Techno Commercial Feasibility For Residential Township Project - Emerald Park

Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.

Radhe Infrastructure & Projects (India) Ltd. Chunibhai Chambers Behind City Gold Cinema, Ashram Road Ahmedabad 380 006

Techno Commercial Feasibility For Residential Township Project - Emerald Park

May 2008

Mott MacDonald India 501, Sakar - II, Near Ellisbridge Ahmedabad - Gujarat 380 006 India 0091 (079) 2657 5550 0091 (079) 2657 5558

247925/01/AA - 22 May 2008/ D:\Emerald Park.doc/Z.K

Techno Commercial Feasibility For Residential Township Project - Emerald Park

Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.

Techno Commercial Feasibility For Residential Township Project - Emerald Park

This document has been prepared for the titled project or named part thereof and should not be relied upon or used for any other project without an independent check being carried out as to its suitability and prior written authority of Mott MacDonald being obtained. Mott MacDonald accepts no responsibility or liability for the consequence of this document being used for a purpose other than the purposes for which it was commissioned. Any person using or relying on the document for such other purpose agrees, and will by such use or reliance be taken to confirm his agreement to indemnify Mott MacDonald for all loss or damage resulting therefrom. Mott MacDonald accepts no responsibility or liability for this document to any party other than the person by whom it was commissioned. To the extent that this report is based on information supplied by other parties, Mott MacDonald accepts no liability for any loss or damage suffered by the client, whether contractual or tortious, stemming from any conclusions based on data supplied by parties other than Mott MacDonald and used by Mott MacDonald in preparing this report.

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3 Preliminary and Pre – Operative Expenses 6.3 2 The Project Scope of Work Approach & Methodology Page 6 6 7 9 11 11 11 16 19 19 20 21 22 26 30 31 31 32 33 34 47 49 51 51 51 51 51 52 52 53 53 54 54 4 Brief Profile 2.2 About the Client 2.1.1 2.1 Growth Drivers Indian Housing Sector Overview 3.Techno Commercial Feasibility For Residential Township Project .1 Sales Distribution Pattern Project Cost 6.3.2 4.3. List of Contents Chapters and Appendices 1 Introduction 1.3 Introduction Basis and Assumptions 6.1 Major Growth Drivers Major Players in Ahmedabad Luxury Homes 5 6 Emerald Park Financial Aspects 6.K .2.2 Indian Real Estate Market Overview 3.4 City Overview Residential Realty in Ahmedabad 4.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.1 6.4 247925/01/AA .2.1 Land and Land Development Summary of Fixed Capital Cost Sources of Finance Growth Drivers 3.doc/Z.3.1 4.22 May 2008/of 59 D:\Emerald Park.3 4 Ahmedabad Market Assessment 4.2 Demand Supply Analysis Government Initiatives 3.1 1.1 3.2 6.3 4.2 1.1 Projects About the Consultant 3 Industry Analysis 3.4 Provisions for Contingences 6.2 Utilities 6.

7: Summary of Fixed Cost Estimates Table 6.5 7 Project Profitability 54 55 55 56 57 57 57 Strategic Analysis 7.5: Ganesh Plaza Figure 2.3: Land and Land Development Cost Estimates Table 6.K .1: Population Growth Comparison Figure 3.1: Emerald Park Location 7 10 12 13 13 14 14 15 22 23 25 26 27 29 49 List of Tables Table 2.3: Tirthbhumi Figure 2.Techno Commercial Feasibility For Residential Township Project .8: Means of Finance 12 45 51 51 52 53 53 53 54 54 5 247925/01/AA .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.2 Conclusions Recommendations List of Figures Figure 1.2 SWOT Five Forces Model 8 Conclusions and Recommendations 8.1: Sales distribution Pattern of Units Table 6.1 7.1 8.6: Provisions for Contingencies Table 6.doc/Z. 6.1: Radhe’s Prominent Projects Table 4.22 May 2008/of 59 D:\Emerald Park.3: Rising Urbanization in India Figure 3.6: Demand Drivers and Constraints Figure 5.2: Project Approach Figure 2.2: Major Contributors in World GDP Figure 3.1: Takshshila Apartments Figure 2.4: Utilities Table 6.1: On going major residential projects in Ahmedabad Table 6.4: Increasing shortage of housing in India Figure 3.2: Mandar Bungalows Figure 2.4: Tulsi Figure 2.5: Preliminary & Pre-operative Expenses Table 6.5: Housing Finance Growth Rates for past 5 years Figure 3.6: Abhinav Arcade Figure 3.2: Sales Distribution Pattern of Plots Table 6.1: Emerald Park Layout Figure 1.

Patel.K . it is apparent they are quite confident about the feasibility of the project. hereafter referred to as RIPL or the Client.Techno Commercial Feasibility For Residential Township Project . With regards to this they have approached Mott Macdonald to carry out a detailed techno-economic and market assessment of the township project to validate their views on it. Chunibhai C. It is a new age residential township on the outskirts of Ahmedabad. Emerald Park – as the name suggests is designed to be a lush green township with designer landscaping in each plot surrounded by trees to give the residents the feel of living in the lap of nature. RIPL aimed at providing impeccable services in the field of construction and development of both residential properties and commercial complexes. 6 247925/01/AA . is an Ahmedabad based construction and development company established by Mr..1 The Project Emerald Park is the latest offering from Radhe in the residential segment.22 May 2008/of 59 D:\Emerald Park. but it will also enable RIPL to attain a better understanding of the current national and local real estate scenario. They however. In keeping with its objectives and business goals. The report will not only serve as a bankable document for the purpose of procuring loan. 1. 1 Introduction Radhe Infrastructure and Projects (India) Ltd. RIPL is coming up a residential township in Ahmedabad and has approached Mott MacDonald to conduct the techno-commercial feasibility for the same.doc/Z.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Since the client has already acquired land for the project and also begun preliminary construction on the site. would like to have a well articulated and more concrete assessment of the market as well as the financials of the project. an industry veteran of over 50 years. In all it will be an enrich experience to live in such this township. It also offers all modern amenities and luxuries that one can desire.

assumptions and basis considered in the proposed Township Project. Figure 1.doc/Z. Information collated through secondary research would be 7 247925/01/AA .22 May 2008/of 59 D:\Emerald Park. It will be followed by a detailed analysis of the micro market and supported by strategic analysis such as the Five Force Model.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.2 Scope of Work The basic objective of this study is to validate and if possible to strengthen / consolidate the various premises.K . Based on the brief discussions with client. housing demand and the competitive scenario.Techno Commercial Feasibility For Residential Township Project . various markets related factors and assumptions / basis considered for market projections would be carried out primarily through desk research and limited field research. appropriateness of project cost and financial projections.1: Emerald Park Layout 1. The study would encompass a macro view of the housing market and its key components like the raw materials market. consultants have devised following scope of work: (i) Assessment of proposed Township from the Market Angle The assessment of housing market. Study would also attempt to look broadly at various technocommercial aspects of the proposed venture like appropriateness of technology machineries and various facilities considered for the project.

(ii) Assessment of Appropriateness of facilities proposed to be acquired / built Consultants shall evaluate the appropriateness of the project from technical angle. white papers. The financial viability exercise by consultants would include: Assessment of appropriateness of Project Cost.doc/Z. credentials of the suppliers / contractors. such as books. Occupancy Levels. (iii) Assessment of Risk-Return profile The assessment of risk-return profile of the proposed township project basically involves assessment of overall financial viability of the project followed by assessment of sensitivity / vulnerability / sustainability of the project under adverse circumstance. real estate brokers. Subsequently consultants would carry out a SWOT analysis with a view to conclude overall prospects for the proposed Township projects. Construction cost escalation.e. newspapers. industry news and developments. Consultants would assess / appraise the all projections considering:   Realistic Occupancy Pattern Realistic price realization estimated on the basis of current housing scenario and realty prices.Techno Commercial Feasibility For Residential Township Project . government agencies.e. Competition. contemporariness of the technology to be used for construction & facilities proposed to be built. appropriateness in terms of operating & maintenance ease. Information will be accumulated from diverse sources. reviewed and analyzed to assess the overall market attractiveness (i. industry portals. etc.K .  The financial analysis carried out by consultants would include following analysis / statement as desired by most of the financial Institutions:  Detailed Project Cost 8 247925/01/AA . trade journals.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. i. Revenue estimates. Decline in Housing demand. i. Potential Market and Competition Analysis). Financial Analysis. appropriateness in terms of capital cost and operating costs.e.22 May 2008/of 59 D:\Emerald Park.

22 May 2008/of 59 D:\Emerald Park.3 Means of Finance Estimated Revenue Profitability analysis Projected cash flow and balance sheet Suggested means of finance Estimates of base indicators for: ROI. Manufacturing & Project personnel. wherein the major builders and developers of Ahmedabad were contacted. DSCR Etc.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. IRR. The sources used in the secondary research were primarily:        Information available with the Company Published information from Government Agencies Sector Reports Trade Information from Associations In house database of Consultants Interaction with technology suppliers Interaction with end users Along with the secondary research a local level primary survey was also undertaken.       1. BEP. 9 247925/01/AA .K . A team from IMM also interacted with the key Management. Approach & Methodology The consultants have adopted a research based approach during the course of the assignment. The approach followed by IMM in preparing the following report is as depicted in the following figure. The findings of the primary survey were used as indicative of the Ahmedabad market. ROE.Techno Commercial Feasibility For Residential Township Project . The IMM team undertook extensive secondary research to collect information. The following report is based on the information collected from various sources indicated above and Client meetings.doc/Z.

doc/Z.2: Project Approach MARKET ASSESSMENT Indian Real Estate Market Indian Housing Market Ahmedabad Housing Factors Considered  Growth drivers & constraints  Supply demand scenario  Price Trends Luxury Homes Factors Considered  Segment Growth  Target Segment  FINANCIAL ANALYSIS Revenue Cost Stream Investments Financial Feasibility & Sensitivity Analysis 10 247925/01/AA .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.K . Figure 1.22 May 2008/of 59 D:\Emerald Park.Techno Commercial Feasibility For Residential Township Project .

RIPL has since its inception strived to provide innovative and elegant residential properties and urbane yet utilitarian commercial buildings.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.. M/s Radhe Real Estate Developers.K . Mr. Leading and guiding RIPL in its endeavour is Mr. Prakash Shah are the other competent members of the Board of Directors of RIPL and have made substantial contributions in the success of RIPL. the founder and chairman of the group and the dynamic Managing Director of the company. 11 247925/01/AA . M/s Radhe Consultancy and M/s Radhe Developers India Ltd. Praful Patel.1. culminating in the formation of RIPL. The execution of each project has been meticulous with a constant endeavour to ensure that the edifice fulfils every possible requirement and goes beyond it.1 Brief Profile About the Client The journey for RIPL began in 1974 when M/s Jash Development Corporation was founded in partnership with Mr.Techno Commercial Feasibility For Residential Township Project . This was followed by the formation of a string of other establishments. Nirav Desai and Mr. Praful C. Mr Ashish Patel plans to take RIPL to greater heights. Alok Vaidya.22 May 2008/of 59 D:\Emerald Park. M/s Radhe Associates. Each project has been a thoughtfully conceived venture providing the best of amenities and facilities. Mr. Ashish Patel. 2 2. With more than 17 years of construction experience and his vision.1 Projects Radhe has completed a variety of residential and commercial projects in Ahmedabad. M/s Radhe Organizers.doc/Z. M/s Radhe Construction in 1990. Mr. The group also boasts of a pool of young and self-driven professionals who uphold the ideals of RIPL and ensure that RIPL is synonymous with quality craftsmanship and expertise. Patel who has 37 years of industry experience behind him. 2.

12 247925/01/AA .doc/Z. Its spacious construction and proximity to Vastrapur Lake and other amenities around make it an ideal place to live in.1: Takshshila Apartments The Takshshila Apartments are high rise flats located in one of the most happening places of Ahmedabad – Vastrapur. Each completed project is a milestone in Radhe’s journey towards excellence and establishing it as a one of the leading developers of the city. (i) Completed Projects As mentioned before Radhe has completed projects of both residential and commercial nature and have achieved remarkable successful in both their endeavours.1: Radhe’s Prominent Projects Residential Projects Takshshila Apartments Mandar Bungalows Tirthbhumi Apartments On Going Projects Emerald Park Tirthdham Apartments Commercial Projects Tulsi Complex Ganesh Plaza Abhinav Arcade New Projects Olympus Mall Figure 2.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. The most prominent projects of Radhe so far have been: Table 2.22 May 2008/of 59 D:\Emerald Park.K .Techno Commercial Feasibility For Residential Township Project .

it is located near the thriving Law Garden . Ashram Road.K . Again the location of the flats is also immaculate.2: Mandar Bungalows Mandar bungalows are high end luxurious bungalows spread over sprawling plots in the Thaltej area of Ahmedabad.doc/Z.22 May 2008/of 59 D:\Emerald Park.G Road. Figure 2.Techno Commercial Feasibility For Residential Township Project . it is a prime location for residential and commercial properties. Ellisbridge area and within great proximity to the commercial hub of the city.3: Tirthbhumi Tirthbhumi like Takshshila are high rise deluxe flats with all the modern facilities.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Thaltej touches the latest high street of Ahmedabad the S. 13 247925/01/AA . Figure 2.

22 May 2008/of 59 D:\Emerald Park. Figure 2.K .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.5: Ganesh Plaza Ganesh Plaza is another remarkable structure constructed by Radhe. a point of convergence of various commercial areas of repute.Techno Commercial Feasibility For Residential Township Project . C. Road and Navrangpura. Figure 2. It is located in the Navrangpura area of the city and is a prominent business building with esteemed business houses setting up offices in it.doc/Z. Laws Garden. 14 247925/01/AA .4: Tulsi The Tulsi Complex is located near the Mithakali six roads. Mithakali six roads lead to areas such as Ashram Road.G.

Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. The various facilities being offered in Tirthdham include         Landscaped garden Well designed entrance foyer in each block Tarred internal roads with street lights Fully furnished club house Health club Children’s play area Master antenna with closed circuit video channel Bore wells with submersible pump set 15 247925/01/AA .Techno Commercial Feasibility For Residential Township Project .doc/Z. (ii)  On Going Projects (Other than Emerald Park) Tirthdham Another residential apartment scheme from Radhe .6: Abhinav Arcade The other major commercial building developed by Radhe is the Abhinav Arcade. Customer satisfaction in all of Radhe’s projects has been outstanding and a fact of pride for Radhe.K .‘Tirthdham’ stands for luxury and tranquillity for the dwellers.22 May 2008/of 59 D:\Emerald Park. Figure 2. All the projects mentioned here are testimonial to Radhe’s commitment to building structures of quality and durability.

It is coming up with a revolutionary concept of a mall in the city of Ahmedabad. IMM is engaged in planning and development touching many aspects of everyday life – from water. The company has great future plans in terms of projects. environment and transport to building. industry.doc/Z..22 May 2008/of 59 D:\Emerald Park.K.Techno Commercial Feasibility For Residential Township Project . 16 247925/01/AA .     (iii) Generator set Emergency light point in each foyer Two lifts in each block Limited allotted covered parking Future Radhe is poised to take a big leap in the future and spread its wings across the nation. both residential and commercial. tourism and social development. healthcare. It is now giving birth to a new facet of modernism by blending material with technology and constructing an exciting landscape on the firm foundation of experience by combining progress with prosperity.2 About the Consultant Mott MacDonald Private Limited (IMM) is a leading multi-disciplinary management and engineering consultancy based in India. IMM is able to draw on world-class technical and managerial resources comprising over 13000 staff in more than 50 strategic centres world-wide.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Radhe is determined to give a new dimension to the construction industry of India and is committed to deliver the most advanced and avant garde constructions 2. As part of the global Mott MacDonald Group headquartered in U. It is also in the process of having tie-up with those of the most renowned and top-notch architects of India for its forthcoming projects. energy.K . with offices nationwide.

Techno Commercial Feasibility For Residential Township Project - Emerald Park

Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.

Across these sectors IMM works for national and local governments, public and private utilities, industrial and commercial companies, investors, developers, banks and financial institutions, international and bilateral funding agencies and private entrepreneurs. IMM’s strengths enable our clients to realize their projects optimally from concept to commissioning. (i) Management Consultancy Division

IMM provides business planning and project management for a wide spectrum of clients in industry, infrastructure and social development, including international development banks and funding agencies. IMM also helps clients such as accountancy firms, financial institutions and industrial companies in making a realistic appraisal of their fixed assets, and in preparing for disinvestment, mergers or de-mergers, acquisitions, takeovers, insurance or liquidation, collaborations and joint ventures. (ii) Social Solutions

IMM has undertaken numerous studies and advisory roles for leading development banks and funding agencies. Projects range from implementing vital AIDS eradication programmes and pro-poor initiatives to studies for institutional strengthening, sector reform and impact evaluation. IMM also offers specialist expertise in assisting with public consultation. (iii) Engineering Services

IMM’s range of engineering services enables clients to realize optimal implementation of projects. IMM takes care of every stage – site evaluation, basic and detailed engineering, contract preparation, project management, procurement, equipment inspection and testing, site supervision and commissioning.

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Techno Commercial Feasibility For Residential Township Project - Emerald Park

Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.



One of the key strengths of IMM lies in large-scale integrated urban infrastructure development, encompassing water supply, drainage, solid waste, roads, sanitation and community buildings etc. Here our services range from planning and advisory assistance to detailed engineering and construction management. (v) Industry

IMM skills and experience have earned it a leading reputation – especially in chemicals, textiles, oil and gas, food processing and life sciences, as well as bulk drugs, pharmaceuticals and biotechnology. IMM is known particularly for its expertise in process engineering and licensing for specialty chemical production based on laboratory/pilot plant know-how developed by R&D centres. (vi) Buildings

IMM’s business covers all sectors from commercial and leisure to industry, education and healthcare. IMM provides the full range of architectural, structural, mechanical and electrical design skills, along with planning and project management expertise. Building services are a special capability, notably building management systems, vertical transportation, telecommunications and security. (vii) HVAC

Providing turnkey packages in heating, ventilation, air-conditioning and refrigeration is also IMM’s’ forte – IMM’s’ track record includes systems for auditoriums, public buildings, industrial facilities, hospitals and research laboratories.

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Techno Commercial Feasibility For Residential Township Project - Emerald Park

Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.


Industry Analysis
Indian Real Estate Market Overview

The Indian Real estate industry today is emerging as one of the most attractive sectors for investment for both domestic as well as foreign investors. It is growing at an annual compounded growth rate of approximately 30% every fiscal. In monetary terms, the Indian real estate is estimated to be worth US $ 16 billion and is predicted to be worth US $ 90 billion by 2015. The Indian real estate industry is the second largest employment providing sector in the country and more than 250 other industries are directly or indirectly related to it, such as cement, steel and brick. Thus, any investment made in this sector has a multiplier effect and generates more income. It is estimated that every rupee spent in real estate generates .78 paisa in the Indian economy and accounts for around 5% of the country’s Gross Domestic Product (GDP). Even foreign investors are keenly eyeing this sector and have lined up about US$ 10 billion worth of investment for it. Along with the global players also come global level architects and planners who will be dotting the Indian real estate with world class buildings. The Indian real estate sector can be broadly divided into three segments: 1. Commercial 2. Residential 3. Retail And there exists a demand supply gap across all the three segments with the demand far out stripping the supply. Indian real estate is also segregated into Tier – I, Tier –II and Tier – III cities, and rural India which still accounts for more than 65% of India.

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the capital markets have not been performing well in the past 6 months due to global volatility. political and outsourcing hubs of the country such Mumbai and Delhi.  One of the most preferred avenues of investment in the country. These are followed by the Tier – II and Tier – III cities.doc/Z.22 May 2008/of 59 D:\Emerald Park. 20 247925/01/AA . The opening up of the economy and allowance of 10 % FDI investment in 200the sector has provided us with the funds required to develop the sector which would not have been possible by only domestic investment.K .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. This in inducing many prospective investors to invest in real estate instead. Indore Chandigarh are fast catching up with Tier – II cities such as Hyderabad and Pune.1. Tier – I cities comprise of the most developed agglomerations which have become the commercial.Techno Commercial Feasibility For Residential Township Project . besides which the economic benefits of infrastructure development can be easily gauged by the fact that India’s GDP could be 2% higher were it not for the lack of appropriate infrastructure. 3.1 Growth Drivers The major growth drivers of the Indian Real Estate Industry are:  Infrastructure is the basis of all economic activity and the Government’s increasing focus on Infrastructure is bound to have a positive effect on the real estate of the country. The difference however between these two is diminishing as Tier – III cities such as Ahmedabad. Areas with better roads and amenities immediately show appreciation in their prices.  The economic reforms that have taken place in the past few years have greatly benefited the real estate sector.

the housing sector is estimated to grow by a Compounded Average Growth Rate (CAGR) of 18 to 20% till 2010 and presents major investment opportunities. According to an IBEF (India Brand Equity Foundation) report. A Merrill Lynch report suggests that the housing sector in India will require investments worth more than US$25 million over the next five years. Indicus Analytics. 3. These figures have been arrived at only taking first time home owners into account. The housing sector can be said to comprise of mainly of three segments. is one of the most important sectors in the country and ranks third with respect to inter linkage and impact on other sectors of the economy.22 May 2008/of 59 D:\Emerald Park. which are 1.K .3 million by 2015. The supply demand gap of housing units in India is estimated to be around 33 million units with an addition of an annual deficit of around 5 million units each year. Low Cost 2. which is why the housing sector.doc/Z. The housing sector is also the fourth highest income multiplier in the country ahead of agriculture. Affordable Housing 3.2 Indian Housing Sector Overview Housing is one of the basic necessities of man and assumes great importance in an individual’s scheme of things. 21 247925/01/AA .Techno Commercial Feasibility For Residential Township Project . Luxury Homes It can also be divided into urban and rural housing and as per a recent study by the research firm. It is a major contributor of employment and income generation in the country. If second home owners are also taken into consideration the figures could be much higher. the demand for urban housing in India will be over 24. which comprises of approximately 80% of the real estate.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.

Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.  Economic Growth: India is the middle of a high growth phase.1: Population Growth Comparison 2000 1500 Million 1000 500 0 1950 1970 1990 India Years 2010 China 2030 Europe 2050 This indicates the large and inherent demand for housing that exists in India. There is a high concentration of population in India.Techno Commercial Feasibility For Residential Township Project . with a population of approximately 1.1 Growth Drivers The major demand drivers of the housing sector in India are:  Population: India is the second most populous country in the world.2.22 May 2008/of 59 D:\Emerald Park. The Indian economy is blazing ahead with an average GDP of 8% for the past 3 years.doc/Z.1 billion people and accounts for around 17% of the world’s population. 3. Figure 3. 22 247925/01/AA . almost every one in six people in the world lives in India.K .

2: Major Contributors in World GDP 51% 60% 50% 40% 30% 20% 10% 0% Percentage 23% 10% 7% 5% 4% US China Japan Germany India Countries ROF - In monetary terms.  Favourable Demographics: One of the major growth drivers of the Indian economy are the very favourable demographics that India currently boasts of. the most obvious one is the appreciation in the real estate of the country as the demand for land increases. More than 50% of the Indian population is below the age of 25 years. India is said to posses a middle class of over 900 million by 2015 and the world’s largest population of workers and consumers by the year 2020. Salary levels have increased by an average of 13. it is also the fifth largest economy in the world. Of the many effects of the rapid economic growth of the country. the Indian economy has crossed the US $ 1.22 May 2008/of 59 D:\Emerald Park. Figure 3.5% in past 5 years.doc/Z.30 trillion mark and counting. - India today is not only the fastest growing economy in the world. and as 80% of the Indian real estate comprises of the residential segment.Techno Commercial Feasibility For Residential Township Project . the subsequent appreciation in the housing sector is only logical.K . accounting for more than 4% of the global GDP as can be seen in the graph below. that is more than 50 million Indians are youngsters who are the workers and consumers that will drive the growth of the nation’s economy.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. 23 247925/01/AA .

The nuclearization of Indian households is also a direct consequence of young people beginning to earn early in life and moving out for jobs and making their own homes. the extent of urbanization in India.K . This has allowed for a shift in consumer attitudes towards home ownership and spending behaviour. there is no denying the fact that it is on the rise.7 in the 1970’s to 5.  Increase in Youth Earning Levels: With the increase in the earning power of the youth the disposable incomes have also increased consequently.  Urbanization: Another one of the major drivers of the housing sector is the steady urbanization of India. This large proportion of the young middle class with increasing employment opportunities due to the improving employment rate in country will collectively have huge earning potential and present the major drivers of domestic consumption. 24 247925/01/AA . The confluence of all these factors is one of the major growth drivers for housing in the country.doc/Z. which is around 25% to 30% is still much below par.Techno Commercial Feasibility For Residential Township Project .1 in 2001.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. from the earlier “save and buy” attitude to the present one of “buy and pay”. The average age of a new homeowner has come down from 45 in 1996 to 32 in 2006.22 May 2008/of 59 D:\Emerald Park. Though in comparison to the more than 40% urbanization in countries like China. This is clearly reflected in the reduction of the average size of the Indian household from 5.

25 247925/01/AA .doc/Z. - The number of Urban Agglomerations with a population of more than a million has increased from 27 in 2001 to 44 housing more than 150 million people in total.3: Rising Urbanization in India 80 70 60 Percentage 50 40 30 20 10 0 1971 1981 1991 Year Urban Population Contribution to National Income Cities w ith population greater than 1 million 2001 2006 2011 Indian cities must thus brace themselves for rapid expansion and the drastic increase in demand for housing capacities in the near future.K .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. - The top ten cities in the country have grown on an average at a growth rate of 7%.  The credit market and in particular the housing finance sector of any country plays a huge hand in shaping the demand for housing in that country. - The United Nations Development Programme (UNDP) expects the degree of urbanization in India to grow to 40% by 2030. .Techno Commercial Feasibility For Residential Township Project . India has one of the most under developed credit markets in the world.22 May 2008/of 59 D:\Emerald Park. Figure 3.5 % per annum for the next 25 years. with the population growing at 2.

2.2 Demand Supply Analysis The demand for housing in India far outstrips the supply present in the country.K and U.3 15 10 5 0 2004 2005 Years 2006 2007 26 247925/01/AA .53 million units for 75. the Group has estimated the total housing requirement (including the backlog) to 26.4: Increasing shortage of housing in India 30 25 20 Million 19. India’s housing shortage has increased from 19. The Housing and Urban Poverty Alleviation Ministry estimates a shortage of 24.7 million houses in the country at the end of the 10th Five Year Plan. - Even in more comparable Asian economies.Techno Commercial Feasibility For Residential Township Project . 99% of the shortage is for affordable housing stemming from the Middle and Low Income Groups.4 24. the mortgage to GDP ratio is around 20% to 30%.doc/Z. During the 11th Plan.4 22. - The Mortgage to GDP ratio in India is a meagre 6% compared to rates of 60% and 70% in countries like the U. The shortage in past 4 years is given in the following graph.S.01 million households. 3. This signifies how far behind India is in this regard and the potential that exists in the increasing penetration of the housing finance sector in India.4mn units in 2004 to 22.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Figure 3. The number is likely to grow exponentially.K .22 May 2008/of 59 D:\Emerald Park.7 26.4mn units in 2005-2006.

On account of the increasing demand of housing.9 49. The rise interest rates have caused buyers to become cautious and stall their buying decisions. The rising inflation and ensuing increase interest rates are already starting to affect the industry.  Controlling inflation and rising interest rates. This growth should needs to be sustained for a medium to long period of time. for the real estate sector to realize its full potential.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.K .5: Housing Finance Growth Rates for past 5 years 73. (i) Demand Constraints The factors critical to the continued growth and success of the housing sector are:  Sustainable economic growth. The rapid economic growth that India has witnessed in the past 5 years is one of the primary growth drivers of the real estate sector.6 80 70 60 50 40 30 20 10 0 Percentage 2006-07 2005-06 2004-05 Years 2003-04 2002-03 27 247925/01/AA .6% over the next five years.doc/Z.17mn in fiscal 2005 and expects further growth at a CAGR of 18.22 May 2008/of 59 D:\Emerald Park.5 26. Any slowdown in the economy could directly have a negating effect on the growth of the industry. the residential sector is expected to continue to demonstrate robust growth over the next five years. Spending on new middle and higher income housing at Rs .Techno Commercial Feasibility For Residential Township Project . Figure 3. and if not brought under control could spell a lot of trouble for the real estate sector.6 29.1 48.

though not to the extent as others. high property taxes and transaction costs. A recent report on housing sector estimated that an increase in house price by 10%. These need to be addressed and improved to facilitate the industry growth.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Recent data reveals that on account of the increasing home loan rates. Prior to fiscal 2005-06. but an unrealistic increase in prices may result in decrease in demand and sales. the sector has witnessed a massive fall of 26. 28 247925/01/AA .6 per cent respectively.6 per cent in 2006-07 from 29.5 per cent. The buying done by speculators can have both negative and positive effect on the industry.Techno Commercial Feasibility For Residential Township Project . results in a 4. the preceding three fiscals had seen the housing sector record a year-on-year rise of 49. A very important aspect of the industry is the regulatory framework that it works within.doc/Z.  Many builders come out with schemes with very unrealistic prices.  Speculative interest.9 per cent and 48. The interest rates on home loans rose from 7 percent in 2002 to 12-14 per cent in 2007. That is if the demand may continue if the prices increase within a reasonable range.  Improved regulatory frame work – Stamp duty amongst the highest in the world in India.1 per cent in 2005-06 and is expected to slow down further to touch between 17 and 20 per cent in the current fiscal. 73. The demand for housing is not completely inelastic. Heavy buying can bring the prices up.6% decrease in housing demand as affordability comes down.K . The real estate market like every other marketing in India is subject to price sensitivity. which cannot be accounted for in any manner. The Indian real estate in many cities is heavily regulated by zoning and building restrictions. This rate has made both lending and borrowing largely unaffordable. but it can also lead to over heating resulting in a fall in buyer demand.22 May 2008/of 59 D:\Emerald Park.

22 May 2008/of 59 D:\Emerald Park. the RBI is taking strong measures to tighten the liquidity in the market and has increased the CRR and SLR ratios. (ii) Supply Constraints The notable supply constraints of the housing sector in India are:  Increasing interest rates.  Pressure on agricultural land.doc/Z. which may be a dampener on the growing real estate market.Techno Commercial Feasibility For Residential Township Project . This in turn has resulted in the banks increasing their interest rates.  Cascading effect of US Sub prime crisis – The sub prime crisis is in the US has had far reaching effects globally with the real estate industry in various countries being adversely affected by it.K Highly restrictive regulatory framework . Many foreign banks present in the country have encountered huge losses in the sub-prime crisis which could cause them to cut down on their lending. Though India has remained relatively unaffected by it so far there are concerns of the effects coming to surface in the near future. residential and retail purposes. As more and more land is being used for commercial. there is increasing pressure to use agricultural land for non-agri purposes Figure 3.6: Demand Drivers and Constraints Drivers Population Favourable Demographics Increased Earning Potential Constraints Rising Inflation and Interest Rates Demand Unrealistic Pricing Steady Urbanization Possible Slowdown in Economic Growth Increased Nuclearization Economic Growth 29 247925/01/AA . With the rise in crude prices and the inflation.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.

3. In case of integrated townships.22 May 2008/of 59 D:\Emerald Park.   Full repatriation of original investment after three years. 1976 (ULCRA) repealed by increasingly larger number of states.  Urban Land (Ceiling and Regulation) Act. 51 per cent FDI allowed in single brand retail outlets and 100 per cent in cash and carry through the automatic route.K .3 Government Initiatives The Government has introduced many progressive reform measures to unlock the potential of the sector.   Enactment of Special Economic Zones Act.doc/Z. 30 247925/01/AA . the minimum area to be developed has been brought down to 25 acres from 100 acres. some of which are as follows:   100 per cent FDI allowed in realty projects through the automatic route. Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. respectively.Techno Commercial Feasibility For Residential Township Project .

1 Ahmedabad Market Assessment City Overview Ahmedabad is the largest city and the commercial capital of the state of Gujarat. The total market potential value of the city is 220.K . Ahmedabad enjoys an uninterrupted power supply that is a unique experience among Indian cities including those in tier I The major industries driving the growth of the city are textiles. Ahmedabad has a population of roughly 5. Torrent Pharma. around 37%.Techno Commercial Feasibility For Residential Township Project . indexed at 1000. Ahmedabad is widely known as the denim capital of the country and produces more than 230 million metres each year. Reliance Textiles and Ashima Industries. chemicals. 31 247925/01/AA . It has a strong expatriate connection. a leading trading and infrastructure development. Chemical firms such as the Nirma Group. 4 4. Pharma.doc/Z. It is also one of the most prosperous states in the country whose residents are well known for the entrepreneurial skills and purchasing power. engineering ancillaries and recently IT/ITES. The big industries based out of Ahmedabad include Pharma firms such as Zydus Cadila. It is one of the leading industrialized and urbanized states of the country and has the highest number of SEZs setting up operations there. Ahmedabad is also the only 'AA' graded city of Gujarat having 30. which is the western most state of India. textile companies such as Arvind Mills. It is also home to the largest investor base in the country contributing 14 % of the total stock exchanges of India. the city with maximum market potential. the Adani Group.63 with Greater Mumbai.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Core Healthcare. with many NRIs hailing from the city. in terms of urbanization.97 per cent share of total MPV (Market Potential Value) of the state of Gujarat and ranked seventh highest among 784 cities in India.6 million and is expected to reach 10 million by 2025. In a state which ranks third in the country. popularly referred to as NRGs – Non Residential Gujaratis. Ahmedabad accounts for 80% of the urban population of the state.22 May 2008/of 59 D:\Emerald Park.

the Gujarat University are the other notable institutes of academic excellence which draws thousands of students towards the city. the Nirma University. Housing in Ahmedabad still offers a 20% to 30% cost benefit to those in the metros and Tier – II cities. 32 247925/01/AA . the financial capital of the country is also of significant importance to Ahmedabad. It is located within great proximity of the two ports of Surat and Mundra in Kutch. The proximity to Mumbai. National Institute of Design (NID). The foremost among them is the Indian Institute of Management (IIM – A).Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Even the recent slight slowdown in the residential sector across India has not been able to dent the optimistic sentiments regarding Ahmedabad.Techno Commercial Feasibility For Residential Township Project . The Centre of Environment and Planning (CEPT).2 Residential Realty in Ahmedabad Residential realty in Ahmedabad has been on the upswing for the past 2-3 years now. The major reasons for the growth of the residential sector in Ahmedabad are explained in detail in the following section. Recently NASSCOM ranked it as the fifth most competitive city in its survey of the “Super Nine Indian Destinations” for IT and IT-enabled services.doc/Z. along with other renowned management institutes such as the Nirma Institute of Management (NIM). Surat is the textile and jewellery hub of the country and is also growing at a scorching pace which indirectly benefits Ahmedabad too.K .22 May 2008/of 59 D:\Emerald Park. The city is also the academic epicentre of the state with various world class institutes bringing students from all over the country to the city. Ahmedabad has also been making its presence felt on the IT/ITES scene of late. The current demand for residential property in the city is at much more than the supply which accounts for the 15-20% a year growth in the prices of residential property in the city. 4. the Entrepreneurship Development Institute (EDI). after long period of stagnation. Ahmedabad enjoys a very strategic location which has contributed greatly to its growth. the Mudra Institute of Communication and Advertising (MICA).

ports.22 May 2008/of 59 D:\Emerald Park. airports. 950 crore Bus Rapid Transit System (BRTS). and an average 20% price hike has been seen across most areas of western Ahmedabad. information infrastructure and industrial parks is a step in that direction. the 155 Kms arterial road network for the Rs. 33 247925/01/AA . Ahmedabad already has 3 ring roads and a fourth is being planned to keep the city congestion free as it grows bigger.000 crore on the development of the city over the past five years. besides the Rs 412 crore that is being spent on infrastructure development such as the construction of the ring roads. the various flyovers. power.  The infrastructure in Ahmedabad is in accordance with the size of the city. the Rs 1.K . Further proofs of Ahmedabad’s developing infrastructure are the various projects under progress in the city at present. 5. urban infrastructure. and is being constantly upgraded to keep pace with its growth. 4.2.doc/Z. water supply. The Government of Gujarat has a vision of developing Ahmedabad into a one of the premier cities of the country through comprehensive infrastructure development and the Gujarat Infrastructure Development Board’s move to invite private participation in building roads.179 crore Sabarmati River Front Development Project.500 crores has sent the real estate market in Ahmedabad has gone into over drive.1 Major Growth Drivers  Ahmedabad – A Mega City: The Government’s announcement of Ahmedabad as a Mega city and plans to invest in Ahmedabad along with the other six cities from a corpus of Rs.Techno Commercial Feasibility For Residential Township Project . railways. Land prices in Ahmedabad have risen in some areas by as much as 50%.  The governing bodies of Ahmedabad’s infrastructure and housing namely the Ahmedabad Municipal Corporation (AMC) and the Ahmedabad Urban Development Authority (AUDA) have spent Rs 2.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.

Besides all these projects.Ahmedabad City Mall and Abhijeet I-VI.200 crore Ahmedabad Metro Rail Project. is a well known builder and developer in Ahmedabad.  All of these factors coupled with the state government’s whole hearted endorsement of various kinds of townships such as Technology Park. Since then Saumya Construction has undertaken several such projects and there are others as well in the pipeline.3 Major Players in Ahmedabad Ahmedabad has a large number of local realty players who have done substantial work in the city. The major projects of Saumya Construction are in residential and commercial development. The major local realty players in the city are: (i) Saumya Constructions Saumya construction Pvt Ltd. Saumya Construction has also developed some of well known commercial projects like 10 Acres . another Rs 10. Saumya Construction was the first to conceive and develop the concept of farm house type bungalows with rustic ambience and modern facilities. the new international airport and modernization of the Ahmedabad Railway Station. Till now Saumya Construction has undertaken projects summing up to Rs.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Saumya Construction has never publicised its projects on media. tourism-related townships. the Rs 3. Many national real estate players have foreseen this prospect and are queuing up to buy prime land in and around Ahmedabad.K . education based townships. the Gujarat International Financial Tech City (GIFT) at Gandhinagar. logistics Park and residential townships make Ahmedabad an ideal place to reside in.5000 million.Techno Commercial Feasibility For Residential Township Project .000 crores have been committed to Ahmedabad for strategic planning under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.22 May 2008/of 59 D:\Emerald Park.  The proposed projects also boast of an impressive line-up.doc/Z. a combination which took off well in 1980s. medical and healthcare townships. 4. and their entire promotion of projects is achieved 34 247925/01/AA .

Arjun Orchards (1987) followed the suite with greater grandeur. Projects:  Saumya’s first project was the Ankur Orchards (1984). construction and finish. having 330 sq yd built up area comprising a basement.  Akashneem (1993) located in Vastrapur area giving all the amenities. excellent design. self contained utility infrastructure. located in posh locality of Satellite and developed in a peaceful environment. clear titles as well as adequate infrastructure facilities and utilities are the hallmark of each and every project of Saumya. quality construction. This project was also featured in the international magazine – Time.  Asopalav (2000) is another residential bungalow scheme executed near Thaltej. is a luxurious residential bungalows scheme. which was a runaway success and was a harbinger for others to come.K . Strategic location.Techno Commercial Feasibility For Residential Township Project .  Amrapalash (2005) is a residential bungalow scheme in the peaceful and aristocratic area of Satellite. security arrangement. the scheme combines elegant designing with quality 35 247925/01/AA . And this makes Saumya to be selective of the clientele.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.  Amrakadamb (1996) is a luxurious residential scheme of bungalows (1996). ground floor and a first floor. a combination of farm house concept with modern facilities. Exquisitely designed Club house with Swimming pool.22 May 2008/of 59 D:\Emerald Park.  Amrashagun (1997) is a luxury bungalows scheme with a basement.doc/Z. ground floor and a first floor. Tree lined roads are the extra facilities that are provided. with all the modern amenities and a built up area of 339 sq yd. through word of mouth publicity only.  Ashima towers (1992) were built giving luxurious residential apartments meant for the executives in the Vastrapur area.  Amaltas (1991) was the first scheme of residential bungalows near IIM for high standards of living with excellent design.

(iii) Shivalik Projects: Shivalik Projects is a prominent player and among the top five in the city in terms of development of residential townships as well as commercial buildings and complexes. Established in 1965.G.doc/Z. Greenwoods farm plots. clubs & resorts.Techno Commercial Feasibility For Residential Township Project .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Some of its successful projects include bungalow plot schemes like Sterling Park. etc. residential plots. It has established numerous projects for diversified customer groups – apartments. It is just 15 minutes drive from S. commercial complexes. yds are being offered on first come first basis at a very reasonable price near this famous bird sanctuary. Thol. which is famous for its scenic beauty and a calm atmosphere away from the hustle bustle of the city. It envisages expansion in the cities of state and 36 247925/01/AA . tenaments. Sunrise Park.  Amrashirish (2006) is also a luxury residential project having 378 sq yd of construction. Thol is a scheme of plots nearby the famous Thol Lake. 10 minutes from 200’ wide Sardar Patel Ring Road and only 3 Kms from Khatraj Chokdi (Arvind mills) which makes this heavenly place a well connected site to the city. bungalows. It has around 19 projects under its name currently in the city.: Sterling Greenwoods is one of Ahmedabad’s leading real estate developers. Greenwoods Sarovar I and Greenwoods Farms. earth-quake proof design and offering the best in contemporary living. (ii) Sterling Greenwoods Ltd. Greenwoods residential plots. having all the modern amenities and constructed with a basement. and Vishrut. Projects: Greenwoods. ground floor and first floor. row-houses.22 May 2008/of 59 D:\Emerald Park.K . group is credited with 100% delivery record in it’s over 40 years of operation. Plots of around 1200 sq. construction. It has been certified as an ISO 9001:2000 company by Bureau Veritas. highway.

Sakal. and Yash Tower. etc. Samay.Shilpa. Saket-III. Saket-II. Reliance Retail. Kherwanagar. Saket. pan-India starting from Rajkot. two/three bedroom apartments with parking and lift.doc/Z. Shrinand Nagar-II Shubh sonal. Sankalp. ICICI Prudential. Shivalik Arcade.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Shri Ram Nagar. Bakeri is a major player in making residential complexes in Ahmedabad.Techno Commercial Feasibility For Residential Township Project . Samet. Shalin Bungalows. Shaswat Bungalows.  Its forthcoming projects on residential complexes are nearby the aforesaid.  Another project ongoing is on row houses and bungalows named Shukan Villas and Sulay row houses both on Makarba Road off Shrinand Nagar. Hero Honda. Saujanya. Satej. Navnidhi Bungalows. Bhikubhai chambers etc.22 May 2008/of 59 D:\Emerald Park.K . VII and VIII on Makarba Road. Samsung. Sujata. Sakansh. Its clientele includes Pallazio. Amar complex. Sumeya. Shivalik Plaza. Shalin Bungalows. ICFAI. Axis (UTI) Bank Ltd. D Mart. (iv) Bakeri Engineering & Infrastructure Ltd. it has under its hood the following projects – Sanjay Tower. 37 247925/01/AA . Sulabh. Sukruti. Swagat Plaza I & II. Kotharinagar. Shantanu. Shrinand Nagar-IV. Reebok..  In the category of showrooms and commercial complexes it has executed the following projects – Parth. Swagat bungalows etc. It has completed several projects under over the years like Suvidhinath. IDBI Bank Ltd. Sabar. Suhavan. Shrinand Nagar-I. Kirtisagar Apartment.  In the category of luxurious bungalows and other related schemes. it has under its hood the following projects – Shivalik-Shivam bungalows. Sachin Tower. Essar Group. Sukit. Vejalpur.. named Shrinand nagar VI. Samarth Bungalows. Sujal. Projects:  Bakeri’s current residential complex project is Shrinand Nagar V near Vejalpur (on Makarba Road) comprising of 980 – 1150 sq ft. Samta. Projects:  In the category of luxurious flats and apartments.

K . common overhead tank and water supply facility till the plot. (v) Agarwal Group of Companies: Agarwal group of companies was established three decades back and today is among the reputed Building and Developer Company in Mumbai. Others joined the rally and the city is now witnessing more and more malls coming up. Lush Green Garden with Fountain & Landscaping and Multifunction Club House. which is fully furnished and having all the facilities. bank.  Kanakdhara Villas near the AUDA ring road. 24 Hours Water. Agarwal group is a professionally managed company with its operations and group companies in Hyderabad. Senior Citizen Corner.G. Ashwavilla. Common facilities provided include RCC Road. The project is approved by two banks namely ICICI bank and IDBI bank for providing loans to the customers. 24 Hours Electricity. It is quite near to S. N G Group’s projects include Gallops mall. bears clear titles. 38 247925/01/AA . It offers the facilities like club house. Ashwaraj – II and Hi City. road side and inside plantations. This makes it a professionally driven company. Children Park. a hospital and a dental college nearby. temple etc. Mumbai and Ahmedabad.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Kanakdhara Villas is also approved by the above said two banks for providing loans to the customers.Techno Commercial Feasibility For Residential Township Project . Drainage.22 May 2008/of 59 D:\Emerald Park.Highway (2. The company uses high quality construction materials. and follows transparent documentation. which caught great attention. ensures timely completion of projects. (vi) N G Group (N G Developers Pvt Ltd) N G Group’s Gallops mall was the first mall in Ahmedabad. Projects:  Kadambari – 1 at Rancharda near Saumya 2 and Tulip. is a residential villas project.5 km) and there are many facilities in the vicinity like school. Street Light.doc/Z. shopping centres. has a farm house concept and is providing a guest house for the customers. Nandol. The location of the residential project is such that there is a school.

28 million sq feet of land in and around Ahmedabad.6 million sq feet.000 sq feet. and closeness to nature.00. It has also constructed a business park for the corporate. (viii) Ganesh Housing Corporation Ltd. Projects:  Ganesh Housing has built several projects namely Ratnam – an apartment of 216 flats with super built-up area of over 1. power back-up for common amenities. Mangalore ties on slopping roofs. quality. The group has constructed over 16 million sq feet of residential space till now. Safal has also built a school for the TATA group in Kutch during the earth quake. 96. (vii) Safal Group Safal Group was established in 1995. Their first project was launched in 1995.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. First of its kind for children centric design residential project was launched by Safal by the name of Safal Parivesh. residential projects total up to 13 with 2. Later they started estate maintenance services for creating industry differentiation.16 million sq feet. plotted development total 6 with 4. plotted lands.000 sq yds and comprising 91 units.doc/Z. which was a residential project name “Sakanksh”. focussing on innovations. and the upcoming projects are 4 in number adding up 7. 3 phase power supply. etc. The total assets owned by the group are about Rs.22 May 2008/of 59 D:\Emerald Park.K .: Ganesh Housing Corporation was established four decades back and since then it has been in the development of residential property only. Sanathal. All internal RCC roads.60 million sq ft. 33000 million. homes on over 16. The company is an ISO 9001:2000 certified by Intertek. USA.Techno Commercial Feasibility For Residential Township Project . Projects:  The current project of Safal Group is the Safal Vihaan near Eklavya School. constructed over 1. It has constructed commercial. Its commercial projects total to 14 with 1. residential. Safal group is diverse in executing the types of projects. 39 247925/01/AA .9 million sq feet.

doc/Z. They have properties worth 16 million sq ft in total at prime locations over the country. JPIL has completed more than 2.22 May 2008/of 59 D:\Emerald Park. new generation malls.  Shangrila and Shangrila – II a luxurious bungalow scheme of 255 sq yards onwards of super built up. The last one also provides a big balcony. 38.000 sq feet. Maniratnam – II – a scheme of 92 bungalows with construction area of 1. office and commercial development in the state.  Mahalaya-II is a bungalow scheme that offers 2475 sq feet of super built up and has all the essential and innovative features. from residential complex to shopping malls. The kitchen has a concealed gas pipeline.Techno Commercial Feasibility For Residential Township Project . and the bathroom has anti-skid and leak-proof flooring.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. specially designed dress areas and large covered parking space. from mega malls to townships.  Maniratnam – another residential project of 51 bungalows with construction area of over 80. hotels. inverter for emergency supply.  Suyojan is 3 storey apartment schemes with 3 BHK homes of 265 sq yard super built up. anti-termite treatment guaranteed for 10 years and a solar water heater.595 sq feet. which will be used for the construction of multiplexes. The company is an ISO 9001:2000 certified company and has also won an award for the successful and timely completion of Star India Bazaar. offices. RO water purification system. Projects: 40 247925/01/AA . and IT parks.5 million sq ft of residential.K .000 sq feet   Mahalaya which is a project comprising 70 bungalows covering 1.20. Its current projects include Maple County which encompasses latest concepts in modern living offering 2100 – 2800 sq feet of super built up area. utility and store room. IT parks and hotels because of which they have rich and varied track record as a premier construction and real estate company. Other facilities include hi-tech security system. (ix) J P Infrastructures Ltd: JPIL has been in realty business with the name of ISCON group.

and ISCON Park on Gurukul Road in Ahmedabad.doc/Z. Shivranjani Junction.Techno Commercial Feasibility For Residential Township Project . The projects undertaken by the company are situated in highly post and developed areas of Ahmedabad like Satellite. Prahladnagar. Maurya bungalows are similar bungalow scheme residential units with a bore well for anytime water supply. Library. billiards.5 acres of rich land. Koba and Gurukul. table tennis.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. The project will offer the customers various amenities like amphitheatre. located in Prahladnagar. Ahmedabad. (x) Maruti Group: Maruti Group is the outcome of three young inspired entrepreneurs who aspired to deliver quality construction work which would be based on careful planning. Science City main road. Science City.  The upcoming project of Maruti Group is a 3 BHL luxurious flat scheme apartment at Motera. jogging track. The latter one is located in Satyam Complex. Satellite.22 May 2008/of 59 D:\Emerald Park. The total area is spread over 12.  ISCON group has completed 3 major projects in residential apartment schemes. meticulous time bound execution. Projects:  Maruti Hills. keeping in mind the customer requirements and affordability.K . Its current project in residential scheme is ISCON Greens which is coming up at Bopal-Ghuma road. intercom facility in every bungalow and a generator facility for power backup. namely ISCON Residency in Navrangpura. offering twin bungalows and row houses.    ISCON Park on Satellite Road. 41 247925/01/AA . multipurpose community hall and gymnasium are the common facilities that ISCON greens will offer. Bodakdev. basket ball all in club house. is a scheme of ten individual bungalows with decorative main gate and full security systems. swimming pool.

Shaligram too has pursued the policy of no media publicity and promotes each project by invitation only. It spreads over 250. Thereafter it ventured into developing its own residential schemes by launching Kaivalya comprising 16 luxurious flats. (xi) Navratna Group: Gulmohar bungalows.K . Aniket building. Its name is taken amongst the first organised builders of modern Ahmedabad like first high rise building – Royal Apartments (Khanpur). They are developing residential schemes of independent luxurious and twin bungalows in the areas of Thaltej and New Bopal. Currently there are no ongoing projects of Shaligram Buildcon.22 May 2008/of 59 D:\Emerald Park. Karma. Projects:  Kalhaar is the recent project of Navratna Group which is a scheme of 181 bungalows near Thaltej area. It has almost 10000 satisfied customers in the market. Ankur and Arjun farm houses. Amaltas bungalows. Shaligram-I and Shaligram-II in Thaltej and Shyam Villa-I and Shyam Villa-II in Bopal are the examples of fastest booking record. akashneem bungalows and Upvan apartments are the ones that are built by the Navratna Group via initially undertaking contracts and by which the group started operations in Ahmedabad. (xiii) Shree Ami Infrastructure: Shree Ami Infrastructure was established in the early 1960s. Ltd. introduction of first twin bungalow concept in the city by 42 247925/01/AA . This was followed by Kadamb.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Kanishka.000 sq yards and the work is already in progress.Techno Commercial Feasibility For Residential Township Project . and Kaivanna. Shaligram has been selective about the clientele as they prohibit bringing and eating of non-vegetarian items inside the premises of all their schemes. (xii) Shaligram Buildcon Pvt.doc/Z. 50 bungalows of it have already been booked and this gives an approximation of the worth of project to be 4500 lakh rupees.: Shaligram Buildcon Pvt. Ltd has completed years of operation in constructing luxurious residential bungalows and other residential properties. Kaushambi.

petrol pump. (xv) Sun Builders Pvt Ltd. hospital. which offers plots having areas starting from 520 sq yards going up to more than 5000 sq yards. stationary.Techno Commercial Feasibility For Residential Township Project .  Aarohi Royale is a similar kind of residential project offering similar kind of units as Aarohi Residency. Projects:  Aarohi Greens is situated at the Chekala village on Sanand-Thor road.K . Sun Builders is a 26 year old company with more than 27 successful projects under its name. multiple gates for easy access. video security system. The company has expertise in real estate for over 45 years and has completed more than 50 projects in 21 areas of the city. The recent projects are Sun 43 247925/01/AA . It offers the two types of units – 12 units of 3 BHK and 65 units of 4 BHK with a total development area of 2. vegetables etc are in the vicinity of the township. 00.  Aarohi Residency is situated approximately 4. (xiv) Siddhi Developers: Siddhi Developers began its operations in 1990. It has completed several residential projects since 1994. Projects:  Vaibhav Homes at Adalaj was the pioneering project which heralded the concept of twin bungalows. The company has developed over 5. Aarohi Vihar. Shree Kabir Enclave and Aarohi Greens at Chekala on Sanand-Thor road. Aarohi Royal. 70. Vaibhav Bungalows (Bhuyandev).000 sq ft. club house.000 sq yards of land and constructed properties which include residential bungalows and plots and commercial complexes. and RO system. Some of the features include intercom facility. It’s in proximity to the capital city – Gandhinagar and the 200 ft Sardar Patel Ring Road.22 May 2008/of 59 D:\Emerald Park. shops. All amenities like schools. The scheme offers plot areas starting from approximately 170 sq yards.doc/Z. and Aarohi homes and its recent offerings are Aarohi residency.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.5 km from Iskon temple and nearby by Aarohi homes. It started with Ganesh Park. Aarohi Villa.

This also has employed innovative water harvesting and recycling technology.  Sun House 1 is located 1 km away from Vijay Cross roads. It is offering 2 and 3 BHK plans. located near Bopal village. Divine-2. It is 10 minutes away from S. twin bungalows and row houses.  Surya Shreeji is a scheme of tenaments.  Sun Divine 3 is also in the same vicinity and is offering 3 BHK high end apartments n a high rise building.22 May 2008/of 59 D:\Emerald Park. Surya – Shreeji. It uses innovative water harvesting and recycling technology.G. It offers Twin and Row bungalows. The lifestyle and standard of living separates all the three projects. Sharnam offers daily amenities to the moderate income group.  Sharnam 12 provides quality and improved standard of living at an affordable price.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.K . The scheme has 40 units and there are 2 units per floor. and offers 15 fully furnished service apartments. Sun-Divine 3. Satellite.Techno Commercial Feasibility For Residential Township Project . Projects:  Sharnam County is located on the landscapes of South Bopal. Projects:  Sun Divine 2 is a scheme of 3 and 4 BHK low rise high end apartments located behind Star India Bazaar. and Suryarang Cottages and Sunspace Apartments.doc/Z. but the quality of construction remains the same of all the three. Highway and 15 min from Prahladnagar. 44 247925/01/AA . Ishan caters to the high income group and Shaligram to the premium segment. Sun House 1. (xvi) Vishwanath Group: Vishwanath Group began as Vishwanath constructions and over the years has executed projects with quality construction and use of state-of-the-art technology.

K . Thol Shrinand Nagar V. Parshwanath Homes.60. Road in Chandkheda is in the vicinity of the international cricket stadium and engineering college. Its projects include integrated townships. Makarba Road Sulay Row houses.doc/Z.00. located near New C. and giant infrastructure. Agarwal Group of Companies N G Group Safal Group Residential Units 91 units over 1 Lakh sq ft 45 247925/01/AA . Table 4.000 sq ft of built up spaces and 2.1: On going major residential projects in Ahmedabad Builder Saumya Construction Pvt Ltd Sterling Greenwoods Ltd Shivalik Projects Current Project Project type Scheme types Area Greenwoods. Vejalpur Shukan Villas. Sanathal Residential Property Residential complex Luxurious residency Luxurious residency Residential Units Residential Units Plot Scheme approx 1200 sq yards 980-1150 sq ft 2-3 BHK Villas Row houses Farm House Villas Bakeri Engineering & Infrastructure Ltd. with 1. 07.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. Their upcoming projects are Parshwanath Mega City. Parshwanath has completed residential projects like New Amar Park and Parshwanath Raj Villas. Projects: Parshwanath Metrocity. and Parshwanath Smruti.22 May 2008/of 59 D:\Emerald Park. Makarba Road Kadambari . (xvii) Shree Parshwanath Corporation: Shree Parshwanath Corporation has been in the realty business since past 40 years and has completed 120 projects.000 sq ft of land development.G.1 Kanakdhara Safal Vihaan.Techno Commercial Feasibility For Residential Township Project . 00. utilitarian homes.

Motera Kalhaar. Ltd.2800 sq ft / unit 265 sq yd super builtup 2475 sq ft super builtup from 255 sq yards super built-up total area 12. luxurious and twin bungalows luxurious and twin bungalows Shree Ami Infrastructure Aarohi Greens.22 May 2008/of 59 D:\Emerald Park.5 acres J P Infrastructure Projects Maruti Group ISCON Greens.II Shangrila & Shangrila . Chekala Siddhi Developers Aarohi Residency Aarohi Royale Sun Divine 2 Sun Divine 3 Surya Shreeji 247925/01/AA . Bopal Navratna Group Bungalow scheme 181 units over 2.doc/Z. Bopal Ghuma road Maruti Hills.Techno Commercial Feasibility For Residential Township Project .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.5 lakh sq yards Shaligram Buildcon Pvt.II Bungalow scheme Luxurious residency Twin Bungalow & Row Houses Bungalow scheme Bungalow scheme Luxurious Appt 3 BHK 2100 . Science city main road Name Unknown. Prahladnagar Maurya. Thaltej Shaligram-I and Shaligram-II. Thaltej Shyam Villa-I and Shyam VillaII.5000 sq yards 170 sq yards Sun Builders Pvt ltd 3-4 BHK 3 BHK .K Residential Plots Residential township Bungalow scheme low rise high end appt high rise appt Tenements 46 520 sq yards . Maple County Suyojan Ganesh Housing Corp Ltd Luxurious residency Residential Appt 3 BHK Mahalaya .

Inspite of the recent slowdown in the overall growth of the real estate industry that has taken place on the back of rising inflation concerns. The target segments for premium housing are generally high Net worth individuals and non residential individuals who have surfeit balances to invest. large bungalows. Parshwanath Smruti Sentossa Greenland Appt Twin and Row bungalows 2 . the market for luxury home has continued in its growth path and is estimated to be worth around Rs.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. The premium housing segment though only 10% of the housing segment. it has been growing at a rapid CAGR of 20% -30%.22 May 2008/of 59 D:\Emerald Park. Parshwanath Homes.000 crore. These segments are relatively unaffected by the interest rate regimes as they do need to procure loans to make their payments.3 BHK 15 flats Shree Parshwanath Corporation Satyam Developers Luxurious residency / farm house 11 lakh sq feet 4.4 Luxury Homes Luxury Homes refer to the segment of real estate which consists of sprawling plots.K .2. condominiums etc and state of the art amenities. 47 247925/01/AA . lower than expected GDP figure and the volatile and weak capitals. Sun House 1 Vishwanath Group Sharnam County Sharnam 12 Parshwanath Metrocity upcoming projects: Parshwanath Mega City. villas.doc/Z. penthouses.Techno Commercial Feasibility For Residential Township Project . These are generally the second homes of the buyers and are ideally weekend homes far way from the city. thus the demand in this segment is more or less consistent.

which will examine the developer’s track record. This rating will decide the benefits that will be offered in terms of support and flexibility in the township. Siddhi Developer’s 170 sq. The luxury homes segment in Ahmedabad too has been consistently on the rise with most of the local players offering a variety of schemes in the segment. The Adani group’s 500 acres township Shantigram on the outskirts of the city with an investment of over Rs 2500 crore. The major township projects coming up in the city are 1. In particular the farm house and high end township schemes are highly in vogue with the elite class in the city. 3.G Highway near Nirma University. 4. 6. 5. Many Non Residential Gujaratis and Non Gujarati Top Executive of the various organizations in India also form a substantial part of the demand generators. yard Aarohi Residency 7. Ganesh Housing Corporation Limited’s township at Godavi with an investment of around Rs 2000 crore. It is evident from the number of luxurious townships under progress in the city that there is a huge demand for them amongst the prosperous residents of Ahmedabad. The IL&FS and GUDC joint venture. Sterling Greenwods residential township at Thol.doc/Z. The township model has particularly received a boost due to the Favourable township policy and ambitious plans by regional and national real-estate developers. Sahara Group’s Sahara city on S. 48 247925/01/AA . The government has also stressed on rating of developers. organisational risk and financial risk.22 May 2008/of 59 D:\Emerald Park. 2.K .Techno Commercial Feasibility For Residential Township Project . The new township policy announced by the state has made the land acquisition process easy its talks about providing trunk infrastructure. rating of developers and a lot more.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. developing green channel for fast track clearance. Savvy Infrastructure’s township project at its 700-acre land around Nalsarovar.

Discotheque.1: Emerald Park Location 49 247925/01/AA .Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. yards.K .Health Club. yards and 5000 sq. Table Tennis etc.Techno Commercial Feasibility For Residential Township Project . Volley Ball Court. Jogging Track. Card Room. Figure 5. Artificial Lake. The project is a reflection of the most contemporary and comforting lifestyle. It offers a total of 328 farm houses in different categories. Home Theatre. Ponds / Fountains. Library. Lighting.doc/Z. yards. Power back up facility for street lights & 3 club houses. Lake Restaurant. Tennis Court. 5 Emerald Park The project consists of 6 different types of units of 1000 sq. which include facilities like Coffee Shop . In addition to offering the most luxurious farm houses the project offers all the desired and deserved amenities like Garden in each plot. Restaurant. Basket Ball Court. Swimming Pool. 24 hours professional security agency. 2500 sq. Children Park.22 May 2008/of 59 D:\Emerald Park.

behind the Thor Lake on the Sanand . The location is 30 minutes from the city and provides an ideal gateway from the city life. This segment is in abundance in the city of Ahmedabad and bookings for the project have already begun. The target segment for the project are Upper and Elite Class who have surplus income to invest and are desirous of a weekend get away or farm house to relax at. It is located on the outskirts of the city.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. 50 247925/01/AA .Techno Commercial Feasibility For Residential Township Project . where another residential township Sterling Greenwoods is also being constructed.K .doc/Z.Kadi Highway.22 May 2008/of 59 D:\Emerald Park.

1 Sales Distribution Pattern Table 6.00 175. 6.00 175. It primarily looks into the Capital Expenditure to be incurred for the project.33% 33.34% JanMar 6.33% 33. are enlisted below: 6.00% 33. input costs and other parameters.75 155.00 39.33 275.00 39.1: Sales distribution Pattern of Units Platinum 100% 2009-10 Silver Platinum Gold Silver Platinum Gold 100% 2010-11 Gold Silver Silver 50% Units to be constructed over Year Distribution Pattern proportion of total respective units Corresponding number of units minimum land area 2008-09 Platinum Gold 3 Years 33.00 0.33% 25.33% JanAprMar June 33.00 15.00 41.22 May 2008/of 59 D:\Emerald Park.33 275.2: Sales Distribution Pattern of Plots Year Months Distribution 2007-08 AprOct June July-Sept Dec 2008-09 July.K .2 Basis and Assumptions The important basis & assumptions.00 41.33% 0.33% 2009-10 AprOct June July-Sept Dec Jan-Mar 33.2.00 175.00 Table 6.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.33 275.33% 25.1 Financial Aspects Introduction This chapter deals with the economic viability of the proposed project.3 Project Cost The Financial requirement for the proposed project is estimated in this section. other fixed assets.75 155. common area construction work.00 15.00 155.Techno Commercial Feasibility For Residential Township Project .00 41. which are considered for the analysis. 6 6.doc/Z. A spreadsheet model has been developed for financial analysis with a view to assess impact of changes in project parameters like project cost.Oct Sept Dec 33. utilities.00% 15.00% 33.33% 33. preliminary and pre-operative expenses and finally the provision of 51 247925/01/AA . Capex estimates will include estimates for its various components such as land and land development.

means of finance will also be estimated. 52 247925/01/AA .3: Land and Land Development Cost Estimates Sr.47 45.3. alteration as well as unforeseen expenses for various project components. the residents of the project will be obtain power for their respective plots from GEB at their own cost and thus is not a relevant component in utilities cost of the project. The civil cost of utilities such as borewell and electricity has also been taken into account under the same head. Sets of 50 KV each to fulfil it’s power requirements during the construction phase of the project. behind the Thor Lake on the outskirts of Ahmedabad.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd. 6. On the basis of fixed cost estimates the Block capital cost of project will be worked out. yard of land on the Kadi – Sanand highway.99 The land development cost includes the cost of construction of common facilities such as roads. This will be total cost of project. it will be done from the equity poured in by the promoters and the booking advances paid by the members of the project. yard) Cost of Land Development Total Estimated Cost Cost In Rs Crores 7. compound walls. Table 6. internal accruals and unsecured deposits As there is no debt or term loan to be taken to finance the project.Techno Commercial Feasibility For Residential Township Project .doc/Z.3. No 1 2 Description Cost of Land (752223 sq. 6. Means of finance will include promoters’ contribution in terms of equity. contingency for the proposed project to cover modification.52 38. and to meet this cost.K .2 Utilities Radhe plans to set up 3 D. landscaping as well the clubhouses.1 Land and Land Development Radhe has purchased 752223 sq.G.22 May 2008/of 59 D:\Emerald Park. Yard @ 100 Rs/sq.

The total provision of contingencies to be made for the project is Rs. Yd 51. Preliminary and pre operative expenses are taken together in the cost estimates.1 0.57 4.41 53 247925/01/AA .92 0. Yard 0.50 0.5705 10. There are some expenses which are incurred prior to start of commercial production in the plant and these are classified under pre operative expenses.Techno Commercial Feasibility For Residential Township Project .3. Total estimate for preliminary and preoperative expenses is Rs.08 6. Table 6.22 May 2008/of 59 D:\Emerald Park.4564 Amount 3.08 Crores.77 1.doc/Z.02 0.4.3. No 1 2 Description Land and Land Development Cost Other Costs Total Contingency Amount in Crores 3.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.15 0.85 1.2282 20.K . which is clubbed under preliminary expenses.6: Provisions for Contingencies Sr.4: Utilities Sr. No 3 4 5 6 Preliminary Expenses Overhead Expenses Office Expenses Marketing Expenses Architect/ Structural & Landscape Total Rs Per Sq. Table 6. Table 6.3 Preliminary and Pre – Operative Expenses There are several expenses associated with starting of project.04 Sr.141 25.4 Provisions for Contingences NTIL will have to make provisions of contingencies which will be appropriated in the respective heads where there is a cost escalation and requirement of contingency.5: Preliminary & Pre-operative Expenses Percentage Per Sq. 8.85 0. Due to such appropriation of contingencies there is also increase in respective cost estimates in fixed assets.41 Crores.65 6.05 0. No 4 5 Utilities Cost DG sets HVAC Total Quantity 3 Rate/Unit 500000 Per each of 50 KV Amount 0.54 8.

52 38.8: Means of Finance Sr. To give an overview of the project investment.00 5.5 Summary of Fixed Capital Cost In the previous paragraphs cost estimates for main fixed asset heads have been described.82 64. 64.5 Project Profitability The various indicators of Project Feasibility are given in the following tables attached at the end of the Report: 54 247925/01/AA .47 0. No Description Land Cost Land Development Cost Plant and Machinery Furniture.08 4.00 0. Crores 7.22 May 2008/of 59 D:\Emerald Park. 6.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.7: Summary of Fixed Cost Estimates Sr.K .13 6.31 43.Techno Commercial Feasibility For Residential Township Project . No 1 2 Particulars Booking Advances Equity Total Means of finance Rs.3.4 Sources of Finance Proposed sources of finance for the project are summarised in following table Table 6.doc/Z. 6.41 64. Preliminary and preoperative expenses and contingencies are also included here. Crores 20.13 Crores.13 1 2 3 4 5 6 7 As observed from the above table total fixed cost estimates for the proposed project is Rs.65 8. Fixtures & Clubhouse Equipment Common Utilities Preliminary expenses Contingency Total Project cost Rs. a summary of the Project Cost is given in the following table Table 6. since they would be appropriated to the fixed costs.

lush green premises and surroundings • Close to industries • Scheme of Luxurious farm houses • Proximity to Nal Sarovar and holiday spots • Demand for holiday homes • Well established and prominent player in realty • Availability of cheap land • Equity financing only Weakness • Municipal drinking water not available • Close to industries • Limited public transportation Opportunities • Industrial development around the city • Growing NRI investments in the country and particularly in Ahmedabad.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.K .22 May 2008/of 59 D:\Emerald Park.1 Strategic Analysis SWOT Strengths • Location • Western style club houses and amenities. • Growing Elite Class • Growth in realty sector and particularly housing Threats • Sterling Greenwoods a similar kind of city offering is coming up in the same area • Other townships and schemes from Ahmedabad competitors • Adverse effects of fluctuations on the cost of raw materials 55 247925/01/AA .doc/Z.Techno Commercial Feasibility For Residential Township Project . 7 7.

22 May 2008/of 59 D:\Emerald Park.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.Techno Commercial Feasibility For Residential Township Project .K .2 Five Forces Model 56 247925/01/AA . 7.doc/Z.

Techno Commercial Feasibility For Residential Township Project .doc/Z.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.1 Conclusions 8.2 Recommendations 57 247925/01/AA .K . 8 Conclusions and Recommendations 8.22 May 2008/of 59 D:\Emerald Park.

36 3.69 27.39 1.578 3.18 6. Profit and Loss Statement Particulars 200708 Year 2008200909 10 201011 Sales / Revenues Plots Unit Platinum Gold Silver Total Construction Revenue Interest on Maintainance Deposit Booking Advance Total Revenue Expenses Write-Off Construction Cost all inclusive Overheads Total Cost of Construction Gross Profit Net Profit Before Taxes Tax on Profit Profit After Tax Net Cash Accruals 0.15 5.66 9.02 0.55 0.43 12.08 4.77 51.93 52.54 1.089 5.16 17.07 14.doc/Z.04 0.04 0.18 6.33 0.00 11.00 0.16 17.36 2.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.85 4.22 7.05 9.55 0.18 0.00 0.11 0.22 2.00 0.36 58 247925/01/AA .66 3.52 38.24 3.14 8.62 13.712 13.22 7.63 5.00 0.22 7.00 0.31 6.58 1.71 33.66 32.Techno Commercial Feasibility For Residential Township Project .540 5.00 9.15 13.13 9.09 1.54 13.73 3.88 3.00 0.05 0.82 8.52 46.22 May 2008/of 59 D:\Emerald Park.36 24.05 14.71 4.K .00 4.

69 76.81 2010-11 0.44 0.35 0.00 16.64 24.Total (A) Disposition of Funds : Capital Expenditure Transfer of Maintainance Deposit Income-Tax Sub-Total (B) A-B Opening Cash Balance Closing Cash Balance 2007-08 10.56 76.09 54.Techno Commercial Feasibility For Residential Township Project .68 38.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.22 16.88 11.00 1.69 23.82 5.71 67.09 Years of Operation 2008-09 2009-10 10.58 3.00 4.00 16. Cash Flow Statement Particulars Sources of Funds : Promoter's Contribution Maintainance Deposits Written off Net Profit Before Tax & Interest Sub.08 14.00 7.09 0.00 3.doc/Z.K .34 0.22 May 2008/of 59 D:\Emerald Park.02 5.66 21.52 32.54 27.58 0.00 3.81 62.00 0.12 30.00 0.25 59 247925/01/AA .76 8.60 16.05 13.22 18.93 1.22 16.14 -14.73 40.09 30.10 46.07 5.32 9.00 1.

K .05 0.68 32.76 17.30 43.00 7.82 18.81 24.25 0.34 8.00 0.07 7.43 0.66 0.25 62.69 38.doc/Z.81 2010-11 43.00 3.33 16.05 24.61 30. Balance Sheet Particulars Liabilities Share Capital Reserves Long term loan Maintenance Deposit Total Liabilities Assets Capital Work In Progress Less: written off Net fixed assets Debtors and other assets Cash and Bank balance Total Assets 2007-08 10.00 76.02 0.00 62.00 16.82 16.28 38.00 3.25 60 247925/01/AA .00 11.Techno Commercial Feasibility For Residential Township Project .42 Year 2008-09 2009-10 20.22 May 2008/of 59 D:\Emerald Park.81 76.42 9.00 0.00 0.00 62.02 1.Emerald Park Mott MacDonald India Radhe Infrastructure & Projects (India) Ltd.30 39.09 17.07 0.93 76.

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