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Global Tracks “Rediscovering India” Manoj Motta – Session Chairman AVP – Inorbit Malls (India) Global Tracks “Rediscovering India” Manoj Motta – Session Chairman AVP – Inorbit Malls (India) May 22 nd 2007 - Las Vegas

Presentation scope & flow : 1. Macro Economic Indicators 2. Consumption Forecasts & Consumer Presentation scope & flow : 1. Macro Economic Indicators 2. Consumption Forecasts & Consumer Behavioral Trends 3. Responses & Reactions of stake holders a) Retailers/Brands b) Real Estate c) Financial Institutions d) Government 4. SWOT Analysis 5. Changing Landscape 6. Infliction points 7. Summary

Once upon a time India was the land everyone wanted Once upon a time India was the land everyone wanted

Exotic Diamonds Lush Palaces Monuments in Gold Majestic Forts Exotic Diamonds Lush Palaces Monuments in Gold Majestic Forts

not to forget snake charmers, elephants & Art forms like kathakali not to forget snake charmers, elephants & Art forms like kathakali

back the timehascome Rediscovering “India” back the timehascome Rediscovering “India”

It started with the humble IT geek It started with the humble IT geek

but now the list is endless but now the list is endless

Express ways, A 380 s Express ways, A 380 s

lifestyle boutiques, trendy fashion, rocking entertainment lifestyle boutiques, trendy fashion, rocking entertainment

and of course Malls and of course Malls

MALL has always been an Indian word – it means “Material”. And is used MALL has always been an Indian word – it means “Material”. And is used vividly to describe good business, good thinking.

all this is fueled by all this is fueled by

they are the heroes of today they are the heroes of today

They have ideas Educated Assertive This is the NEW INDIA Demanding Opportunities And wanting They have ideas Educated Assertive This is the NEW INDIA Demanding Opportunities And wanting more

now let’s get into the heart of the matter now let’s get into the heart of the matter

1. Macro Economic Indicators 1. Macro Economic Indicators

Macro Economic Indicators - India Macro Economic Indicators - India

Macro Economic Indicators - India (Continued) Improving macro economic variables… Average growth of 6% Macro Economic Indicators - India (Continued) Improving macro economic variables… Average growth of 6% since 1998 Inflation has remained at 5 -6% range GDP Growth Rate (%) Years § 4 th largest economy in the world in terms of purchasing power parity § 2 nd largest economy in terms of population § Amongst the top 10 GDP generators in the world § Global outsourcing hub – More than 200 of Fortune 500 companies use Information Technology (“IT”) services from India Source : Business World, Marketing White Book – 2003 & 2005

Forex India is achieving self sufficiency – generating disposable surpluses Forex India is achieving self sufficiency – generating disposable surpluses

The Global Retail Development Index (GRDI) The Global Retail Development Index (GRDI)

GRDI 2006 market attractiveness GRDI 2006 market attractiveness

Most Attractive Developing markets for retail by region Most Attractive Developing markets for retail by region

Window of opportunity analysis (based on GRDI Rankings for 1995 -2006) Window of opportunity analysis (based on GRDI Rankings for 1995 -2006)

Formats and timing patterns (based on GRDI ranking for 2004 – 2006) Formats and timing patterns (based on GRDI ranking for 2004 – 2006)

2. Consumption Forecasts Consumer Behavioral Trends 2. Consumption Forecasts Consumer Behavioral Trends

Overview of the Retail Market in India. § Retail market is estimated at approximately Overview of the Retail Market in India. § Retail market is estimated at approximately US$ 250 billion (2005) , is already one of the ten largest retail markets in the world. A. T. Kearney’s Global Retail Development Index 2005 suggests that the Indian retail market has the largest growth potential of worldwide retail markets. The study forecasts an annual growth in turnover of around 10% in the next few years. Such growth trends present immense opportunities in the retail real estate segment. § 12 million retail stores resulting in the highest number of per capita retail outlets in the world § Organized retail currently accounts for only 2 -3% of the retail market in India (compared to up to 17% in China), but the sector is undergoing structural change, with leading domestic retailers such as Pantaloon, Shopper Stops, Westside and Big Bazaar going through rapid growth, format migration and consolidation. Retail consultancy KSA Technopak forecast that the share of organized retail will rise to 10 -12% by 2010. This represents huge opportunity for prospective new players. Percentage of Outlets by Square feet Contribution from Organized Retail Years taken growing from <5% to current market share § The adjoining chart shows the number of years taken by organized retail in some of the developing economies to grow from < 5% to the current market share. The economies have taken anywhere between 8 – 15 years to reach the current levels. § More than 90% of the outlets in India are less than 250 sq ft Source: HSBC Jumbo Retailing, May 2005 Source: Chain Store Age, KSA Technopak, CLSA

Demographics Shifting Age Profiles 60 & above 15 -59 yrs 0 - 14 yrs Demographics Shifting Age Profiles 60 & above 15 -59 yrs 0 - 14 yrs 6. 3% 58. 2% 35. 5% Y 2001 7. 0% 7. 9% 8. 9% 62. 5% 64. 0% 32. 6% 29. 6% 27. 1% Y 2006 F Y 2011 F Y 2016 F 60. 4% Source : Business World, Marketing White Book – 2003 & 2005 § 35% of the population under 14 years § Median age of population is just 24 years § More than 60% of the population would be in the working age (15 -60) till 2050

Improving socio economic profile 1. Rising per capita GDP since 1997 2. Per Capita Improving socio economic profile 1. Rising per capita GDP since 1997 2. Per Capita GDP in US $ (at constant prices) growth has been particularly high at 12. 7 % p. a. during the period 2002 -2004 at back of a robust and booming economy. Increased masses literacy among Education cess of 2% is being charged on all direct and indirect Central taxes. The proceeds of the cess are channeled into the “Prathmik Shiksha Kosh” maintained by the Ministry of HRD & are available for basic education and Mid Day Meal Scheme. Higher education system in India is very robust and one of the largest in the world with: 259 Institutions 10, 750 Colleges 8 million Students 4, 000 Teachers NSSO’s survey indicates that people living below the poverty line declined during the period 1997 -78 and 1999 -2000 from 51% to 26% respectively (from 329 m to 260 m in absolute terms) Improved Literacy Rate Male Female Total 195051 196061 197071 198081 199091 200001 27% 40% 46% 56% 64% 76% 9% 15% 22% 30% 39% 54% 18% 28% 34% 44% 52% 65% Source: Planning Commission, Ministry of Health and Welfare

Improving socio economic profile… (2) 3. Healthcare The expenditure on healthcare was around 5. Improving socio economic profile… (2) 3. Healthcare The expenditure on healthcare was around 5. 1% of total government expenditure in 2005 -06 Diseases like malaria, leprosy and polio have been tackled effectively and their incidence is now minimal Life Expectancy has gone up indicating better welfare Life Expectancy 1950 -51 1960 -61 1970 -71 1980 -81 1990 -91 2000 -01 Male 33 42 46 51 59 64 Female 32 41 45 50 59 67 Infant Mortality Rate (per 1000 births) 146 110 80 63 Source: Planning Commission, Ministry of Health and Welfare

Consumption Forecasts Consumption Forecasts

Changing Consumer Behavior Demographic Changes Kids become more demanding Willingness to experiment Increase in Changing Consumer Behavior Demographic Changes Kids become more demanding Willingness to experiment Increase in no. of working women Lifestyle branding More Nuclear families

In View Of The Rapidly Expanding Spend Categories… 2005 1991 1. 2. 3. 4. In View Of The Rapidly Expanding Spend Categories… 2005 1991 1. 2. 3. 4. 5. 6. 7. Food and Grocery Clothing Footwear Consumer durables Home linen Movies and theatre Eating out 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Food and Grocery Clothing Footwear Consumer durables Expenditure on DVDs and VCDs Home linen Home accessories Accessories Gifts Take-away/ Pre cooked / RTE meals Movies and theatre Eating out Entertainment parks Mobile phones and service Household help Travel packages Club membership Computer Peripheral & Internet Usage 2012 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Note: The above categories account for 80% of consumer spending Food and Grocery Clothing Footwear Consumer durables Expenditure on DVDs and VCDs Home linen Home accessories Accessories Gifts Take-away/ Pre cooked / RTE meals Movies and theatre Eating out Entertainment parks Mobile phones and service Household help Travel packages Club membership Computer Peripheral & Internet Usage ? ? ? Source : Technopak

Organized retailing is set to enter a high growth stage Expected Trends § With Organized retailing is set to enter a high growth stage Expected Trends § With less than 300 fully operational malls in India, Indian Retail Sector by 2006 -07 is expected to have 330 malls, shopping centres and multiplexes under construction. It is also estimated to open 35 hypermarkets, 325 large department stores, 1500 supermarkets and over 10000 new outlets. § Though, pan-India organized retail penetration is at 2. 5%, there are several categories that have organized retail penetration of more than 10%. First among them is the footwear, which has a 22% organized retail penetration. Following the footwear is Apparels and clothing with a retail penetration of 12% and Books and Music with 9% penetration. The government could further liberalise. The Real Estate sector would witness a major fillip with the opening up of FDI in retail The total retail space in India is set to grow 181 % from 32 million sq ft as of August 2005 to 90 million sq ft by 2007, according to a report ‘Malls of India’ released by Images Multimedia at the India Retail Forum. The organised retail industry is growing at an average of 30 % per annum and by 2010 is expected to stand at $ 24 billion, around 10 % of the estimated size of the overall retail industry, the report said. It is also expected that at least two or three of the Indian players would have crossed the $1 billion mark by then. FDI*Regime Earlier Regime No Foreign Investment allowed Present Regime 100% FDI in single brand Future Expectations 100 % automatic FDI in All retail formats Rationalization in Custom Duties * These rules are only pertaining to area limit. For details of FDI rules, refer to FDI slide in Real estate Overview Section

3. Response of Stake Holders a. Retailers & Marketers 3. Response of Stake Holders a. Retailers & Marketers

Evolution of Indian Retail Environment Modern Formats/ International Historic/Rural Reach Weekly Markets Village Fairs Evolution of Indian Retail Environment Modern Formats/ International Historic/Rural Reach Weekly Markets Village Fairs Melas Source of Entertainment Traditional/Pervasive Reach Convenience Stores Mom and Pop/Kiranas Neighborhood Stores/Convenience Government Supported PDS Outlets Khadi Stores Cooperatives Availability/ Low Costs / Distribution Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls Shopping Experience/Efficiency

Retailers Response From “Street Smart” Locations & Bazaars… Retailers Response From “Street Smart” Locations & Bazaars…

Retailers’ Response To well attended “High Streets” Retailers’ Response To well attended “High Streets”

Retailers’ Response To well attended “High Streets” Retailers’ Response To well attended “High Streets”

Retailers Response cont… Retailers Response cont…

Retailers Response cont… Retailers Response cont…

3. Response of ‘Stake Holders’ b. Real Estate 3. Response of ‘Stake Holders’ b. Real Estate

Real Estate Overview Size and Growth: The size of the Indian real FORWARD LINKAGES Real Estate Overview Size and Growth: The size of the Indian real FORWARD LINKAGES estate industry is estimated to be at approx. US$ 14 billion, with housing, construction and real estate services growing at a CAGR of 14. 6% during the period 1993 -94 to 2005 -06. Residential Real Estate Hospitality High Contribution to GDP: Real estate Commercial forms one of the key components of economy and the contribution of real estate services, housing and construction sector to the economy is ~14% (2004 -05). Multiplier Effect: Established significant linkages with other sectors and an estimated 250 associated industries apart from the considerable multiplier effect it has on the economy as a whole. Retail Warehouses/ logistics Others BACKWARD LINKAGES Steel Cement Paints/ Chemicals Core Industries Heavy Engineering Equipments Brick/ Tiles REAL ESTATE/ CONSTRUCTION Electronics Importance for Indian Economy: Survey by ICRA highlights that Construction ranks third amongst 14 major industries in terms of direct, indirect & induced effect on all sectors of the economy. IT/ ITES Office Space (Equipments, Raw Materials Copper &–Aluminum) Transportation/ Logistics Service Labour Direct Labour Financial Services

Overview of Mall Development in India Distribution of retail space - 2007 § Modern Overview of Mall Development in India Distribution of retail space - 2007 § Modern malls made their entry into India in the late 1990 s, with the establishment of Crossroads in Mumbai and Ansals Plaza in Delhi. By early 2001, several mall projects were announced. § The first targets were the major metros like Mumbai, Delhi, Hyderabad, Chennai, Bangalore and Kolkata. § The growth in the retailing sector was focused on Major Metro cities only, the retailer focus has gradually broadened to include cities such as Nagpur, Indore, Jaipur, Chandigarh, Lucknow and Kochi. § Key drivers of mall activity remain apparels and the food and beverages (F&B) sectors. § On the basis of announced projects by year 2007, the North zone will account for 39 per cent share of the total mall space in India followed by the West zone accounting for 33 per cent share, the South zone with 18 per cent share and the remaining 10 per cent Source: Images Retail, Knight Frank § While NCR will remain the hub of all mall activity in India over the next couple years, cornering approximately 35 per cent share of total mall space, the share of Mumbai is likely to get reduced, mainly on account of shortage of available space to expand further. § In the southern region, Bangalore followed by Hyderabad and Chennai will have the maximum mall space. By 2007, Bangalore will have approximately 12 per cent of the total mall space in the country. § The viability of setting up mall in particular location can only be assessed through a detailed study of each location.

INDIA State-wise Malls Punjab, 33 Malls 11. 45 Mn NCR, 115 Malls 19. 0 INDIA State-wise Malls Punjab, 33 Malls 11. 45 Mn NCR, 115 Malls 19. 0 Mn Total No. of Malls proposed in India* : 558 Rajasthan, 5 Malls 1. 20 Mn Gujarat, 24 Malls 7. 10 Mn Total B/U area of Malls in India* : 123 Mn Madhya Pradesh, Malls, 4. 45 Mn W. Bengal, 25 Malls 5. 80 Mn Maharashtra, 251 Malls 54. 35 Mn Karnataka, 23 Malls, 6. 90 Mn Kerala, 25 Malls 4. 47 Mn AP, 26 Malls 4. 73 Mn Tamilnadu, 23 Malls 3. 34 Mn *Note: The number of Malls and B/U area above stated are from 11 states only

INDIA City-wise Malls Amritsar (5) 1. 35 Mn sft Ludhiana (13) 5. 25 Mn INDIA City-wise Malls Amritsar (5) 1. 35 Mn sft Ludhiana (13) 5. 25 Mn sft ` Jalandhar (5) 1. 04 Mn sft Chandigarh/Mohali (8) 3. 6 Mn sft Faridabad (12) 2. 40 Mn sft Ghaziabad (12) 2. 30 Mn sft Noida (14) 4. 9 Mn sft New Delhi (49) 10 Mn sft Jodhpur (1) 0. 15 Mn sft Total No. of Malls proposed in India* : 558 Gurgaon (28) 5. 3 Mn sft Total B/U area of Malls in India* : 123 Mn Jaipur (2) 0. 2 Mn sft Udaipur (2) 1. 0 Mn sft Rajkot (1) 0. 12 Mn sft Ahmedabad (8) 2. 69 Mn sft Gr. Mumbai (104) 20. 74 Mn sft Thane (22) 6. 36 Mn sft Navi Mumbai (18) 5. 21 Mn sft Vadodara (9) 2. 62 Mn sft Bhopal (1) 1. 0 Mn sft Indore (6) Surat (6) 2. 68 Mn sft 1. 66 Mn sft Nasik (3) Kalyan (3) 0. 85 Mn sft 0. 82 Mn sft Kolkotta (25) 5. 78 Mn sft` Nagpur (5) 1. 03 Mn sft Aurangabad (10) 1. 71 Mn sft Pune (68) 13. 93 Mn sft Hyderabad (18) 3. 33 Mn sft Secunderabad (4) 0. 75 Mn sft Mysore (8) 0. 86 Mn sft Calicut (10) 1. 29 Mn sft Kochin (15) 3. 18 Mn sft Vijayawada (4) 0. 67 Mn sft B’lore (15) 6. 03 Mn sft Chennai (23) 3. 34 Mn sft *Note: The number of Malls and B/U area above stated are from 11 states only

Response - Real Estate Response - Real Estate

Response of Stake holders c. Financial Institutions Response of Stake holders c. Financial Institutions

Indicative List of Funds ( Based on India Plans Announced ) Fund Corpus ( Indicative List of Funds ( Based on India Plans Announced ) Fund Corpus ( USD mn ) Target Segments Oak Investment partners 5800 Retail start ups Blackstone Group 1000 Commercial and Residential Carlyle 500 -750 Commercial and Residential GE-Ascendas Fund 500 IT Parks Trikona Capital Group's Trinity Capital Fund 450 Real Estate & Infrastructure Leasing & Financial Services Realty Fund 502 Equity-linked instruments of real estate companies Och Ziff 400 Residential Property Development ICICI Ventures (India Advantage Fund III) 300 Office, Residential & Retail Property Development Santa Fe 300 Infrastructure and housing development Rreef/DB Real Estate, a unit of Deutsche Bank AG 300 Housing JM Morgan Stanley 300 Tier I, II and III city development Walton Street 300 Residential Property Development Kotak Mahindra Realty Fund 300 Retail, Hotels, Hospitals American International Group 250 -300 Residential Townships Horizon International Fund (Pantaloons) 263 Areas of more than 50, 000 sq ft Ascendas IT Park Fund 230 IT Parks Siachen fund ( Equity Fund ) 100 Luxury Apartment Development

Response of Stake Holders d. Government Response of Stake Holders d. Government

Government’s response Setting up Regulatory & Information Dissemination Framework… enabling growth CSO Central Statistical Government’s response Setting up Regulatory & Information Dissemination Framework… enabling growth CSO Central Statistical Organisation

Improving urbanization levels… 1981 1991 2001 Population growth (decennial) 24. 7% 23. 8% 21. Improving urbanization levels… 1981 1991 2001 Population growth (decennial) 24. 7% 23. 8% 21. 3% Urban population (% to total) 23. 3% 25. 7% 33. 4% % of urban population in Class I cities 60. 4% 65. 2% 73. 7% India-Rate of Urbanization (1971 -2011) Source : Census of India § Urban population has grown by 31% against 18% in rural areas for the period 1991 – 2001 § 13 cities have population in excess of 2 million § 35% of Indian population live in urban centres, the target market for organized retail § Top 10 centres account for 88% of the retail spending in India against 100% 5 years back § According to Census of India 2001 estimates, 41% of the total population of India will be living in urban areas by 2011. The number of cities with one million plus population is also expected to double from 35 in 2001 to 70 cities by 2025

and infrastructure growing… Roads & Highways Sector § § § Road Development Plan – and infrastructure growing… Roads & Highways Sector § § § Road Development Plan – Vision 2021 of Indian Road Congress, estimates road development of around 242, 000 Kms by 2011 with an estimated investment of 60 bn USD Plans to develop 100% of National Highways, 50% of State Highways and around 20% of Major District Roads by 2011 Aviation Industry § Huge traffic growth demands strong airport infrastructure. Worldwide air traffic will grow at an annualized rate of 5% that is double every 14 years. India air traffic to grow faster than the average on the back of strong GDP growth § Proposed Investment = Rs 136 Bn Estimated investment in NHDP – Rs 540 Bn, Pradhan Mantri Gram Sadak Yogana – Rs 600 bn, State Highways and non-NHDP Balance Ports § Privatization of ports has gathered momentum. The sector is likely to attract 100 -120 bn over the next couple of years § Proposed outlay for 10 th plan Rs 163 bn § Sagarmala Maritime project – Planned outlay of Rs 1090 bn

Railways § Indian Rail network of 63000 km is the world’s second largest under Railways § Indian Rail network of 63000 km is the world’s second largest under a single management. Network growth has been slow § Total track renewal targeted to be achieved by the end of tenth five year plan is 34, 990 km § Indian Railways have created a Rs. 170 bn non-lapsable Special Railway Safety Fund (SRSF), to be invested over the next five years. § Rs. 120 bn comes from a budgetary grant § Rs. 50 bn through a surcharge on rail fares § Proposed investment (modernization + National Rail Vikas Yojana) = Rs 320 bn Power § India has a total installed power generation capacity 105000 MW. The growth in generation capacity has lagged behind demand for power. § Annual Power deficit of 7. 3% observed in previous years § The government’s programme “ Power for All by 2012” aims to close this gap § The power sector is poised for fresh investments of about Rs 1717 bn over the next 6 -7 years.

4. SWOT Analysis 4. SWOT Analysis

SWOT – Real Estate Industry § Strengths § Development primarily based on strong realistic SWOT – Real Estate Industry § Strengths § Development primarily based on strong realistic demand with limited speculative activity § Among the highest yield in the region and globally § Robust and well developed financial market and system that can tap into RE anytime § Demonstrated political ‘will’ to take RE to the future § Relaxation of FDI § Repeal of laws § Opportunities § Has strong demand drivers going forward – IT-ITES, tourism, increasing consumerism, industrial manufacturing outsourcing etc. § Institutional participation is just opening up § REIT/REMF § Overseas investors are sold on the ‘India’ story and India “RE story” – eg. Ishaan, Hirco etc in overseas markets § Weaknesses § Certain archaic laws continue to exist § ULCRA still to be repealed by certain states, unclear titles, high property tax & stamp duties which differ across states § High transaction cost and need for greater transparency § Still largely an unorganized market with dominance of independent local level developers § Threats § The fast pace of development may not be sustainable for a long term period § Pace of infrastructure not consistent with real estate development pace which may lead to a bottleneck going forward § Yields not keeping pace with the increase in capital values

Key Challenges… Key challenges in the Indian retail market Large geographic Area 59 Infrastructure Key Challenges… Key challenges in the Indian retail market Large geographic Area 59 Infrastructure Constraints 59 Distribution costs 46 Fragmented Market 44 Lack of Distribution networks Lack of distribution hub Source: KPMG Consumer Markets Survey 42 32 (% respondents who chose)

Transparency International - Asia Real Estate Transparency Index 2006 2004 Tier 1 – Highly Transparency International - Asia Real Estate Transparency Index 2006 2004 Tier 1 – Highly Transparent Australia New Zealand Hong Kong Singapore Australia New Zealand Tier 2 – Transparent Malaysia Japan Hong Kong Singapore Tier 3 – Semi Transparent Taiwan South Korea The Philippines Thailand India Japan Taiwan South Korea The Philippines Thailand Tier 4 – Low Transparency The People’s Republic of China Macua Indonesia The People’s Republic of China India Indonesia Tier 5 - Opaque Vietnam Source: JLL Global Real Estate Transparency Though India’s improvement from low transparency to semi-transparency is worthwhile mentioning, It’s a long way before there is availability of market information, improving general accounting and reporting processes, and substantial improvement among market participants, legal process that relate to contract enforcement and legal relief.

Bribe Payers Index 2006 Source: Transparency International A score of 10 indicates a perception Bribe Payers Index 2006 Source: Transparency International A score of 10 indicates a perception of no corruption, while 0 means corruption is seen as rampant.

Global Real Estate Transparency Index - 2006 Score 1 -5 04 06 Transparency 06 Global Real Estate Transparency Index - 2006 Score 1 -5 04 06 Transparency 06 Tier change 06 25 Denotes a significant improvement in transparency 3 24 Czech Republic 2. 69 3 3 25 Hungary 2. 76 3 3 28 Poland 2. 76 3 3 29 Denotes a moderate improvement in transparency 3 28 Denotes a slight improvement in transparency 2. 51 27 Denotes a country moved up one tier from 2004 29 Mexico 26 Source: Jones Lang La. Salle, La. Salle Investment Management 04 30 Israel 2. 86 3 3 30 27 Taiwan 2. 86 3 3 31 34 South Korea 2. 88 3 3 32 Na Slovakia 2. 99 na 3 33 31 Chile 3. 11 3 3 34 32 Greece 3. 13 3 3 35 38 *Russia 3. 22 4 3 36 35 Philippines 3. 30 3 3 37 37 *Brazil 3. 31 4 3 38 Na *Slovenia 3. 35 na 3 39 36 Thailand 3. 40 3 3 40 40 Argentina 3. 41 4 3 41 41 *India 3. 46 4 3 Country na no change

5. Changing Urban Landscape Case Study – Pune, Maharashtra 5. Changing Urban Landscape Case Study – Pune, Maharashtra

Pune Location - Map Maharashtra Map India Map Source: www. mapsofindia. com Pune Map Pune Location - Map Maharashtra Map India Map Source: www. mapsofindia. com Pune Map

Geography – Pune - Maharashtra • Pune is situated near the Western margin of Geography – Pune - Maharashtra • Pune is situated near the Western margin of the Deccan Plateau. It lies on the leeward side of the Sahyadri ranges and Western Ghats, at the confluence of Mula and Mutha rivers. Two more rivers, Pavana and Indrayani traverse the Northwestern outskirts of the urban area • Altitude: 560 m Above Mean Sea Level. • Latitude: 18° 32' North • Longitude: 72° 51' East • Area: 430 km² • Climate Winter Temperature: 15 to 25 °C Summer Temperature: 35 to 39°C Rainfall (mid-June to mid-September): 722 mm Lowest Recorded Temperature: 1. 3 °C Highest Recorded Temperature: 43. 3 °C

City Urbanscape Growth - Pune - Maharashtra Early 8 th Century AD Developments (Kasbe City Urbanscape Growth - Pune - Maharashtra Early 8 th Century AD Developments (Kasbe Pune) Khadki Cantonment during 1860 Pune Cantonment Formation of Pune Municipal Corporation in 1950 Areas developed such as Koregaon Park etc. Fringe Developments along Kothrude, Nagar road, Warje, Karve Road, Pimpri chichwad and Aundh

Urban Fabric-Past - Pune - Maharashtra Urban Fabric-Past - Pune - Maharashtra

Urban Fabric-Present – Pune - Maharashtra Urban Fabric-Present – Pune - Maharashtra

6. Infliction points 6. Infliction points

Inflection Points Favorable long-term demographics Age 2001 2013 55+ 54 -54 35 -44 -34 Inflection Points Favorable long-term demographics Age 2001 2013 55+ 54 -54 35 -44 -34 25 -24 15 5 -14 0 -14 200 100 200 (millions) Population Source: DB research Source: Bric Report

Consumption Forecasts Consumption Forecasts

Growth of Services Sector… Percentage Share in GDP Number of Seats in call centers Growth of Services Sector… Percentage Share in GDP Number of Seats in call centers Country 2003 2004 Australia 1, 35, 000 1, 46, 000 India 96, 000 1, 58, 000 China 38, 000 54, 000 Philippines 20, 000 40, 000 12, 000 13, 500 Source: RBI, DB Research New Zealand Significant job creation in ITES sector Thailand 11, 000 13, 000 Singapore 10, 000 10, 100 Source: Industry Interaction

Infliction Points From To Infliction Points From To

While the mystery continues to unfold…. While the mystery continues to unfold….

there we are at the wonder once again there we are at the wonder once again

One need not look hard enough o realize it’s all being made here right One need not look hard enough o realize it’s all being made here right now, as I speak

It’s time to be part of that wonderful unfoldment It’s time to be part of that wonderful unfoldment

Welcome to India! Welcome to India!

Inorbit Malad Inorbit’s Future Development Plan and Phasing • Operational since 2003 • BUA=510, Inorbit Malad Inorbit’s Future Development Plan and Phasing • Operational since 2003 • BUA=510, 000 SFT/ Carpet=360, 000 SFT Inorbit Village Pocharam • Trading Date 1 st March 2008 • BUA=360, 000 SFT/ Carpet=320, 000 SFT Inorbit Vashi • Trading Date 15 th March 2008 • BUA=550, 000 SFT/ Carpet=350, 000 SFT Inorbit Cyberabad • Trading Date 15 th November 2008 • BUA=690, 000 SFT/ Carpet=470, 000 SFT Inorbit Lifestyle Vijaywada • Trading Date 1 st December 2008 • BUA=430, 000 SFT/ Carpet=300, 000 SFT Inorbit Village Verna-Goa • Trading Date 1 st July 2009 • BUA=500, 000 SFT/ Carpet=400, 000 SFT Inorbit Lifestyle, Vadodara • Trading Date 1 st Sept ember- 2009 • BUA=400, 000 SFT/ Carpet=300, 000 SFT Inorbit Pune • Trading Date 1 st August 2009 • BUA=510, 000 SFT/ Carpet=310, 000 SFT Inorbit Chennai • Trading Date 1 st Feb 2010 • Under planning Inorbit Makarpura, Baroda • Trading Date 15 th March 2010 • BUA=700, 000 SFT/ Carpet=500, 000 SFT Inorbit Indore • Trading Date 1 st March 2010 • BUA=450, 000 SFT/ Carpet=280, 000 SFT Inorbit Whitefield, Bangalore • Trading Date 15 th July 2010 • BUA=280, 000 SFT/ Carpet=190, 000 SFT Inorbit • Trading Date 2011 • Koba-Ahmedabad, • Kadamba-Goa, and Airoli

Thank you Manoj Motta manoj. motta@inorbit. in mmotta@kraheja. com Thank you Manoj Motta manoj. [email protected] in [email protected] com

Real Estate Demand Drivers – Large and Growing Consumer Class Disposable Income has grown Real Estate Demand Drivers – Large and Growing Consumer Class Disposable Income has grown at 11% 18. 0% 16. 0% 500 14. 0% 12. 0% 400 10. 0% 300 8. 0% 6. 0% 200 4. 0% 100 2. 0% 0 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 1. Source: National Income Statistics – October 2004 India would have 160 million families in the consuming class § Target market for organized retail 2. Source: The Marketing White Book, Business World – 2003, 2005 Y-o-Y growth (%) Personal Disposable Income (US$ bn. ) 600 Historic trend in household income levels have been positive §Negative growth in ‘destitutes’ §Consuming class has grown by 14% §Super Rich’ segment has doubled