourism
Trends
The top three cities Mumbai, the NCR and
Bengaluru - account for
46 per cent of total
demand for office space
in India
Between 2010 and
2014, demand growth
projected to be the
highest in cities like
Kolkata and Chennai
Opportunities
Opportunities
Weight
Comments
0.15
Growing
Demand
Urbanization
Better Infrastructure
Government
Initiatives
constant 0.09
0.09
Threats
Threats
Weight
Comments
High Inflation
0.05
0.15
0.15
Liquidity Crunch
0.15
Threats (Contd..)
Threats
Weight
Comments
Political Instability
0.05
New government.
Red Tape.
Parties favouritism.
Total
No systematic way of
pricing.
No Regulator.
Multiple brokers mark up.
DLF LTD
External Factors
Opportunities
Weight
Weighted
Score
Rating
IncreasedFDILimit
Comments
0.15
4.00
NOFDIinvestmentandhigherallowedlimitsgiveopportunitytoraisefundin
future
0.60
PopularinNRIs,Highendresidentialprojectswillbegoodinvestment
opportunitiesforNRIs
Increasedpercapitaincomeand
NRIcustomersinterest
0.10
4.00
0.40
Growingconstantdemand
0.09
4.00
0.36
Projectover53MSFisunderexecution
Governmentinitiative
0.09
4.00
0.36
Presenceinalloverindiaprovideopportunityto
Threats
HighInflation
0.05
3.00
0.15
Interestraterisk,lowtendencytospendmoney
Landacquisitionbill
0.15
4.00
0.60
LandBankis314MSFasonSept2013in10majorcitiesofIndia
DirectTaxcode
0.15
3.00
0.45
Taxablehomeloanswilldiscouragetheinvestors
Liquiditycrunch
0.15
1.00
0.15
VeryHighDebt,Debt/EquityRatiois7:1
politicalinstability
0.05
3.00
0.15
Operationalmostlyinpoliticallystableregions
Nontransparencyofpricing
0.02
3.00
0.06
Pricebasedonbuiltupareaorsuperbuiltupareaaregenerallymanipulated
Total Scores
1.00
3.28
Outstanding
3
Average
1
Poor
Shobha Developers
External Factors
Opportunities
Weight
Weighted
Score
Rating
Comments
IncreasedFDILimit
0.15
3.00
0.45
100%ofFDIsubjecttocertaincriterionbut60%alreadyinvestedasper12-13
AR
Increasedpercapitaincomeand
NRIcustomersinterest
0.10
4.00
0.40
PopularinNRIs,Highendresidentialprojectswillbegoodinvestment
opportunitiesforNRIs
Growingconstantdemand
0.09
4.00
0.36
45OngoingprojectsmainlyinSouthernregions&NCR
Governmentinitiative
0.09
2.00
0.18
Threats
HighInflation
0.05
3.00
0.15
Interestraterisk,exchangeraterisk,lowsavings
Landacquisitionbill
0.15
2.00
0.30
Increasecostofprojects,LessLandbank
DirectTaxcode
0.15
3.00
0.45
Taxablehomeloanswilldiscouragetheinvestors
Liquiditycrunch
0.15
5.00
0.75
GoodDebt/Equityratioof3:5.Requiredbybanks5:5or3:7
politicalinstability
0.05
3.00
0.15
Operationalmostlyinpoliticallystableregions
Nontransparencyofpricing
0.02
2.00
0.04
Pricesarenottransparent
Total Scores
1.00
3.23
Outstanding
3
Average
1
Poor
Conclusion
Thank You