Company Situation

This section includes both SWOT and the PESTEL analysis of DLF. SWOT
analysis is a technique that helps one to determine strengths, weaknesses,
opportunities and threats of one’s company where as PESTEL analysis shows
how the political, economic, social, technological, environmental and legal
factors affect the company. These analysis are used to thoroughly evaluate a
business or a project.

SWOT ANALYSIS

STRENGTHS WEAKNESSES
 Largest real estate  Limited global exposure
POLITICAL company in India ECONOMICAL
 Lack of regulations and
 Strongest management effective policies
team  No parallel products at times
 Influenced
 High supplier
by government
base ensures  Increase in sale & decrease in debt
of bad economy
issuesa fixed raw material cost   Rental income is increased
Macroeconomic risks 18
 Encouraging
 High brand
for real estate
value and times
advantages of being a  Construction costs brought down
pioneer  Increased foreign investment

SOCIAL
OPPORTUNITIES TECHNOLOGICAL
THREATS
 Reduction
 Private metro in interest rates   Increase
Increasing interest
in quality rates
due to
 Tax incentives
 Employment for housing
to differently abled  innovation
Economicin downturn
structural design & IT
investments
person  systems
Volatility in financial markets
 One of
Shortage of houses
the largest in
employers   Quickness
Recent controversies might
due to the usage of
Urban Areas affect the
CAD/CAE brand image of DLF
software
 Increased demand for real
estate
ENVIRONMENTAL LEGAL
  Largest LEED PLATINUM 
Certified buildings in India
 Solar Power installed
 Seasonal factor should be taken
into consideration

PESTEL ANALYSIS

POLITICAL
The government has always encouraged the companies in the segment of real
estate. Even after a considerable amount of streamlining is still needed, there
have been various number of rules and regulations passed by the Indian
Government that supports the housing companies in particular and
infrastructure companies generally.
This industry is being directly influenced by the government issues such as
construction tenders, FDI caps, land acquisition laws, etc.

ECONOMICAL
Sale of the company is increased to 8,366 crores by 25% whereas the debt of
the company is decreased by 38% from 7,224 in Q3-FY’ to 4,483 Cr in Q4-FY’19.
The rental income of the company has also been increased by 18 times.
Recently, the construction costs are brought down due to cuts in excise duty
on cement and steel. (dlf.in)
Moreover, the foreign investment has also increased due to increase in real
estate. In total, there is raise in economy due to rise of real estate as well as
operation by foreign investors and companies due to development of
infrastructure.

SOCIAL
DLF, being a real estate company, has been one of the largest employers in
India. Around 111 differently abled persons were employed across Rental
Commercial & Retail Building through facility management Company.
Also, DLF has started its first private metro which has strengthen Public
Transportation System.

TECHNOLOGICAL

The influence of technology is uncountable. Not only there has been an

increase in the delivery of services using IT systems but also in quality of
building due to innovation in structural design and use of materials. The
construction time is quickened and the efficiency is also increased by the use of
CAD/CAE software which has enabled engineers to remodel designs for
optimum use of resources & material.

ENVIRONMENTAL

DLF has the largest LEED PLATINUM Certified buildings in India. 27.5 msf of
office spaces are LEED PLATINUM Certified through USGBC (United States
Green Building Council). 2.68 MW capacity of solar power is installed in
projects pertaining to rental business.
The Indian Subcontinent is known for its erratic weather. Hence, the seasonal
factor should be kept into consideration while deploying into a construction
project.