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JBS Training Report

JBS Training Report

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Published by: Vaibhav Singh on Nov 06, 2010
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  • Cash Flow Analysis
  • Annual results in brief
  • Objectives of the Study
  • Research Methodology
  • Data Analysis Tools
  • First pull factor
  • Factors determining the Choice of a Housing Complex
  • The In-Locality factors
  • Investment Preference
  • Preferred Method of Financing
  • Reasons for Shifting
  • Quality of Living


I hereby certify that I, ADITYA KUMAR SINGH have successfully completed my internship with ³JAIPRAKASH ASSOCIATES LIMITED´ in the month of JUNE, 2010 from 19th April to 19th June. This is also to certify that this report is an original product and no unfair means like copying etc have been used for its completion.

Name: ADITYA KUMAR SINGH Signature: Date:



This is to certify that Mr. ADITYA KUMAR SINGH has successfully completed his internship with us in the month of June, 2010 from 19th April to 19th June. We wish him/her all the best for all his future endeavors.

Name of the Supervisors: Mr. PIYUSH SRIVASTAVA Manager (Sales) Signature: Date:

Mr. APURVA GAUR Senior Manager (Sales)


Behind every fruitful endeavor lie the advice, guidance and inspiration of all people directly or indirectly involved with the report. I wish to express my gratitude to all the people involved in the completion of the report. They have been a constant of support for me. I would also like to thanks to ³Jaiprakash Associates Limited´ who accepted me in spite of my inexperience in the field and gave me the opportunity to work with them.

The feeling of esteem and euphoria on the completion of this Summer Internship Project will be worthless without thanking for the immense help and guidance received fromMr. Pavan Bhargava (Vice President Sales), Mr. Apurva Gaur (Senior Manager Sales) and Mr. Piyush Srivastava (Manager Sales). I am indeed very thankful to them, for there unending support right from the inception of this work. They continuously spared theirprecious time and provided me right guidance at every stage. I sincerely thank them for providing me with guidance, support and encouragement which has enabled me to complete the project successfully. I would also like to express my gratitude towards my faculty supervisor Prof. H.S. Shekhawat for giving me directions and guidance at the time when most needed and for helping me during my internship.

I would also like to thank all the faculty members of Jaypee Business School, for their full support in making the project enriching and informative and providing requisite facility in due course of the internship. Their constructive criticism of approach to the problem and the result obtained during the course of this work has helped me to a great extent in brnging i work to its present shape.



Table of Contents EXECUTIVE SUMMARY««««««««««««««««««««.62 NATURE & SCOPE OF THE STUDY«««««««««««««««««62 RESEARCH METHODOLOGY«««««««««««««««««««..67 INVESTMENT PREFERENCE««««««««««««««««.64 DATA ANALYSIS««««««««««««««««««««««««.65 FACTORS DETERMINING THE CHOICE OF HOUSING COMPLEX««..47 COMPARISON BETWEEN JAIPRAKASH ASSOCIATES LTD.38 PEST ANALYSIS««««««««««««««««««««««««...66 IN-LOCALITY FACTORS««««««««««««««««««.57 CASH FLOW ANALYSIS«««««««««««««««««««««.60 PROJECT INTRODUCTION««««««««««««««««««...72 ANALYSIS OF GREATER NOIDA«««««««««««««««73 PREFERRED METHOD OF FINANCING««««««««««.6 COMPANY PROFILE«««««««««««««««««««««...27 MARKET OVERVIEW««««««««««««««««««««««...20 INDUSTRY ANALYSIS««««««««««««««««««««..43 FINANCIAL ANALYSIS««««««««««««««««««««47 RATIO ANALYSIS««««««««««««««««««««««..73 REASONS FOR SHIFTING«««««««««««««««..29 PORTER¶S FIVE FORCE MODEL ANALYSIS«««««««««««««..63 DATA SAMPLING««««««««««««««««««««««««63 DATA COLLECTION««««««««««««««««««««««.«16 JAYPEE GREENS««««««««««««««««««««««««.........8 JAYPEE INFRATECH LIMITED«««««««««««««««««««13 THE ROLE OF JAYPEE GROUP«««««««««««««««««.61 OBJECTIVES OF THE STUDY«««««««««««««««««««.39 INDUSTRY COMPETITORS«««««««««««««««««««.27 BASIC FRAMEWORK««««««««««««««««««««««. & UNIECH«««.65 FIRST PULL FACTOR«««««««««««««««««««...63 DATA ANALYSIS TOOL«««««««««««««««««««««..74 4|Page ...58 ANNUAL RESULTS IN BRIEF«««««««««««««««««««...

90 INVESTOR PERCEPTION TOWARDS CITIES OF NCR««««««.ANALYSIS OF NOIDA«««««««««««««««««««.93 LOCATION««««««««««««««««««««.89 PREFERRED METHOD OF FINANCING««««««««««89 REASONS FOR SHIFTING««««««««««««««.96 LAW & ORDER««««««««««««««««««.94 QUALITY OF LIVING««««««««««««««««..77 PREFERRED METHOD OF FINANCING««««««««««....81 REASONS FOR SHIFTING«««««««««««««««82 ANALYSIS OF FARIDABAD «««««««««««««««««85 PREFERRED METHOD OF FINANCING««««««««««85 REASONS FOR SHIFTING«««««««««««««««86 ANALYSIS OF GHAZIABAD««««««««««««««««...100 CONCLUSIONS««««««««««««««««««««««101 KEY LEARNINGS «««««««««««««««««««««103 ANNEXURE«««««««««««««««««««««««.81 PREFERRED METHOD OF FINANCING««««««««««.93 BUSINESS HUB««««««««««««««««««.97 INFRASTRUCTURE«««««««««««««««««98 RECOMMENDATIONS «««««««««««««««««««.1 04 REFERENCES ««««««««««««««««««««««..77 REASONS FOR SHIFTING«««««««««««««««78 ANALYSIS OF GURGAON«««««««««««««««««.110 5|Page ..

The report provides insight to the various factors considered by the investors while making a Real-Estate investment in the cities of NCR. Gurgaon.EXECUTIVE SUMMARY Jaypee Group is a promising well diversified infrastructural conglomerate in India expanding rapidly to an increasing demand from market on differentiated areas including: y y y y y y Engineering and Construction Cement Power Hospitality Real Estate Expressways and Highways The objective of this report is to understand the investors¶ perception about their Real Estate investments in the cities of NCR. The basic amenities such as Water and Power Backup are implied to be existent by the investors while Maintenance and Safety/Security along with Quality of Construction play a major role in the investment process. The report suggests the various plausible factors for the investors to invest into Real-estate in these cities instead of making similar investments in Delhi. The study aims to maximize the possibilities of increasing such investments by analyzing the collected data. Noida. Greater Noida. The study also aims to determine the poss ible causes for the people to shift from their current location to one of the aforementioned cities. 6|Page . The study is a research based project based upon primary data collected with the help of questionnaires. The research involves respondents from the five cities of NCR viz. The research reveals that one of the most important First-Pull factor for the investors is the location of the site. The project incorporates various analytic tools and techniques. Faridabad and Ghaziabad. The most basic factor that affects the choice of a particular housing complex for an individual investor is its Price range.

Rental property and Land related investments remain at the top of investors¶ preference lists.Condominiums. Greater Noida is one of the fastest emerging competitors closely following Noida and Gurgaon under all the heads and with the various projects bein g undertaken in the region. 7|Page . Gurgaon takes the lead however it lay below the city of Noida under the head Quality of Living. On the basis of Location Noida was the first preference of the investors while as a Business Hub. Gurgaon tops the list. For almost all the five cities. Taking into consideration the Law & Order situation and Infrastructural development. path ahead seems very bright indeed. Loan(s) from a Financial Institution remains as the most preferred method for generation of finance for the deals while the reason people may want to shift from their current locations to the NCR vary from city to city.

To obtain sustainable development and simultaneously enhancing the shareholders value and fulfilling our obligations towards building a better India. We aim to achieve perfection in everything we undertake with a commitment to excel. It is the determination to transform every challenge into opportunity. to seize every opportunity to ensure growthand to grow with a human face. as the key to nation building in the 21st century. Real Estate or Consultancy. Quality Policy of the company To become globally competitive in Infrastructure sector with commitment to conform to the customer requirement through continual improvement and optimal utilization of resources while growing with a human face. 8|Page . we are committed to strategic business development in infrastructure.be it Engineering & Construction. Mission of the company Our solitary Mission is to achieve Excellence in every sector that we operate in . To augment our core competencies and adopt the most comprehensive modern technology to ovetake the r obstacles in our path of achievement.COMPANY P ROFILE JAIPRAKASH ASSOCIATES LIMITED Vision of the company As a group. Cement.

5mtpa by 2011. It is also doubling its cement capacity and has interests in hotels & hospitality sectors. moved up to US$10 bn which is almost 10 times its FY08 consolidated sales. to almost 20 MTPA. The construction division is expected to show a significant increase in growth in FY10. It undertakes large -scale engineering projects involving the construction of dams and power stations.245MW hydro stations. The production of cement is expected to jump by 50% to over 10 MTPA. 1. With the award of Ganga and Yamuna Expressway projects the company¶s order book has . expressways & real estate. cement.JPA last 5 years The 3rd largest cement company in India One of the largest land-bank holders in India A power capacity holder of repute with a coal mine An Engineering &Construction company without dependence on external orders A road asset holder An executor of a Formula 1 project. This growth coupled with the growth in E&C and the real estate division is expected to double sales and PAT in FY09. the installed cement capacity is expected to double this year. The Company plans to take this up to 30.Jaiprakash Associates Ltd.500MW thermal power plants. the flagship of the Jaypee Group. Also µJP Power venture owning two power s¶ 9|Page . y y y y y y Future Prospects The company demonstrated excellent FY09 outlook on real estate and construction segments. JPA owns a controlling stake in two hydro plants totalling to 700MW and is currently setting up another 1.000MW hydro unit and claims concession for another 3. According to the company. is an Infrastructure conglomerate focused on Engineering & Construction of hydro power stations. Achievements . It is also expected that real estate revenues will remain a strong growth driver over the next quarters on the basis of orders in hand and completion of projects.

Whole-time Director S. Rau (IDBI Nominee) Gopi K.K. Arora R.N. Founder Chairman Manoj Gaur. Executive Chairman & CEO Sunil Kumar Sharma. Whole-time Director Ranvijay Singh.assets (hydro and thermal plants) is expected to list in FY09 provided the market also favours.P.C. Joint Managing Director (Construction) R. Sahoo (LIC Nominee) K. Bhargava B. Director (Finance) 10 | P a g e . Executive Vice Chairman Sarat Kumar Jain. Bhardwaj S. Nailwal.K. Goswami B.D.K.C. Vice Chairman A.K. Srivastava Sunny Gaur. Taparia S. The Company Board y y y y y y y y y y y y y y y y y y Jaiprakash Gaur.S. Singh. Managing Director (Cement) Pankaj Gaur. Gupta M.

Subsidiaries & Associate Companies The Company has 17 subsidiaries & 9 Associate Companies: Subsidiary Companies [including their subsidiaries]: y y y y y y y Jaiprakash Hydro Power Limited Jaiprakash Power Ventures Limited Jaypee Karcham Hydro Corporation Limited Jaypee Infratech Limited Himalayan Expressway Limited Jaypee Ganga Infrastructure Corporation Limited Bina Power Supply Company Limited [subsidiary of Jaiprakash Power Ventures Limited. y y y Jaypee Hotels Limited Jaypee Cement Limited Gujarat Anjan Cement Limited [subsidiary of Jaypee Cement Limited] Joint Venture Subsidiaries: y y y y Madhya Pradesh Jaypee Minerals Limited Bhilai Jaypee Cement Limited Bokaro Jaypee Cement Limited Jaypee Powergrid Limited [Joint Venture Subsidiary Company of Jaiprakash Hydro Power Limited] y y y JPSK Sports Private Limited Gujarat Jaypee Cement and Infrastructure Limited Jaypee Arunachal Power Limited [Joint Venture Subsidiary Company of Jaiprakash Power Ventures Limited] 11 | P a g e .

training on hygiene was imparted to a large number of villagers and one mobile van with medical facilities was provided for the purpose of community health for distant village. villagers from a large number of villages had access to Jaypee Nagar and Jaypee Puram Hospitals. Covering the entire spectrum of the Company¶s CRDP philosophy. drinking water facilities were extended to more people.Associate Companies: y y y y y y y y y y y Jaypee Ventures Private Limited Jaypee Development Corporation Limited Jaiprakash Kashmir Energy Limited JIL Information Technology Limited Gaur & Nagi Limited Indesign Enterprises Private Limited Sonebhadra Minerals Private Limited RPJ Minerals Private Limited Jaypee Petroleum Private Limited Jaypee Hydro Carbons Private Limited Jaypee Spa Infocom Limited Corporate Social Responsibility During the year 2009-10. the Company continued with its initiatives for providing occupational health care for the employees and their families on site and for the community around Jaypee Cement Plants at Rewa and Bela. 12 | P a g e . Public roads in the vicinity of the plants were improved through maintenance. Various schools and Industrial Training Institutes are run at various sites of the Company to impart education to the children of surrounding villages.

042 acres of land are required for construction of the expressway which is expected to be acquired by the YEA and leased to the company. The Concession follows a build operate -transfer (BOT) model pursuant to which the company has the right to earn toll revenue for a period of 36 years following the award of a certificate of completion of the expressway. The Concession also provides for the right to develop 25 million square metres (approximately 6.175 acres) of land along the Yamuna Expressway at five locations for residential. the company currently expects construction to be completed by 2011. At the end of the Concession period. It holds the Concession from the YEA to develop. 13 | P a g e . was incorporated on April 5. of which the company had taken possession of approximately 183 acres as of October 31. The Company. 2009. industrial and institutional purposes. The Company is developing the Yamuna Expressway wh is a 165-kilometre accessich controlled six-lane concrete pavement expressway along the Yamuna river. which is a part of the Jaypee Group.018 acres are additionally required for construction of related structures (such as toll plazas) which are expected to be acquired by the YEA and leased to the company. the expressway will be transferred to the YEA without any payment to the company under the terms of the Concession Agreement. though based on the progress achieved sofar. The business model consists of earning revenues from traffic and related facilities on the expressway during the 36-year Concession period and development of associated real estate pursuant to the Concession.JAYPEE INFRATECH LTD. The expressway will be entirely in the state of Uttar Pradesh. The expressway is planned to begin at the existing Noida-Greater Noida Expressway. 2009. Construction of the Yamuna Expressway is required to be completed by April 2013 under the Concession Agreement. amusement. JAYPEE INFRATECH LTD.846 acres as of October 31. is an Indian infrastructure development company engaged in the development of the Yamuna Expressway and related real estate projects. commercial. connecting Noida and Agra. The Company estimates that approximately 4. with the potential to be widened to an eight-lane expressway. of which the company has taken possession of approximately 3. The company estimates that approximately 1. 2007 as a special purpose company to implement the Concession. pass through various proposed SEZs and the proposed Taj International Hub Airport and end at District Agra. operate and maintain the Yamuna Expressway in the state of Uttar Pradesh.

57 million and restated net profit after tax was Rs.235 acre parcels at each of five different locations along the Yamuna Expressway: One location in Noida.20 million. For the year ended March 31. Of the total 6.175 acres for real estate development. it is expected that approximately half of the land that will be developed will be sold for residential use. These three projects were launched between November 2008 and July 2009 and are expected to be completed by 2012. total revenues were Rs.45 million and the restated net profit after tax was approximately Rs. Whole time Director Smt Rita Dixit. In the six months ended September 30. the company had signed lease deeds and taken possessionof approximately 3.09 million square feet of saleable area across three residential projects. which is expected to consist of 1. 2. two locations in District Gautam Budh Nagar (part of NCR) and one location in each of District Aligarh and District Agra.079 acres as of October 31. Further it is expected the company will earn toll and other expressway-related revenues from the Yamuna Expressway starting in Fiscal 2012. 276. 2009. Across the five land parcels for real estate development. Whole time Director Shri Har Prasad. approximately one third will be for commercial use and the balance will be for institutional use and open space. Whole time Director Shri Sachin Gaur. MANAGEMENT STRUCTURE Jaypee Infratech Limited y y y y Shri Sameer Gaur. 5. 2009.31 million.Under the Concession Agreement.175 acres of land to be acquired by the YEA and leased to for a 90 -year term.667. the company has also been provided the right to develop 6.562. 2009 total revenues were approximately Rs. all of which is located in Noida and the Parcels in District Gautam Budh Nagar. Whole time Director 14 | P a g e . following completion of construction of the expressway. which were approximately 88% sold on a square foot basis as of October 31. The Company has initiated development of Noida land parcel and are presently developing an aggregate 13. 103. 2009.

15 | P a g e .K. In March JPA raised Rs 250 cror by e selling 1% stake in Jaiprakash Infratech to ICICI Bank.y y Shri Anand Bordia.000 crore. The real estate value in the company needs to be unlocked either by way of disinvestment or revenue from the real estate sale. Whole time Director Shri S.000 crore. owner of the Taj Expressway now Yamuna Expressway project remains 100% subsidiary of JP Associates. valuing the special purpose vehicle at Rs 25. The company also secured a long term loan of Rs 900 crore from ICICI Bank. It¶s a very prestigious project and expressway construction will require investment in excess of Rs 6. Dodeja. Whole time Director Value unlocking in Jaypee Infratech Jaypee Infratech.

as well as from its experience in the conceptualization. real estate. development and completion of the Yamuna Expressway Project. In particular.THE ROLE OF JAYPEE GROUP Jaiprakash Associates Limited (JAL).840 MW of hydroelectric power capacity to the national power grid from calendar year 2002 through calendar year 2009. expressways. development. Subsequently. engagement and oversight of consultants and subcontractors and certain building materials in connection with the planned Yamuna Expressway. The Jaypee Group also provides concept planning. hospitality. JAL is the flagship company of the Jaypee Group. The company will benefit from JAL¶s expertise for the design.1% of the Equity Shares. golf courses and education. The Jaypee Group is a diversified infrastructure conglomerate in India with interests in the areas of civil engineering and construction. construction and operation of large projects. cement. project management expertise and execution skills. In particular. which is part of the Jaypee Group. owns 99. 16 | P a g e . design. JAL has a strong project implementation track record as a hydroelectric power construction company and has participated in projects that have added 8. Competitive Strengths The following are primary competitive strengths: y Ability to leverage the Jaypee Group¶s technical capabilities. construction. JAL has over 40 years of experience in the civ engineering and construction il sectors in India. this Company was incorporated in 2007 as a special purpose company pursuant to the Concession Agreement and JAL transferred the Concession to our Company. y Strength of the Jaypee Greens Brand. JAL was awarded the Concession by the YEA. the selection. and sales and marketing services and related corporate services in connection with the real estate projects under development at Noida. as a well-known construction company or as a member of consortia andjoint ventures. power. the Jaypee Group provides with design and engineering services (including with respect to toll plazas and the toll system).

y y Develop real estate projects with broad market appeal . Leverage the Jaypee Greens brand and the Jaypee Group¶s expertise and technical capabilities. The issue. The Issue comprises a Fresh Issue and an Offer for Sale. y y Single state location of the entire Yamuna Expressway. Jaypee Initial Public Offering Jaypee Infratech tapped the capital market to raise a maximum of Rs 1. y Reduce travel time and increase expressway operating revenue through the use of automated toll collections at the Yamuna Expressway. 17 | P a g e . y Exploit modern construction technologies to reduce construction time of the Yamuna Expressway under development. Large and mostly contiguous land reserves among three parcels in the NCR acquired at the YEA¶s acquisition cost and with significant land use flexibility . had a fixed price band of Rs 102 -117 a share.650 crore. opened on April 29 and ended on May 4. well trained workforce and streamlined operating Processes. Competitive Strategies The following are the strategies which the company has adopted to achieve commercial success in the Real-Estate development projects along with the associated Yamuna Expressway: y Maintain flexibility to adapt the real estate development plans to market conditions over the long term and ability to adjust the development plans based on the progress of regional growth and expressway traffic. There was a 5% discount to the issue price for retail investors.y Integrated development with real estate projects being developed alongside an expressway. y y Strong Regional Growth Prospects. Strong and experienced management team.

pegging the total raising from the issue at over Rs .The Proceeds of Fresh Issue The activities for which funds are being raised by our Company through this Issue. 2. after deducting the proceeds from the Offer for Sale: (i) To partially finance the Yamuna Expressway Project.352 crores. and (ii) General corporate purposes. 2.261 crores from the IPO. In addition. Utilisation of Proceeds of the Fresh Issue The details of the proceeds of the Fresh Issue are: Gross proceeds to be raised through this Fresh Issue are Rs.24 times.250 crores. Through this public issue. 2.crores.00/. In this way. The National Capital-based infrastructure company had earlier fixed a price band at Rs 102. which was subscribed 1. The listing Jaypee Infratech is understood to have fixed the listing price for its initial public offer at Rs. 117 for the IPO. Jaypee Infratech 18 | P a g e . the lower end of the price band.1650. the company is raising about Rs. However. the company had planned to raise between Rs. our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges. 102. The listing price was fixed at the lower end of the price band. 2.262 crores and Rs. Requirement of Funds The main objects clause of the issue is to undertake the existing activities of the Company and the activities for which funds are being raised by our Company through this Issue particularly the Yamuna Expressway Project.

Kotak Mahindra Capital Company and SBI Capital Markets were the book running lead managers to the issue.98. IDFC Capital. In the retail segment. the IPO got subscribed 61%. Rs4 below its issue price of Rs. 1. The weak listing was due to the sentiments of the market which indicated a bearish phase for the markets.15 times. Morgan Stanley India Company. JP Associates Ltd (JAL).17 crore equities on offer. while in the employees¶ portion. it was subscribed just 10%. The issue.will receive only Rs. In the HNI (high net worth individuals) segment. which was opened between 29 April and 4 May. JM Financial Consultants. 19 | P a g e . ICICI Securities. the public issue was subscribed 1. Jaypee Infratech plans to utilise Rs1. QIBs include insurance firms. 500 crore of the IPO proceeds in the development of the Yamuna Expressway. The IPO got maximum demand from qualified institutional buyers (QIB) and was subscrbed i 1. The share listed at Rs.77 times in the portion reserved for them. Axis Bank. as per the NSE data. mutual fund houses and foreign institutional investors. Enam Securities.102.39 crore shares against 22. whereas shares reserved for retail buyers and employees remained under subscribed. DSP Merrill Lynch.650 crores out of the total proceeds and the balance will go to its holding company. received bids for 27.

hospital. Greater Noida is the maiden project of the group that offers independent homes & luxury apartments along with an 18 -hole golf course. landscaped greens.JAYPEE GREENS Jaypee Greens is the real estate arm of the Jaypee Group and since its inception in the year 2000 has been creating lifestyle experiences from building golf centric premium residences to building mega townships to building a self sustained mega city. p schools. s iritual center. educational and medical facilities as well as numerous recreational options along with various thematic residential districts such as the Lake District etc. outdoor sports facilities. Spread over 1162 acres. It has comparatively low density as only 2200 families in 100 acres. town center. lakes. golf courses. Jaypee Greens. badminton etc. sports facilities such as table tennis. Jaypee Greens Products Kensington Apartment & Kensington Heights Located in ³Wish Town´ at sector 131/133. The 452-acre development at Jaypee Greens. the apartments lie behind the commercial zone and near Noida-Greater Noida Expressway. Their latest venture is the Jaypee Greens Sports City which is a diverse. The residential options include plots ranging from 153209-239-298 Sq-Yd. It has institutional complex within 1 km of walking distance and also has other amenities like club within the complex. sports club with finest sports facilities and commercial developments. Noida. progressive and vital community spread over 2500 acres of land complete with a Motor Racing Track along with other sports facilities. commercial zones. neighborhood social clubs. Noida is India¶s largest township with an 18+9 hole Graham Cooke golf facility combined with world class residences. along with double level parking facilities. a spa resort in collaboration with Six Senses. commercial areas. thematic gardens. 20 | P a g e .

lakes and greens.Ft. With beautiful tree lined walkways and private gardens. Mtrs (1045 Sq.). approx.16 Sq. Meticulously designed these apartment towers offer 2.Wish Town Klassic Wish Town Klassic is a gated community at Jaypee Greens Noida. ft. to 2250 Sq. Mtrs to 132 Sq. The Kallisto Town Homes Kallisto in Greek means "The Most Beautiful". ensuring that all homes enjoy splendid views of landscaped gardens & parks.) Set ideally amidst the 18 & 9 hole Graham Cooke golf facility. to 1420 Sq.). 3 & 4 BHK units. Mtrs to 209 Sq. Mtrs to 418. educational facilities. The residential options include Duplex Apartments offering 2. The Kosmos provides access to a host of amenities like multiple clubhouses with swimming pools & gymnasiums along with children play areas.Ft. with areas ranging from 97 Sq. approx. these homes offer breathtaking views of the golf course. medical centers and many more of the integrated township.Ft. The first phase spread over 40 acres offers apartment towers nestled in an 80% green area. The latest edition is Simplex Apartments offering 2 & 3 BHK units.06 Sq. 3 & 3 bedroom with utility room. KOSMOS The apartments have a close proximity to the NoidaGreater Noida Expressway and will also be soon connected to the Delhi Metro. 21 | P a g e . the Kallisto Court are exclusive fully finished two storey Townhomes with a covered area of 325. with areas ranging from 104 Sq. Mtrs (1120 Sq. approx. Mtrs (3500 to 4500 sq.Ft.

A few of these include 18 + 9 hole Graham Cooke designed Golf Facility. The Pavilion Court is a lifestyle product which offers a host of value -added features like like-minded neighborhood. Town Centre with facilities like art galleries. With a range of health and recreational facilities. modern. piped gas line. Town Centre with facilities like art galleries. restaurants & cafes. 24 hr electricity and water supply. split air-conditioning in all rooms. The Imperial Court The Imperial Court at Jaypee Greens Noida are high-rise towers that create a soothing ambience provided by the 22 | P a g e . The Pavilion Court Strategically located. a wide range of educational facilities from kinder crib to pre-university levels and access to the international standard medical centre developed within the township itself. multi-level security system. Pavilion Heights at Jaypee Greens enjoys good connectivity and location advantage with respect to the city master plan and is just 10 minutes drive from south Delhi. International Standard Medical Centre. wooden flooring in bedrooms and underground parking facility. the apartment size ranges from 1 BHK Studio Apartment with Study to 3 BHK Family Apartment with Study. Modern. The Pavilion Court apartments offer serene views of nature on one side and refreshing golf views on the other. restaurants & cafes.The Pavilion Heights Situated on the Noida-Greater Noida Expressway. Educational facilities from Kinder crib to Pre-University levels etc. Thoughtfully designed. Hi-Efficiency apartments that offer 2 BHK + Study and 3 BHK + Study Family Apartments. hi-efficiency apartments. high-street Retail. These are fully-finished. Pavilion Heights are the Fully finished. Social Clubs with a range of Health and Recreational facilities. high -street retails.

sports facilities like basket ball courts. The interiors of apartments are conceptualized and designed with materials that echo the new millennium with special stress on light pastel colors and clean polished surfaces in the living & dining rooms and warm intimate surfacesin the bedrooms. This unique gated community will have natural environments. study and master bedroom. badminton courts etc. The apartments offer the ultimate escape from all but the birds and the tranquil views of the greens and the parks. gymnasium. social clubs with swimming pools. adjacent to an 18 Hole Graham Cooke Golf Course. It is a very exclusive community of luxury villas providing perfect living for the select few who have the taste of 23 | P a g e .most surreal view of the landscaped greens permeating into your living room. Noida. The Kalypso Court The Kalypso Court at Jaypee Greens Noida are masterfully crafted apartment towers which come with their very own social clubs and other facilities and a recreational destination for the entire family. The product is complete with modern amenities like shopping complex. Kingswood Oriental Located in ³Wish Town´ at sector 128. The large windows extend your gaze beyond the interiors giving a sense of space. The Kingswood Oriental are premium individual residences. lush landscaped parks. Noida & Inspired by the beautiful gardens. the community is located on the Noida-Greater Noida Expressway. Aman Located at sector 151. social amenities. The various ch oices on offer are 850-1200-1320 sq. feet. chip & putt golf course. aesthetically planned and beautifully designed complex. dining room.

finer things and wants to explore the unique luxury lifestyle. Elevator provision. jogging space with open seating space and environmental friendly design. r garden in ose front of 4 BHK. with a total of approx 2500 units in these high-rise apartment blocks. Private Lap pool with filtration plant. as inspired from its namesake in the UK. Parks and fountains with a vast range of recreational facilities along with a central club will ensure a hi-quality lifestyle for its residents. 24 | P a g e . Some of other facilities of the society will be double storey basement parking. Toddlers area. Oriental str et lighting. The community will have facilities like swimming pool. Laundry services. Kensington Boulevard The site is located in ³Wish Town´ at sector 131. The large plethora of sporting facilities including multiple Tennis & badminton courts. Golf Carts e for local transportation within the community etc. Kasa Isles Located in ³Wish Town´ at sector 129. Noida. The community will have some special features since it is one of its kinds in the region like Wi-fi enabled community. jogging tracks along with a swimming pool and water facilities will interes the health t conscious and people in general. the apartments compliment the residential plots community. Jacuzzi etc. skating rings etc. shopping areas and various sports facilities like table tennis. tennis. Noida the landscaping and ambience of the project is inspired from the Tuscan/Mediterranean style of architecture. The uniqueness of the community is the beautifully landscaped boulevards. Here the homes will have unique features like Use of wood & bamboo in the design to go with an Oriental feel. a unique 5 a side footfall field. 24 hr housekeeping service. The Kensington Central Apartments. squash.

with both residential and sports facilities together. restaurants and recreational facilities spread all over the sports zone. The ci y will have t features like uninterrupted water and electricity supply fromJaypee Group¶s own power generation plants. The Sports City will have various Residential Districts which would be built by the company in phases. with sizes varying from 200 to 4000 sq mts. super specialty health facilities and educational facilities ranging from Kinder crib to professional le vels. There will also be state-of-the-art international standard sports stadiums for all major outdoor and indoor games including an ICC standard cricket stadium with accommodating capacity of over a lakh spectators. a unique concept and is the first of-its-kind venture in the social infrastructure sphere of India. The Jaypee Greens Sport City offers a unique model of real estate development. This will be followed by Lake District with high. Thefirst district will be the Country Homes. 25 | P a g e . This internationally designed motor race track will have facilities to host a range of motor sports. round the clock 3 tier security. mid and lower end apartments. The arena connects sports to life. The City will have Motor Race Track spread over more than 875 acres. along with exquisite hotels.Jaypee Greens Sports City Jaypee Greens has announced the launch of India¶s first Sports City on the Yamuna Expressway in Gautam Budh Nagar.

A massive Motor Racing Track. super specialty medical facilities and educational facilities from kinder crib to primary school to professional colleges etc. It comprises. Cricket and other international sports stadiums. live the pulsating life at a unique one-of-a-kind city in India. Town Homes and mid to high rise apartments blocks with breath taking views of numerous perennial lakes and canals and multiple social clubs etc. Replete with all modern facilities. 26 | P a g e . The first Commercial District is equipped with elaborate financial. perfectly crafted Country Homes along with upcoming Residential Lake District (Phase1) which include Villas. recreational and civic centres.Come. 24 hours electric power supply from Jaypee Group¶s own power generation power plants. centrally monitored 3-tier security system. the city offers regular water supply. the 2500 acres * Jaypee Greens Sports City.

paints and chemicals. urban infrastructure (including water supply. railways. bricks. sand/aggregates. Besides the construction industry generates substantial employment and provides a growth impetus to other sectors though backward and forward linkages. townships. The key drivers of this growth are government investment in infrastructure creation and real estate demand in the residential and industrial sectors. These include cement. irrigation and agriculture systems etc. airports. sewerage. 27 | P a g e . construction equipments. schools. petro products. drainage). Source: Cushman & Wakefield Report: Survival to Revival. ports. this vital activity is nurtured for the healthy growth of the economy. glass and plastics. Indian Realty Sector on the Path to Recovery. power systems. Construction activity is an integral part of a country¶s infrastructure and industrial development. It is essential therefore.INDUSTRY ANALYSIS The Indian Construction Industry had recorded a consistent yearon-year growth (12%) during 2000-2005. It includes hospitals. fixtures/fittings. The construction industry would play a crucial role in this regard and has to gear itself to meet the challenges in order to meet the intended investment targets in time. The construction industry is the second largest industry of the country after agriculture. With the present emphasis on creating physical infrastructure. houses and other buildings. roads. offices. steel. tiles. that. aluminum. highways. and it grew between 25%-30% during 2005-2010. mineral products. 2009 The construction sector has major linkages with the building material industry since construction material accounts sizable share of the costs. the current capacity of the domestic construction industry would need considerable strengthening. timber. massive investment is planned during the Eleventh Five Year Plan.

Industrial Framework Indian construction industry is estimated to be around $120 billion and is expected to double in the next 5 years. The construction industry is divided into three major sectors: y y The first is the construction of buildings (both residential and non -residential) The second involves heavy and civil engineering construction such as utility systems. architects. occupants. They obtain orders for their work from general contractors. architects. alterations or maintenance and repairs. Special trade contractors usually do the work of only one trade. such as painting. carpentry or electrical work. additions. Beyond fitting their work to that of the other trades. Airports and Runways 28 | P a g e . or of two more closely related trades such as plumbing and heating. Firms in these first two sectors are primarily engaged in contracts that include responsibility for all aspects of individual projects and a commonly known as general re contractors. or rental agents. y The third major sector of the construction industry includes establishments in the special trades. factories. specialty trade contractors have no responsibility for the structure as a whole. The Construction industry comprises establishments that are primarily engaged in the construction of buildings or engineering projects (eg: highways and utility systems). painting and electrical work) of project. roads and bridges are only some of the products of the construction industry. The major construction industry sectors can be classified as follows o Buildings & Factories     Institutional & Commercial Buildings System and mass Housing & Industrial Structures for factories o Transportation Infrastructure Ports & Harbors and special projects Roads. This may include new work. land subdivisions and highways. Houses. Repair work is almost always done on direct order from owners. apartments. or property owners. schools. streets and bridges. which are primarily engaged in activities to produce a specific component (eg: masonry. offices.

Over the years. 1 investm in the ent 29 | P a g e . The construction industry sets in motion the process of economical growth in the country. The key drivers of this growth are government investment in infrastructure creation and real estate demand in the residential and industrial sectors. Every Re. more than half of the expenditure budget is spent on civil engineering works. Space & Defense Projects o Industrial Projects & Utilities y y y y y Thermal & Non-conventional Power Hydrocarbon Construction & Pipelines Minerals & Metals Bulk Material Handling Water Supply and Fluent Treatment o Electrical Instrumentation & Communication y y y Industrial Electrification & Switchyards Telecommunication Instrumentation o Development Projects y y y y y y Roads Bridges Airports IT parks Water Supply Projects Others An Outlook of the Markets The Indian Construction Industry had recorded a consistent year-on-year growth (12%) during 2000-2005.5% of GDP growth. investment in this sector contributes 6.   Bridges o Hydel & Nuclear Power and Foundation Engineering Hydropower and irrigation Projects Nuclear Power. and it grew between 25%-30% during 2005-2010.

July 2009(Calendar Year Growth Rates) Statistics over the period have shown that compared to other sectors.20 and Rs.0. price of substitutes and price of compliments play a role. Increasing demand for housing Housing sector is poised to witness unprecedented demands. World Economic Outlook Update. the greater the demand of housing. It is households that demand housing services typically one household per house. respectively.7 times increase in the incomes and 7.14 in the fields of agriculture and manufacturing industry. This means formal planning and above board financial planning will be the obvious destination of the construction sector in the country.76 times increase in employment generation potentiality. with over 3. Sustained efforts by the Indian Construction industry and the Planning Commission have led to assigning the industry status to construction today.80 increment in GDP as against Rs.construction industry causes an Rs. The size and demographic composition of households is variable and not entirely exogenous. Source: International Monetary Fund. However other factors like income.1 crores people employed in it. The core demographic variable are population size and populationgrowth the more people in the economy. 30 | P a g e . The main determinants of the demand for housing are demographic.0. this sector of economic activity generally creates 4.0.

The diagram above was a summarized illustration of the key factors that are driving housing demand in India. The urban population is increasing very rapidly. housing is being considered more and more as an asset by international investors as well as by Indians and expatriate funds into the housing sector. especially working women and the younger generation.06 in 2001to 5. Rising income. A per industry estimates.Supply Gap The demand for the housing commercial buildings is very high. Widening Demand. greater number of income generators per household. From an internal point of view. but the supply is limited. According to a study conducted by ICICI se curities the size of an average urban household decreased from 6.3 to 2. and changing mindset are the primary reasons for reduction in the household size. the economic growth leading to rapid urbanization and creation of a new middle class is the cornerstone of the sector.8. Due to various key drivers of growth listed above 31 | P a g e .5 at present against the average household size in Europe varying from 2. average age of a home buyer has dec reased from 42 years to 31 years. This along with changing social norms leading to nuclear families ant the decreasing age of individuals purchasing houses are fuelling demand for housing.From an external point of view. It is expected that the household size will continue to decline in the next `10 years. The younger generation is creating further demand for residential units and the trend should continue as the income generation capability of the Indian youth grows.

private participation is also considerable. There has been strong growth in demand supported by rising disposable incomes. The infrastructure sectors are needed to build in India apart from some of the metro cities such as roads.162 Kms and 105. The government is stressing on large capacity addition in various segments of the sector. Plans are on to build or widen 14.000 of roads by the central sector (NHAI) and state sector respectively. power plants. It has beenanalyzed that residential prices have increased by about 15 -20% on average in the last one year . fiscal incentives on both interest and principal payments and increasing urbanization. As of 2008 order book of top eight construction companies was at least twice their annual revenues of 2007 -08. A number of airports.Privatization and up gradation of four metro airports has been planned. 164 billion has been proposed. low interest rates. airports. including international airports at Hyderabad and Bangalore are to be built. (India has to build new power plants to meet its future energy demand which is growing phenomenally) An increase in port capacity from 334 MT to 470MT by the end of Tenth Five year plan envisaged. Opportunities in O&M of road projects are also substantial.causing the market demand to increase more and more. U rban transportation. 32 | P a g e . Other than a huge plan outlay. the average age of a house buyer has fallen from 42 to 31 years. Investment of over Rs. water supply and housing are some of the key areas. Investments upwards of USD55 billion planned. Special Economic Zone development is also an area to look out for. 163 billion planned. Another area where the demand far outstrips supply is the urban infrastructure amenities. India¶s booming infrastructure spend Order inflows for construction companies continue to remain robust which is indication of India¶s booming infrastructure spend. Investments around Rs. Also as per industry estimates. In 1995 EMI (Estimated Monthly Installments) as a part of salary was 54% as compared to 28% in 2007.

000 square meters for the construction development projects.874 Source: Cushman & Wakefield Report: Survival to Revival. Viability Gap Funding is available up to twenty percent of the total project cost. a corpus fund titled India Infrastructure Project Development Fund (IIPDF). with initial outlay of Rs. 100crore has been set.690. normally in the form of a capital grant at the stage of project construction.2009. 11.14.028 603 5. Conditions restricting FDI to a minimum area of 100acres and 2000 dwelling units are relaxed to 25 acres and 50. Indian Realty Sector on the Path to Recovery. IIFCL has so far approved 64 credit proposals involving assistance from IIFCL amounting to Rs.801 1. 33 | P a g e .693 985 1. 966 crores. 100% FDI in construction industry throughout automatic route The government has allowed 100% Foreign Direct Investment in the construction industry through the automatic route.3 crores. Under the VGF scheme. 2.743 2.179 2.7 crores have been given in principle/final approval involving an estimated Viability Gap Funding of Rs.114.Public-private partnerships Public-private partnerships have emerged as one of the significant modes of infrastructural financing. (IIFCL) to promote PPPs. The Government of India has taken several initiatives like viability gap funding. twenty three projects with the project cost of Rs. For providing financial support for quality project development activities to the States and the Central Ministries. Public Private Partnership Appraisal Committee (PPPAC) and India Infras tructure Finance Company Ltd. FDI Inflow in Real Estate and Construction (in USD million) Fiscal 2007 Fiscal 2008 Fiscal 2009 April 2009 through July 2009 Cumulative Inflow April 2000 through July 2009 Housing and RealEstate Construction (Including Roads and Highways) 467 2.181 6.

have resulted in hue growth of construction industry. Delhi. high returns on equity and higher interest rates coupled with rise in global private capital flows.5% in 2002 to around 7. Many foreign industries are setting their plants in not so developed parts of India. Source: UBS Estimates 34 | P a g e . Sustained high growth over the last four years has made India the third largest economy after USA and China with its share in world GDP rising from 5.5% in 2008.The decision ensured that FDI was ³construction -centric´ rather than ³land-centric´ in the past. The strong growth prospects of the Indian economy. Foreign Investors could now come in any area but would have to construct at least 50. Many industries are expanding to many cities beyond metros like Mumbai.4% (2007 -08). Growing housing and commercial space requirements The housing needs of urban population are increasing day by day Urbanization of India is important factor in this. etc.000 square meters within a timeframe so that they did not hold land for speculative purpose. Growth Insurgents Booming Indian Economy Over past few years the Indian economy continued on its robust growth path with the overall growth in real gross domestic product at factor cost at 9. India was the second highest contributor to world growth in 20006.

. all these estimates work out to make a strong case for higher loan GDP ratio so that India and its population is able to keep a pace for meeting the demand for housing units.000 sq.000sq. India¶s middle class is expected to expand by more than 10 times from its current size of 50million to 583 million people in next 18 years. but the existing companies such as IBM and Microsoft are also expanding. Hence the Government has been employing innovative options to develop infrastructure. Government thrust on infrastructure. Airport modernization projects.000sq.ft.ft and 2.ft space respectively. despite the increasing 35 | P a g e . initiatives etc. Not only are new companies looking at setting in shop. organized retail which has given a boost to construction industry. The notable transactions in Bangalore include companies such as Microsoft and IBM committing to lease approximately 1 00. Thereafter. by Hewitt Associates in DLF Center Court and 8.00.6% respectively by 2025. The average real income of urban India and rural India is likely to grow by 5.The urbanization of population rise of income levels.ft. However. The mall space construction has shown substantial w hich can be seen from the graph. The preference of IT & ITES companies for suburbs.000sq.500sq. by Louis Berger.7% and 3. due to availability of better quality options at cheaper prices has led to an increase in demand for re sidential properties in these areas.ft. by Convergys in O rchid Square 1.ft. Sustenance of growth is fully contingent on the creation of supportive infrastructure.34. Gurgaon still remains a preferred destination for corporate that wanted space in Delhi. Government projects. Moreover. multiplexes. Booming IT & ITES Sector Almost 30-40% of land acquires have been IT companies.000sq. Construction of roads bridges water supply projects and many other government initiatives provided boost for construction industry. the emergence of good quality condominiums with additional amenities has also led fuelled the demand for residential properties. by HawettPackard in the Global Business Park 36. Some prominent transactions included the lease of approximately 51. Therefore. middle income groups has shownhuge interest in Commercial mall.

Retail sector facilitating real estate growth Apart from the IT & ITES industry influencing the Indian real estate sector. has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. the prospects of both the sectors are mutually dependent on each other. Retail. India is also getting into the knowledge based manufacturing in dustry on a large scale. Source: UBS Estimates The contemporary retail sector in India which is reflected in sprawling shopping centered and multiplex-malls also contributing to large scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. owing to the excess supply of stock. This compares favorably with China where the comparable number is 42%. with hotels all over the country witnessing their highest-ever occupancy rates. about 55% of the population in the country is less than 25 years of age. Changing Age-Profile As of 2006. one of India¶s largest industries. If industry experts are to be believed.demand in these areas. Another emerging trend is investment in the hospitality or hotel industry. the prices will remain unaffected in the medium term. According to Asian 36 | P a g e . The exceptional boom in inbound tourism and the IT sector has also led to an unprecedented shortage of rooms.

who want to invest in this. even builders projects in India also dependent on bankers and their schemes. 37 | P a g e . Bankers understand requirement of new type of investors.Demographics Report. Impact of each of these factors when looked upon in isolation may not be significant. also providing customers subsidy home loan. but when viewed in totality they offer enormous potential for housing mar et growth. the 20-54 years age bracket is growing faster than the rest of the population and will represent more than 50% of the population in 2013 Boom on Construction business are pressuring other associated business to change their strategy and policies in favor this market. Government is la nching u programs to attract property buyers and appreciating investors to buy property in INDIA. Rising k income levels in combination with a reduction in average population age has over the years resulted in the fall of average age of a house buyer. Analyst expects the trend to sustain in due course of time. are providing home loan to customers on lower interest and under lots of schemes.

Cement prices have also risen multi-fold. but given Jaypee being a major Cement producer as well. (2) The land acquired by the company on the basis of the MoU between the Government and the firm. We do not see service apartments or leased residential taking off in a big way due to low yields and tenancy rights in favour of the tenant. it would help bringi g overall n costs down to a large extent. Organised retailing is a small share of the Indian retail market. Top grade retail space too seems to be in short supply and hence. Jaypee has a construction division and is hence protected against cost pressures. Threat of substitutes: ´Lowµ Jaypee sells its residential properties. Jaypee·s properties command a premium. There is a severe shortage of Grade A commercial space in the key markets. as one of the more financially strong companies in the sector. These Ensure that it is difficult to replicate Jaypee·s business model in its core markets. Jaypee is better able to withstand a slowdown.PORTER¶S FIVE COMPETITIVE FORCES ANALYSIS Threat of new ´Medium/Low entrants: Jaypee·s key strengths: (1) The award of major highway projects ensures continuous cash flows. mall owners are also in a better bargaining position. we feel end customers still have the upper hand. Bargaining ´Highµ power of suppliers: Competitive rivalry in the industry: ´Mediumµ Jaypee is a leader in the NCR residential markets and faces little threat from competition. Also. be it residential or retail and lot of sales happen at the development stage itself. Contractors are in short supply now. (3) and ability to collect cash upfront due to its reputation for timely delivery. 38 | P a g e . Bargaining power of customers: ´Medium/Lowµ In residential. Further. and we see large potential for growth.

Cement prices Reduced for State Infrastructure projects The continued thrust on infrastructure development will provide impetus to the healthy growth in demand. FDI Liberalization to Augment Industry Growth Recent amendments by the government have made accessibility to the required capital much easier. 000. The reduction in the CST in freight rates on diesel and limestone will be marginally positive for some companies. The concept of RBT is on the verge of entering India and would be sructured as a t 39 | P a g e .10 . protecting the bottom-line of cement companies to an extent. This will allow small investors to enter real estate market with contribution as less than Rs. Thus. IT SEZ should be developed and made operational within the period of six months from the date of notification. Opening of FDI in construction and allowing developers to rais capital in e international markets has led to developments of larger projects benchmarked against international standard. 130 SEZ¶s are developed by real estate developers which constitute of about 50%of the total SEZ area. Currently 150 SEZ¶s are approved out of which 85 SEZ¶s are into the IT? ITES area and 10-15 SEZ¶s in the electronics area. RBTs to Positively Affect Real Estate Business The proposed introduction of RBMF (Real Estate Mutual Fund) and RBT (Real Estate Investment Trust) will boost real estate investments from small investor¶s point of view.PEST ANALYSIS POLITICAL FACTORS SEZ to Boost Infrastructural Development SEZ is the new destination for real estate investors. 130 approved SEZ¶s would result in investment of US$10bn to US$ 12bn immediately.

urban transport. Within construction sectors such as roads. primary health services and environmental regulation. Rate Hikes Unlikely to Slow Down Growth It has been analyzed that residential prices have increased by about 15 -20% on an average in the last 2 years. railways. We expect the share of discretionary items to c onsistently rise given the rising affordability and changing aspiration levels. shopping centers. SOCIAL FACTORS Shifting Consumption pattern to fuel Industry Growth The consumption pattern of Indian Households is undergoing a gradual. electricity and gas distribution. which used to constitute almost 50% of household spend until 2005 fell to 45% by FY08. and fiscal incentives on both interest and principal payments and increasing urbanization. increased exposure to western lifestyles (through media as well as overseas travels) has altered the consumption pattern of Indian people. The urban population in India will grow by 85 million over the next 10 years. offices & warehouses. but steady change. Rising Urbanization to boost Industrial Growth Urban infrastructure consists of drinking water. low interest rates. The share of food and beverages. It has been growing at a rate over 10% in past few years when GDP growth is around 8%. Many of these services are in nature of local public goods with the benefits from improved urban infrastructure. sanitation. ECONOMIC FACTORS Growth in construction activity Simulating GDP Growth India is witnessing tremendous growth & expansion of construction activities and construction is largest component of GDP. sewage systems.company dedicated to owning and in most cases operating income producing real estate as apartments. housing and power have been keen drivers. 40 | P a g e . There has been strong growth in demand supported by rising disposable income.

41 | P a g e . There is tremendous potentialfor construction of green buildings in India. ever g since Green Business embarked on achieving the prestigious LEED rating for their own centre at Hyderabad. Besides the construction sector also lacks information about new technology. Upgrading of technology is required both in the manufacturing of consruction t material and in construction activities. the water problems are more. Construction as per Indian Requirements The construction needs to be done as per Indian standards and requirements which will demand considerable changes to meet up t e International standards. the small space for roads. TECHNOLOGICAL FACTORS Low Technology Adoption to Hinder Growth The poor state of technology adopted by the construction sector adversely affects its performance. effective monitoring and regulation of the production of these materials to ensure proper quality becomes difficult. Ready Mix concrete business uses 2% of total cement production. increasing slums. U of low-grade se technology in the construction sector leads to low value addition and low productivity. Here in India. The Platinum rating for green building has sensationalized the stakeholders of construction industry. The estimated market potential for green building will be about $400 million by the end of 2010. apart from poor or substandard quality of construction and time overruns in the projects. The non availability of quality construction is the main reason for this. Ready-Mix-Concrete Being Experimented with The ready mix concrete business is in its infancy.Green buildings in India The green building movement has gained tremendous momentum durin 3-4 years. For example 70% of cement produced in developed country like Japan is used by Ready Mix concrete business there. As a large number of construction materials are manufactured in the unorganized sector. There will be favorable policies of government which would provide right impetus for advancing the green building movement in India. The infrastructure h requirements of India are much different as the population spread. increasing urbanization.

Indian Railways Construction Limited (IRCON). Omaxe etc. was setup in the in the pu blic sector in 1954.000 class a contractors registered with various government construction bodies. etc. The increasing use of ready mix not only saves on time but allows the better quality. many architectural. apartments and housing/office spaces. Gammon. Rail India Transportation and Engineering Services (RITES). construction of civil works was allotted nearly 50% of the total capacity outlay. 20. Hindustan Construction Company (HCC) STRUCTURE The Indian construction industry comprises of over 200 firms in the corporate sector. etc. 42 | P a g e . dealing in flyovers. Engineers India Limited (EIL). It will also eliminate the storage space at site eliminate . Subsequently. noise and dust at site will be reduced. There are thousands of small contractors. The concrete making process at site takes much time with variation in quality.Much of construction done in India is very slow paced. Which undertake huge projects y Companies like IVRCL.In addition to these firms. Private sector ± M N Dastur & CO. reduce wastages of basic material. pipelines. there are about 1. Unitech. National Industrial Development Corporation (NIDC). which compete for small jobs or work as sub contractors of prime or other contractors. This will improve rate at which infrastructure can be built in India. HCC. National Buildings Construction Corporation (NBCC). Top Players y Companies like L&T. COMPETITIVE LANDSCAPE In the first five year plan. Also organization at site will be streamlined. DLF. procurement/hiring of plant and machinery. GMR Infrastructure. Jaypee group. The first professional consultancy company. design engineering and construction companies were setup in the: Public sector . Nagarjuna.

Unitech has received approval in principle to develop three SEZs in the country. 43 | P a g e . commercial/IT parks and retail malls. Given the significant increase in scale of operations. in London) fund. Unitech would retain part stake in the developed projects and would earn proportionate lease income and also earn management fees. The proposed schemes as per variousreports include the AIM (alternative investment market. It is a leading developer of residential apartments. Unitech entered civil engineering in 1974 and diversified into real estate. It has a small business presence in power trans mission. is one of India's largest and most diversified real estate companies. we think this would be useful in scaling up operations. Innovative financing and structuring skills The company aims to achieve its development plan by recycling its capital faster through innovative financing schemes. Captive construction skills Unitech¶s origin was as a construction company. prefabricated construction. The promoters hold 75% of the company. Unitech 62%-owned by the Chandra family. We think this circumvents the problems associated with FDI participation at completed stage while retaining stakes in the specific projects. paving block and ready mix concrete. Already a significant part of its workforce has been redeployed in its real estate/SEZ projects.INDUSTRY COMPETITORS Unitech Unitech is one of India¶s three largest real estate developers and is the largest listed real estate company in the country.

Larsen & Tubro ECC-the Engineering Construction & Contracts Division of L&T . These initiatives will accelerate the Company¶s thrust towards its target of achieving 25% revenues from international business.is India¶s largest construction organization. Electrical & Electronics division is expanding its capacity at Mysore. All the divisions of the Company have planned increased investments in acquisition and installation of new equipment and manufacturing facilities. Ahmednagar. capacity expansion both domestically & internationally and brand building. power and infrastructure sectors. longest flyovers. electrical and instrumentation engineering. Company continues to forge alliances and invest in international business for enhancing capabilities and achieving its vision of becoming an Indian multinational with focus in Middle East and China. Investing for profitable growth To build further on the successes achieved. technology. Capacity Expansion The Company is expanding capacity internationally and within India.edge capabilities of ECC cover every discipline of construction: civil. 44 | P a g e . Joint ventures have been set up in Kuwait and Saudi Arabia for electromechanical construction in oil & gas. largest industrial projects. mechanical. the Company i investing in multiple spheres s ± people. International Business ± Strengthening presence beyond India Coming to International business. highest viaduc ± ts have been built by ECC Leading. Substantial capacity augmentation at Hazira will help to address the growing demand in oil& gas industry. tallest structures. Many of the country¶s prized landmarks ± its exquisite buildings. and Mahape to take care of rapid growth in the sector. This is essential for sustaining the growth momentum and continuous value creation.

COMPANY FINANCIAL PERFORMANCE Swelling order book positions and conversion of the same into revenues has helped construction companies to sustain growth momentum.000 crores. It has had the unique distinction of simultaneously executing 13 hydropower projects sp read over 6 states in India and Bhutan to generate 10. Expansion Plans The group¶s focus in future will be on developing a 5000 MW power generation capacity including wind and thermal by 2014 and further increase the presence in EPC and construction contracts in Hydro power sector. The group has hydro power projects orders worth Rs. 45 | P a g e . real estate in India is booming. Sales growth which vacillated in the range of 15-20% in the earlier quarters accelerated over 30% in March and June 2009 quarters.290 MW of power. and allowed 100 per cent foreign direct investment (FDI) under the 'automatic route' in order to spur investment in the vital infrastructure sector. the flagship of the Jaypee group is an acknowledged leader in construction of river valley and hydro power projects on turnkey basis. Industrial Growth Trends Driven by positive growth in the economy. The latest and the biggest project which they are currently doing is the Yamuna Expressway project on BOT basis which involves building of an expressway from NOIDA to AGRA and it is also construction 5 major townships along the expressway. The project cost is estimated to be around 10.The year 2006 started on a promising note when the Government of India opened the construction and development sector in February 2006.Jaiprakash Associates Jaiprakash Associates Ltd. Venturing in the construction industry Jaiprakash Associates has bagged a lot of infrastructure projects in the near future which has reflected in its performance. The estimated installed capacity of the Group¶s cement business by the year 2010-11 is likely to be 20 million tons per annum.10. 000 Crores.

By 2015. It is invariably seen as the most lucrative sector with the booming land prices and higher profitability all across the country. More and more international construction companies are viewing it as a great opportunity with the new regime in terms of the growth prospective and saturation of their respective local markets. Estimates suggest that the urban housing sector would require investments to the tune of $25 billion (Rs. 46 | P a g e . 1.7 million units in urban areas) in the country about three years ago. there was a shortage of 19. Though there are still certain issues ± land reforms and absence of substantial tax incentives for real estate development . government¶s spending on infrastructure and a liberalized FDI regime.10 lakh crore) over the next five years. which will require real estate in India. Prices have remained buoyant as new construction lags.7 million units in rural areas and 6. favorable demographics.4 million units (12.that need to be addressed. are several ± a booming economy. According to surveys. it is projected that the market size would grow to $ 90 Billion. which curren is on a high growth tly curve. The factors favoring the real estate market in India.

84 1.31 1. the current assets of 1.90 Current Ratio 1. are Current ratio.10 4297. the company becomes less risky. The available working capital with the company is in increasing order ( crores). Ratio Analysis LIQUIDITY RATIO: Liquidity refers to the ability of a firm to meet its short-term (usually up to 1 year) obligations. It means that for one rupee of current liabilities. The ratios. Quick/Acid-Test ratio.81 2511.46 1. It is expressed in the form of pure ratio. Current ratio is on accepted level in the above respective 5 years and also it has improved in March¶09 than to March¶08 indicating th soundness of the company e .66 47 | P a g e . which indicate the liquidity of a company.42 Conclusion Here the current ratio comes out to be 1. It is also known as µworking capital ratio¶ or µsolvency ratio¶. and Cash ratio.46:1 in FY March µ09.46 rupee are available with them.59 2891. This leads to increase the ability of the company to meets its obligations & therefore from the point of view of creditors.84 4226.FINANCIAL ANALYSIS OF JAIPRAKASH A SSOCIATES LTD. in March µ09 ± 2661. Formula: Current Ratio=Current Assets/Current Liabilities Current Ratio Year March '09 March '08 March '07 March '06 March '05 Current Assets 8510.58 5648.38 1769. Current Ratio Meaning: This ratio compares the current assets with the current liabilities.25 4266.80 2299.48 March µ08 ± 1350.48 1.13 Current Liabilities 5849.

38 1769. Formula: Quick Ratio=Quick Assets/Current Liabilities Quick Ratio Year March'09 March'08 March'07 March'06 March'05 Quick Assets 7252.04 March µ06 ± 1927. which is better for the company to meet the urgency.59 2891.10 4297.80 2299.55 3012.23 The company also has sufficient working capital to meets its urgency/ obligations. 48 | P a g e .03 1. The company has a very good liquidity position. cash that would be more liquid in the sense of being able to meet obligations as & when they become due.March µ07 ± 1375. the current ratio throws light on the company¶s ability to pay its current liabilities out of its current assets. The liquid ratio of the company has increased from 1. The company has a high percentage of its current assets in the form of working capital. Thus. Quick Ratio Meaning: Quick ratio is also known as acid test ratio or liquid ratio.08 1.24 1. Almost in all the corresponding 5 years the liquid ratio is somewhat same.49 Current Liabilities 5849.08 in March¶08 to 1. It is expressed in the form of pure ratio.43 March ¶05 ± 741. Quick ratio compares the quick assets with the quick liabilities.24 in March ¶09 which indicates that the dayto-day solvency is sounder for company in March µ09 over the year March µ08.88 4641.19 1911.08 Conclusion: The liquid or quick ratio indicates the liquid financial position of an enterprise.31 1.40 2978.90 Quick Ratio 1.

10 4297. This indicates that the company has sufficient cash. and Operating Ratio.49 0. PROFITABILITY RATIO These ratios help measure the profitability of a firm.23 Current Liabilities 5849.42 0.44 1429. bank balance. can comfortably meet its operating expenses and provide more returns to its shareholders. The liquid ratio shows the company¶s ability to meet its immediate obligations promptly. There are different types of profitability ratios: Gross Profit Margin.41 then it is increased to 0.59 1815.80 2299. The relationship between profit and sales is measured by profitability ratios. which generates a substantial amount of profits per rupee of sales.49 in the March µ07 & to 0. This ratio considers only the absolute liquidity available with the firm.49 0.41 Conclusion: This ratio shows a regular up & down in the value as i March µ05 the cash ratio is n 0.72 0. 49 | P a g e . But it finally increased to 0.This indicates that the dependence on the short term liabilities & creditors are less & the company is following a conservative working capital policy.90 Cash Ratio 0. & marketable securities to meet any contingency.72 in the March ¶06 while it is decreased to 0.42 in the March µ08. Cash Ratio Meaning: This is also called as super quick ratio.80 727.49 in March ¶09.81 1669. Formula: Cash Ratio= (Cash + Bank + Marketable Securities)/Current Liabilities Cash Ratio Year March'09 March'08 March'07 March'06 March'05 Cash + Bank + Marketable securities 2908. A firm. Net Profit Margin.59 2891.38 1769.

how productive the concern . Operating Profit Margin Meaning: This ratio indicates profitability from a firm¶s main operating activities.02 23. how good its control is over the direct cost.20 821. It is equal to gross profit minus all operating expenses or sales less cost of goods sold and operating expenses. It is defined as the excess of the net sales over cost of goods sold or exces of revenue over cost. In March ¶05 the gross profit ratio is 17. It measures the efficiency of production as well as pricing.11 Net Sales 5979. Formula: Gross Profit Margin= (Gross Profit/Net Sales)*100 Gross Profit Margin (%) Year March '09 March '08 March '07 March '06 March '05 Gross Profit 1508.46 3985.22% in March µ09 due to increase in sales without corresponding increase in cost of goods sold. purch ase. It is the profit on turnover.Gross Profit Margin Meaning: This ratio measures the relationship between gross profit and sales.00 2742. how much amount is left to meet other expenses & earn net profit.00 3141.86 17.00 3442. This s ratio shows the profit that remains after the manufacturing costs have been met.26 549.00 Gross Profit Margin (%) 25.50 17. A higher operating profit margin implies better sales realization and effective cost control. selling & inventory.68 477.40 Conclusion: The gross profit is the profit made on sale of goods. This ratio helps to judge how efficient the concern is managing its production.22 24.40% but it has increased to 25. It shows the relationship between operating profit & the sales.02 957. Formula: Operating Profit Margin= (Operating Profit/Net Sales)*100 50 | P a g e .

62 604. purchase.83 983.00 Net Profit Margin (%) 14.08 Sales 5979.00 3442.58% of net sales remains as operatin profit after meeting all g operating expenses.00 3141. selling and distribution and also has control over the direct and indirect costs.14 Conclusion: The operating profit ratio of 30.58 is available for meeting non operating expenses.58 was earned on sale of Rs.00 2742.52 1.85 399.58% means that 30.55 14. This amount of Rs. inventory.13 607.02 51 | P a g e .01 192.58 29.38 700.00 3442.49 Net Sales 5979. 100.30.46 3985.46 3985. In the other words operating profit ratio 30.61 19.29 22.00 Operating Profit Margin (%) 30.58% in March¶09 indicates that average operating margin of Rs.160.828. The above operating profit ratios indicate that the company has great efficiency in managing all its operations of production. Formula: Net Profit Margin = (Net Profit/Net Sales)*100 Net Profit Margin (%) Year March '09 March '08 March '07 March '06 March '05 Net Profit 870.23 7.00 3141.Operating Profit Margin (%) Year March '09 March '08 March '07 March '06 March '05 Operating Profit 1.00 2742.35 11.30.57 22. Net Profit Margin Meaning: Net Profit ratio indicates the relationship between the net profit & the sales and is usually expressed in the form of a percentage.13 28.01 571.

Alternatively.71 7391. Long Term Debt Equity Ratio Meaning: This ratio compares the long-term debts with shareholders fund. manufacturing & other expenses which is a clear index of cost control.93 1. debt equity ratios & Proprietory ratios.96 1.75 5574.71 2.85 11401.99 4051.22 Total Debt-Equity Ratio 1.e.g.Conclusion: The net profit ratio of the company is comparatively low in all the 5 years however the net profit is in increasing order except March¶07 where it had been decreased.30 3260.23 1702. capital gearing ratios. LEVERAGE RATIO It shows the relationship between proprietors funds & debts used in financingthe assets of the concern e.24 5907. Profitability ratio of company shows considerable increase which shows that company has been successful in controlling the expenses i.86 1. This relationship is shown by debt equity ratio. managerial efficiency & sales promotion.38 Conclusion: 52 | P a g e . Formula: Debt Equity Ratio= Long Term Debt/Total Equity Total Debt Equity Ratio Year March '09 March '08 March '07 March '06 March '05 Long Term Debt 17186.28 Total Equity 9240.62 3771. this ratio indicates the relative proportion of debt & equity in financing the assets of the firm. The relationship between borrowed funds & owners capital is a popular measure of the long term financial solvency of a firm.

The debt equity ratio expresses the relation between the external equities & internal equities.86 in March ¶09 which shows that there is increase in debt as well as the shareholders fund. 53 | P a g e .95 12228.48 0.45 Proprietory Ratio 0.24 5907. Proprietory Ratio Meaning: This is a variant of the debt to equity ratio.30 3260.38 in March¶05 to 1. This shows long-term capital structure. Capital Structure Ratio Meaning: The Capital Structure Ratio shows the percent of long term financing represented by long term debt. This ratio relates the shareholder¶s funds to total assets.40 Conclusion: The Proprietary ratio of the company is 52% in the March ¶09 which means that for every Re 1 of total assets. Formula: Proprietory Ratio= Shareholders Fund/ Total Assets Proprietory Ratio Year March '09 March '08 March '07 March '06 March '05 Shareholders Fund 9240.11 8041.89 5643.62 3771. As the Proprietary ratio is favorable the . The debt equity ratio has decreased from 2. 52 paise has come from owners fund while the remaining 48 paise by the outside creditors. Proprietory ratio indicates the long term or future solvency position of thefirm.58 0. Company¶s long-term solvency position is sound.22 Total Assets 17748.11 4218.52 0.23 1702. This shows that the contribution by outside to total assets is less than the owners¶ fund. It is also known as the equity raio or net worth to total assets ratio. This ratio is very important from the point of view of creditors & owners.47 0. The lower ratio is viewed as favorable from long term creditors¶ point of view.

19 5286.61 8.03 Capital Structure Ratio 0. the sooner management can convert assets into sales or cash.00 2659. In general.86 15999. In March ¶09 this ratio is 0.Formula: Capital Structure Ratio= Long Term Debt/ (Shareholders Equity+ Long Term Debt) Capital Structure Ratio Year March '09 March '08 March '07 March '06 March '05 Long Term Debt 17186.85 11401.72 which means that 72% of the total financing is long term financing.82 430.00 2227.83 3.87 2938.72 0. the more effectively the firm is being run.90 267.28 Conclusion: The Capital Structure Ratio shows the percent of long term financing represented by long term debt. Shareholder's Equity + Long Term Debt 23884.68 0.7 8257.99 4051.51 54 | P a g e .72 0.00 2280.71 7391.71 0.16 694.92 Inventory Turnover Ratio 7.83 3.00 570.71 10264. Inventory Turnover Ratio Meaning: ITR refers to the number of times the inventory is sold and replaced during the accounting period.26 616.75 5574.75 6. Formula: Inventory Turnover Ratio= Cost Of Goods Sold/Average Inventory Inventory Turnover Ratio Year March'09 March'08 March'07 March'06 March'05 Cost Of Goods Sold Average Inventory 4423.77 ACTIVITY RATIO It is an indicator of how rapidly a firm converts various accounts into cash or sales. The company is maintaining this ratio very efficiently.

51 times then the stock holding period is 1.67 Fixed Asset Turnover Ratio 0.4months]. For the last 5 years stock turnover ratio is lower than the standard but it is in increasing order since March µ06.75 times.51 rounds during the year.00 3442.00 2742. It helps to work out the stock holding period.82 0. This indicates that it takes 1.77 0.51=1. it means with lower inventory the company has achieved greater sales. Thus.90 55 | P a g e .61 to 7.57 5175.51 times during the year.88 3046. However. it means the stock turnover ratio is 8. the stock of the company is moving fast in the market.00 Net Fixed Assets 8924.56 3271. Fixed Asset Turnover Ratio Meaning: This ratio measures the efficiency with which fixed assets are employed.51 times which indicate that the stock is being turned into sales 8. this ratio should be used with caution because when the fixed assets of a firm are old and substantially depreciated.00 3141. Formula: Inventory Turnover Ratio= Cost Of Goods Sold/Average Inventory Fixed Asset Turnover Ratio Year March '09 March '08 March '07 March '06 March '05 Net Sales 5979.32 4197. the fixed assets turnover ratio tends to be high (because the denominator of the ratio is very low).46 3985. The inventory cycle makes 8.67 0. A high ratio indicates a high degree of efficiency in asset utilization while a low ratio reflects an inefficient use of assets.Conclusion: Stock turnover ratio shows the relationship between the sales & stock ie. how stocks . are being turned into sales.4 months [12/8.96 0. The stock turnover ratio in March µ05 was 8. From March ¶06 to March µ09 the stock turnover ratio has improved from 3.4 months for stock to be sold out after it is produced.

62 981.00 Inventory 1228.16 601.00 2659. 56 | P a g e . Inventory Conversion Period Meaning: The inventory conversion period indicates the no.87 2938. The Fixed Asset Ratio in March ¶05 was 0.30 806.00 2227.33 599.90 which shows a high degree of efficiency in asset utilization while in March ¶09 the ratio falls to 0. Formula: Inventory Conversion Period= (Inventory/COGS)*365 Inventory Conversion Period Year March'09 March '08 March'10 March '09 March'11 Cost Of Goods Sold 4423. of days the company holds inventory.67 Inventory Conversion Period 101 122 111 99 96 Conclusion: The company¶s inventory conversion period is low in March ¶09 as compared to March ¶08 which shows that company is using fewer funds in holding inventory which is good for business. meaning that there is under utilization of the assets available with the company.67 which shows that the company is not utilizing asset efficiently.Conclusion: This ratio measures the efficiency with which fixed assets are employed.00 2280.

02 56.96 0.46 1.54 2.49 while of Unitech is 0.58 14.e.86 7.36 279.73%.16% indicating that Unitech has higher profit remaining after manufacturing costs are met as compared to Jaiprakash Associates Ltd.22 30.55% while of Unitech is 30. y The Cash Ratio Of Jaiprakash Associates Limited is 0. y The Operating Profit Margin Of Jaiprakash Associates Limited is 30.58% while of Unitech is 56. bank balance as well as marketable securities to meet any contingencies while that of Unitech don¶t have sufficient cash. It has an ample margin of current assets over current liabilities which are represented through a seemingly good current ratio as compared to Unitech.Comparison between Jaiprakash Associates Limited and Unitech Financial Ratios Current Ratio Quick Ratio Cash Ratio Gross Profit Margin (%) Operating Profit Margin (%) Net Profit Margin (%) Long Term Debt/ Equity Ratio Inventory Turnover Ratio Jaiprakash Associates Ltd. 1. y The Net Profit Margin Of Jaiprakash Associates Limited is 14.96 indicating that Jaiprakash Associates has sounder quick ratio as compared to Unitech & its day-to-day solvency is also better than Unitech.96 0. bank balance and marketable securities to meet any contingences as i compared to Jaiprakash Associates Limited.73 30.54%.02. managerial efficiency & 57 | P a g e .24 0. This means that Jaiprakash Associates has enough cash. y The Gross Profit Margin Of Jaiprakash Associates Limited is 25.55 1. 56. This means that Unitech has better cost control.16 56. y The Quick Ratio of Jaiprakash Associates limited is 1. This means that Unitech has better sales realization and effective cost control as compared to Jaiprakash Associates Ltd.74 y Jaiprakash Associates Limited looks like an easy winner in a liquidity contest.49 25.22% but in case of Unitech it is much higher i.75 Unitech 0.24 while that of Unitech is 0.

36.75 while that of Unitech is 279. along with the balance sheet and income statement are the three most common financial statements used to gauge a company¶s performance and overall health. A cash flow statement is divided into three parts: operations. y The Inventory Turnover Ratio Of Jaiprakash Associates Limited is 7. The lower ratio viewed as favorable from long term creditors¶ point of view and Unitech has higher long term debt/equity ratio so creditors¶ will look Jaiprakash Associates Ltd.74). has better ratio which means that internal equities are more than external equities. measuring an enterprise¶s ability to cov er its expenses in the near term.04 months (12/279.86 while of Unitech is 2. Hence. Note that all figures represent in Crores.sales promotion which help the company to expand at a rapid pace as compared to Jaiprakash Associates Ltd. Cash from operations: This is cash that was generated over the year from the company¶s core business transactions. The cash flow statement discloses how a company raised money and how it spent those funds during a given period. The following is an analysis of a real-world cash flow statement belonging to Jaypee Group. but each takes a company¶s pulse in a different area. Unitech is using fewer funds in holding inventory as compared to Jaiprakash Associates Ltd. as more favorable company. Cash Flow Analysis A cash flow statement.5 months (12/7.74. Note how the statement starts with net earnings and works 58 | P a g e . Generally speaking.75) and Unitech has stock holding period of almost 0. This means that Jaiprakash Associates Ltd. The same accounting data is used in preparing all three statements. if a company is consistently bring in ing more cash than it spends then that company is considered to be of good value. y The Long Term Debt/Equity Ratio Of Jaiprakash Associates Limited is 1. Jaiprakash Associates has stock holding period of 1. investing and financ ing. It is also an analytical tool.

minus cash used to acquire stock. Cash from investing: Some businesses will invest outside their core operations or acquire new companies to expand their reach.712. 939.backward.259. since noncash earnings can¶t be used to pay off bills. which shows the company spent significant cash investing in projects while in 2009 this number changed to -3. as well as proceeds gained from previous investments. Cash from financing: This last section refers to the movement of cash from financing activities.15.04. and it signals that Jaypee Group is confident in its stock performance and wants to keep it for the company¶s gain. Jaypee Group reports a positive number for 2005.50 plus 1839. Interpretation: Investors will like these last two items. In simple terms. A simple formula for this section: cash from issuing stock minus dividends paid. since they reap the dividends. The final step in analyzing cash flow is to add the cash balances from the reporting year and the previous year. this number in 2005 was -614. Interpretation: This may serve as a better indicator than earnings. this is earnings before interest and taxes (EBIT) plus depreciation minus taxes. In Jaypee Group¶s case. Interpretation: This portion of the cash flow statement accounts for cash used to make new investments. 59 | P a g e . which equals 2908.34 and for 2009 it had increased to 4.59 in March µ09.09. in Jaypee Group¶s cas that¶s e 1069. Dividends to current investors also fit in here.66 which hope to lead in future growth. adding in depreciation and subtracting out inventory and accounts receivable. Two common financing activities are taking on a loan or issuing stock to new investors.

79 Mar ' 06 3.00 6.00 213.44 504.32 1.00 462.00 1.979.40 Mar ' 08 3.00 510.00 3.Annual results in brief Mar ' 09 Sales Operating profit Interest Gross profit EPS (Rs) 5.047. It has also been able to bag more offers which have resulted in the increase in the sales of the company.742.141.985.00 237.00 339.21 Mar ' 07 3.00 5.35 Therefore from the above financial analysis it is clear that the company is growing stronger year by year and is generating more and more over the period of time.59 6.097. Above we can notice that the Profit of the company has increased close to 4 times in the last 4 years which is the strongest indicator of how the company has been performing over the period. Bonus announcement Year 2009 Month Oct Ratio 1:2 Ex Bonus Date 17/12/2009 The company also announced bonus for its investors in the year March¶09 which indicates that the firm is trying to attract more & more customers & also it is creating a positive word of mouth for the company. 60 | P a g e .00 904.59 Mar ' 05 2.00 914.891.442.00 2.00 618.555.00 1.00 257.46 1. It has also expanded into various other sectors which have reflected in its revenues.00 783.

including Rohini. As these suburbs are now increasingly generating employment. they will decide the future growth pattern of the NCR. The blue -collar segment remains limited to apartments and society developments while big and small traders occupy the whole of west Delhi. Suburban areas like Noida and Gurgaon have thus come up as alternative housing solutions and are inhabited mostly by professional and service class people. the suburban towns within the NCR. Occupancies in Noida are good and the Real Estate prices are going north. As a result. retail and residential real estate. bureaucrats and celebrities. Noida.PROJECT INTRODUCTION Delhi is now more or less saturated and the high demand for residential propert has got the y property rates soaring. i. Gurgaon. A large number of firms have set up corporate offices in the region generating huge employment opportunities and attracting the service class population along with. A large number of reputed schools and colleges catering to the needs of the student community especially in areas such as Knowledge Park at Greater Noida are a major reason for the students being keen upon residing in the vicinity. The elite class. 61 | P a g e . Similarly the large multi-storey societies in East Delhi ± in Mayur Vihar and Patparganj ± have found preference with the service class. social and physical infrastructure and growth perspective are concerned. The new developing residential sectors are along the Greater Noida expressway.e. The business and trader class still largely dominate old residential areas in west and northwest Delhi. politicians. With a large number of builders stepping up to the task. are generally residents of Central and south Delhi. making investors wary of investing in the related Real Estate deals in the region. as far as accessibility. in terms of social status. The city has also seen a recent boost in the commercial activity in the region especially alongside the Noida-Greater Noida expressway. It is a good destination for the middle class. Faridabad and Ghaziabad have become destinations for new residential projects that offer affordable quality housing to the middle class as well as luxury housing for high end users. as well as an increasing upper middle class segment. Greater Noida. Noida has experienced rising prices in its existing commercial. a number of integrated townships and Housing complexes are being developed in the region.

These new developments offer uninterrupted power supply. occupancies will improve but in the present context. y To find out the perception of people about the cities included in NCR namely Gurgaon. The study has the potential to open up new vistas for the infrastructure companies by providing them with information regarding the investor mindset. The study aims to determine the factors the investors take into consideration before making any investment in the five cities Noida. Greater Noida. y To find out the investors¶ Financing Method preferences for investments concerning Real-Estate. The research shall reveal the various factors that the investors perceive to be of utmost importance before going into investing into Real-Estate project. To know the degree of importance of various factors which people consider while purchasing a house. y To find out the reasons for transition of people from Delhi to The National Capital Region (NCR). Since it will be maturing as an independent city. Faridabad and Ghaziabad. projects with approximately 5000 dwelling units have been announced in Gurgaon.Gurgaon offers a good quality of living with many high -end residential projects by private developers. Objectives of the Study The study has been conducted keeping the following objectives in mind: y y To determine the First-Pull factor responsible for people investing in Real-Estate. Noida. Various factors which the developer may consider as 62 | P a g e . Faridabad and Ghaziabad. y To determine the investors¶ investment preferences in various options available across the sector. community and health care centres along with facilities like a swimming pool. clubhouse and othe services. Gurgaon. Nature and Scope of Study The project is based upon a study of the perception of the investors towards Real Estate investments in the cities of NCR. it is an oversupply situation. The study is a questionnaire based research involving gathering of data from individual investors and interpretation of the same. Greater Noida. r As per industry estimates.

source of data and the sampling plan the next step is the collection of data. It involves the diagnosis of information needs and the selection of relevant interrelated variables about which valid and reliable information is gathered. Primary Data: Primary data has been collected with the help of : y Questionnaire.redundant or of less consequence may hold much significance for the investors. Data Sampling Sample Size: Noida 100 Greater Noida 100 Gurgaon 100 Faridabad 100 Ghaziabad 100 Total 500 Sampling Method: Data Collection: Convenience Sampling Primary and Secondary Data Data Collection After making the list of the needed information. recoding and analyzing of data about the problems relating to the infrastructure and Real-Estate investments in the cities of NCR. Survey and feedback form. recorded and analyzed. 63 | P a g e . In this study of the data is collected from primary as well as secondary data. Research Methodology The research is a systematic collection. The details of the source of the data are: y Primary & Secondary Data. The study aims to maximize the avenues for the infrastructure development firms to concentrate upon and leave a trail for further research in the area.

jaypeeinfratech. From the company websites:  www.jalindia.jaypeegreens. The analysis was done by using PASW Statistics Package SPSS 18. Secondary Data: Secondary data was collected with the help of : y From company brochures and displays. From the magazines and newspapers.00 and MS-Excel.com  www. the data is required to be analyzed and it is necessary to identify the tools and instrument through which the analysis of data is to be done and presented leading to the meaningful and good results.com y y y Information from different officials. Data Analysis Tools For identification of the variables and other factors. 64 | P a g e .y Through interviewing of consumer and dealer.com  www.

One of the major reasons for the same can be attributed to a large scale Infrastructural development that has spurted up in the rece nt years in the region. A large number of reputed schools and colleges. Location factor emerged as the leading motivator for the people to purchase the property in Greater Noida. Noida and the upcoming Ghaziabad. Also the various upcoming projects such as the Yamuna Expressway act as incentives to the location advantage. These upcoming projects have products catering to virtually the entire section of the investor population r anging from highly affordable Studio 65 | P a g e . The region has seen a sudden spurt in Real-Estate development with a large number of reputed builders as well as dedicated firms coming up to the task. The questionnaire has been designed so as to collect all the relevant data for the purpose of analysis. First pull factor Location: From the survey.00%. Hospitals as well as employment generating BPOs along with a wide spread MNC presence are major contributors to the same. Affordability: Affordability emerged as the second most important First pull factor in the survey with a rating of 42.DATA ANALYSIS The study has been conducted keeping in mind five specific objectives. The region has a good connectivity with Delhi.

The descriptive table and the corresponding Pie-Chart display the mean values of the responses obtained.00 2.0120 MeanValues Price Range 4. However the affordable section still plays a major role in real-estate investment in the region. Price Range: The factor was given a mean value of 4.00 2.00%.428 4.912 Resale Value Amenities/Facilities The above shown factors were rated upon a Likert Based scale on a range of 1 to 5 with 1 being the least significant and 5 being the Very Highly Significant factor. Price range logically is a major factor for real estate related 66 | P a g e .00 2.972 3.00 2. Factors determining the Choice of a Housing Complex Descriptive Statistics N Price Range Area Accessibility Future Connectivity Resale Value Amenities/Facilities Valid N 500 500 500 500 500 500 Minimum 2.Apartments to luxurious and elite Penthouses and Condominiums. The obtained results are definitive of the areas the company should concentrate more upon so as to reach the people to a greater extent and thus promoting the interests of the firm as a whole.00 5.00 5.276 Accessibility Of area Future Connectivity 3.00% a d the value for n advertisement is as low as 4.32 by the respondents clearly indicati g the n importance of the same.4280 4.012 3.00 Maximum 5.9120 3.00 Mean 4. The value for Brand name Of the Developer stands at 6.9720 3.00 5.00 5.2760 3.

A well connected and easily accessible area is definitely a positive sign for investments coming in the region.00 2. Resale Value: Resale value remains a point of contention for people who generally make purchases for purely investment purposes.1340 4.00 3.investments as the concerned investments are generally long -term and involve a considerable amount of capital.1640 4.00 1.00 5.00 5. Auto stand etc. Bus stops. However it is certainly a major influencer as Real-Estate investments are considered to provide promising returns to the investors at large. Amenities/Facilities: Presence of certain amenities and add-on facilities in the locality plays a major role in investors coming to the region.4160 3. Future Connectivity: Proposed connectivity projects underway or in planning such as a proposed Metro connectivity or an ongoing highway project play a vital role in influencing the investment motives of the investors. Recreational centers. is another key investor motivator.5640 3.00 2.00 5. The In-Locality factors Descriptive Statistics N Density Of Locality Quality Of Construction Maintenance & Safety/Security Product Specification Water & Power backup Car Parking Valid N 500 500 500 500 500 500 500 Minimum 1.00 Maximum 5.00 5. Gymnasiums.6060 4. People interested in making long -term investments and investments for purely residential purposes do not pay much heed to the resale value of the apartments or plots etc. Accessibility of Area: Connectivity of the locality to major roads.00 5. Shopping Complexes. Schools. Facilities such as Social Clubs.00 Mean 3.00 3. Colleges and Sports facilities provide a definitive edge to the locality. highways and other important means of public transport such as the Metro.9360 67 | P a g e .

Although the residents are charged a higher price for the same. Also frequent load shedding by the government causes a large demand for continuous power backup facilities.Water & Power Backup: In the NCR region a large number of high rise buildings lack continuous fresh water availability.564 signifying the level of importance to the same for the investors to make Real-Estate investments. The facility is also responsible for the recent upsurge in people preferring to stay in integrated townships and developer localities instead of Independent homes where such facilities are not readily available. The reason may be attributed to a considerable number of nuclear families staying in the region as well as working individuals preferring a certain measure of safety in the colony. It has been observed that in general people prefer to stay in a gated and secure colony. Developers offer these facilities to the residents of localities. The mean score given to the factor was 4. Maintenance and Safety/Security: Maintenance and Safety/Security was rated by the investors at a mean score of 4. the water and power backup availability still remains the major contributor to the In Locality factors.416 making it the second most important factor considered by them after Water and Power Backup facilities. Also the developers provide basic 68 | P a g e .

However the factor has been rated at an average of 3.164. Product Specification: The investors while making an investment always have a certain specification in their minds regarding the same. localiti s which are scarcely populated e are not considered an ideal investment. Th investors invest large sums e of money for their purchases and getting renovations done over is nothing but a nuisance. with an average score of 4. Quality of Construction: A well planned. with an average score of 3.936. Density of Locality factor was rated at an average of 3. Most of the investments being made on a Long -Term basis may be considered as a reason behind the same. well constructed and properly executed locality. the residents have to t pay a larger amount which may sometimes hinder their investments in the locality. This suggests that although the factor is specific to the investors but the same may be partially compromised by them. A well designed parking lot for the residents helps avoid the on road congestion caused due to uneven parking. Also.606 signifying moderate to High importance for the same. However the fact remains that for an area with optimum population densi y. Also this helps prevent the unwanted car thefts and avoids un necessary chaos on roads.134 specifying a moderate importance for the factor. Car parking: A properly planned parking space allotted to the residents.maintenance facilities at reasonable charges allowing the residents to get hassle free maintenance as and when required. is the third major factor considered by the investors while making Real-Estate related investments. The survey revealed that the residents do not object paying a higher amount for a car parking lot availability. A 69 | P a g e . has been ranked the fourth major factor concerning Real-Estate investments. Density of Locality: The residents prefer residing in a reasonably well-occupied society but avoid investing in highly populated regions.

large availability of options in the marke also goes a large extent in solving the t product specification related issues.833 55 .000 The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistic that indicates the proportion of variance in your variables that might be caused by underlying factors. 70 | P a g e .500 indicates that the underlying variables have a correlation with each other and the factor analysis being undertaken can determine and examine the underlying (or latent) relationships between the variables. .The value of the factor being above 0. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.533 610. Factor Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

234 .339 . The Component Matrix table depicted above represents the variables with the highest correlation with the others.256 -.095 -.116 . From the matrix.425 .078 -. The Eigen value of each component in the initial solution is plotted. the more significant a component becomes.179 . the above stated factors bear a highly significant impact upon the mindsets of the investors.220 . The Scree plot helps us to determine the optimal number of components.400 .284 Extraction Method: Principal Component Analysis.462 .291 .223 .292 .301 3 -.098 -.Component Matrix Component 1 Price Range Area Accessibility Future Connectivity Resale Value Amenities/Facilities Density Of Locality Quality Of Construction Maintenance & Safety/Security Product Specification Water & Power backup Car Parking . The table depicts 4 components exhibiting the highest values of correlation.246 -.233 .350 .062 . 4 components extracted.013 .559 .038 .746 -.235 -.355 4 .460 -.103 .511 . 71 | P a g e .357 .891 .The higher the value.101 . the four components as determined are: y y y y Density Of Locality Product Specification Resale Value Maintenance & Safety/Security The analysis clearly suggests that along with the general factors such as Price range.401 .176 . Water and Power Backup and Area Accessibility.103 -.053 .239 .186 -.521 2 -. Amenities/Facilities.280 .157 -.204 .207 -. The components have been shown with having the highest values in the matrix under each component head.

Investments in offices and office complexes is generally a characteristic of MNCs and with the presence of the Multi Nationals and domestic companies shooting up in the region. This was closely followed by the Rental property investments with a corresponding respondent base of 97. 72 | P a g e ¡   0 4 10 . This leads to Rental property being the second most preferred form of investment in the Real-Estate sector. The survey results however negate the popular notion with Commercial investments. Commercial investments have long been considered one of the leading spheres in Real-Estate related investments. The most preferred form of investment was Condominiums with a total of 98 respondents out of the total 500 preferring to invest here. Investment in Land related Real-Estate products turned out to be the next preferred form of investment with 95 of the total respondents choosing to invest in Land. Investments in Second homes turned out next with a net respondent baseof 89 out of the total. This establishes the Land continues to attract the investors while considering Real Estate investments.Investment Preference 98 100 80 40 77 97 95 89 20 0 Investment Preference Comments The survey generated a mixed response from the respondents relating to their investment preferences. Investments in Commercial property followed lead with 77 respondents replying in affirmative to the same. Investments in Offices followed suit with 34 respondents. such investments are poised to grow in the future.

2% 30.GREATER NOIDA Preferred Method of Financing Financing Frequencies Responses N Financing Preference New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Total 76 66 36 10 28 216 Percent 35.7% 4. Seller financing is emerging as a major contributor in Real Estate investments due to its comparatively hassle-free process as well as the in complete conformity with the 73 | P a g e . The second most preferred method for generation of funds for investment in Real -Estate came out of µSeller Financing¶ option which was responded to with 66 affirmative responses.0% Comments The data collected form Greater Noida ranks µNew loans from a financial institution¶ as the most preferred method for financing. The option generated a total of 76 affirmative responses.0% 100.6% 13. The outcome is in conformity with the generalized market notion where most of the Real-Estate related investments are generated by loans obtained from major lenders a nd related financial institutions such as banks and other Non -Banking Financial Institutions.6% 16.

Reasons for Shifting Responses N Shifting Preferences Need For Better Location Need For More Space Need For Better Facilities Need For Healthy Environment Want For Quality Construction Water & Power Backup Facilities Recreational Facilities Total 44 48 60 42 34 45 18 291 Percent 15. This amount may then be further used to make investments in the same or other sectors. All cash deals are a less preferred financing method due to the fact that such deals have a tendency of coming un scrutiny by the related Law-enforcement der authorities.phenomenon of obtaining µEverything under one roof.¶ Also a large number of developers in the region make the option a lucrative think about due to attractive rat s of interests in a e competitive market.1% 16. Lastly µAll Cash¶ deals ranked fifth with a total of 10 responses definitely in agreement with the trends of the industry.2% 100.7% 15. The third most preferred method of financing for the Real Estate investors is the µAssumption of Existing loans¶ which was checked upon by 36 responses.5% 6. The Investors who have e already sought a loan for some investment in the past may also have such a credibility which makes them eligible for generating some additional amount from the financer subject to the terms and conditions of their loan contract.4% 11.6% 14. Theinvestors in the region have a tendency to generate financ through financial institutions with each e investor having certain credibility with their respectiv financers.5% 20.0% 74 | P a g e . Trade of property implies an investor selling one holding property and using the funds generated thereof to invest in another more lucrative deal in the investor¶s perception. The fourth most preferred method of financing in the city is through µTrade of Property¶ with a total of 28 responses. Trade of property is another important factor that affects Real Estate investments due to the sector being a capital intensive profit generating industry.

The recent upsurge in the trend for hig rise buildings coupled with h deficient supplies causes acute water shortages in cities in areas of Delhi. The new integrated townships and developer complexes thus emerge as a solution to the same promising constant 24-hr backup facilities. The investors are thus bound to get Better facilities with time. The reason emerged as being the third in the study with a total of 45 responses to its credit. In -Locality schools. A µNeed for more Space¶ was the second to front invoking a total of 48 responses. Greater Noida is an upcoming location with a large number of developers gearing up for the task. 75 | P a g e ¢ . Instead of the congested localities of areas such as Delhi.60 0 40 30 20 10 0 Comments For the respondents of Greater Noida. Also a constant shortage of electricity causes a lot of discomfort. sports complexes. One of the major reasons for people to shift from one location to another is a lack of µWater & Power Backup¶ facilities. a µNeed for better facilities¶ emerged as the most important reason for their preferring to shift to the region. its optimal proximity along with several other projects of importance coming up. the people would prefer to move toGreater Noida for more living space. Colleges and commercial areas. There is a great opportunity for development in the area due to abundance of land. The option invoked 60 responses. The planned townships and developer complexes of the city are being designed keeping the customer preferences regarding the same in mind. Also firms such as Jaypee are coming up with large scale Integrated townships with extensive facilities such as International standard golf courses.

Facilities¶ thus emerged as one of the most redundant factors in the study. The planned developments coming up in the region are in keeping with this principle. Also regions such as Knowledge Park offer definitive growth potential.The µNeed for a better Location¶ emerged as the next most important factor with a total of 44 responses to the same. Also international standard golf courses and stadiums are being planned and constructed keeping in mind the concept of a green and health living conditions. The region has seen an emergence of commercial activity with MNCs like Samsung. y A µWant for Quality Construction¶ is another major factor for people preferring to shift to Greater Noida from other regions. With increased employment opportunities. Greater Noida is undergoing development at ever increasing paces and the scenario has led to a large number of Recreational Centers coming up in the region A µNeed for Recreational . LG. Most developments are in keeping with the most recent trends in construction strictly abiding with the specified norms for safety. Most integrated townships in development have been directed to keep 65-77 % of green area in the construction regions ensuring adequate pollution free environment. A µNeed for Healthy Environment¶ with 42 responses is the next preferred reason for shifting to Greater Noida region. people would prefer staying closer to their work places. This along with the above mentioned reasons can be attributed to the location related preference of the region. security and other concerned areas of interest. MoserBaer and ST Microelectronics setting up corporate offices here. 76 | P a g e .

0% 14.NOIDA Methods of Financing Financing Frequencies N Financing Preference New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Total 76 56 30 10 30 202 Percent 37. A highly competitive market ensures the investors better deals when it comes to the Rates of interest being offered.0% 80 70 60 50 40 30 20 10 0 76 56 30 10 30 New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Comments For the investors of Noida. The option generated 76 responses and tops the list.9% 100.6% 27. 77 | P a g e .7% 14. This indicates the fact that the investors are wary of investing their personal funds into the deal and prefer to make the investments on account of funds availed from a Financial Institution on terms and conditions of the loan amount. µNew Loan(s) from a Financial Institution¶ is the most preferred method for generating finance for Real-Estate related investments.9% 5. The city plays host to a large number of developers who cater to the financing needs of the investors as well. Seller Financing emerged as the second most lucrative and sought after investment generator with a total of 56 responses to its credit.

Trade of Property remains an important factor for consideration due to the sector being one whic promises high returns on h investments leading the investors to generate finance by sale of redundant and obsolete investments in lieu of better opportunities promising better rates of return. finances generated from µAssumption of Existing Loans¶ along with that generated off µTrade of Property¶ jointly share the next most preferred method of financing.8% 12.1% 15.5% 13.For the region.0% 78 | P a g e . Each of these obtained 30 affirmatives from the respondents.7% 8. Reasons for Shifting Shifting Frequencies Responses N Shifting Preferences Need For Better Location Need For More Space Need For Better Facilities Need For Healthy Environment Want For Quality Construction Water & Power Backup Facilities Recreational Facilities Total 35 46 60 45 36 24 38 284 Percent 12. With an assumption of exising t Loans the investors put their existing loan amount credibility to use and generate additional finance from the financer they are already in contract with. µAll cash¶ deals still remains at the bottom of the list due to the factors discussed in the previous sections of the report under the analysis for the city of Greater Noida.2% 21.4% 100.3% 16.

The architecture and planning are extensively well groomed and the developing townships and the develo pers offer excellent construction achieving the required quality standards. The city has extensive recreational centers.Comments A µNeed for better Facilities¶ surfaced as the most common reason for people moving to the city of Noida. A µNeed for better location¶ was the sixth factor in the study with 35 responses coming its way. The highways under construction. The city also has Metro connectivity providing the residents easy accessibility to Delhi and other areas of Noida. The option was agreed upon with 60 responses leading it to top the list. theme parks such as The Great India Place and Shopping complexes. Most developments are in according to the most recent trends in construction strictly abiding with the specified norms for safety. security and other concerned areas of interest. the numerous schools as well as colleges along with reputed hospitals have come up in the region. With major developmental work taking place in the region. A µNeed for More Space¶ is the next most important reason for people to shift to the city. people turn towards Noida for the same reason. The list being vast. The area is undergoing rapid development and offers a larger living space to the residents. A µWant for Quality Construction¶ is another major factor for people preferring to shift to Noida from other regions. The city has a plethora of undeveloped and under-developed land leaving the investors to be able to invest into larger spaces with ease. The reason makes µA Need for Healthy Environment¶ the third most important factor in the list with 45 responses to its credit. µRecreational Facilities¶ ranks next in the study as the fourth most important factor causing people to prefer Noida as their residence. The city¶s close proximity to Greater Noida and Faridabad along with Ghaziabad make s 79 | P a g e . the city offers a wide variety of facilities catering to the entire population. which is not a constraint to the developers in the region. The city areas being developed under various flagships such as Jaypee promise to dliver e vast expanses of green land in the vicinity of homes for the investors and residents. The planned developments coming up in the region are in keeping with this principle.

The lack of large numbers of High rise buildings ensures constant water supply in adequate fashion.it a lucrative option to be considered. The major areas in the city are well connected through planned and well built highways and roads. The Metro project ensures an always available and fast mode of transport for people commuting between Delhi and Noid a. A shortage of Electricity and Water is not as acute a problem for the residents of Noida as it is at other places. 80 | P a g e . The government ensures a constant andwell maintained power supply to the region due to it being a service and industry oriented state.

A highly competitive 81 | P a g e .9% 29.5% 3.0% 100. Seller financing emerged as the second most lucrative and sought after investment generator with a total of 80 responses to its credit.7% 17. for financing Real-Estate deals Loan(s) from a Financial Institution New was the most preferred Method for financing used by the investor community. This again confirms the the that it is the Financial Institutions ory who are responsible for the major chunk of funds flowing into the Real-Estate sector.9% 14.GURGAON Preferred Method of Financing Financing frequencies Responses N Financing Preference New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Total 80 68 40 9 32 229 Percent 34. The city of Gurgaon hosts a large number of developers who cater to the financing needs of the investors as well.0% 80 70 60 50 40 30 20 10 0 80 68 40 32 9 New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Methods Of Financing Comments In the analysis for the city of Gurgaon as well.

it is a source of funds for people who own land in areas other than the city.4% 13. However. The Investors credibility allows them to generate additional finance for further investments along with comparatively hassle-free procedures. The people.8% 14. as of now. The majorly preferred locations of the city are already being developed by variousdevelopers and a Trade of Property is another major source of finance for the investor community. An Assumption of Existing Loans with 68 responses was yet again another major source for finance.4% 15. All Cash deals are as usual the bottom of the list due to reasons discussed in the previous sections of the report.1% 13.4% 100. Reasons for Shifting Shifting Frequencies Responses N Shifting Preference Need For Better Location Need For More Space Need For Better Facilities Need For Healthy Environment Want For Quality Construction Water & Power Backup Facilities Recreational Facilities Total 46 46 38 42 40 46 40 298 Percent 15.0% 82 | P a g e .4% 12.market again ensures the investors better deals when it comes to the Rates of interest being offered.4% 15. in locations such as Gurgaon. are reluctant to hand over land easily because of the high rate of return and the alluring prospects of increased profits with time.

The options each invoked 46 responses. The city is equipped with a large number of recreationalcenters. There is a great opportunity for development in the area due to abundance of land. a µNeed for better Location¶.50 45 40 5 0 25 20 15 10 5 0 Comments For the respondents of Gurgaon. µWater and Power Backup¶ along with a µNeed for more space¶ jointly emerged as the most important reasons for their preferring to shift to the region. its optimal proximity along with several other projects of importance coming up. A µWant for Quality Construction¶ along with a µNeed for Recreational Facilities¶ emerged as the next most important factors for people wishing to shift to the region. A large number of developments offer a variety of facilities such as spas. Gurgaon is location which offers a great place to live in complete with adequate facilities in the region. The 83 | P a g e £ £ . Each of thesegot 40 responses in the study. gymnasiums and the like. A large number of developers are gearing up for the task. A µNeed for Healthy Environment¶ was the second most important reason for people preferring to shift to Gurgaon. Shopping complexes and such other areas catering to the needs of the people. but the recently developed societies as well as certain inbound areas offer a much healthier and greener environment. Although the city¶s outskirts are not that adequate with respect to the green area and parks etc.

84 | P a g e . A µNeed for Better Facilities¶ emerged at the bottom of the list in the study for the city of Gurgaon. the city does not lack the need for better facilities. Keeping in accordance with proper developments going on.developments being undertaken in the region are in accordance with some of the most developed architectural communities. the area still has a major potential for improvement. Schools and the like are not hard to come by and the proposed Metro connectivity only makes the prospects more interesting. The governmental authorities need to gear up to the task if the target is to be achieved to the hilt. However. Hospitals.

85 | P a g e    ¦ © ¨    ©©   ¦ ¦ N w an( ) fr m a inan ial In tituti n ll r inan ing A umpti n Of Exi ting an ¥ ©      ¨§ ¦ ¥ 90 0 70 60 0 40 30 20 10 0 4 62 4 ¥ ¤ 12 All Ca h Trad Of Pr p rt .0% 36 The above analysis indicates that µNew loans from a Financial Institution¶ is the most preferred method of generating finance with 84 responses to its credit. however lacks in basic amenities so they prefer to sell them and use the generated funds to acquire property in areas where the facilities are easily available.8% 5.7% 14. A lot of investors from Faridabad are endowed with a lot of property in remote areas which.9% 19. Generation of Finance through µTrade of Property¶ ranks second in the survey with 64 responses in its favor.6% 100.0% 25.FARIDABAD Preferred Method of Financing Financing Frequencies Responses N Financing Preference New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Total 84 36 48 12 62 242 Percent 34.

Reasons for Shifting Shifting Frequencies Responses N Shifting Reasons Need For Better Location Need For More Space Need For Better Facilities Need For Healthy Environment Want For Quality Construction Water & Power Backup Facilities Recreational Facilities Total 40 52 42 36 48 58 36 312 Percent 12.0% 36. The investors who were previously under-investing can now use their complete credit worth of loans for financing the related Real-Estate investments.0% 36.5% 11. The last on the list was the µAll Cash¶ deals with just 12 affirmative responses to it.4% 18.0% 48. This makes µSeller Financing¶ the fourth on the chart.0% 58.8% 16. The region has witnessed an upsurge in the real-estate projects with reputed firms undertaking numerous projects in the area.0% 52. new arenas have now been unlocked and a much larger playing field is now available. However.0% Percent of Cases 40. Hence an µAssumption of Existing Loans¶ ranks as the third most preferred method of financing a Real-Estate deal.0% 86 | P a g e .5% 15. The reason behind the same is definitely the fact that shelling out such large amounts of cash in a single installment is not a viable option for most of the investors. In order to attract investors the developers are offering as many options as are available with them.Earlier there were very less options available for respondents to invest in the Real-Estate to sector. For instance providing loans for some of the real-estate projects and financing the deals by themselves.0% 312. they are bound to get better deals in the process.5% 100. Investors are gladly opting for the same as owing to the tough market competition.0% 42.6% 11.7% 13.

The recent upsurge in the trend for high rise buildings coupled with deficient supplies causes acute water sh ortages in cities in areas of Delhi. The new integrated townships and developer complexes thus emerge as a solution to the same promising constant 24-hr backup facilities. A µWant for Quality Construction¶ emerged as the next most important factor with 48 responses to its credit. The city has a plethora of und eveloped and under-developed land leaving the investors to be able to invest into larger spaces with ease. The same has been easily catered to by the developers coming up with excellent investment options offering projects with the most developed architecture. which is not a constraint to the developers in the region.0 50 40 30 20 10 0 One of the major reasons for people to shift from one location to another is a lackof µWater & Power Backup¶ facilities. The investors are always looking for µBetter Facilities¶ and the city is now quite appropriate for the same. The area is undergoing rapid development and offers a larger living space to the residents. Also a constant shortage of electricity causes a lot of discomfort. Also the free land plots the investors invest into for residential purposes are also developed by the same keeping in mind the personal preferences ensuring a proper construct and quality as per requirement. The various projects being undertaken by the governmentas well as the private developers are evidently making progress and providing people with better facilities on the 87 | P a g e  . The reason emerged as having the top -most priority in the study with a total of 45 responses to its credit. A µNeed for More Space¶ is the next most important reason for people to shift to the city.

go. Various market places are coming up especially in the sector regions and the roads and highways are being developed. The government also provides incentives to the industry located in the region leading to further the generation of revenues for the state. The place is adequately located with respect to Noida, Greater Noida, Ghaziabad and most important of all to Delhi. The Metro project coming up to the Badarpur region of the city is working as an added incentive for people commuting to Delhi and beyond. The place also sports the M.B road region wherein a large number of workplaces are located leading to the region being an appropriate choice for putting up for the working class. However, it cannot be ideally said that the area is done doing its share of the work. The city still needs to better the facilities being provided in order to compete with other cities of NCR such as Noida and Gurgaon. The reasons make µA Need for Better Location¶ the fifth most preferred reason for people to shift to the region. The last two reasons on the list are¶ A Need for Healthy Environment¶ and µRecreational Facilities¶ with just a meager 36 responses to their credit. The responses obtained are not any eye openers. The city definitely lacks presence of green areas and health centers. The maximum that can be said regarding the Recreational Facilities in the region are the few Shopping Complexes and multiplexes coming up. The region definitely needs to work upon the issues in order to remain at par with the other competitors.

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Methods of Financing
Financing Frequencies

Responses N Methods Of Financing New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property Total 70 78 30 6 32 216 Percent 32.4% 36.1% 13.9% 2.8% 14.8% 100.0%

Methods Of Financing 

80 60 40 20 0


8 36 32

New Loan(s) from a Financial Institution Seller Financing Assumption Of Existing Loans All Cash Trade Of Property

Methods Of Financing

Comments The analysis for Ghaziabad ranks Seller Financing, with 78 affirmative responses, as the most preferred method for investment financing in the Real Estate sector in the region. This outnumbers the responses generated for New Loans from a Financial Instituton for i investments by a total of 8 responses with the later getting only 70 clicks from the respondents. The results may be indicative of a slight paradigm shift in the sector as getting finances from a Financial Institution is generally the most favored opinion amongst respondents. Getting loans from a recognized financial Institution is considered as the safest

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option by most of the investors as the process is fairly transparent and a highly competitive market generates an edge for the seeker of the facility. The next most preferred option for getting finances for investments turned out to be Assumption of existing Loans generating 36 affirmative responses being closely followed by financing from trade of property with 32 responses. This remains in confir ation with the m general notion pertaining to the sector. Financing from Trade of Property in the region getting fewer responses may be attributed to the fact that the preferred locations in the region are generally being undertaken by the builders for deve lopmental purposes. All cash deals generated 6 responses from the respondents, making it the least preferred option for financing real-estate related investments, in the survey which is most conveniently in confirmation with the predictable results.

Reasons for Shifting
Shift Frequencies Responses N Shifting Preferences Need For Better Location Need For More Space Need For Better Facilities Need For Healthy Environment Want For Quality Construction Water & Power Backup Facilities Recreational Facilities Total 48 58 48 28 24 63 32 301 Percent 15.9% 19.3% 15.9% 9.3% 8.0% 20.9% 10.6% 100.0% Percent of Cases 48.0% 58.0% 48.0% 28.0% 24.0% 63.0% 32.0% 301.0%

90 | P a g e

70 60 50 40 30 20 10 0 Water and Power Backup: The option generated 63 responses from the respondents in the survey making it the most relevant reason for the people to shift from the region. Also a presence of high rise buildings in certain localities such as the Indirapuram causes a shortage in water supply to the apartments on higher floors. The major living areas if the city has a relatively high population density housing more people than they were actually designed for in the first place. Need for more space: A need for more living space was quoted as the second most wanted option in the list with a total of 58 responses pertaining to the same. The city faces an acute shortage of power and water in comparison with the nearing estates of the region i. Need for better Location and better Facilities: The corresponding options invoked an equal number of res onses from the survey placing p them jointly at the third spot for the reasons attributing to the phenomenon of shifting from the region. The reason can be easily attributed to the presence of highly crowded localities in the region. The reasons may be manifold ranging from extremely over-populated communities to lack of governmental policies pertaining to the same.e. People always prefer to minimize the distance between their residence and their 91 | P a g e . Noida and Greater Noida.

Recreational Facilities: The responses for the same were 32 ranking the reason at the fourth spot. Need for healthy environment: The option has been ranked at the fifth spot by the respondents. This ensures the construction quality being delivered to the individual inhabitants. The reason may be attributed to the fact that although the area is not adequately equipped with recreational facilities. Multiplexes and the like. the same are now beginning to come up in certain locales. stadiums and other such facilities in the regio However the awareness regarding n. Want for Quality construction: The option was ranked the last in the survey with just 24 responses to its credit. the survey did not reflect a concern for the cause. With major employments coming up in Noida. 92 | P a g e .area of employment so as to reduce the time to commute between the same. the same may come with time but as of now. The plausible reason for the same may be that the general working class who responded to the survey does not show a keen interest in the development of parks. The cause fo r the same is that the region has now come under development with projects being undertaken by specialized builders and constructers. The response generated in the survey cannot be adequately linked to the causes. Also the fact that the region lacks the basic facilities of Power and Water along with a general unavailability of parking spaces is the reason for 48 responses that came in for a Need for Better Facilities in the area. people are in a need for a location which suits their travelling needs as per the related convenience. Also the competitive market helps theresidents to avail the best possible deals with regards to their preference for quality construction and the price they are ready to pay for the same. Greater Noida and Faridabad as well as the bordering areas. However the region lacks the adequate open space and green area. The area is witnessing a growth in development of Shopping Complexes.

Noida is undergoing major developmental projects in the form of integrated townships such as Jaypee Greens along with major highways and numerous schools and other educational institutions coming up in the 93 | P a g e . This establishes the fact that a large percentage of people prefer to invest in the city of Noida on the basis of the advantage of its location. Noida is situated at optimal distances from places such as Greater Noida. Noida tops the list of people surveyed with 172 out of the total 500 respondents surveyed. an emerging business hub. The city also has a Metro connectivity with Delhi making it an ideal location for commuters to put up.INVESTOR PERCEPTION Location Greater Noida First Preference Second Preference Third Preference Fourth Preference Fifth Preference Sixth Preference Noida Gurgaon Faridabad Ghaziabad Others 82 148 130 92 38 10 172 162 102 54 6 4 144 82 104 92 44 34 88 84 126 126 50 26 4 8 26 98 278 86 10 16 12 38 84 340 Comments With respect to the Location factor. Faridabad and Ghaziabad.

Shopping complexes and the like.vicinity. Greater Noida ranked fourth in the list just after Faridabad. Gurgaon was the next most preferred location for the investors for investing in RealEstate. The factor is attributable to the major projects and Real-Estate development going on in the region. The place is connected to Noida through the Noida Greater Noida expressway. The region is an upcoming one with major developments taking place. The city invoked 144 responses from the study. The cost of living in the city acts as an added incentive as the s ame is not very high as compared to Delhi and Gurgaon. The under development Yamuna Agra Expressway will lead the city to connect well with the interiors of Uttar Pradesh. The region also has a proposed metro connectivity coming up in near future making it a head -turning place for the investors. The City offers a plethora of facilities such as Recreational centers. Business Hub Greater Noida First Preference Second Preference Third Preference Fourth Preference Fifth Preference Sixth Preference Noida Gurgaon Faridabad Ghaziabad Others 76 64 94 72 140 54 118 188 94 78 14 8 224 152 56 38 22 8 56 70 152 140 54 28 8 12 54 138 184 104 20 14 44 42 86 294 94 | P a g e .

Developmen of major highways such as the Noidat Greater Noida expressway has led to a large number of developers and infrastructure companies to establish corporate offices in the city and alongside the highways. The upcoming Yamuna-Agra Expressway will lead to connectivity with the interiors of the state of Uttar Pradesh leading to greatly enhanced trade opportunities. The area is complete with large Shopping complexes. With major developmental work taking place in the region. Noida offe a wide variety of rs facilities catering to the entire population. The region is not confined to a single sector and caters to a vastly varied need such as manufacturing. Polaris. IBM and Microsoft to name a few. services and education leading it to be a location with vast investment potential in future. The city consequently attracts a large population of the working class for residential as well as investment purposes. The city is host to a large number of corporate offices and BPOs. 95 | P a g e . The list being vast. Noida plays host to a large number of BPOs and IT Parks which generate huge business opportunities and revenues for the government offering alongside a vast amount of job opportunities. theme parks such as The Great India Place and Shopping complexes. The area is complete with a large number of reputed institutes ranging from Graduation colleges to reputed B-Schools. people turn towards Noida for the same reason. Gurgaon thrives on the service industry with companies such as Ericsson. Greater Noida ranks third in the study with 76 respondents agreeing to the viability of the city being a business hub. Also the area is in close proximity with Industrial belts such as Bhiwadi and Manesar with major automobile manufacturers such as Maruti Suzuki and Hero Honda contributing majorly to the viability of the city. The city plays host to large number of Multi-National Company offices along with areas such as the Knowledge Park catering to vast expanses of student community.Comments Gurgaon tops the list for the section Business Hub from the study. The city has extensive recreational centers. Tata Consultancy Services. Multiplexes and other Recreational centers.

The city has extensive recreational centers. The city also has Metro connectivity providing the residents easy accessibility to Delhi and other areas of Noida. the city offers a wide variety of facilities catering to the entire population. The highways under construction. in-society roads. theme parks such as The Great India Place and 96 | P a g e . lighting etc. One of the key features of the city is the presence of Residents¶ Welfare Associations in societies in the city. the numerous schools as wel as colleges along with reputed l hospitals have come up in the region. With major developmental work taking place in the region. These associations undertake large amounts on in -society developmental work such as development of parks. leading to an overall development of the same.Quality of Living Greater Noida First Preference Second Preference Third Preference Fourth Preference Fifth Preference Sixth Preference Noida Gurgaon Faridabad Ghaziabad Others 88 112 176 68 26 30 218 148 78 38 10 8 130 178 124 58 6 4 38 42 72 200 102 46 2 8 16 72 310 92 30 12 28 64 46 320 Comments Noida was the foremost preference for the respondents under the category ofµQuality of Living¶ with 218 respondents agreeing to it.

The government has well laid -out rules pertaining to the sectored development of the region specifying proper norms for the builders and inf rastructure firms to follow. The government ensures a constant and well maintained power supply to the region due to it being a service and industry oriented state. Gurgaon is majorly a services oriented city and major developmental projects are being undertaken in the region. The firms are being offered various incentives for taking up projects in the region by the government.Shopping complexes. The quality of living is not upto the mark in the interiors of the city.G. Road. Greater Noida has been a planned development from the very initial phase ofdevelopment. However. Law & Order Greater Noida First Preference Second Preference Third Preference Fourth Preference Fifth Preference Sixth Preference Noida Gurgaon Faridabad Ghaziabad Others 56 36 32 136 172 68 132 166 158 30 14 0 156 122 146 44 20 12 118 122 106 46 64 44 14 6 24 164 174 118 30 48 32 80 56 254 300 250 200 First Preference 150 50 132 0 ! 100 5 " 15 118 30 Second Preference Third Preference 14 Fourth Preference Fifth Preference Sixth Preference 97 | P a g e . the city is majorly developed across certain belts such as the alongside the Delhi -Jaipur highway and areas surrounding M. The city interiors are undergoing development leading to improvement in the situation. Gurgaon ranks second in the list with 130 respondents.

The city has however now witnessed a change in scenario with the authorities gearing up for the task. The results are indicative of the fact that the residents feel more secure and safe in Gurgaon as compared to the others. Faridabad was the third option with regards for Law and Order in the city. The reason may be attributed to the fact that the region is closer to the state interiors as compared to Noida leading to deficient Law and Order situation. The city has well placed and organized Law enforcement as compared to Noida. Greater Noida and Ghaziabad.Comments Under the section of Law & Order. Infrastructure Greater Noida First Preference Second Preference Third Preference Fourth Preference Fifth Preference Sixth Preference Noida Gurgaon Faridabad Ghaziabad Others 122 98 124 78 44 34 98 210 88 33 35 36 200 86 46 48 66 54 45 70 90 195 65 35 25 30 80 97 222 46 10 6 72 49 68 295 98 | P a g e . The city being a part of Uttar Pradesh contributes to it being ranked lower than Gurgaon. Vigilance has been stepped up a notch in the region in recent years. Gurgaon outranks all the other cities of NCR. the crime rate being considerably higher in the state than in Haryana. Greater Noida ranks fourth in the list with just 56 respondents responding to it. Noida is the next preferred location for investors with concerns of safety and security and Law and Order. Faridabad. The factor is a major cause for attracting people looking for residential property in the city.

The city has undergone massive development in the last decade and various projects as well as industrial undertakings catering to all the sections of the society have contributed tremendously to its growth. The city however is not fully developed and has developmental land ready for use in arge quantities l offering a wide scope for further improvement. This has led to a lot of Real-Estate investment in the region.Comments The results from the study dictate that Gurgaon tops the list amongst the cities of NCR with respect for Infrastructure. %$ 00 250 200 150 122 100 50 0 # 200 First Preference Second Preference 45 25 10 Third Preference Fourth Preference Fifth Preference Sixth Preference 99 | P a g e . The city has a highly planned infrastructural wing which has seen a widespread development during the previous years. The next in the list is Greater Noida with 122 responses to its credit. The various projects being undertaken in the city including the Highways and he t developing areas of Knowledge Park along with the industrial undertakings in the region have had a great impact on the investors regarding the RealEstate in the city. The various townships and integrated projects coming up in the region plan to provide amenities and facilities of the highest order to the residents along with offering exceptional rates of return to the investors.

The firm can concentrate upon taking care of the security and safety concerns by providing the investors with gated communities accompanied with proper surveillance. Seller financing emerged as the second most preferred option for generating finance for Real Estate related investments just after Loan(s) form a Financial Institution. y Jaypee¶s major projects are concentrated in Noida and Greater Noida only. y The firm can concentrate more upon providing Seller Financing to the investors looking for financial institutions. The study shows that the cities lacks in basic Law and Order leading to cause a lack of interest in the Investors about purchase of Residential property in the region. Product Specification and Resale Value which is of utmost importance to investors looking for a return on investment. This is followed by Maintenance & Safety/Security. 100 | P a g e . y The Jaypee Group lacks in at the commercial property front which is one of the major source of revenues for its competitors in the Real-Estate segment. I recommended the higher authorities the following for their kind consideration: y The company should concentrate more upon the factors which were indicated by the factor analysis along with the regularly considerable factors. ad performance and achievements made by the responsibilities assigned to me during my summer training tenure. The Density of Locality is an important factor taken into consideration by the investors looking for residential estate.RECOMMENDATIONS On the basis of the study.

which has came up as the second option after Noida. Greater Noida seems to the upcoming region for the same reasons. y While considering the quality of living. Closely follows is the city of Greater Noida as the region is still in the initial phase of its development & there are ample of opportunities available within the city. here Gurgaon is the t p most priority. A few additional conclusions that were obt ined after the study have been summarized a below: 101 | P a g e . it ss being a hub for both the service as well as the manufacturing sector industries. Greater Noida follows Gurgaon by a short leap. the following conclusions were observed: y Noida is one of the prime locations to invest in real estate while considering the location factor being well connected to other cities of NCR as well as Delhi through public transport and is closely followed by Gurgaon. The o infrastructural development has been on full swing during the last decade and the city is coming up with various new projects on its outskirts leading it to take the cap.CONCLUSION From the study. Greater Noida is far behind as being a developing city here the population density is low & accordingly the enforcement agencies are not up to the mark. It caters & manages a huge population which is a tough task but the handling for the same has been exceptional leading to an excellent law and order situation in the city. The work carried on by the law enforcement agencies in the region is thus commendable. y Considering the law & order facility. It is coming up a lot of projects which will help the city to compete with other developed cities of NCR. Gurgaon tops the list. y In the infrastructure section. Noida stood out as the most preferred opton i as here each and every part of the region is well maintained & the local residents living in the region take the responsibility themselves. y Considering the cities as a business hub. Gurgaon tops the list as it caters to each & every section of the society ranging from the working cla to the service class.

The factor to follow was the Maintenance and Safety/Security of the place. These were preferred by the investors in almost equal measures. The next most closely following factor was determined as being the Amenities/Facilities provided by the developer within the premises.y The Location is the most important First-Pull factor that affects the investors while going for a Real-Estate related investment. y The most preferred investments are those in Condominiums. y The most adequate factor that determined an investor¶s initiative towards a housing complex was the Price range. Rental property and Land. 102 | P a g e . y The In-Locality factor that affects the consumers the most is the Water and Power Backup facility due to there being an acute problem for the same in the cities of NCR.

KEY LEARNINGS y Business and competitive environment in which the organization is operating. y The major factors the investors consider while investing in real estate projects in the cities of NCR. y Investors¶ preference towards various cities of NCR. 103 | P a g e .

73 2192.51 12.59 1.46 Total 19.02 Loan funds Secured loans Unsecured loans 7.90 741.74 3.778.37 4.745.17 104 | P a g e .23 2.11 2.648.20 5.60 5.47 11838.031.995.868.657.201.30 3.73 3.685.239.24 4.01 2.279.ANNEXURE JAIPRAKASH ASSOCIATES LIMITED Balance Sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 236.04 0.81 2.37 1.67 176.593.52 609.38 1.09 1.931.06 1.801.22 307.049.22 1.86 1.166.13 2.403.95 1.454.111.93 308.50 3.539.06 1.40 1.24 308.510.25 1.524.78 3.721.191.14 1.24 3.769.338.51 12.48 3.891.20 876.292.465.97 2.76 202.98 Net current assets Current assets.344.374.58 5.95 Total 19.10 2.71 Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 8.31 6.86 5.27 5.51 1.619.41 910.524.15 6.31 2.785.90 165.67 396.58 1.33 2.85 215.995.71 Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding (Lacs) 3.951.374.927.13 1.127.13 1.727.425.16 11715.661.54 234.297.15 7.66 0.30 398.888.283.930.404.224.40 5.47 1.763.22 2.38 1.675.15 6.292.38 4.76 536.510.549.24 4.602.31 1.15 7.545.900.640.299.375.271.226. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written 8.024.83 4.28 5.13 1.72 9.80 1.53 4.059.10 4.849.663.77 1762.43 0.511.04 3.350.54 2.613.25 4.557.71 2150.18 3.404.84 2.14 4.51 2.98 2.85 2.07 219.

32 1.14 959.41 12.315.76 205.03 133.27 368.06 268.30 990.164.52 151.06 609.16 3.23 623.109.37 1.07 233.40 169.22 1.096.05 0.57 297.458.63 1.814.75 -14.30 331.358.33 1.08 124.60 185.136.31 840.39 271.34 0.Profit & Loss A/c Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income Operating income 5.48 163.57 294.468.27 251.97 911.82 12.09 1.72 2.32 561.75 308.67 114.07 207.68 606.89 -0.70 255.86 265.31 634.30 210.23 100.47 1.93 2.976.90 1.48 969.60 19.56 447.97 0.978.768.02 763.70 203.93 1.85 2.04 8.84 161.93 705.82 42.59 105 | P a g e .29 1.28 78.46 0.61 1.41 345.38 383.28 -0.09 15.159.52 -2.96 163.53 330.719.09 868.08 297.23 917.44 4.87 353.08 345.41 278.04 2.05 236.70 792.16 639.50 58.85 414.86 105.29 140.64 121.501.93 399.58 -0.41 2.31 1.79 416.57 2.31 298.01 429.002.427.39 127.477.764.819.37 3.76 3.60 764.61 418.183.98 124.39 395.265.92 584.90 -6.20 1.224.85 2.52 Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Nonrecurring items Other non cash adjustments Reported net profit Earnings before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 1.30 5.37 693.53 2.585.83 1.

30 497.36 8.688.34 1.815.538.93 83.08 7.17 28.250.51 25.749.56 295.611.931.839.66 12.261.59 518.14 162.35 1.45 2.05 -2.69 -4.534.06 911.98 5.766.35 4.05 12.83 727.47 1.42 Loan funds Secured loans Unsecured loans 5.63 1.27 3.68 1.84 8.67 765.86 25.56 10.81 Mar ' 06 764.70 -238.49 212.Cash flow Mar ' 09 Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin.99 1.429.21 385.17 4.49 161.21 -614.59 Mar ' 08 843.39 50.669.669.08 2.89 324.747.23 UNITECH Balance sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 324.20 280.908.15 939.91 808.40 222.63 Total 10.14 166.083.73 1.99 99.24 69.10 106 | P a g e .81 1.19 43.44 Mar ' 07 619.66 4.396.060.57 54. loans & advances 6.73 Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 148.429. 132.09 2.35 -239.39 1.66 282.259.75 179.397.44 54.75 937.02 1.80 1.05 35.63 40.79 107.839.12 879.954.108.80 Mar ' 05 328.87 30.069.33 732. activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year 1.34 504.39 632.712.40 592.50 1.506.41 1.63 4.819.824.04 1.01 1.98 523.57 Net current assets Current assets.12 -3.017.34 998.46 1.603.68 2.96 96.

92 2.38 8.72 353.75 49.02 2.87 -1.45 107 | P a g e .387.255.44 0.84 21.640.04 -212.88 159.57 17.42 -800.51 393.683.08 - Mar ' 06 2.40 526.011.73 Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 1.58 1.67 - Mar ' 08 7.201.48 69.97 853.04 925.41 49.35 20.10 31.95 8.87 - Mar ' 07 4.79 2.11 128.413.07 396.35 4.68 1.486.10 -231.12 10.06 106.74 653.15 459.248.84 89.29 16233.01 376.10 108.02 1.88 Profit loss account Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income Operating income 1.250.69 16233.453.054.98 708.45 148.51 8116.75 301.27 893.Mar ' 09 Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written 6.46 29.29 126.88 174.04 1.07 55.065.83 676.30 497.609.24 2.538.98 21.56 10.87 124.767.441.17 722.43 11.47 0.56 1.48 - Mar ' 05 1.13 509.96 78.01 216.55 334.396.05 38.83 764.01 4.261.63 45.766.41 66.01 434.11 361.62 15.11 10.392.92 13.03 31.68 359.06 911.657.62 27.87 568.25 98.325.41 0.57 0.62 13.35 193.88 124.98 65.14 3.32 - Total 654.285.386.95 0.13 42.14 42.40 1.30 1.51 1.90 64.69 65.33 Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items 23.47 0.62 1.66 1.57 981.953.29 37.75 1.44 16.72 61.71 4.35 1.54 1.22 0.

82 Mar ' 06 108.14 158.03 Mar ' 07 0.56 16.44 3.344.64 826.03 371.00 0.30 1.071.24 116.05 Mar ' 05 -1.58 6.90 1.58 6.755.109.68 -117.25 -34.18 103.82 371.65 85.63 Mar ' 05 43. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year 956.66 2.13 -260.417.033.44 -771.01 -424.64 795.93 -268.051.23 2.67 Cash flow Mar ' 09 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin.508.21 4.19 160.32 5.66 -93.41 -1.28 140.51 -3.90 1.26 194.81 Mar ' 06 -0.51 69.89 108 | P a g e .464.83 -1.47 2.05 347.96 194.030.51 40.15 Mar ' 08 1.119.92 83.365.05 28.29 40.37 87.18 Mar ' 07 1.77 Mar ' 08 -0.89 160.38 1.50 110.00 1.44 984.133.32 2.63 795.46 -121.19 635.86 91.69 20.31 -42.686.Mar ' 09 Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 739.

No Significance 1 2 2 3 3 4 4 5 Accessibility Of area 2. Have you investedin some other Property Duration Of Stay 1.Very Highly Significant 1 2 3 4 5 o what extent do the following In locality factors influence your choice of a housing complex? Density Of Locality Quality Of Construction 1 Maintenance & Safety/Security 1 Product Specification Water & Power Availability Car Parking 1 2 3 4 5 2 3 4 5 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 109 | P a g e . 3.Moderately Significant 1 2 3 4 5 4-Highly Significant 1 2 3 4 5 5.Significant 1 5 Future Connectivity Resale Value Amenities/ Facilities 3. & ' o what extent do the following factors influence your choice of a housing complex? LEGEND Price Range 1. ____________ Size Of the Family ___________ What factor was the first pull to choose a particular housing complex? Brand Name of the Developer Affordability Location Advisements 2.Name ___________________ House Hold income (Per Annum) Residential Property Below 3 Lac 3-6 Lac 6-10 Lac Above 10 Lac Self Owned Yes Rental No If Rental.

4.) Yes No) Society FLATS (DDA. Comments if any: __________________________________________________________________________ ___________________________ __________________________________________________________________________ ___________________________ __________________________________________________________________________ ___________________________ DECLARATION This information is strictly for the purposes of academic research only. 6. Your previous residence was a (Please Mention if Rental: Developer Housing Complex (Jaypee. Recreational facilities Others __________________ Out of the following. Unitech etc. what could be the possible reasons ? Need for Better location Need for healthy environment Need for more space Want for quality construction Need for better facilities Water & Power Back-up facilities 9. If you were to shift from your current residence. GDA etc. 8. through any means whatsoever. The information contained herein or any part thereof shall be kept confidential and none of it shall be disclosed to any other party. Specify the particular residence mentioned above ____________________________________ What types of real estate are you interested in purchasing? Commercial Condominium Rental Second Home Other Your preferred method of Financing would be: (check all that apply) New loan(s) from a Financial Institution Assumption of Existing Loan(s) Seller Financing All Cash Trade of Property Land Office 7. Place Developer ____________________ ____________________ Housing Complex __________________________ Type of Flat __________________________ 110 | P a g e . Rank the cities on the following parameters: ( 1 -Most Preferred Gurgaon Location Business Hub Quality of Living Law & Order Infrastructure Noida Greater Noida 6-Least Preferred ) Faridabad Ghaziabad Others 11. which city would you prefer to shift to? Gurgaon Noida Greater Noida Faridabad Ghaziabad Others 10.) Others Independent House 5.

marketresearchworld.mospi.nic.about.in www. Kress.REFERENCES  BOOKS: y Financial Management.com 111 | P a g e .com www.rbi.Theory & Practice by Prasana Chandra.moneycontrol. y y Essentials of Marketing Research By Paurav Shukla Forecasting and Market Analysis Techniques: A Practical Approach by George J.net http://marketing.org www.  ANNUAL REPORTS OF JAIPRAKASH ASSOCIATES LIMITED  ANNUAL REPORTS OF UNITECH  WEBSITES y y y y y www. Tata McGRAW HILL. John Snyder.

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