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MARKETING RESEARCH

PROJECT REPORT

ON

SUBMITTED TO SUBMITTED BY

PROF. BIDYUT GOGOI ANKUR SINGH

PGDM – C

ROLL NO – 03
MARKETING RESEARCH DLF LTD

ACKNOWLEDGEMENT
I would like to thank my project guide Mr. BIDYUT GOGOI, Lecture of
Indira School business studies, Pune for his kind co-operation and
guidance to help me on with this project.
I would like to express my sincere gratitude to Mr. Dange, Depty director
of Indira School business of studies, Pune providing constant guidance
and encouragement. His constructive suggestions benefited me a lot.
Also I am thankful to some of my friends and colleagues who helped me
in discussions, and helped me with ideas and moral support.

Thanking You

ANKUR SINGH

PGDM- C,

ISBS, Pune

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CONTENTS

Topic Page No.

Executive Summary 4

Introduction 5

Company History 7

Vision and Mission of the Company 8

Organizational Structure 9

Financial Performance and ownership structure 10

Market Capitalization 15

Size in terms of no of employees and turnover 16

Executive profiles 17

Business Operation and Plant Location all over the world 19

Joint Ventures and Alliances (if any) in those locations 25

Business status (market situation/Relative market Position)

PEST Analysis 26

Industry Overview and analysis (Porter’s five forces model 27


and competitor analysis)
SWOT Analysis 30

Market Strategies 32

CSR Activities 34

New Marketing Opportunities 37

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1. EXECUTIVE SUMMARY

This secondary research project broadly involves the company analysis of “DLF
LTD”. The main objectives of working in this project:

1: To have analysis of the company.

2: To study the sector preferences in the industry.

The main aim of this secondary research is that you get to know the particular
company allotted to us and go through the company and make anlaysis of the working
of the company. For execution of Research project methodology adopted is
collection of data through secondary data source by searching the information on the
internet and go through some magazines and collect data from it and make analysis.

This types of data collection method help in finding the actual position of the
company and we get to know the important aspects of the industry.

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2. INTRODUCTION

DLF Limited, is India's largest real estate company in terms of revenues, earnings,
market capitalisation and developable area. It has a 62-year track record of sustained
growth, customer satisfaction, and innovation. The company has approximately 238
msf of completed development and 423 msf of planned projects, and has pan India
presence across 30 cities.

DLF's primary business is development of residential, commercial and retail


properties. The company has a unique business model with earnings arising from
development and rentals. Its exposure across businesses, segments and geographies,
mitigates any down-cycles in the market. DLF has also forayed into infrastructure,
SEZ and hotel businesses.

Development Business

The development business of DLF includes Homes and Commercial Complexes

The Homes business caters to 3 segments of the residential market - Super Luxury,
Luxury and Mid-Income. The product offering involves a wide range of products
including condominiums, duplexes, row houses and apartments of varying sizes. DLF
has 216 msf of developed area under homes and residential plots.

DLF is credited with introducing and pioneering the revolutionary concept of


developing commercial complexes in the vicinity of residential areas. Since its
inception in 2007, DLF has successfully launched commercial complexes and is in the
process of marking its presence across various locations in India.

The development business at present has 391 msf of development potential with 25
msf of projects under construction.

Annuity Business

The annuity business consists of the rental businesses of offices and retail.

With over six decades of excellence, DLF is a name synonymous with global
standards, new generation workspaces and lifestyles. It has the distinction of
developing commercial projects and IT parks that are at par with the best in the world.
DLF has become a preferred name with many IT & ITES majors and leading Indian
and International corporate giants, including GE, IBM, Microsoft, Canon, Citibank,
Vertex, Hewitt, Fidelity Investments, WNS, Bank of America, Cognizant, Infosys,
CSC, Symantec and Sapient, among others.

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DLF pioneered the retail revolution in the country and brought about a paradigm shift
in the industry by redefining shopping, recreation and leisure experiences with the
launch of City Centre in Gurgaon in 2000. The Retail Malls business is a major thrust
area for DLF. Currently, DLF is actively creating new shopping and entertainment
spaces all over the country.

The company has land resource of 92 msf for office and retail development, with 17
msf of projects under construction.

DLF has acquired AMAN Resorts to expand its presence in the hotel business
internationally. It also has a JV with Hilton hotels for the development and
management of hotels pan-India. DLF plans to develop world-class hospitality
properties under the luxury, business, leisure & recreational segments of the
hospitality industry. It has a development potential of 12 msf for its hotel business.

For better implementation and execution of its projects, DLF has created a set of
execution enablers – such as Laing O'Rourke for construction.

DLF has a strong management team running independent businesses, though


complementing each other in cases of opportunities of mixed land
use. DLF's mission is to build a world-class real estate development company with
the highest standards of professionalism, ethics and customer service and to thereby
contribute to and benefit from the growth of the Indian economy..

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3. COMPANY HISTORY

The DLF Group was founded in 1946. We developed some of the first residential
colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in 1949.
Since then we have been responsible for the development of many of Delhi’s other
well known urban colonies, including South Extension, Greater Kailash, Kailash
Colony and Hauz Khas.

Following the passage of the Delhi Development Act in 1957, the state assumed
control of real estate development activities in Delhi, which resulted in restrictions on
private real estate colony development. We therefore commenced acquiring land at
relatively low cost outside the area controlled by the Delhi Development Authority,
particularly in the district of Gurgaon in the adjacent state of Haryana.

This led to our first landmark real estate development project – DLF Qutab Enclave,
which has now evolved into DLF City. DLF City is spread over 3,000 acres in
Gurgaon and is an integrated township, which includes residential, commercial and
retail properties in a modern city infrastructure with schools, hospitals, hotels and
shopping malls. It also boasts of the prestigious DLF Golf and Country Club with
night golfing facilities.

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4. VISION / MISSION

DLF VISION

To contribute significantly to building the new India and become the world’s most
valuable real estate company.

DLF MISSION

To build world-class real-estate concepts across six business lines with the highest
standards of professionalism, ethics, quality and customer service

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5. ORGANISATIONS STRUCTURE

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6. FINANCIAL PERFORMANCE

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OWNERSHIP STRUCTURE:

S. No. Director's Name Designation

1 K P Singh Executive Chairman


2 Rajiv Singh Vice Chairman
3 T C Goyal Managing Director
4 Pia Singh Whole Time Director
5 G S Talwar Non Executive Director
6 Kameshwar Swarup Executive Director
7 Ravinder Narain Independent Director
8 K N Memani Independent Director
9 Brijendra Bhushan Independent Director
10 Narendra Pal Singh Independent Director
11 M M Sabharwal Independent Director
12 D V Kapur Independent Director

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7. MARKET CAPITALISATION

Date of Listing
July 5, 2007

Number of Outstanding Shares


1,704,832,680 with paid-up value of Rs 2 each

Exchanges on which it is Listed

• Bombay Stock Exchange


• National Stock Exchange

Stock codes

• BSE: 532868
• NSE: DLF
• Reuters: DLF.BO, DLF.NS
• Bloomberg: DLFU.IN

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8. SZE IN TERMS OF NO. OF EMPLOYEES & TURNOVER

EMPLOYEES:

DLF had approximately 2,882 employees, including 2,100 professionals, an increase


of 800 employees since 31st OCT 2006.

TURNOVER:

DLF financial results for Q1 FY09-

 Consolidated Revenue at Rs 3,846 crore, up by 23% from Rs 3,121 crore


 Consolidated PAT at Rs 1,864 crore, an increase of 23% from Rs 1,516 crore

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9. EXECUTIVE PROFILES

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10. BUSINESS OPERATIONS:

(I) HOMES

Built on a foundation of strong lineage and an established reputation, DLF Home


Developers, the residential business group of DLF, has been a trendsetter in
contemporary urban development and housing. These developments have always
been all embracing with comprehensive solutions for eminent and quality living.

DLF has pioneered some of the best-known urban housing and retail destinations in
Delhi including South Extension, Greater Kailash, Rajouri Garden, Model Town,
Hauz Khas and Kailash Colony.

Featuring International standards geared to serve customer needs, the Group's


complexes are truly a reflection of quality living and contemporary lifestyles. The
product categories of the Group deliver the synergistic strengths of good architecture,
appropriate designs, impressive aesthetics and safety features.

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The Group is also establishing partnerships with reputed leaders in the field of
education, healthcare, and hospitality services.

Pioneered townships and group housing in India

• 220 million square feet developed as colonies and townships in the past,
including 17 million square feet of residential properties
• Offers superior products in the super-luxury category
• Several world-class projects in the pipe-line
• Expansion into multiple cities across country

India’s leading player in homes:

• Three generations of relationships with customers


• Trusted brand
• Superior execution track record

(II) OFFICES

With over six decades of excellence, DLF is a name synonymous with global
standards, new generation workspaces and lifestyles. The Group has a distinction of
developing commercial projects and technology parks that are at par with the best in
the world.
DLF has pioneered the 'walk-to-work' concept in the 3,000-acre DLF City, where
well-planned residential developments are integrated with modern business and
commercial complexes. DLF's contemporary workplaces are equipped with modern
facilities that synchronize functional efficiencies with aesthetic appeal and have been

identified as preferred destinations by leading MNC's and Indian corporate, including


many Fortune 500 companies.

Today, IT SEZs in India under the guidelines of SEZ Act are offering huge tax
incentives for the cost competitive IT/ITES industry. DLF is aggressively pursuing the
development of IT SEZs across India and has already attained notification for five IT
SEZ out of its current portfolio of over 10 IT SEZ.

DLF Commercial offers ready-to-move-in as well as built-to-suit options in Campus


Style development with scalable growth and large landscaped greens, Effective
Disaster Management Plan, Integrated retail and recreation areas, Provision for
amenities like gym, food court, health club, business centre, 24x7 medical services
etc.

Thus, DLF has become a preferred name with many IT & ITES majors and leading
Indian and International corporate giants. To name a few... GE, IBM, Microsoft,
Canon, Citibank, Vertex, Hewitt, Fidelity Investments, WNS, Bank of America,
Cognizant, Infosys, CSC, Symantec, and Sapient.

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(III) COMMERCIAL COMPLEXES

The DLF Group is founded on the strengths of a strong lineage and history. This
spans a period of well over half a century, involving the development of as many as
21 urban townships in Delhi including well-known retail destinations of South
Extension, Greater Kailash and Hauz Khas. This vision and commitment
subsequently led to the development of DLF City in Gurgaon, home to some of the
best known and leading Corporate and Commercial houses.

DLF Commercial Complexes is a part of DLF group and is responsible for the
development and construction of commercial complexes pan India.

Since its inception in 2007, DLF Commercial Complexes Ltd. has successfully
developed commercial spaces and is in the process of marking its presence across
various locations in India. DLF Commercial Complexes is known for introducing and
pioneering the revolutionary concept of developing Commercial Complexes in the
vicinity of residential areas. Some of the successful projects of DLF Commercial
Complexes are DLF Towers – Okhla, DLF Towers - Hyderabad, DLF Towers -
Jasola, DLF Plaza – Lucknow, DLF Galleria – Kolkata to name a few.

The success of the DLF Commercial Complexes Ltd can be attributed to its
implementation of successful business models, which include development of
innovative business strategies, strengthening its professional resources and driving
market penetration that is adaptive to local market needs. The strategic positioning of
its projects and scale of operations make DLF Commercial Complexes Ltd. the
indispensable leader in the commercial real estate business. Today, DLF Commercial
Complexes is known to have developed some of the finest commercial complexes,

which combine the best in design, aesthetics and comfort offering the finest business
solutions to their customers.

DLF Commercial Complexes Ltd is a part of DLF Limited, developing Indian real
estate for over six decades. It boasts of having completed projects of over 35 million
sq. ft. across its residential, commercial and retail businesses. DLF Commercial
Complexes Ltd is headed by Mr. Ajay Khanna, Managing Director.

A strong Pan-India presence backed with a full range of project planning,


management and execution skills makes DLF Commercial Complexes a leader in the
business.

(IV) RETAIL

DLF pioneered the retail revolution in the country and brought about a paradigm shift
in the industry by redefining shopping, recreation and leisure experiences with the

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launch of City Centre in Gurgaon in 2000. Changing lifestyles, an accent on quality


entertainment, transition in consumer preferences from conventional modes to a
wholesome entertainment experience, and enhanced income levels and propensity to
spend have further triggered the growth in the retail market in the country. These
factors have contributed to establishing India as the fifth-largest retail destination in
the world. DLF Retail's foray into the exciting arena of mall development
synchronized well with the Group's activities in the entertainment infrastructure
development business – cine multiplexes that go by the brand name, DT Cinemas.

(V) SEZs

The GoI has taken a number of measures to encourage foreign investment in and
exports from the country. These include the introduction in 2005 of a Special
Economic Zone regime under which specified land is deemed to be “foreign territory”
for the purposes of Indian customs controls, duties and tariffs.
SEZs are a new business concept in India, and provide attractive fiscal incentives for
both developers and tenants. SEZs are a key element of the infrastructure
development plans of the central and state governments in India, which are
increasingly authorizing the development of SEZs in various locations across the
country. We see the development of sector specific as well as multi-product SEZs as a
major growth area for our Company. Each multi-product SEZ will be developed as an
integrated township and will include residential accommodations, commercial and
retail facilities, as well as schools, hospitals, hotels and other support infrastructure,
including captive power generation facilities.

(VI) HOTELS

DLF Hotels is a premium hotel and resort development company focused on


developing the hospitality market segment in India. Its vision is "to be India's
premium hospitality real estate development company" by leveraging its real estate
capabilities to build and own India's largest chain of hospitality assets.

The objective is to develop, acquire, finance and actively manage world-class


hospitality properties. The company is in the process of building over 25,000 rooms in
more than 40 cities and tourist destinations across India. These are being developed
under the luxury, business, leisure & recreational segments of the hospitality industry.
The multi-crore investment in the business structure would include diverse property
tie-ups. These would be with the finest and comprehensive global operators to suit
"individual property" theme with some of the leading brand's of hotels in the world.

From its head quarters in Gurgaon, DLF Hotels deploys a team of high caliber and
talented professionals, committed to developing and delivering premium properties.
Equipped with its expertise in real estate development, advanced technology and an

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enormous land bank, the company focuses on delivering innovative property designs
with precise execution skills.

DLF Limited, the parent company of DLF Hotels, is the largest and most esteemed
organization in the real estate business with over six decades of experience in the
market. In September 2006, DLF Limited was the only real estate firm amongst the 60
business names "Superbrands of India" under the real estate category.

The emphasis now is on strengthening its lateral and vertical business drivers. These
include the development of innovative business strategies, the strengthening of
professional resources and driving market penetration. DLF Limited has a variety of
projects that not just re-define the hospitality landscape, but the very concept of
luxury as well.

(VII) INFRASTRUCTURE

With the growing economic developments in the country, the major emphasis is on
the infrastructure development across the country. Infrastructure would propel the
overall growth of the nation.

Significant growth opportunities in the infrastructure sector are expected through the
route of Public-Private Partnerships (PPP). There is a significant size of investments
earmarked by the government and there are tremendous opportunities in the sector for
private players to contribute in the nation's growth.

DLF has also earmarked the sector and foresees the infrastructure vertical to create
new source of revenues and growth to the group. The key focus areas of vertical are
construction of expressways, highways, airports and other key infrastructure projects.

Already two PPP Multilevel Parking projects for: Sarojini Nagar and Baba Kharag
Singh Marg projects are underway.

Going forward this business group would seek to tap opportunities for growth across
the infrastructure sector through relevant strategic partnership with reputed global
players in designated areas of operations.

(VIII) LEISURE

DLF Golf and Country Club


DLF CITY PHASE V, GURGAON, ON THE SOUTHERN BORDER OF NEW DELHI

One of the landmark creations of DLF, it been ranked* as the best in the country and
amongst the leading golf courses in Asia. The Arnold Palmer Signature Golf Course is
India's first Golf Course to offer night golf facility; the undulating greens light up in

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the night to offer a tee off under the stars! In the day, the dramatic Aravali range
offers a magnificent backdrop to the 7204 yard, 18-hole, par-72 championship course.

Landscaped by internationally acclaimed architect Belt Collins, this beautiful parkland


is home to five sparkling lakes, meandering streams, variety of flora and fauna, and of
course world class fairways.

The Club House, designed in true colonial style, offers a lounge and locker rooms; a
well-stocked pro shop; a bar and restaurant; masseurs, steam and sauna; snooker and
pool tables, a delightful sun-deck with fabulous views of the landscape. The Sports
Complex comprises a 25 meter lagoon sized swimming pool, night-lit tennis courts,
gymnasium, squash courts, horse riding, basketball hoop, artistic and traditional yoga,
aerobic classes, kick-boxing and taekwondo.

The Course is complimented by the finest golf teaching academy offering the most
comprehensive golf lessons in the country. Golfers are bred here by top-notch pros
offering world class teaching technique and equipment.

It has played host to some of the most prestigious national and international
tournaments like Hero Honda Indian Open, BILT Skins, DLF Masters, DLF Women
Indian Open and the Johnnie Walker Classic.

PLANT LOCATIONS:

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11. JOINT VENTURES & ALLIANCES

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1. Laing O'Rourke- UK based construction company credited with construction of


Dubai International Airport, London's Millennium Tower, etc, will construct all DLF's
landmark projects. Together DLF-Laing O' Rourke shall build the expressways, ports
and other megastructures of India's new economy.

2. Nakheel of Dubai are partnering with DLF for developing townships in India.

3. WSP Group Plc is also partnering DLF, providing Management and consultancy to
the built and natural environment.

4. Feedback ventures, is providing consultancy for faster project execution to DLF.

5. DLF has also tied up with Hilton Hotels to jointly develop hotels in India.

13. PEST ANALYSIS

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Political Factors

 SEZ Act to Boost Infrastructural Development


 Cement Prices Reduced for State Infrastructure Projects
 FDI Liberalization to Augment Industry Growth
 REITs to Positively Affect Real Estate Business

Economic Factors

 Growth in Construction Activity Stimulating GDP Growth


 Rate Hikes Unlikely To Slow Down Growth

Social Factors

 Shifting Consumption Pattern to Fuel Industry Growth


 Rising Urbanization to Boost Industrial Growth

Technological Factors

 Low Technology Adoption to Hinder Growth


 Construction as per Indian Requirements
 Ready-Mix–Concrete Being Experimented With

14. INDUSTRY OVERVIEW

The Indian real estate sector plays a significant role in the country's economy. The
real estate sector is second only to agriculture in terms of employment generation and

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contributes heavily towards the gross domestic product (GDP). Almost five per cent
of the country's GDP is contributed to by the housing sector. In the next five years,
this contribution to the GDP is expected to rise to 6 per cent.

According to Jones Lang LaSalle, faster economic growth in Brazil, Russia, India and
China (BRIC) could result in the property markets of those nations recovering at a
faster rate than the UK and US real estate markets. It has also been suggested that
India's property sector could begin to improve from late 2009 and may attract up to
US$ 12.11 billion in real estate investment over a five-year period.

Almost 80 per cent of real estate developed in India is residential space, the rest
comprises of offices, shopping malls, hotels and hospitals. According to the Tenth
Five Year Plan, there is a shortage of 22.4 million dwelling units. Thus, over the next
10 to 15 years, 80 to 90 million housing dwelling units will have to be constructed
with a majority of them catering to middle- and lower-income groups.

Moreover, India leads the pack of top real estate investment markets in Asia for 2010,
according to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a
global non-profit education and research institute.

The report, which provides an outlook on Asia-Pacific real estate investment and
development trends, points out that India, particularly Mumbai and Delhi, are good
destinations. Residential properties are viewed as more promising than other sectors
and Mumbai, Delhi and Bangalore top the pack in the hotel ‘buy' prospects as well.

The study is based on the opinions of over 270 international real estate professionals,
including investors, developers, property company representatives, lenders, brokers
and consultants.

Apart from the huge demand, India also scores on the construction front. A McKinsey
report reveals that the average profit from construction in India is 18 per cent, which
is double the profitability for a construction project undertaken in the US.

The real estate sector is also likely to get a boost from Real Estate Mutual Funds
(REMFs) and Real Estate Investment Trusts (REITs). In fact, according to a CRISIL
paper, the REITs would have the potential to hold at least 5 per cent share of the total
global real estate market by 2010, the size of which would reach US$ 1,400 billion in
the next three years. The paper titled, ‘Indian REITs; Are We Prepared', says that by
2010, REITs alone would hold a market size of US$ 70 billion of the total real estate
market as its concept is gaining ground in countries like India and other developing
nations.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI),


the Indian real estate sector is likely to experience consolidation wherein bigger
players may opt for outright buy of smaller firms or forge joint ventures or business
alliances with them.

Foreign direct investment (FDI) into India in the real estate sector for the fiscal year
2008-09 has been US$ 2.8 billion approximately, according to the latest data given by
the Department of Policy and Promotion (DIPP).

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Moreover, buoyed by positive market sentiment and demand revival in housing, four
real estate companies—Emaar MGF Land, Lodha Developers, Sahara Prime City and
Ambience Ltd—are looking to mop-up over US$ 2.35 billion through public
offerings.

New Projects

• Zuri Group Global is planning to invest about US$ 247.5 million towards
setting up five-star business hotels and luxury residential properties over the
next three years.
• An investment of US$ 627.3 million will be made by industries in the
Aeropsace and Precision Engineering Special Economic Zone at Adibatla,
Andhra Pradesh.
• Unitech will invest US$ 853.42 million in construction of up to 30 million sq
ft of residential and commercial spaces to be launched by next year.
• Real estate developer The 3C Company will develop an affordable housing
project over 41 acres of land in Noida at an investment of US$ 519.93 million.
• A consortium consisting of the Essel Group and Delhi-based Bhushan Steel
and Power will develop an amusement, theme and knowledge city over 250
acres at Kharghar in Navi Mumbai. The total value of the transaction is US$
454.95 million making it, in absolute terms, one of the largest real estate
transactions in India.
• Tata Realty and Infrastructure Limited (TRIL) will develop a US$ 758.47
million IT Special Economic Zone (SEZ) in Chennai.

Government Initiatives

The government has introduced many progressive reform measures to unlock the
potential of the sector and also meet increasing demand levels. The stimulus package
announced by the government, coupled with the Reserve Bank of India's (RBI) move
allowing banks to provide special treatment to the real estate sector, is likely to impact
the Indian real estate sector in a positive way. RBI has decided to extend exceptional
concessional treatment to the commercial real estate exposure which are restructured,
up to June 30, 2009.

• 100 per cent FDI allowed in realty projects through the automatic route.
• In case of integrated townships, the minimum area to be developed has been
brought down to 25 acres from 100 acres.
• Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by
increasingly larger number of states.
• Minimum capital investment for wholly-owned subsidiaries and joint ventures
stands at US$ 10 million and US$ 5 million, respectively.
• Full repatriation of original investment after three years.
• 51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cash-
and-carry through the automatic route.

The 2009-10 budget has also given sops to the realty sector. Developers of affordable
housing projects (units of 1,000-1,500 sq ft) have been granted a tax holiday on profits
from projects initiated in the financial year 2007-08. Such projects would have to be
completed before March 1, 2012.

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At the same time, the finance minister allocated US$ 207 million to grant a 1 per cent
interest subsidy on home loans up to US$ 20,691, provided the cost of the home is not
more than US$ 41,382. This subsidy is expected to give a further boost to the housing
sector.

Road Ahead

According to the Confederation of Real Estate Developers' Associations of India


(CREDAI), the affordable housing segment is set to play an important role in India's
real estate sector in 2010 on the back of an uptick in demand.

Moreover, 2010 is expected to be a positive year for the real estate sector. The revival
is expected to be driven by infrastructure growth, which, in turn, can accelerate real
estate activities both in the residential as well as commercial spaces.

Michael Porter’s Five Force Analysis

4.1 Buyer Power


Low/ Moderate Bargaining Power of Buyers

4.2 Supplier Power


Moderate/ High Bargaining Power of Suppliers

4.3 Intensity of Competition


High

4.4 Threat of New Entrants


Low barriers to entry

4.5 Threat of Substitute Products low

15. SWOT ANALYSIS

STRENGTH:

1. Employment and training opportunities in the field of construction

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2. Private sector housing boom and commercial building demands.

3. Construction of the multi building projects on the feasible locations in the country.

4. Good structured national network facilitates the boom of construction industry.

5. Low cost well educated and skilled labor force is now widely available across the
country.

6. Sufficient availability of raw material and natural resources in the country is


supportive for the industry.

7. Real estate development is on high and it is attracting the focus of the industry
towards industry.

WEAKNESS:

1. Chances of natural disadvantage are there.

2. Distance between construction projects reduce business efficiency.

3. Training itself has become a challenge.

4. Changing skills requirements and an ageing workforce may accentuate the skills
gap.

5. Improve in long term career prospects in highly required to encourage staff


retention and new entrants.

6. External allocation of large contracts become difficult.

7. lack of clearly define processes and procedures for construction and its
management.

OPPORTUNITY:

1. Continuous private sector housing boom will create more construction


opportunities.

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2. Public sector projects through public private partnership will bring further
opportunities.

3. Developing supply chain through involvement in large projects is likely to enhance


the chances in construction.

4. Renewable energy projects will offer opportunities to develop skills and capacity in
new markets.

5. More flexible training delivery technique are now available.

6. Financial supports like loan and insurance and growth in income of people is in
support of construction industry.

7. Historical cultural heritage like the Taj Mahal encourage and provide a creative
platform for the industry.

THREAT:

1. Long term market instability and uncertainty may damage the opportunities ad
prevent the expansion of training and development facilities.

2. Current economic situation may have an adverse impact on construction industry.

3. Political and security condition in the region ad late legislative enforcement


measures are always threats to any industry in India.

4. Infrastructural safety is challenging task in construction industry.

5. Lack of political willingness and support on promoting new strategies.

6. Natural abnormal casualties such as earth quake and floods are uncertain and can
prevent the construction boom.

16. MARKETING STRATEGIES

Product strategies

The current trend in the construction industry is moving away from quantity to
quality, forcing contractors to upgrade the quality and sophistication of their
service,be it a civil engineering project, construction of an intelligent building or

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normal coventional construction.Hence,marketing-oriented contractors will be


concerned with the job of developing construction services to satisfy te ever-changing
and intense competitive environment in the constructio industry.

Price Strategies

Place Strategies:

Location of the firm is not always an important factor as clients do not


frequently visit them. The IVRCL infra ltd location are located in the majoor cities eg
Bangalore . Delhi & Hyderabad, Vemagiri, Andhra Pradesh, Chennai, Tamil Nadu,
Mangalore, Karnataka, Istanbul, Turkey etc they are located nearer to their clients and
project. Thus they will be able to save on the costs and time spent on travelling.
Channels are designed by IVRCL to deliver their services more effectively to
clients. If the firm’s target segment is in the central business district, a head office is
best located in that area that is Hyderabad like in IVRCL Infra Ltd.

Promotion Strategies:

Promotion is an method of infoming , persuading or reminding clints about


the marketing mx of product, place and price.The most commonly used promotional
tools in the GMR Infra Ltd. Are advetising the comopany’s profile printed in the form

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MARKETING RESEARCH DLF LTD

of brochures, maintaining personal and past business contacts entertainment and


personal visits to potential clints.

17. CSR ACTIVITIES

While DLF continues to create world-class infrastructure throughout India, it has not
lost sight of its responsibilities as a change agent for accelerating the pace of social
and economic transformation across various segments to complement the efforts of
the government.

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MARKETING RESEARCH DLF LTD

SWAPNA SARTHAK INFORMAL SCHOOL

In fact DLF's first social responsibility interventions date back to the time that DLF
was setting up the DLF township in Gurgaon when instead of turning a blind eye to
the local problems, DLF decided to undertake internal development work in the
villages of Nathupur, Chakarpur and Wazirabad by contributing through construction
of internal village roads, additional rooms in the schools and internal village
electrification. At around the same time, DLF initiated its first education initiative by
setting up the Swapana Sarthak informal school for children of the construction
workers. This school manned by trained volunteers conducts classes for children who
are ill equipped to join regular school or those who cannot afford to do so. All
children enrolled are provided with free uniforms, mid day meals and learning
material. Starting from merely 10 students, the school today has on roll 220 students.
Initially getting the children out of their homes and instilling a sense of personal
hygiene and cleanliness was a challenge and the volunteers had to really work on
them to ensure the present state.

DLF Learning Excellence Centres


Taking the education initiative ahead, DLF partnered with Pratham in May 2007 and
set up DLF Learning Excellence Centres in 25 villages by involving the government
schools, community teachers and introducing innovative teaching learning material.
The main hurdles faced during the project were lack of adequate means of public
transport and resistance from the local community to involve the women. However,
these were overcome through a sustained education and awareness campaign
conducted across the entire village community and by taking the village Panchayats
into confidence. This is an ongoing project likely to benefit 1100 students over a
period of one year.

DLF Labour Hutment


While all the big developers focus only on providing world-class facilities to their
buyers DLF carried its social responsibility initiatives to the construction work sites in
Gurgaon once it started construction of the DLF Township. At DLF it was felt that
even though there had been tremendous improvement in construction technology and
quality it was distressing to note that the people who actually make all the glitzy
buildings were a neglected lot and often required to do so in inhuman conditions. The
sight of construction workers and their children living in jhuggies without even the
basic facilities at most of the construction sites is not uncommon. At DLF it was their
constant endeavor to improve the living conditions of their construction workers by
providing them all the basic necessities at the site itself by efficient and effective
space management. DLF seized the initiative in this respect and became a pioneer in
providing all necessary facilities to its construction workers on site when it tied up
with Laing O Rourke for construction projects. It was decided that before
commencement of the construction a suitable location be identified on site for
construction of hutments to house the workforce for the entire duration of the project.
Instead of constructing makeshift or temporary accommodation DLF sanctioned hefty
budgets to build a mix of cemented hutments and dormitories for the workers. The
entire labour hutment area was paved to ensure easy access even during the monsoons
and the work of sanitation and housekeeping was outsourced to a third party namely
M/s Lion Services. All the residential accommodation at the DLF labour hutment site
is provided with electricity, water, fans, beds and linen and separate areas have been

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MARKETING RESEARCH DLF LTD

provided for toilets and washing. In order to take care of the children of the workers
mobile crèches have been made available on site through a strategic tie up with an
NGO named Mobile Creches. A subsidized canteen manned by a third party has also
been made available on site to ensure hygienic and good quality food on site. Medical
help is available on site along with a 24-hour ambulance to take care of emergencies.
In order to improve the skills of the workers as well as train potential workers on site
a non-profit residential "Apprentice Training Centre" for imparting skills in carpentry
and masonry was started.

Rural Primary Health Centres


In March 2007, DLF decided to focus on another hitherto neglected but vital area –
rural healthcare. It was decided to set up Rural Primary Health Centres in villages to
provide free medical consultancy, health checkups and subsidized medicines to the
villagers. The first Primary Health Centre was set up at Village Shikohpur in August
2007 in association with an NGO Deepalaya. It is proposed to set up six such centres
in the present financial year.

Helping the Rural Craftmen

While at one level DLF focused at initiatives for infrastructure augmentation,


education and health at the same time it was felt that as a infrastructure creator DLF
must also provide a forum for rural craftsmen to display their wares by bringing them
closer to the urban consumers thereby increase their avenues of income. As part of
this initiative in the retail malls set up in Gurgaon, wherein DLF was the pioneer in
providing international standard shopping experience, DLF awarded free space to a
few NGO's like Khushboo Welfare Society, India Vision Foundation and the
Rashtriya Blind School and others to enable them to exhibit their products for
awareness and to create awareness for the cause they espouse.

Vocational Training Centres

As part of its strategy to train and empower people with permanent skills thereby
enabling them to earn their livelihood for times to come DLF has set up job linked
vocational training centres in Hospitality, Customer Relations and Salels and IT
enabled services. These training centres have been equipped with all necessary
training infrastructures from computer labs to headphones and LCD projectors.

Development of Arya Samaj Mandir

DLF Commercial Developers Ltd. has contributed Rs.20 lacs towards the
development of Arya Samaj Mandir in DLF City, Phase-II. This will not only help in
over all development of the Mandir primises but also help the community at large
wherein devotees can come and seek spiritual solace.

Environment Programs

Haryana Urban Development Authority (HUDA) has consistently over the last seven
years awarded DLF with "Excellence in Horticulture Preservation". A total of 47
awards have been received under various categories.

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MARKETING RESEARCH DLF LTD

DLF has installed one of its kind gas-based power generation system at the Infinity
Tower. Co-generation is also a part of this installation as we are utilizing the waste
heat for air-conditioning and are in effect saving about 25 per cent of power.

This year (July-August, 2007) DLF initiated an plantation drive in 21 villages of


Haryana by involving the Government school children and the local Panchayats with
support from the Forest Department .

DLF is in the process of switching its street lighting system to 36 watts CFL with
electronic choke thereby saving 15-20 watts per street light.

Challenges faced while initiating CSR initiatives

a. Designing, developing and executing standard uniform facilities and


guidelines at all construction sites
b. Identification of credible NGOs to run the various CSR programs.
c. Securing active partnerships with the Panchayats in the Rural CSR initiatives
account of strong internal politics and affiliations.
d. Securing participation of the entire community on account of Inter caste
politics operating in the villages
e. Securing participation of girl child in the education programs on account of
lack of awareness and indifference to education of the girl child

Employees volunteering programme

Before undertaking any CSR initiative in a region, the concerned employees in that
region are contacted to understand the need of the area and CSR programmes are
developed keeping in mind the identified need. Employees are further involved in
monitoring of programmes to ensure effective delivery.

In the present financial year DLF is initiating a donation programme wherein the
employees will contribute and donate old clothes and other household articles for the
construction workers and their families employed at DLF construction sites.

Blood Donation camps are also being organised for blood donation by the employees
in association with Lions Blood Bank.

18. NEW MARKETING OPPORTUNIES:

 Health cities: Large scale integrated development.

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MARKETING RESEARCH DLF LTD

 Hospitals: combining the services of a hotel and hospital.

 Slum-Rehabiliation

 Mass Housing

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