A

SUMMER REPORT
ON

“Factor affecting investment decision and

competitive advantages of India bulls”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF
MASTER OF MANAGEMENT STUDIES (MMS)
UNDER UNIVERSITY OF MUMBAI.

SUBMITTED BY:
SAYEED PASHA JAVED SHAIKH

REG NO: 192081022

BATCH NO: 2019-2021

UNDER THE GUIDANCE OF

Prof. Abhijit Salunke

ANNASAHEB CHUDAMAN PATIL COLLEGE OF ENGINEERING,

MANAGEMENT STUDIES AND RESEARCH, KHARGHAR.

i
 COLLEGE CERTIFICATE

This is to certify that Mr. SAYEED PASHA JAVED SHAIKH. student of

Masters of Management Studies (MMS) has undergone and completed his
project report on “FACTOR AFFECTING INVESTMENT DECISION AND
COMPETITIVE ADVANTAGES OF INDIA BULLS” as a partial fulfillment
of requirement of award of degree of Masters of Management Studies (MMS)
from University of Mumbai, Academic year 2019-2021.

Prof. Abhijit Salunke Dr. N.MAHESH Dr.V.N.Pawar

(Project Guide) (Professor & Head) (Director)

ii
 GUIDE CERTIFICATE

This is to certify that Mr. SAYEED PASHA JAVED SHAIKH student of

Masters of Management Studies (MMS) has undergone and completed his project
report on “FACTOR AFFECTING INVESTMENT DECISION AND
COMPETITIVE ADVANTAGES OF INDIA BULLS” under my guidance as a
partial fulfillment of requirement of award of degree of Masters of Management
Studies (MMS) from University of Mumbai, Academic year 2019-2021.

Place:
Date: Prof. Abhijit Salunke
(Project Guide)

iii
 DECLARATION

I hereby declare that this project entitled, “FACTOR AFFECTING

INVESTMENT DECISION AND COMPETITIVE ADVANTAGES OF
INDIA BULLS” is record of the work carried by me under the guidance of Prof.
Abhijit Salunke as a partial fulfillment of award of degrees in MMS.

I also hereby declare that the project report is a result of my own efforts and not
being submitted at any time to any other university or the institute for the award of
degree or diploma.

Place:

Date: SAYEED PASHA JAVED SHAIKH

iv
 ACKNOWLEDGEMENT

I would also like to acknowledge my sincere thanks to V.N.Pawar , Director,

A.C. Patil College of Engineering, Management Studies & Research, for providing
me this opportunity.

Special thanks to Dr. N. Mahesh, Head of Department, MMS who provided me

with all the useful information during the project.

I would also like to acknowledge with much appreciation the crucial role of my
guide Prof. Abhijit Salunke who gave his valuable inputs and support throughout
the project.

Finally, I would like to thank our esteemed institute "AC Patil College of
Engineering and Management Studies and Research" for the opportunity.

"This Project is not a result of an individual effort but it is a product of collective

wisdom".

Place:

Date: SAYEED PASHA JAVED SHAIKH

v
 EXECUTIVE SUMMARY

The increasing trend towards globalization and industrialization has increased the trend of
competition in the financial market, intensified by the coming of Non-Banking Financial
Company (NBFC), like India bulls Securities, and so has the need for the marketing of
financial instruments has intensified.

NBFCs are financial institutions are ones which provide banking services without meeting
the legal definition of a bank, i.e. one which does not hold a license. They are not allowed to
take deposits from public. Nonetheless all the operations of these institutions are covered
under banking regulations.

This project is completely focused to identify some of the demand drivers, rather factors that
make people invest in such institutions and in this regard what are the various differentiating
factors that provide India bulls a competitive edge over other players in the market.

There has been an emphasis on the various businesses and of India bulls that make it
standout in this league, rather than being a "me too" product. In words of Al Ries and Jack
Trout "differentiate or die".

1
 TABLE OF CONTENTS

TOPIC PAGE NO

Executive summary ………………………………………………………………………. 1

CHAPTER 1…………………………………………………………………

1.1 Introduction …………………………………………………………………………….. 5

1.2 Objective …………………………………………………………………………………. 6
1.3 Scope ……………………………………………………………………………………….. 7
1.4 Limitation ………………………………………………………………………………… 8
1.5 Hypothesis ……………………………………………………………………………….. 9
1.6 Chapterisation …………………………………………………………………………. 10
 Financial market ………………………………………………………………….. 10
 Brokerage industry ……………………………………………………………….. 11
 Factor affecting investment decision …………………………………….. 12
 Comparison of India bull brokerage services ……………………...... 15
 Comparison of various Rates ……………………………………………….. 16
 SWOT analysis of competition ................................................ 18
 Competition in real estate ……………………………………………………. 26
 Competition on industry ………………………………………………………. 27
 Competition home loans ………………………………………………………. 28
 Competitive of India bulls
Advantage of India bull brokerage services …………………………… 30

2
CHAPTER 2 – Literature review

2.1 Review of Literature …………………………………………………………………………. 32

CHAPTER 3 - COMPANY PROFILE

3.1 History ……………………………………………………………………………………………… 34

3.2 Group of India bulls ………………………………………………………………………….. 36

3.3 Company financial ………………………………………………………………………….. 38

3.4 Mission & Vision ………………………………………………………………………………. 39

3.5 Strategies & Focus ……………………………………………………………………………. 40

CHAPTER 4 – Research & Methodology ………………………………………………………. 41

 Exploratory Research …………………………………………………………………………….. 43

 Conclusive Research ………………………………………………………………………………. 43

CHAPTER 5- Data Analysis & Interpretation …………………………………………………. 45

CHAPTER 6 – Finding and Recommendation

6.1 Conclusion ……………………………………………………………………………………….. 50

6.2 Recommendation …………………………………………………………………………….. 50
6.3 Outcome …………………………………………………………………………………………. 51
6.4 Questionnaire ………………………………………………………………………………….. 52
6.5 References ……………………………………………………………………………………….. 54

3
 CHAPTER 1
INTRODUCTION

4
 INTRODUCTION

Project Title
“Factor affecting investment decision and competitive advantages of Indiabulls" The
purpose of this study is completely focused to identify some of the demand drivers,
rather factors that make people invest in such institutions and in this regard what are
the various differentiating factors that provide India bulls a competitive edge over
other players in the market.

Introduction
Indiabulls Financial Services is a retail financial services company providing a
diverse array of financial products and services, through its nationwide network of
over 300 Indiabulls offices, and services over 2,50,000 clients spread across 110 cities
in India. Indiabulls, along with its subsidiary companies, offer consumer loans,
brokerage and depository services, personal loans, home loans and other financial
products and services to the retail markets. Indiabulls, which has a workforce of over
10,000 full time employees, reported US $ 60 million in Profit before Tax and US $
45 million in Net Profit for the first nine months of the current financial year.

About founder:

• Sameer Gehlaut is the Chairman, CEO and Whole Time Director of Indiabulls.

• Rajiv Rattan is the President,

• Saurabh Mittal is a Director

5
 OBJECTIVE OF THE STUDY

An increasing trend has been observed in demand for the services of Non-Banking
Financial Institutions nowadays. This project is aimed to find out factors affecting
investment decisions in these firms. There has also been emphasis to find out the plus
points of Indiabulls or the differentiating factors that give Indiabulls a competitive
edge. In short:

• To find out the factors affecting investment decisions in a NBFC.

• To find out various competitive advantages that makes Indiabulls of the largest stock
broking companies.

6
 SCOPE OF THE STUDY

This project has been a great insight for me as I came to know about stock market,
demat accounts, buying and selling of dematerialized securities, who are brokers, how
to make investment and how to track portfolio of investments.

The project is aimed to cover maximum factors affecting the demand drivers and
competitiveness.

Nowadays even the government is taking up steps to find such factors to give a boost
to the Indian financial system.

7
 LIMITATIONS OF STUDY

• The population size is limited to area.

• There may be interviewer bias or judgmental bias.

• There may be redundancy of data or area surveyed.

• Due to time and resource constraints some important segment of population might
have been missed out.

8
 HYPOTESIS OF STUDY
Asset quality at non-bank lenders IIFL Finance and Indiabulls Housing Finance is
"vulnerable" due to the economic contraction, global ratings agency Moody's Investors
Service said on Monday 7 December 2020.

The agency said Muthoot Finance – the third non-bank finance company it rates – is
better positioned because of its focus on the gold loans business.

Loan collections have shown an improvement for all the three NBFCs despite the six-
month loan repayments moratorium ending in August on a pick-up in economic
activity, but "asset quality at IIFL Finance and Indiabulls is vulnerable to economic
contraction", it added.

Till now, various types of support measures for borrowers from authorities have
prevented a sharp deterioration of asset quality at the lenders, it added.

"However, we expect delinquencies will eventually increase at IIFL Finance and

Indiabulls once the support programs end given the severity of the pandemic's impact
on India's economy," the agency said.

A modest loan growth and loan sales will help IIFL and Indiabulls maintain
capitalisation despite the weakening of profitability, which will be hurt by credit costs
for the loan losses, it noted.

Funding to NBFCs, which had been impacted in the past after the IL&FS crisis, has
been stable courtesy portfolio buying by the state-owned lenders to meet their priority
sector lending mandates, it said, adding that Indiabulls will continue to face challenges
on funding despite this.

In the case of Muthoot Finance, a focus on gold loans will be of help, it said, pointing
out that it does not foresee a drop in gold prices – the biggest risks while lending
against the precious metal – to happen.

Muthoot has robust profitability which will help it maintain capitalisation and funding
at the current strong level, the rating agency said.

It can be noted that the Indian economy is set to contract by around 10 per cent,
despite the pick-up which has been seen lately.

Both India bulls Housing Finance scrip gained 1.69 per cent and IIFL Finance rose
1.43 per cent on Monday, as against a 0.44 per cent surge in the benchmark.

9
 Chapterization

INDUSTRY OVERVIEW
The Financial Market

The financial industry or financial services industry includes a wide range of companies
and institutions involved with money management, lending, investing, insuring and
securities insurance and trading services. The following institutions are a part of the
industry:

 Banks

 Credit card issuers

 Investment companies

 Investment bankers

 Securities traders

 Financial planners

 . Security exchanges

10
 THE BROKERAGE INDUSTRY

The brokerage industry is currently characterized by a large number of companies (private or

unorganized). In effect it is a fragmented industry with a large number of participants. The
industry thus has 'monopolistic competition'. i.e. a large number of firms selling a slightly
differentiated product.

Indian stock broking industry is the oldest trading industry that has been around even before
the establishment of BSE in 1875. Despite passing through a number of changes in post
liberalization period, the industry has found its way towards sustainable growth With the
purpose of gaining deeper understanding about the role of Indian stock broking industry, in
the country's economy, here are some data gleaned from analysis of secondary research.

On the basis of recent research:

• On the basis of terminals 40% are located in Mumbai, 12% in Delhi. 8 in

Ahmadabad. 77 in Kolkata, 4% in Chennai, and 29% in other cities.

• From the study it was found that 36% of firms trade in cash. 27% in derivatives, and
20% in cash, derivatives and commodities.

• In the cash market, 34% trade in NSE, 14% in BSE, 45% in both. Whereas in debt
market, 31% trade in NSE, 26% trades in BSE, and 43% in both.

• Majority branches are located in North, i.e. 40% 31% in West, 24% in South, and
5% in East.

• In terms of sub-brokers, around 55% are located in South, 29% in West. 11% in
North, and 4% in East.

• Trading, IPOs and Mutual Funds are the top three products offered by 90% of firms
offering trading, 674 IPOS, and 53% offering Mutual Fund transaction

• In terms of various areas of growth, 84% of firms have shown their interest in
expanding their institutional clients, 66% firms intend to increase FIlls, and 34% are
interested in setting up Joint Ventures in India and abroad.

• In terms of IT penetration 62% firms provide their website, and 90% have email
facility.

11
 FACTORS AFFECTING INVESTMENT DECISIONS

There are a numerous reasons that affect investment decisions here are some of
them:
• Risk Tolerance
Risk refers to the volatility of portfolio's value. The amount of risk the investor is
willing to take on is an extremely important factor. While some people do become
more risk averse as they get older; a conservative investor remains risk averse over his
life-cycle. An aggressive investor generally dares to take risk throughout his life. If an
investor is risk averse and he takes too much risk, he usually panic when confronted
with unexpected losses and abandon their investment plans mid-stream and suffers
huge losses.

• Return Needs

This refers to whether the investor needs to emphasize growth or income. Younger
investors who are accumulating savings will want returns that tend to emphasize
growth and higher total returns, which primarily are provided by equity shares.
Retirees who depend on their investment portfolio for part of their annual income will
want consistent annual pay-outs, such as those from bonds and dividend paying
stocks. Of course, many individuals may want a blending of the two some current
income. but also some growth.

• Investment Time Horizon

The time horizon starts when the investment portfolio is implemented and ends when
the investor will need to take the money out. The length of time you will be investing
is important because it can directly affect your ability to reduce risk. Longer time
horizons allow you to take on greater risks with a greater total return potential because
some of that risk can be reduced by investing across different market environments. If
the time horizon is short, the investor has greater liquidity needs some attractive
opportunities of earning higher return has to be sacrificed and the result is reduced in
return.

12
• Tax Exposure
Investors in higher tax brackets prefer such investments where the return is tax
exempt; others will have no such preference.

• Management Outlook
If the management is progressive and has an aggressively marketing and growth
outlook, it will encourage innovation and favour capital proposals which ensure better
productivity on quality or both. In some industries where the product being
manufactured is a simple standardized one, innovation is difficult and management
would be extremely cost conscious. In contrast, in industries such as chemicals and
electronics, a firm cannot survive, if it follows a policy of make- do' with its existing
equipment. The management has to be progressive and innovation Dust be encouraged
in such cases.

• Competitor's Strategy

Competitors' strategy regarding capital investment exerts significant influence on the

investment decision of a company. If competitors continue to install more equipment
and succeed in timing out better products, the existence of the company not following
suit would be seriously threatened. This reaction to a rival's policy regarding capital
investment often forces decision on a company'.

• Opportunity created by technological change

Technological changes create new equipment which may represent a major change in
process, so that there emerges the need for re-evaluation of existing capital equipment
in a company. Some changes may justify new investments. Sometimes the old
equipment which has to be replaced by new equipment as a result of technical
innovation may be downgraded to some other applications, A proper evaluation of this
aspect is necessary, but is often not given due consideration. In this connection, we
may note that the cost of new equipment is a major factor in investment decisions.

13
• Market Forecast
Both short and long run market forecasts are influential factors in capital investment
decisions. In order to participate in long-run forecast for market potential critical
decisions on capital investment have to be taken

• Fiscal Incentives
Tax concessions either on new investment incomes or investment allowance allowed
on new investment decisions, the method for allowing depreciation deduction
allowance also influence new investment decisions.

• Cash Flow Budgets

The analysis of cash-flow budget which shows the flow of funds into and out of the
company may affect capital investment decision in two ways. First, the analysis may
indicate that a company may acquire necessary cash to purchase the equipment not
immediately but after say. one year, or it may show that the purchase of capital assets
now may generate the demand for major capital additions after two years and such
expenditure might clash with anticipated other expenditures which cannot be
postponed. Secondly, the cash flow budget shows the timing of cash flows for
alterative investments and thus helps management in selecting the desired investment
project.

• Non-economic Factors
New equipment may make the workshop a pleasant place and permit more socializing
on the job. The effect would be reduced absenteeism and increased productivity. It
may be difficult to evaluate the benefits in monetary terms and as such we call this as
non-economic factor. Let us take one more example. Suppose the installation of a new
machine ensures greater safety in operation. It is difficult to measure the resulting
monetary saving through avoidance of an unknown number of injuries. Even then,
these factors give tangible results and do influence investment decisions.

14
15
Fig: 1

16
Fig:2

17
 Fig:3

In the above price band, India bulls is facing somewhat strong competition from Share khan,
as it is more or less near to what India bulls is charging. At the same time Kotak Securities
also poses a threat because of the improved technology used by them and constant research
and development. Where ICICI Direct is a little below Kotak. Motilal Oswal and HDFC both
are commodity side of the graph with relatively higher prices charged for their product. Thus
with its current pricing India bulls enjoys price leadership as far as brokerage is concerned

18
 SWOT ANALYSIS OF COMPETITOR FIRMS

 SWOT OF SHAREKHAN

STRENGTH

• Market share leadership.

• High Research and Development.

• Strong management team, financial position and

competitive pricing Reputation management,

Unique products diverse products and offers for the customers.

• Strong brand recall and strong reach to masses.

WEAKNESSES

 Diseconomies of scale.

 Not much differentiated products

 More employee turnover.

 Less small investors

19
 OPPORTUNITIES

 Financial markets (raise money through debt, etc.)

 Innovation, Online Product and services expansion.

 Penetration in developing cities.

 Increase in awareness of people about stock market

THREATS

 Competition.

 Cheaper technology

 Economic slowdown.

 External changes (government, politics, taxes, etc.).

 Exchange rate fluctuations.

20
 SWOT OF INDIA INFOLINE

STRENGTH

 Brand image.

 Brand experience

 Innovative products.

WEAKNESSES

 High targets for the financial advisors and sales department.

 Many competitors, less differentiated products.

 The reach in semi-urban areas and rural markets is still very less

21
 OPPORTUNITIES

 Growing Financial Services industry's share of wallet for disposable

income.

 Regulatory reforms would aid greater participation by all class of

investors.

 Leveraging technology to enable best practices and processes.

 Increased appetite (need) of Indian corporate for growth

THREATS

 Execution risk.

 Slowdown in global liquidity flows.

 Increased intensity of competition from local and global players

 Unfavourable economic conditions.

22
SWOT ANALYSIS OF ICICI DIRECT

STRENGTH

 Banking arm.

 Upgraded product design and development facilities to develop new

products.

 On-going activities to support up gradation of operational performance.

 Team of talented and committed professionals available to improve

companies’ performance.

WEAKNESSES

 Not innovative.

 Not diversified

 High employee turnover less.

 small investors

23
 OPPORTUNITIES

 Innovation.

 Increase in penetration in the market.

THREATS

 Constant pressure to be cost competitive to meet customer expectations.

24
SWOT OF MOTILAL OSWAL

STRENGTH

 Large and diverse distribution network.

 Strong research and sales team.

 Brand recognition.

 Experienced top management.

 Strong financial results.

WEAKNESSES

 Charges are high compare to other companies in industry

25
 OPPORTUNITIES

 Growing Financial Services industry's share of wallet for disposable

income.

 Regulatory reforms would greater participation by aid all class of

investors.

 Leveraging technology to enable best practices and processes.

 Increased appetite (need) of Indian corporate for growth capital.

THREATS

 Execution risk.

 Slowdown in global liquidity flows

 Increased intensity of competition from local and global players

 Unfavorable economic conditions

26
 COMPETITION IN REAL ESTATE

Indiabulls Real Estate Limited is one of the largest real estate companies in India with a
well-diversified presence in both commercial and residential real estate development and has
projects across the price spectrum from mid-income premium to the super luxury space.
Geographically the company's strategic focus is in key markets of Mumbai Metropolitan
Region (MMR) National Capital Region (NCR) in India. Indiabulls Real Estate is one of the
largest real estate company with a Gross Development Value of Rs 30130 crore and net
worth of Rs 7090 crore as of 31 March 2019 and with 17 on-going projects with total
saleable area of 44.59 million sq. ft. under its wing. Further it has commercial development
with a leasable area of 3.15 million sq.ft. under construction. Additionally the company has a
land bank of 1046 acres and also possesses 2588 acres of SEZ land at Nasik Maharashtra.

INDIABULLS REAL ESTATE - COMPANY INFO

Chairman : Sameer Gehlaut
Vice Chairman : Narendra Gehlaut
Independent Director : Shamsher Singh Ahlawat
Company Secretary : Ravi Telkar
Joint Managing Director : Vishal Damani
Joint Managing Director : Gurbans Singh
Independent Director : Gyan Sudha Misra
Independent Director : Praveen Kumar Tripathi
Independent Director : Gurinder Singh
Agarwal Prakash & Co/Walker Chandiok &
AUDITOR :
Co LLP
IND NAME : Construction
HOUSE NAME : Indiabulls Group

27
 Competition in the industry

The booming Real Estate Sector has given rise to a number of companies which give
stiff competition to Indiabulls Real Estate. In the Premium Housing category,
Indiabulls Real Estate mainly faces competition from players such as DLF and Ansal
Properties and Infrastructure Limited. In the Affordable Housing segment, it faces
competition from players such as Sobha Developers.

company Market Cap. Sales Turnover Net Profit Total Assets

(in Rs crore)
IndiaBulls Real 3089.44 326.85 -76 Cr 4993.79
Estate
DLF 42503.49 2419.21 765.06 25467.85
Oberoi Realty 8397.85 - -
HDIL 7575.90 1491.99 596.65 11169.45
Godrej Proper 4652.36 - - 1270.33
Prestige Estate 4499.53 - - 3162.51
Sobha 2919.36 1114.00 136.70 3416.11
Developer
DB Realty 2774.37 226.61 227.39 3416.11
Anant Raj Ind 2700.13 286.81 237.17 3592.33
Omaxe 2371.79 794.97 90.77 2942.10

Fig: 4

28
 COMPETITION IN HOMELOANS

In earlier days, Nationalized and Public Sector Banks were the sole providers of Home
Loans but the entry of the Public Sector Banks marked a change in the interest rates,
which came down considerably. The decrease in Interest Rates in tum, enhanced the
borrowing power of customers.

Some competitors in the market who also provide also provide home loans are:

Company Sales Turnover Net Profit Total Assets

Indiabulls FS 13223.2 235.37 cr 75100 cr

Edelweiss Corp 245.53 34.21 2763.54
India Infoline 698.04 152.02 1605.86
Motilal Oswal F 51.13 42.38 532.80
Network 18 32.96 -44.54 1596.23
Delta Corp. 54.10 13.32 443.06
Future Capital 55.29 17.32 1196.17
Geojit BNP 261.71 56.80 319.05
Nalwa Sons Inv - - 280.00

Fig: 5

29
Some Housing Finance Companies which provide home loans and fall in Indiabulls'
competitor league are:

BANKS HOUSING FINANCE COMPANIES

SBI PUBLIC SECTOR

PNB 1) Bob housing finance
Dena Bank 2) LIC Housing Finance
Bank of India 3) PNB Housing Finance
City Bank 4) SBI Home Finance

PRIVATE SECTOR
1) HDFC
2) ICICI
3) LIC
4) Sundaram finance group

Fig: 6

30
 COMPETITIVE ADVANTAGE OF INDIABULLS

BROKERAGE SERVICES

• Lowest brokerage charge in the industry (currently).

• Best software in the industry.

• Listed company and aggressive in brand promotion.

• Mobile trading tie ups with Blackberry and other phones, where one can trade with
case.

• Both online and offline facilities are provided.

Competitive commissions and service support at fair price (value for money).

• Relationship manager facility to assist customers as and when they need assistance
and guidance.

• Full access to Indiabulls Equity Analysis, follows a fact based approach to rating
stocks.

• Easy access to customers of the snap shots of their account statement and portfolio
statements and to digital contract notes.

31
 Chapter 2

LITERATURE REVIEW

32
 REVIEW OF LITERATURE

The Indiabulls Group is a diversified financial services group with interests in housing
finance, consumer finance and personal wealth. The Group also has a presence in Real
Estate, Pharmaceuticals, Lighting and Infrastructure & Construction Equipment
Leasing. The group has a net worth of more than ₹ 28,580 Cr. (as on 31st March,
2019).

The Group emphasizes a strong focus on technology and customer-centricity, ensuring

that all its companies are in line with the Group principle of – On For Tomorrow. All
its products and offerings are designed and created to ensure that convenience and
simplicity is the primary experience for customers. In addition to providing customers
with superior experiences, the Group’s companies adhere to strong standards, ensuring
that all efforts are made in a feasible and sustainable push for long term profitability.

Amongst its leading companies, the Group’s flagship company, Indiabulls Housing
Finance, is a Nifty 50 company and has been rated AAA by leading rating agencies.
Indiabulls Consumer Finance, a subsidiary of Indiabulls Ventures, is a leading
personal finance company – a pioneer in digital end to end personal loan fulfilment
with Indiabulls Dhani. Indiabulls Real Estate is a premium real estate developer
engaged in building quality landmark projects. All the Group’s companies are run
independently and are listed in the Bombay Stock Exchange and the National Stock
Exchange.

33
 CHAPTER 3

COMPANY PROFILE

34
 Type Public company

Industry Financial Services,

Founded January 2000

Headquarters Gurgaon, India

Key people Sameer Gehlaut

(Chairman & Founder)
Gagan Banga
(Vice-Chairman & MD)

Products Financial Services, Real Estate, Pharmaceutical, Construction Equipment Leasing,

LED Lights and Facilities sector

Revenue ₹ 25,000 crore (2019)

Number of 19,000 (2019)

employees

Divisions Indiabulls Housing Finance Ltd.

Indiabulls Ventures Ltd.
Indiabulls Real Estate Ltd.

Website www.Indiabulls.com

HISTORY OF INDIABULLS

Indiabulls Group started operations in 1999 as a financial services company. [1] Today,

the Group has businesses spread across housing and consumer finance through
independent and listed companies on Indian stock exchanges.

In mid-2000, Indiabulls Financial Services received venture capital funding from Mr

L.N. Mittal & Mr Harish Fabani. In late 2000, Indiabulls Securities, a subsidiary of
Indiabulls Financial Services started offering online brokerage services and
35
simultaneously opened physical offices across India. By 2003, Indiabulls securities
had established a strong pan India presence and client base through its offices and on
the internet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a

share. In late 2004. Indiabulls Financial Services started its financing business with
consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of
Indiabulls Financial Services, participated in government auction of Jupiter Mills, a
defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls
Properties private Ltd won the mill in auction and that purchase started Indiabulls real
estate business. A few months later, Indiabulls Real Estate company Pvt. ltd bought
Elphinstone mill in Lower Parel, another textile mill auctioned by NTC.

In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls

Power, to build power plants and started work on building Nasik & Amravati thermal
power plants. Indiabulls Power went public in September 2009.

In 2011 IBREL purchases India bulls Blu from NTC. Group PAT crosses 1000 crore

In 2018 IBHFL ranked as the 13th largest consumer financial services by Forbes 2000
global. IBHFL servicing 1million happy customers.

36
 INDIA BULLS GROUP OF COMPANIES

INDIA BULLS GROUP

India bulls Financial India bulls real estate (IBREL) India Bulls Power
Services (IBFSL) (IBPOW)
National developer with
Finance business focus on key regions of Developing 5400MW of
Mumbai ,NCR (Delhi) and power plants
 Leading non
Chennai
bankingfinance  Total capex of US
company  68 millions sq. currently $6.1billion in next 4
 Pan-india net worth under development years
with 3000000  Full financial closure
customer achieved

37
OPERATIONS AND DIVISION

Indiabulls Housing Finance Ltd.

Indiabulls Housing Finance Ltd. (IBHFL) is India's second largest housing finance
company regulated by the National Housing Bank (NHB). The company has a balance
sheet size of ₹ 1.39 trillion as of 30 September 2018 and cumulatively disbursed loans
of over ₹2.15 trillion. The company was rated the 13th largest consumer finance
company worldwide by Forbes Global 2000

Indiabulls Ventures Ltd.

Indiabulls Ventures is a financial services company in consumer lending, asset
reconstruction and capital markets. It has offices in more than 124 cities in India and
has a subsidiary called Indiabulls Consumer Finance Ltd. (IBCFL). The company
launched India bulls Dhani, a mobile and web-based loan application which was
developed to offer personal financing solutions. IBCFL has loan assets worth ₹ 101.40
billion.

Indiabulls Real Estate Ltd.

Indiabulls Real Estate is one of the largest real estate companies in India, in both
commercial and residential real estate development. The company has delivered over
13.4 million sq. ft. of developed space. The company estimated the value of its current
development portfolio at ₹300 billion.

38
COMPANY FINANCIAL

• Total group net worth: ₹ 28,580 Cr. (as on 31st March, 2019).

• Total group PAT for Q1FY21 consolidated at Rs. 272.84 crore
• Total group capital expenditure: R$ 6,200 CRs (US S 1.4 bn) capex in financial
year 10-11. Planned capex of 29000 (us $ 65bn) in the FY 2014-2015.
• Focus on execution and on the ground results translating into profits
• For its on-going projects Indiabulls groups customers 385 MTs of steel, 550 MTs
of cement, and 1700 CUM of RMC on daily basis
• Creating value for shareholders: Dividend pay-out of 232 Crs in FY 10-11
• The company has reported EPS of Rs.6.51 for the period ended June 30, 2020 as
compared to Rs.3.27 for the period ended March 31, 2020.

39
 MISSION AND VISION

• MISSION:

Rapidly increase the number of client relationships by providing a broad array of

products offering to emerge as a clear market leader.

• VISION:

To be the largest and most profitable financial services organization in Indian market
and become one stop shop for all non-banking financial products services for the retail
customers.

40
 STRATEGIES AND FOCUS

• CONSOLIDATION

Aim to be among the top 3 players in existing products within next 3 years.

• NO NEW PRODUCTS

Focus on gaining size and scale in existing core products.

• NO CAPITAL MARKET FUND RAISING

All businesses are well funded to achieve growth and size. Avoiding excessive debt
from the capital market.

• GOAL
Target of US S 1.4 bn in cash generation from 3 companies (real estate, finance and
power).

41
 CHAPTER 4

RESEARCH
METHODOLOGY

42
 RESEARCH AND METHODOLOGY

This is a two dimensional project focusing on two aspects, as already mentioned

(objectives). For my project work I have focused on secondary data.

Basically any research work proceeds as:

43
 TYPES OF MARKET RESEARCH

ON THE BASIS OF FUNDAMENTAL OBJECTIVES OF THE RESEARCH,

MARKET RESEARCH

PROJECTS ARE CLASSIFIED INTO TWO BRANCHES

 EXPLORATORY RESEARCH
 CONCLUSIVE RESEARCH

EXPLORATORY RESEARCH:

It seek to discover new relationships all marketing research project start with it.This is
preliminary phase and is absolutely essential in order to obtain a proper definition of
problems at hand the major emphasis is on the discovery of ideas and insight.
Exploratory research looks for hypothesis in well-established fields of study.
Hypothesis usually comes from ideas developed in previous researches or are
delivered from theory. Hypothesis is tentative answer to the question that serves as
guide for most of the research projects.

CONCLUSIVE RESEARCH:

Conclusive research provides information that helps the executive so that he can make
a rational decision. This study has done while attempting to arrive at a more clear
description of an apparent problem.

44
 • For this project my challenge was to find out the factors and the competitive
advantages. For which I conducted a descriptive research.

• I have collected primary data through questionnaire and survey.

• For secondary data, company records, some reviews in economic times, data on
money control site, some online research works have been referred.

• I have taken 11 factors in my survey so my population size is of 66. I have targeted

only investors, who were customers, general investors and company employees. • A
factor analysis has been run on the data to find the most influential factor.

45
 CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

46
 1. TO KNOW WHETHER RESPONDENT INVEST.

INVESTMENT DECISION NO OF RESPONDENT PERCENTAGE

YES 51 51%
NO 15 15%
TOTAL 66 66

Interpretation:

From the above survey of 66 people it was found that 77% respondent invest in the India
bulls and 23% who were non investors.

47
 2. WHY THEY INVEST.

REASONS TO INVEST NO OF RESPONDENT PERCENTAGE

REDUCE TAXABLE INCOME 32 32%
EARN HIGHER RETURN 14 14%
GROW MORE MONEY 18 18%
BE A PART OF VENTURE 2 2%
TOTAL 66 66

2%
28%

49%
REDUCE TAXABLE INCOME
EARN HIGHER RETURN
GROW MORE MONEY
BE A PART OF VENTURE
21%

Interpretation:

Above pie chart shows the reason why respondent invest in India Bulls. 49% respondent
invest to reduce taxable income. 21% respondent invest to earn higher return. 28% invest
for grow more money and 2% to be a part of venture.

48
 3. FACTOR AFFECTING INVESTMENT DECISION.
FACTORS NO OF RESPONDENT PERCENTAGES
INCOME 12 17%
MARKET SITUATION 21 215
RISK APPETITE 26 26%
AGE FACTOR 7 7%
TOTAL 66 66%

11% 18%

INCOME
MARKET SITUATION
RISK APPETITE
AGE FACTOR
39%

32%

Interpretation:

The above pie chart show the factor that affect the investment decision in India bulls.29 %
respondent says that they don’t invest because of risk appetite. 18% respondent don’t invest
because of income. 11% don’t invest for age factor. And 32% respondent don’t invest
because of market situation.

49
 CHATER 6

FINDING AND
RECOMMENDATION

50
 CONCLUSION

India bulls, the young bull on the run, within some years of its inception has established
itself as a business super brand. The company which began as a simple brokerage firm has
now spread its wings in real estate, home loans, power, etc.

The arch of the bull, India bulls Financial Services Limited (IBFSL) which is the flagship
company of the group, offers consumer finance, including secured and unsecured personal
loans; commercial vehicle and tractor financing; loan against property and housing loans;
retail IPO financing; loans against shares; and commercial credit to small and medium scale
industries.

Breaking free, India bulls Securities Limited, (ISL) before its demerger in 2008, was a
subsidiary of IBFSL. ISL provides securities brokerage services including equities, futures,
commodities, and options: depositary services; research services; insurance, initial public
offering (IPO), and mutual fund distribution.

RECOMMENDATIONS

While working in the real time and while making this project many things came into
scene, they are:

 Sales call made to new customers should be made promptly as immediate calling and
customer move to competitors easily.
 Services of India bulls are available on all phones except on i phones, which is in trend
now.
 India bulls have tie-ups with all banks except SBI. This can be a reason why
customers move away.
 •India bulls should go for aggressive advertising, as most of its products and the brand
itself is not much advertised.

51
 OUTCOME AND CONTRIBUTION

A factor Analysis was conducted to find out the factors affecting the investment
decisions. A total of 10 factors were considered, on a population of 60, out of only two
dominant factors came out. Which the help of which it can be explained that there are
some external and personal/internal factors that affect a persons' investment decision.

Another part of the project was a competitive analysis to find out competitive
advantage that Indiabulls has over its competitors.

My task at Indiabulls was to bring sales leads and to do sales calling to them to
convert them into sales. Another task assigned to me was to call the existing customers
and explain them about what Indiabulls could offer them at that point of time.

My project's data collection on different kind of rates prevailing in the market of

different competitors is of great importance and time to time help for the company.
Also the factors affecting investment decisions can be help in future when deciding on
the various demand drivers

52
 Questionnaire for factors affecting investment decision

1. Do you invest?

ANS: Yes: No:

1. If yes, what is your investment portfolio?

Or
How much do you invest?

ANS: ____________________________________________

3. Where do you put your money?

ANS:

o Stocks:
o Commodities:
o Currencies:
o Derivatives:
o Others (specify):
o More than one of the above? _______________

4. Why do you invest?

ANS: __________________

5. What are the factors that affect your investment decisions?

ANS:

o Income:
o Market situation:
o Company:

53
 o Risk appetite:

o Management outlook:
o Market forecast:
o Fiscal incentives:
o Cash flow budgets:
o Non-economic factors:
o Age factor
o Others (specify):

6. Do you invest in more than one of the above?

ANS: ________________________________________

7. Name: _____________________________________

8. Salaried/ Non-salaried: ________________________

9. Occupation: ________________________________

10. Any suggestions/ Comments: ___________________

54
 REFERENCES

1.  "Indiabulls Housing Finance Company Background :- Finance - Housing, Company

Background of Indiabulls Housing Finance - BSE: 535789, NSE:
IBULHSGFIN". www.moneycontrol.com. Retrieved 30 April 2017.
2. ^ "Indiabulls Housing Finance Profit & Loss account, Indiabulls Housing Finance
Financial Statement & Accounts". www.moneycontrol.com. Retrieved 30
April 2017.
3. https://www.equitybulls.com/admin/news2006/news_det.asp?id=272829
4. www.indiabullshomeloans.com

55