SUMMER TRAINING PROJECT REPORT

ON
“ANALYSIS OF RETAIL ESTATE
DEVELOPMENT IN CONTEXT TO BIG
APPLE REAL ESTATE PVT LTD”
SUBMIT REQUIREMENTS FOR THE MASTER’S DEGREE
IN INTERNATIONAL BUSINESS
OF
H.N.B. GARHWAL UNIVERSITY, SRINAGAR

SUBMITTED TO:
INTERNAL GUIDE EXTERNAL GUIDE
MS PARVI BHARTI MR ABHISHEK
LECTURER MANAGEMENT TRAINEE
IMS BIG APPLE REALESTATE
DEHRADUN LUCKNOW

SUBMITTED BY:
MOHIT SINGH
( MIB 0914)

INSTITUTE OF MANAGEMENT STUDIES-

DEHRADUN
BATCH 2009-2011

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2
 ACKNOWLEDGMENT
Before I go into the details of my study, it will not be fair on my part if I fail to
acknowledge the helping hand considerably supported me for summer project.

I express my profound sense of gratitude to SANJAY BANERJEE, GM of Big

Apple for giving encouragement in taking up the project.

A special mention of Mr. Abhishek (Finance Manager) and Mr. Sumit Jalota
(Marketing Manager), Big Apple, for their valuable guidance throughout the
training. It would be my privilege to thank the whole team of Big Apple,
Luknow, for being cooperative and extremely helpful through out the tenure of
the internship.

It would be my pleasure to grant the sincere word of gratitude to my teacher and

internal guide Ms. Parvi bharti guiding me all through the 1st and 2nd semester of
my M.I.B. in IMS without whom this project would not have been a success.

At last but not the least, I express my indebtness to my parents, friends and other
trainees who provided me support throughout this project. They have been a
perennial source of inspiration for me.

MOHIT SINGH

MIB- 2nd Sem

IMS Dehradun

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 CERTIFICATE
I have the pleasure in certifying that Mr./Ms. ...…………..……........………..……...
…………………

is a bonafide student of III Semester of the Master’s Degree in International Business

(Batch 2008-2010), of Institute of Management Studies, Dehradun under H.N.B.
Garhwal University Roll No. ………..……. .

He/She has completed his/her project work entitled

………………........................................................

……………………………………………………………………………………………
……….……..

under my guidance.

I certify that this is his/her original effort & has not been copied from any other source.
This project has also not been submitted in any other Institute / University for the
purpose of award of any Degree.

This project fulfils the requirement of the curriculum prescribed by this Institute for the
said course. I recommend this project work for evaluation & consideration for the award
of Degree to the student.

Signature : ……………………………………

Name of the Guide : ……………………………………

Designation :…………………………………….

Date : ……………………………………

4
 EXECUTIVE SUMMARY

A summer Training of two months is an integral part of M.I.B. programme. It

provides the student with opportunity to experience the market condition in
which the company works in a war zone of rapidly changing competitions.

The project undertaken by me at Big Apple Real Estate Co., Lucknow as part of

Summer Internship Program provided me an opportunity to understand about the

real estate construction industry and to gain an insight into the various strategies

employed to cater this segment of the industry. The project deals with the

housing, hospitality, retail construction industry. There are many companies in

the world that are involved in the construction of these things but still Big Apple

is able to maintain a good position amongst all.

In today’s competitive world the topper is always doing something different from
others or may be the same thing in a much more different way. The same logic
goes for the business world too. With new competitors coming every now and
then the field of business, the company positioning should be strong enough to
retain its position in business.

The main aim was to study the Indian market in context to future prospects and
comparative analysis of the companies with Big Apple involved in construction
industry. It also comprises of the study about the customer satisfaction,
government policies and market opportunities in the real estate sector. The
analysis of Indian market reveals the useful data to evaluate the Indian Market for
entry and investment by foreign companies.

5
The conclusions drawn from the study clearly indicate that in today’s scenario
somewhere or the other Big Apple is playing a very important role in the
development of the infrastructure in India but still needs a proper planning and
better strategies to reach the top. Indian industry has a potential for international
markets like USA, U.K, Germany etc. so it should adopt more reliable strategies
and sophisticated technologies.

6
 INDEX

 TITLE PAGE. 1
 ACKNOWLEDGEMENT. 3
 INTERNAL GUIDE CERTIFICATE. 4
 COMPANY TRAINING CERTIFICATE. 5
 EXECUTIVE SUMMARY. 6
 LIST OF CONTENTS. 7
 LIST OF TABLES AND FIGURES. 8
 OBJECTIVE OF THE STUDY. 10
 INTRODUCTION. 12
 COMPANY PROFILE. 36
 RESEARCH METHODOLOGY. 50
 FINDINGS. 58
 DATA ANALYSIS. 72
 CONCLUSION. 87
 SUGGESTIONS. 88
 BIBLIOGRAPHY OR REFERENCES. 89
 ANNEXURES. 91

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 LIST OF TABLES & FIGURES

page no
1) Graph representing visit to Malls 78

2) Graph representing visit to particular malls 79

3) Graph representing preference of shopping at malls 80

4) Graph representing different influential decisions involved while

81 purchasing in malls

5) Graph representing about the feedback of PHOENIX mall 83

6) Graph representing purpose of visiting malls 84

7) Graph representing feedback of the time to visit malls 85

8) Graph representing feedback regarding visits to malls 86

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OBJECTIVES

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 OBJECTIVES

I have been given this project titled “ ANALYSIS OF RETAIL ESTATE

DEVELOPMENT IN CONTEXT WITH BIG APPLE REAL ESTATE PVT

LTD. LUCKNOW”

The key areas of the project are:-

 Identifying the major competitors of real estate in the global market.

 Identifying the prospective areas for project

 Comparison of different services provided by big apple with there

competitors

 identify the need & wants of the real estate customers

 knowledge of the government policies and norms

 knowledge of the FDI Regulations

 Identify the market opportunities of big apple

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INTRODUCTION

11
 INTRODUCTION
The Indian economy has transformed substantively over the last two decades,
growing consistently at an average of 8 per cent and is poised to take its place
among the leading economies in the years to come. Strong performance of the
economy can be particularly attributed to healthy growth in manufacturing and
services sectors. The economic performance of India has provided strong impetus
to the real estate sector, which has been witnessing heightened activity in the
recent years. Substantial end-user and investor interest, large scale investment in
infrastructure and rapid urbanization have contributed to the growth trajectory of
Indian real estate. The real estate growth story is clearly visible in urban centres
such as Delhi, Mumbai and Bengaluru which have acquired global character and
recognition.

Indian Real Estate: Riding the growth wave

The strong fundamentals of the Indian economy are having a favorable impact on
all asset classes of Indian real estate viz. housing, commercial – office space and
retail and hospitality. In recent years, the growth has spread out to tier-II and III
cities as well. High growth in services as well as manufacturing sector has
resulted in high demand for commercial and industrial real estate. Further the
economic growth has trickled down to the large Indian middle class increasing
affordability and affluence. Improving living standards are driving the demand
for better quality housing and urban infrastructure. In fact, housing in India is
today moving from being viewed as a purely basic need to an aspirational
purchase. Though high interest rates coupled with soaring property prices have
temporarily impacted affordability of home buyers the demand-supply mismatch
and low home loans to GDP ratio in India (a meager 5 per cent as against more
than 50 per cent in US, UK and Germany) are expected to fuel demand for
housing in the medium long run. The growth of the sector has been
complemented by favorable policy changes like liberalization of Foreign Direct

12
 Investment (FDI) guidelines and significant increase in investment on physical
infrastructure.

Booming Indian real estate

Demand Pull Factors Resultant Impact Supply push Factors Resultant Impact
 Robust and  Increasing  Policy &  Entry of
sustained occupier base Regulatory number of
macro  Significant reforms (100 domestic &
economic rise in demand per cent FDI foreign
growth for Relaxation) players
 Upsurge in office/industri  Positive increasing
Industrial al space outlook of competition
business  Demand for global & consumer
activities, esp. newer Investors affordability
new economic avenues for  Fiscal  Easy access
sectors entertainment, incentives to to mean of
 Favourable leisure & developers project
demographic Shopping  Simplification financing
Parameters of urban  Increases
 Significant  Creation of development developers
rise in demand for guidelines risk appetite
consumerism new housing  Infrastructure & allows
 Rapid support & large scale
urbanisation development development

 Gamut of by  Improved
financing government quality of
options at real estate
affordable assets
interest rates

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Booming Indian Real Estate

REAL ESTATE
The recent times have also witnessed an evolution of the sector - towards greater
institutionalization and corporatisation. With the entry of global players, inflow
of foreign capital, evolution of capital markets, geographical diversification and
introduction of reforms, the sector has undergone some significant structural
changes. Even critical concern areas like transparency in the sector is also
improving significantly. The trend is expected to continue in the coming years.

Market Size and Growth

Estimate provided by ASSOCHAM, a leading industry body, suggest that the size
of the Indian real estate sector is around US$ 16 billion, growing at the rate of 30
per cent per annum. According to a recent estimate by UBS the total size of the
Indian real estate market in terms of total economic value of development
activity, is US$ 40-45 billion representing5 - 6 per cent of GDP.

Key Trends
This section discusses some of the notable trends observed in Indian real estate in
the year 2006-07.
Rush to raise capital
Last two years have been eventful years for the Indian real estate sector on the
capital markets, with the IPO Market witnessing the shifting focus towards the
realty sector .In a bid to raise their capital base and fund ambitious project
pipeline, real estate companies approached both the domestic and international
stock markets. Close to20 real estate and construction companies opted for stock
exchange listing since August 2006 to August 2007. Cumulatively, these
companies were able to raise around US$ 4356.3 million from the public for
various projects .Several prominent real estate players such as DLF, Parsavnath ,

14
 Purvankara, Sobha, Kolte Patil and Omaxe came up with their public issues
during the last 18 months .Another trend that seems to find favour with Indian
realty developers is listing on the offshore exchanges like AIM, Singapore listed
REIT, Singapore Stock Exchange and Dubai International Financial Exchange.
India’s largest real estate developer DLF’s group company DLF Assets has filed
for REIT IPO in Singapore stock exchange.

Strategic alliances

Strategic alliance for synergetic benefits and capacity augmentation, a trend that
started in the year 2005-06 continued throughout the year 2006-07. The year saw
several regional, national and international players partnering for the objective of
fulfilling the funding requirement, mitigating risk in projects with high gestation
periods, obtaining technical expertise, brand equity etc. Several tie-ups to
enhance execution capability were also forged in the form of Joint Ventures with
the large national and international contracting Companies. Some prominent such
tie-ups included Emmar-MGF 50:50 joint venture with a leading Australian
contractor Leighton Holdings Ltd. and DLF’s joint venture with Laing 0’ Rourke
of UK.

Foreign developers in Indian real Estate Market

Investor Company Project Locaton(s)

Kontur Bintang / Malaysia Gurgaon

Westport Singapore Bengaluru
Keppel Land Singapore Hyderabad , Singapore
Singapore Housing Chennai Hyderabad , Chennai
Board Indonesia Kolkata
Salim Group Indonesia Singapore Chennai Mumbai
Kolkata Malaysia Hyderabad,Mohali
Lee Kim Tah Holdjngs Indonesia Kolkata
IJM Berhad Malaysia Dubai Hyderabad
Hyderabad, Mohali
Universal Success
Enterprise

15
Emaar Group Dubai
Hyderabad

Global realtors in India

Indian real estate sector continued to remain on the radar of several global
realtors. International developers originating primarily from Middle East, South
East Asia, and Europe have been hunting for business opportunities in India and
several strategic tie-ups were announced in the year2006-07. Prominent Middle
East based developers such as Nakeel Group (Dubai); Signature Group (Dubai)
announced their plans or projects in India. Technology and Media Free Zone
Authority (TECOM) of Dubai has also entered into a
MoU with the State Government of Kerala to develop the “Smart City” project
near Kochi city in Southern India.

Diversification of Indian conglomerates

Several Indian corporate have evinced interest to garnera share of Indian real
estate pie in the recent past. Like in the year 2005-06, last year also witnessed
diversification of Indian conglomerates to include real estate sector into their
respective portfolios. The table below captures the foray of some leading Indian
conglomerates into Indian real estate.

16
 Indian Corporates Forway into real Estate
Firm Current Acctivity

THDC Ltd.(Tata Group The Company has entered retail and commercial real estate
Company) development with projects such as the Imperial mall (Bengaluru)
and Eruchshaw Building and the Technopolis Knowledge park in
Mumbai.
Further the THDC is now involved in the development of residential
townships largely in the Tier II and III cities including Pune, Cochin
and Goa.
Big apple Big apple has emerged as one of the leading commercial developers
in Pune, Mumbai and Kolkata. The group also undertakes residential
construction and has developed over 5 large residential complexes
and Malls in Uttar Pradesh. The company has also entered the retail
space with its flagship Kolkata Mall in association with Uppal
group. The company has proposed two IT parks in Kolkata.
TCG Urban The Group has thus far developed more than a million square feet,
Infrastructure Holdings largely comprising commercial property, across five cities,
Limited Bengaluru, Delhi, Calcutta, Chennai, Pune. The Company reportedly
(The Chatterjee Group has plans to develop 4-5 million square feet across asset classes over
Company) the next 2-3 years. The group proposes to invest in a proposed 330-
acre IT hub at Jagdishpur near Kolkata.
Andani Group The group has recently closed US$ 365.9 million deal in Mumbai’s
Bandra-Kurla Complex, where it plans to build a hotel, service
apartments, a shopping complex and residential complexes. The
company has also acquired 2.5 million square yards of land at
Dantali (Gujarat) for setting up an integrated township. The
company also plans to set up several townships in Gujarat.
Sahara India Group Sahara City Homes, one of the group companies of Sahara Group is
developing a chain of well-planned self-sufficient high quality
townships across 217 cities across India. Each township has been
planned on 100 to 300 acres of land parcels. Further, the group has
also entered into retail segment with large retail malls in cities such
as Gurgaon , Lucknow etc. The Group has alsodeveloped one of
India’s finest townships called “Aamby Valley” spread over
sprawling 10,000 acres near Mumbai.
Reliance Industries Reliance Industries has recently inked a Memorandum of
Limited Understanding with Government of Haryana to develop a US$ 24.4
billion SEZ between Gurgaon and Jhajjar. The proposed SEZ is
proposed to have its own airport, rail line, power plants and a metro
line to Manesar.

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Moving up the value chain

As the Indian real estate continues to chart its high growth trajectory and
continues to grow and evolve the trend Of increasing backward and forward
integration by real estate developers continues to remain an
important trend in the sector. Several domestic players initiated action to increase
their presence across the
real estate value chain. Several leading construction and infrastructure giants are
emerging as integrated
real estate developers. Infrastructure and construction giants such as L&T,
IVRCL, IDEB Inc, Lanco, Maytas,
Madhucon, GMR, Nagarjuna Constructions amongst others gearing up to play a
definitive role in the Indian
realty space

Opportunity Spectrum
The phenomenal growth witnessed in Indian real estate has widened the
opportunity spectrum of the sector even beyond the established asset classes viz.
commercial, retail ,residential, industrial and hospitality. This section maps the
opportunity in both the asset classes and the emerging asset classes

.Commercial Real Estate

The boom in the Commercial Real Estate (CRE) segment is being fuelled by a

robust demand from MNCs and corporate India alike, particularly from IT/ ITeS,

BFSI, Telecom and Pharma companies. In the year 2006 supply of commercial

grade A office space, remained concentrated in the top seven cities. According to

18
E&Y Estimates total supply of commercial office space (grade A, non captive) in

the National Capital Region (NCR),

Mumbai, Hyderabad, Bengaluru, Pune and Chennai together was recorded in the
range of 40-45 million sq. ft. The absorption was primarily driven by the IT/ITES
industry accounting for almost 70-75 per cent of total\absorption. The supply
format was primarily in the form of IT Parks, integrated campuses and a few SEZ
development.

Commercial office Space Absorption

Total ~45 million sq.ft (2006)

Bangolre 26%
NCR 23%
Mumbai 14%
Chennai 11%
Estate
Pune 10%
Kolkata 8% Key Growth
Drivers
Hyderabad 8%

Growth in IT/ITES Sector

The primary growth driver of commercial real estate is the IT/ITES sector,
which, is growing at 25-30 per cent annually. Further according to NASSCOM
estimates, India’s IT/ITES industry is expected to grow to US$ 148 billion
by2012. As per E&Y estimates this translates into in excess of250 million sq. ft
of commercial office space requirement by 2012-13

19
20
Growth in knowledge and technology intensive Sectors

Several other sectors such as financial services, biotechnology, telecom, pharma,

insurance, and consultin businesses are witnessing strong growth and have added
to the rising demand.

Significant growth in FDI

Progressive liberalization and easing of FDI norms in various sectors have paved
the way for growth in FDI. This has further led to burgeoning demand for office
space from multinational companies and other foreign investors.

Out look
Over next five years, the commercial real estate market is expected to grow at a
CAGR of 20-22 per cent and would continue to derive its growth from the
thriving off shoring industry. Over the medium term, the further opening up of
the economy is expected to lead to a broader occupier base. The supply of
commercial office space will remain concentrated in the suburban areas and in
the form of IT Parks and integrated campuses. Large supply of commercials pace
is also expected from SEZs over the next few years.

Residential Real Estate

Driven by increasing urbanisation, rising incomes and decreasing household

sizes, the residential segment in India has been on an upswing over the past few
years. In terms of value, the residential property market Constitutes almost 75 per
cent of the real estate market in India .The Working Committee of the 11th Plan
(200712) has concluded that the total shortage of dwelling units at the beginning
of Eleventh Plan Period i.e. 2007 was 24.7 million. E&Y estimates that more than
70 per cent of the shortage of dwelling units is for middle and low income
brackets. Several policy interventions and initiatives are expected to correct this
demand- supply gap

21
Key Growth Drivers
Rising urbanisation

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According to the United Nations Population Fund (UNFPA), India is getting

urbanised at a faster rate than the rest of the world and by 2030 more than 40.7

per cent of the country’s population would be living in urban areas. Presently,

more than 28.7 per cent of India’s area is urban as against the global average of

48.7 percent. However the growth rate of urban areas was 2.3 per cent in 2005, as

against the world average of 2 per cent. The urban population of India was

estimated to stand at 316 million in 2005 and is the second largest in

the world after China. It is estimated to reach 590 million by the year 2030

retaining its second position. India’s cities have been the driving force in shaping

India’s socio-economic profile. Urban areas which constitute only 28.7 per cent

of the population, have been a major contributor to the GDP with a major share

of industry and almost the entire services sector concentrated in the urban

agglomerations. During the last sixty years, post independence the population of

India has grown two and a half times, whereas urban India has grown by nearly

five times.

According to Census of India 2001 estimates, 30 per cent of the total population

of India would be living in urban areas by 2011. The number of cities with one

million plus population is further expected to double from 35 in 2001 to 70 by

2025.India’s ‘Mega-Cities’ of Mumbai and Delhi would be the world’s 2nd and

3rd largest cities by 2015. With a rapid influx of migrants in these cities there is a

corresponding increase in the demand for space. Rapid urbanisation is fostering

real estate growth in India.

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Increasing number of households

The growing popularity of nuclear families in India has decreased the average

household (HH) size in the country, leading to an increase in the number of

households in the country. The average HH size in India has declined from5.4

persons per HH in 1981 to 5.1 persons per HH in 2001.In 2001, there were

roughly 192 million HH in India, about 40 million more than those in 1991

Growing number of first-time home buyers

India has a much younger population compared to most other economies.

Currently the population in the working age group (16-65 years) is about 700

million representing about 64 per cent of the total population of India is expected

to emerge as the highest contributor to the global work force by 2010. Given that

a majority of the population would still be young the per capita income

generation capability of India would continue to remain obust. With the average

age of home buyers declining fast the young working population would further

push demand for housing units higher. First-time home buyer numbers have

multiplied over the years and the median age of home buyers has reduced from

38 years in the early 1990s to about 28 years today.

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Increasing income levels

The per capita disposable income has grown manifold in the past one decade. The

current annual per capita disposable income stands at around US$ 693 and is

further expected to grow by 8-13 per cent in the next five years. Robust economic

growth, particularly in the services sector has led to an increase in income levels

in the country. Several studies have indicated that salaries in India have been

increasing by an average of 10-15 per cent on a year on-year basis. This has

increased the affordability of homes in spite of higher property prices and has

further created more discerning buyers.

Penetration of mortgage finance

Over the past five years loan disbursals by housing finance companies have

grown by 30-40 per cent annually.However, despite such growth, mortgage loans

are presently only 4-5 per cent of GDP, primarily due to the low penetration of

mortgage financing. Banks and housing finance companies have planned to

increase penetration aggressively. Most of the growth is expected to take place in

the midmarket and premium/luxury sub-segments. With the Government

promoting low-cost housing, developers may also start investing in the

budget sub-segment. Overall as housing supply catches up with demand in the

next few years the residential prices are expected to stabilise.

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Out look

Government of India habitat policy envisages that by the year 2012 the housing

shortage should be removed and everybody should have a house of his own.

Fructification of such a policy will translate into large scale development in this

segment. Due to availability of land and proximity to upcoming knowledge

industries, peripheral regions of major metropolitan cities (Bengaluru-Whitefield,

Delhi – Greater NOIDA and Gurgaon, Kolkata- Rajarhaat, Chennai-along OMR)

are expected to attract maximum development. Though national developers are

expanding their geographical base, regional developers are expected to dominate

supply in short term, especially in mid-segment category. Several satellite cities

on the lines of Navi Mumbai for Mumbai, NOIDA and Gurgaon for Delhi are

expected to emerge to offer housing to burgeoning population and demand for

affordable housing.

Retail Real Estate

The Indian retail industry is witnessing a structural change with individual small

format stores making way for large format shopping malls and hyper-markets. On

the policy front, the partial relaxation in FDI regulation (51 per cent FDI in single

brand retailing) has provided a boost to the retail segment. Presently the top

seven cities of India account for a dominant share in mall space. The total

organised retail space absorbed for the year 2006-07 in the top seven cities was

around 19 million sq. ft. The following chart depicts the absorption scenario of

organised retail space for the year 2006-07. National Capital Region (NCR), one

26
of India’s most affluent urban centres, dominates the absorption scenario

followed by Mumbai and Kolkata. Bengaluru is also

Key Growth Drivers

Rising Consumerism

With growth in India’s economy over the past two decades, the spending power

of Indians has also increased manifold. Real average household disposable

income has roughly doubled since 1985. The combination of rapidly rising

household incomes and a growing middle-income population has led to a striking

increase in overall consumer spending which in turn has been driving the

exponential growth of the Indian retail industry

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Growth in Organised Retailing

Retailing in India is witnessing a huge makeover. In recent years, retail has

emerged one of the fastest growing industries in the Indian economy. The

industry is currently estimated to be about US$ 240 billion in size and is growing

at over 6-7 per cent annually. Organised retailing accounts for a small but fast-

growing share of the total industry; its share has more than doubled from 2 per

cent in FY2003 to 4.4 per cent (US$ 10.5 billion) in FY2006. Several factors

such as increasing disposable incomes, rising consumption due to increasing use

of credit cards and easy finance options and shopping convenience have further

driven the growth of organised retail.

Entry of international retailers into India

India is attracting large international retailers to its doorstep. As per the latest AT

Kearney Global Retail Index 2007, India has been ranked the most attractive

country for international retail expansion. Large international retailers are

attracted by the huge potential of the Indian retail industry and steady opening up

of the sector for FDI. Many international retailers are already present in the

country primarily through the franchisee route and are actively considering

expansion. Besides several other large retailers are planning to enter the country.

These include Woolworths and Wal-Mart, who have already tied-up with Indian

partners and Carrefour and Tesco, who are finalising their plans. In addition to

larger retailers entering the market and new retail formats being introduced,

growth in demand is also expected to gain momentum.

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Entry of Indian corporates into Retail industry

Several Indian corporates including Reliance, Bharti, Tata amongst others have

diversified into the retail segment. Prozone, a 100 per cent subsidiary of

Provogue (India) Limited a joint venture agreement with the Omaxe Group, plans

to develop India’s largest shopping malls across the country focused on tier two

cities. In a bid to offer products directly to customers at a competitive rate, large

corporate are looking to control the entire retail supply chain by forging tie-ups

and opening company owned outlets having footprints across the country.

Concept of specialised malls gaining popularity

The concept of specialised malls is gaining popularity with several auto malls,

jewellery malls, furniture malls and electronics malls coming up. Many

developers are further setting up mixed-use projects offering hotels, amusement

facilities and commercial space.

Out look

Market estimates put the growth of organised retail in the range

of 25-30 per cent annually. However, several policy initiatives

(51 per cent FDI in single brand retailing) and ongoing policy

debate to allow 100 per cent FDI in organised retailing (in both

single and multiple brands) holds out lot of promise of the Indian

retail. The organised retail can attain a higher annual growth

rate and is expected to contribute 10 per cent of total sales by

2010. Several national and international corporates have either

29
made a foray into the retail segment or firmed up plans to enter

the retail segment. This will bring the much-needed corporatisation into

organised retail with enhanced operational efficiancy. This will also result in

greater geographical reach and diversification into tier-II and III cities.

Hospitality Real Estate

With growth in inbound tourism and increase in business travel led by growth in

the services sector, India’s hospitality sector is experiencing a significant

demand. As per FHRAI estimates in the year 2006 there were close to 100,000

hotel rooms in India in various categories with Five Star and Five Star Deluxe

contributing close to 30,000 rooms. Estimates indicate that India would need an

additional 50,000 rooms in the next 2 to 3 years to cater to the projected tourist

arrivals into the country

30
Occupancy rates are at an all-time high with luxury hotels in Mumbai, New Delhi

and Bengaluru quoting room rates higher than the Average Room Rate (ARR) in

the US. The chart below shows the Revenue per Available Room (Rev PAR)

across five prominent cities in India.

Key Growth Drivers

31
Increase in International tourist arrivals

India has emerged as a major international tourist destination. International

tourist arrivals in India increased by over 13 per cent in 2006 to reach 4.4 million

and foreign exchange earnings from tourism increased by over 17 percent to US$

7.22 billion. The Indian Government has realised that tourism is not only a

significant revenue earner but also a core employment generator. It has launched

various global campaigns such as Incredible India!, Colors of India, Atithi Devo

Bhavah, and Wellness Campaign to promote inbound tourism.

With India attracting increasing foreign interest in terms of trade and investment,

international business travel to India is also on a steady rise.

Growth in domestic tourism

Domestic tourist visits in India were over 430 million in the year 2006. Increased

affordability and increasing trend of leisure travel are driving the domestic

tourism in the country. Moreover, India’s strong economic development and the

growth in its services industry has led to increased corporate spending on

business travel. Domestic business travellers.

Growth in domestic tourism

Domestic tourist visits in India were over 430 million in the year 2006. Increased

affordability and increasing trend of leisure travel are driving the domestic

tourism in the country. Moreover, India’s strong economic development and the

growth in its services industry has led to increased corporate spending on

32
business travel. Domestic business travellers account for about 40 per cent of

total room revenues in India.

Low cost airlines and improvement of airports

Another catalyst for the hospitality industry’s growth in recent years is the entry

of several low cost airlines in the country. It has led to a considerable

improvement in the connectivity between most of the major cities at an

affordable price. Further the increased focus of the Government on improving

airport infrastructure has pushed demand for the hospitality real estate.

Medical tourism

The hospitality industry is witnessing an emergence of unconventional forms of

tourism such as medical tourism. Underpinned by India’s low-cost advantage and

the emergence of new high-quality healthcare service providers, medical tourism

has already gained momentum in India over the past few years. Wellness spas,

hospitals etc. are some of the emerging trends. In 2005, the medical tourism

market in India was US$ 33 million with 150,000 foreign patients visiting India

annually. The medical tourism market is expected to grow to over US$ 2000

million by 2012, providing boost to the hospitality industry.

International events

The hospitality sector is expected to gain further momentum with India hosting

international events such as the Commonwealth Games. The country’s increased

recognition as a preferred destination for global business conventions is expected

to place India on top of global business traveller’s itineraries. These

33
developments are sustaining the growth of hospitality linked real estate in the

country.

MICE (Meeting Incentive Conference Exhibition)

Inbound MICE segment is estimated to be growing at 15 to 20 per cent annually,

with India ranking 27th in the Global Meetings market. Emergence of India as an

important MICE destination can be attributed to improving domestic and

international air travel and many new world class convention centres, hotels and

meeting facilities.

Out look

According to the Ministry of Tourism, Government of India, it has been

forecasted that that there will be a total of 2.9 million and 6.6 million hotel rooms

in India by 2010 and 2020 respectively. As per CRIS-INFAC, demand for hotel

rooms in the country will continue to grow at a CAGR of 10 per cent over the

next 5 years. The rapid growth in number of visitors has most cities facing a

severe shortage of quality hotel rooms. Currently, the room shortage is estimated

at around 27,000 rooms. These include luxury hotels as well as mid-tier budget

hotels and service apartments.

Some Notable Real-Estate Investments in Hospitality

Foreign Investor Indian Partner Type of Alliance Project Details

Hillton Group DLF Group 24:76 Joint Develop and own 75

Venture Hotels and service
apartments by 2013

34
Port land Bigapple Tie-up Development of 43
budjet hotels and
apartments at a cost
of US$ 140 million

Accor Hotels, GMR Tie-up Setup a business

france hotel near new
international airport
at Hyderabad

As within other sectors in the Indian economy, one of the key drivers has been

the changes in policy of the Indian Government to a more liberal model. There

has been a drastic curtailment in restrictive policies such as the Urban Land

Ceiling and Regulation Act, accompanied by major reforms in the Integrated

Township Policy. These changes have allowed the real estate development

industry to take a significant step forward, whilst international investors have

brought both capital and expertise. With the liberalisation of FDI rules and the

emergence of real estate funds, the options available to both domestic and

international investors will continue to grow. Continuing the reforms agenda for

the sector, the Securities and Exchange Board of India (SEBI), vide its press

release dated June 26, 2006 has approved the guidelines for Real Estate Mutual

Funds (REMFs) wanting to set up shop in India and may possibly introduce Real

Estate Investment Trusts (REIT) thereby continuing to widen the source of

capital for the sector. The sector has further benefited by a range of Government

incentives including residential tax breaks and the Special Economic Zones.

35
COMPANY PROFILE

36
Big Apple Real Estate Private Limited is a holding company for

development of Shopping Malls, Multiplex and other real estate projects in

India. This holding company is promoted by two major business houses of

the country in their field i.e. The Phoenix Mills Ltd. Mumbai, the largest

mall developer of the country by the name of High Street Phoenix which is

spread over in an area of about 21 acres in Lower Parel, Mumbai, this is

largest Real Estate development in the country and UPAL Group,

Lucknow, one of the largest manufacturer and market leader of Roofing

Sheets in India having factories at Lucknow, Dadri and Nagpur.

The Company has been formed to develop quality malls by Phoenix

United brand name across the country. The first phase of development is

taking place in the state of Uttar Pradesh with a vision to give the much

needed organized retail segment which the state of U.P lacks and going

further to other states of the country.

37
The company is going on with a project of development of a Mall /

Multiplex in the city of Lucknow situated on CP-8, Sector-B, LDA Colony,

Kanpur Road, Lucknow. The construction is going on in full swing. The

land area of the project is about 14,000 square meters.

The mall shall have Retail outlets, Hyper marts, Anchors, Entertainment

center, large food court, fine dine specialty restaurants and a 6 screen

PVR multiplex. The mall development is about 4.92 lac sq.ft. which

includes a triple basement dedicated towards the parking. We are

continuously negotiating with some of the major and the top brands of

country for the space in our mall.

PROMOTERS OF BIG APPLE

The major promoters of BIG APPLE, Real Estate are:

38
 The PHOENIX

 UPAL

PHOENIX MILLS LTD.

39
“A mythical bird that never dies, the phoenix flies far away

ahead to the front, always scanning the landscape and distant

space. It represents our capacity for vision, for collecting

sensory information about our environment and about the

events unfolding within it. The Phoenix , with its great beauty,

creates intense excitement and deathless inspiration

Phoenix Mills Ltd is poised to carve a niche in the booming Indian

real estate sector. Led by a young Managing Director, Atul Ruia and a

team of professionals, the Phoenix Group is set to take on the

challenge of redefining life style in Indian cities. Be it mega retail

malls, entertainment complexes, commercial space or hospitality

units, the Group are determined to make its presence felt in India.

 Phoenix Mills Ltd. Are the India’s leading developer

/operator of “iconic large format retail-led mixed used

developments? With High Street Phoenix, the Phoenix Mills

Ltd was the first in Mumbai to transfer a textile mill to

40
 modern retail led, mixed use development. Group plans to

foray into developing real estate in India across cities including Mumbai,

Bangalore, Chennai, Pune, Raipur, Agra, Indore etc.

 The plan includes retail units, entertainment complexes,

commercial units & hotels.

 Phoenix Mills Ltd has professional experience of execution and

marketing of projects through a team of competent managers.

UPAL

U.S. Asbestos Ltd. is a leading player in manufacturing & marketing of asbestos

cement sheets in India & is presently manufacturing AC sheets in Lucknow,

Nagpur & Dadri. The company is expanding aggressively across North India with

plans of Developing malls encashing upon its local expertise in project

management. In a partnership with Phoenix & kshitij, UPAL will manage its

existing & forthcoming projects while the partners will play a more active role in

planning & marketing.

 Upal is a leading player in manufacturing and marketing of

roofing sheets in India, having factories in Lucknow, Nagpur and Dadri.

 The company has a wide dealer network in North India.

41
  The company has made about 300000 Sq.m. of factory sheds

including infrastructure development during their expansion program.

 Upal is aggressively diversifying into development of shopping

malls, multiplex’s and other real estate projects

KSHITIJ

Kshitij investment advisory co. ltd. (kshitij) advices on investment in &

development of retail real estate in Tier I,II & III cities . The company has been

promoted by Future Capital Holdings Ltd. Kshitij is currently associated with the

development of 21 million square feet of malls & “Market Cities” across India

CURRENT COMMERCIAL PROJECT

42
Big apple real estste, a joint venture between upal group &

phonix mills,will invest thousand crores in next three years to

develop five project in four cities in the uttar Pradesh.The

company will evelop retail project in cities across up.Of the five

projects lucknow , bareilly and agra are under various stages of

development and the lucknow mall had commence operation by

the third quarter of 2009.the brief description of the project

undertaken in lucknow,bareilly and agra are as under:

uTITLE: PHOENIX UNITED - LUCKNOW MALL

Project Brief

Thishopping Mall has over 5.5 lac sq feet of covered area plus 3 levels of car

parking. This Mall will have large anchors, vanilla shops, a hypermart, a family

entertainment centre with modern food court, speciality restaurants, a pulsating

night club and 6 - screen multiplex

Primary catchments of over 1.5 million in south Lucknow. No other mall is

present in a radius of 8 km presently.

Lies in close proximity to Piccadilly 5 star Hotel, Amausi International Airport,

Charbagh Railway station and inter state bus terminal.

The Mall is designed by M/s P.G Patki renowned Architect of Mumbai and

constructed by M/S B.E. Billimoria, a well known construction company of

Mumbai.

TITLE: PHOENIX UNITED AGRA MALL

43
Project Brief

The property shall have 700,000 sq feet covered area with over 1000 cars

parkings.Shall cater to a local population of over 1.5 million people plus 10,000

tourists a day who come to visit the Taj

This Mall will have large anchors, vanilla shops, hyper marts, craft bazaar,

multiplex food court, speciality restaurants and a cultural centre will be part of

this development.

Designed by Inhouse Architects and team of renowned Consultants.

A 5 star deluxe hotel is planned besides this property by GANGETIC

DEVELOPERS wholly owned subsidiary of BIG APPLE REAL ESTATE

PVT. LTD.

TITLE: PHOENIX UNITED BAREILLY MALL

Project Brief

One of the biggest Mall of Bareilly having approx. 5.5 lac sq feet covered

area and ample car parking.

Located on the main Pilibhit Bypass and well connected with catchments

area of over 1 million populations.

This mall will have a large anchor store, vanilla shops, multiplex, food

court, specialty restaurants and hyper marts.

Designed by M/s P.G Patki and Associates of Mumbai and team of

renowned Consultants. Construction to start soon.

44
MARKET RESEARCH

45
DEFINITION
Marketing Research is the systematic gathering, recording, and

analysis of data about issues relating to marketing products and

services. Marketing research may also be described as the systematic

and objective identification, collection, analysis, and dissemination of

information for the purpose of assisting management in decision

making related to the identification and solution of problems and

opportunities in marketing. The goal of marketing research is to

identify and assess how changing elements of the marketing mix

impacts customer behavior.

According to Clifford Woody- Research comprises defining and

redefining problems. Formulating hypothesis or suggested solutions;

collecting, organizing and evaluating data; making deduction and

reaching conclusions; and at last carefully testing the conclusions to

determine whether they fit the formulating hypotheses.

46
 OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to
questions through the application of scientific
procedures. The main aim of research is to find out
the truth which is hidden and which has not been
discovered as yet. Every research study has its own
specific purpose: Research methodology is wider
than that of research methods. Thus, when we talk
of research methodology we not only talk of the
research methods but also consider the logic behind
the methods. Following order concerning various
steps provides a useful procedural guideline
regarding the research process:-

 Formulating the research problem

 Extensive literature survey
 Developing the hypothesis
 Preparing the research design
 Determining design
 Collecting the data
 Execution of the project
 Analysis of data
 Hypothesis testing
 Generalizations and interpretation

47
  Preparation of the report of presentation of the
results, i.e. formal write-up of conclusions
reached.
CLASSIFICATION OF MARKETING
RESEARCH

Organizations engage experts in marketing research for two reasons:

(1) to identify and (2) solve marketing problems. This distinction

serves as a basis for classifying marketing research into problem

identification research and problem solving research.

Problem identification research is undertaken to help in identifying

problems which are, perhaps, not apparent on the surface and yet

exist or are likely to arise in the future. Examples of problem

identification research include market potential, market share, brand

or company image, market characteristics, sales analysis, short-range

forecasting, long range forecasting, and business trend research.

Once a problem has been identified problem solving research is

undertaken to arrive at a solution. The findings of problem solving

research are used in making decisions which will solve specific

marketing problems. More than two-thirds of companies conduct

problem solving research.

48
 ROLE OF MARKETING RESEARCH

The task of marketing research is to provide management with

relevant, accurate, reliable, valid, and current information.

Competitive marketing environment and the ever-increasing costs

attribute to poor decision. Sound decisions are not based on gut

feeling, intuition, or even pure judgment, but should be based on

sound information’s as a result of marketing research.

Marketing managers make numerous strategic and tactical decisions

in the process of identifying and satisfying customer needs.

Marketing research helps the marketing manager link the marketing

variables with the environment and the consumers.

Traditionally, marketing researchers were responsible for providing

the relevant information and marketing decisions were made by the

Managers. However, the roles are changing and marketing

researchers are becoming more involved in decision making, whereas

marketing managers are becoming more involved with research. The

49
role of marketing research in managerial decision making is

explained further using the framework of the DECIDE model:

D —- Define the marketing problem

E —- Enumerate the controllable and uncontrollable decision factors

C —- Collect relevant information

I —- Identify the best alternative

D —- Develop and implement a marketing plan

E —- Evaluate the decision and the decision process

50
 RESEARCH
METHODOLOGY

51
 TYPES OF RESEARCH DESIGN

1. Exploratory Research :- The main

objective is to provide a basic or preliminary

understanding of the problem. It is generally carried

out when the problem is not clear or the no. of out

comes of possibility is very large. It is unstructured,

qualitative, versatile and used for developing a

hypothesis or discovering new relationships. It is of

three types-

• .Study of Secondary data

• .Survey of knowledgeable people

• Case study

2. Conclusive Research :- Information

collected from exploratory research is verified from

conclusive research. It involves testing of hypothesis

52
 .It is structured, quantitative & formal. The

conclusive research is of following types-

• Descriptive Research

• Experimental Research

a. Descriptive Research: Descriptive research

involves describing something like characteristics

of consumers etc. and making prediction.

Method’s of descriptive research

• Case Study

• Statistical Techniques

b. Experimental Research: - It involves studying

affects of one or more variable by manipulation them

under artificial or real situation. Experimental research

is used for obtaining the following information:

• To identify which variable is the

cause and what is the effect
• To determine the nature of
relationships between the
customers.

53
Sample design census and sample survey: all items in

any field of inquiry constitute a “universe” or

“population”. A population complete enumeration of all

in the “population” is known as a census inquiry.

In this project the above method of research is adopted

TYPES OF MARKET RESEARCH

Marketing research is often partitioned into two sets of

categorical pairs, by methodological approach:

• Qualitative marketing research, and

• Quantitative marketing research

QUALITATIVE MARKET RESEARCH

Qualitative marketing research is a set of research techniques, used in

marketing in which data is obtained from a relatively small group of respondents

and not analyzed with inferential statistics. This differentiates it from quantitative

analysis for statistical significance. Generally Qualitative marketing research is

used for exploratory purpose

The main types of qualitative research are:-

o Depth interviews
o Focus Groups

54
 o Projective Techniques

o Random Probability Sampling

QUANTITATIVE MARKET RESEARCH

As opposed to qualitative research, quantitative research is mainly concerned

with numbers and data easily quantified. The most popular quantitative technique

is the survey, often based on a large number of cases, where a broad overview of

a market is required. Surveys can be administered by mail, telephone, face to

face, or more recently by the Internet or World Wide Web.

They usually take less time to complete by the respondent and most often require

choosing between several responses rather than long verbal responses. In market

research, surveys often aim to understand a target market better by breaking

down the sample by demographics, lifestyle and usage behavior. The main types

of quantitative research are -

SURVEYS

Surveys are the primary method of quantitative research – research with some

claim to statistical accuracy. There are several types of surveys and several key

55
 considerations within each. This segment includes two important factors in

surveying – sampling and return rate with pros & cons and cautions.

TYPES OF SURVEYS
There are four basic types of surveys:

 Survey by Mail
 Survey by Telephone

 Survey online and

 Survey in person

Researchers often use more than one research design. They may start

with secondary research to get background information, and then

conduct a focus group (qualitative research design) to explore the

issues. Finally they might do a full nation-wide survey (quantitative

research design) in order to devise specific recommendations for the

client.

56
 SAMPLING DECISION

The target respondents are the people of Lucknow City who are

the existing customer or having the willingness to be a customer of

real estate

DATA SOURCES : Primary & Secondary data.

DATA COLLECTION METHOD : Survey

RESEARCH INSTRUMENT : Questionnaire

SAMPLE SIZE : 100

SAMPLING UNIT : Business man, House wife,

Student, Service man

SAMPLE PROCEDURE : Convenience Sampling

SAMPLING METHOD : Personal Interview

57
Identificat Business House Stude Tota
ion man wife nt Salaried l
Pvt
Govt. .
No. of
People 24 28 22 12 14 100
14 100
% 24% 28% 22% 12% % %

FINDINGS

58
 FINDINGS

COMPETITORS OF BIG APPLE

 Sahara
 DLF
 Parsvanath
 Endelco

SAHARA
Sahara Infrastructure & Housing is India’s best & the largest realtor with
leadership in offering innovative products to our customers. They offer broad
range of houses, commercial & retail spaces, office spaces and luxurious
penthouses & villas.

The world's largest chain of townships in 217 cities all over India making more
than 7 lac (0.7 million) houses, best quality mega township on around 100 to 300

59
acres of land in each city, offering amenities superbly matched to international
standards that include :-

• A chain of 217 centrally air-conditioned school imparting a

thoughtful combination of academic curriculum, personality
development & extra-curricular activities.
• 219 Hospitals providing multi-speciality high-end
secondary care with state-of-the-art medicine facilty centre.
• A chain of 219 Malls with an ideal combination of lavish
showrooms, designer outlets and conveniences stores.
• A chain of multiplexes with over 651 screens in major
cities of India having a combined seating capacity of 217,000 with
tastefully decorated interiors and luxurious seats.
• A chain of 218 Hotels having state-of-the-art international
class facilities with dedicated executive clubs.
• A chain of 434 well-equipped Clubs and 217 Community
Centres having facilities for indoor/outdoor games, swimming
pool and a fitness centre.

Residential & Commercial Building Projects

Major housing and commercial building projects in India including brand super

malls, luxary apartments and high-tech townships

SAHARA Grace - Gurgaon

Sahara Grace township launched in April 2003, popularly known as the residing

place of the Modern Maharajas has shaped new parameters of excellence. The

project is a phenomenon, specifically designed as a status symbol for all those

who have excelled in life with a penchant for the best and an attitude of no

compromise. With an impeccable blend of premium apartments, magnificent

villas and exclusive pent houses, it is an address that matches their style. With

optimum quality and durability that exudes the majestic touch of value added

living, it is spread over an area of 10.98 acre and covers around 207 units. It is

strategically located in the vicinity of Delhi on the main Mehrauli-Gurgaon Road

60
besides the famous Sahara Mall. This is the most irresistible home ever offered in

India. Comprehensive security measures are an integral part of this township with

dome cameras, separate entry/exit for the residents, panic buttons in each

apartment etc.

Sahara Grace offers one of the biggest clubhouses. Be it the ayurvedic massage

parlour, Olympic size swimming pool, squash court, gymnasium or the restaurant

and the bar all symbolize a royal lifestyle at the disposal of the esteemed

residents of the township. Majority of the area is dedicated to lush green

environment-friendly avenues. An expansive open area in the form of a theme

park, comprehensive basement parking, impressive elevation of each block with

ultra modern diverse components, large size carpet area for each unit are

designed to match the international benchmarks of housing.

SAHARA STATES

Sahara States are developed in a step with the avowed objective of the company

to promote urban development in a planned manner to fulfill existing gap

between demand and supply.

It is the commitment of Sahara India Pariwar to build a better India that reflects

clearly in every project of Sahara Infrastructure & Housing. Sahara States is a

techno-residential township providing an ideal living environment to all at an

affordable cost.

Developed infrastructure, environment friendly avenues, playgrounds, parks,

greenery, meticulously planned houses and buildings are the exclusive highlights

61
of this township. The 1, 2 & 3 bedroom houses in three storied blocks and 3-4

room independent-expandable bungalows have been specifically designed to

meet the requirements of the people. The names of these residences based on the

ragas of Indian classical music resonate symphony.

Sahara States aims at the realization of modern living facilitated by quality

construction, value enhancing conveniences - fully secured by round-the-clock

security assuring peace of mind - all at an affordable price. Therefore the 4

earmarked cities: Lucknow, Hyderabad, Bhopal & Gorakhpur have become

landmarks and revolutionized the real estate scenario as a whole in India.

SAHARA MALL –(Gurgaon)

This is India's first Brand Super Mall launched in March 2001 having built up

area of 394 Thousand sq. ft. on the main Mehrauli-Gurgaon road. It comprises

company owned brand outlets and flagship stores promising complete range of

products and latest offerings. A Shopping Mall that has set new standards in

contemporary design and latest facilities making it one of the most preferred

shopping zones for the consumers, with international class retailing environment.

From ground floor to the third floor there is an array of international brands

witnessing the paradigm shift in Indian habitats. The grand atrium welcomes the

customers & invites them to experience a world of class & lavishness. From

scintillating jewellery to glamorous apparel stores all are there. Pantaloons,

Raymonds, Lotus feet, Zaver, Tanishq, Big Bazaar etc. offer biggest scope to

explore the world in the limited boundaries of Sahara Mall.

62
The most reputed food chains like Crave, Odyssey, Haldiram etc. find best

location in Sahara mall. Matching the occupants it has been built with full dignity

& grace. The façade has been expertly designed by W.S. Atkins, global leader in

architecture and engineering consultancy. The construction is done by the

renowned firm M/s Larsen & Toubro - E.C.C. Division. For managing the

overall mall, services of renowned firm Jones Lang LaSalle Meghraj have been

taken. The enormous parking is looked after by Interpark ICS.

There is also a multiplex managed by PVR for recreational and leisure activities.

Therefore, it's a heaven for not only the cine-buffs but also for those who find

solace in entertainment of all sorts. The latest and the classics are what the

viewers find irresistible in this multiplex. All construction is done resistant to

earthquake by following norms of BIS at one level higher seismic zone than in

which Gurgaon is located.

SAHARA SHOPPING CENTER

Launched in April 1994 in Lucknow, this shopping centre was among the first

commercial projects of Sahara Infrastructure and Housing. Located in the prime

commercial location of Indira Nagar, Sahara Shopping Center has a mix of local

Retail outlets, Cosmetic stores, Fitness zones, Clinics and offices.

SAHARA TRADE CENTER

63
Launched in April 1999 in Lucknow, this trade centre is another

commercial outlet in the vicinity of Sahara Shopping Center. It has

the same kind of tenant mix as the later

SAHARA PLAZA

Sahara Plaza was launched in Oct. 2001 at Gomti Nagar area in Lucknow. Built

with the concept of serving daily needs of the near-by residents, it offers apparel

shops, jewellery shops, restaurants and other such shops.

SAHARA GANJ - LUCKNOW

Lucknow is going through a transformation in its lifestyle with Sahara

Infrastructure & Housing generating ample avenues. Be it residential or

commercial, our projects are making a statement that is bound to turn eyes. In the

same lines the recent project Sahara Ganj, opened in November 2005 to provide

the city with the best entertainment arena. A brand Super Mall, it is self sufficient

in its offerings & specifications of the highest order. The built up area of

approx 525 Thousand sq. ft. Matching international standards & having the best

value additions, it truly orchestrates a synergistic symphony of retailing amidst an

environment of recreation and pleasure with state-of-the-art facilities. With its

majestic elevation, massive atrium, spacious corridors, multiple escalators &

designer capsule lifts it is altogether a different world. The façade comprising of

ground plus 4 floors all imbibed with the highest order of security provide the

customers a safe environment to shop, relax, enjoy & is a part of the modern

world. Big Bazaar & Pantaloons are the anchors along with the other occupants

64
who are in the sections of garments, entertainment, furniture etc. Further, the

food chain McDonald is an integral part of the Mall.

The attached 4 screen multiplex by PVR is a value added attraction of its own

kind.

An epitome in majestic stylish designing and incorporating all the parameters of a

world class mall, Sahara Ganj has been crafted by W.S. Atkins and construction

carried by a renowned company called Nagarjuna Construction Company

Ltd. It is poised to become a pioneer in its class which shall set the

standard in terms of quality of design development, construction,

technology and services.

ELDECO GROUP

The Eldeco group has been at the forefront of real estate development in North
India since 1975. The group has pioneered organized sector real estate
development in this region. The main companies in the group are

• Eldeco Housing and Industries Ltd. (EHIL) : Incorporated in 1985,

EHIL has held an uninterrupted market leadership position in most major
towns of UP, most notably Lucknow and Kanpur. EHIL is listed on the
Bombay Stock Exchange and has had an uninterrupted dividend paying
record since inception.
• Eldeco Infrastructure and Properties Ltd. (EIPL) : Incorporated in
2000 to professionally undertake projects in the NCR, EIPL in recent
years has had rapid growth in other regions as well. EIPL is a closely held
unlisted company that also acts as the promoting company for many
project specific special purpose companies

Management

65
The group is professionally managed under the chairmanship of Mr. S K Garg,
who has over 30 years experience in real estate business. He has received several
awards acknowledging his and Eldeco's contribution in the field of construction
and housing. Mr. Pankaj Bajaj is the Managing Director of both EIPL and EHIL.
He is an MBA from Indian Institute of Management, Ahmedabad with over 10
years experience in construction and real estate development. Business heads and
other senior managers in the group are all well-qualified professionals with wide
experience in their respective fields.

ELDECO BRAND

Eldeco Brand is highly regarded and has the highest recall in

• Lucknow
• Kanpur
• Agra
• Greater Noida
• Noida

Eldeco is arguably the biggest and strongest developer in these markets. Apart
from these markets where the brand is well-entrenched, the Group has entered a
number of new markets in North India and planning to expand its operations. We
have started showing our presence in Haryana at Gurgaon, Sonipat & Panipat.
Our next expansion will be in Punjab at Ludhiana & Jallandhar.

Eldeco projects have a highly evolved value – added positioning. Every project is
well conceived to give you the best in living
BUSINESS ACTIVITIES

The Eldeco Group has till date executed more than 150 real estate and
construction projects. Currently it is developing 35 projects in Noida, Greater
Noida, Faridabad , Gurgaon, Sonepat, Panipat, Ludhiana, Jalandhar,
Lucknow, Kanpur, Panchkula and Sitarganj.

The group has a presence in all the major real estate classes - multi storey group
housing, residential townships, shopping malls, industrial parks, SEZs, office
buildings and hotels.

Group Capabilities and Future Plans

The group has undertaken development of residential development of

approx. 15000 residential units, Commercial spaces and has deep
expertise in building economic housing and commercial space in tier
1, tier 2 and tier 3 towns. It has a unique industrial park project with a

66
footprint of approx. 1196 acres, as a joint venture with SIDCUL, the
government of Uttarakhand undertaking entrusted with industrial
development of the state.

Now the group is looking forward to diversify in East and Central

India, in addition to its current strengths in UP, NCR, Haryana,
Punjab

Current Commercial Projects

NCR DELHI

SUSHANT GOLF CITY

Sushant golf city is a hi-tech residential township sprawling across
5000 acres. A world class international championship golf course
surrounds residential and commercial areas, making life on the greens
a reality. Luxury villas, designer landscaping, state-of-the-art
infrastructure, excellent entertainment and healthcare facilities, lush
greens, everything here is specially designed to excel even under the
most discerning eye.

GOLF CITY VILLAS

Charmwood Villa

Larchwood Villa

Olivewood Villa

67
Pinewood Villa

Redwood Villa

Rosewood Villa

Features:

• With Gomti Nagar on one side, and the city's airport on the other.
The location for Sushant Golf City will set new standards for all
that is progressive and elegant.
• Well equipped offices and commercial spaces
• Strategically located on the Lucknow-Sultanpur National Highway
on Amar Shaheed Path, Ring Road.
• Township is divided into manageable and compact sectors with
regulated single entry/ exit points.
• Paved roads with high quality riding surfaces.
• Banks and insurance companies
• Underground optical fibre cables for telecommunication, electricity
distribution, storm water drains and sewer systems.
• Efficient power distribution network.
• Cyber cafes, BPOs etc.
• Solid waste management with participation of residents
• Commercial Zones
• Shopper's Delight
• Educational institutions for generations etc.

68
 Parsvnath

Parsvnath Developers Limited is the most diversified and widespread real estate
developer in India. It has 115 continuing projects with a developable area of over
191 msq .ft. Parsvnath Developers has been in the market for more than 20 yrs.

The amazing projects undertaken by Parsvnath Builders are not limited to any
particular state or region rather they are scattered all over India like Delhi,
Haryana, Punjab, Rajasthan, Gujarat, Maharashtra, Goa, Karnataka, Kerala,
Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Uttaranchal, Tamil Nadu,
Jharkhand, Jammu & Kashmir, & West Bengal. Very soon Parsvnath Developers
will be venturing into projects abroad due to international recognition for its
impressive infrastructures.

Parsvnath India undertakes construction of housing societies, commercial hubs,

townships & shopping malls beside IT Parks & Hotels. Recently Parsvnath
Builder joined the newly hot favorite SEZ bandwagon. The Metro mall culture

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i.e. shopping mall with metro station, was started in Delhi by Parsvnath
Developers Ltd.

New Ventures

Parsvnath Mall, Ahmedabad

Parsvnath Mall cum Hotel, Ahmedabad has been designed with rare distinction. It

takes into account the minutest details of a modern business-n-leisure

environment and makes provision for a seamless functioning of facilities. It’s a

distinct array of architecture design to facilitate a world class family shopping

and entertainment experience and high tech specifications.

Parsvnath Mall cum Hotel, Ahmadabad will have 150 super deluxe rooms and

suites. Tastefully furnished and draped in high tech sophistication, it will present

the corporate visitor as well as tourist a distinct choice of luxurious lifestyle.

Parsvnath Mall Matrix, Mohali

Close to the beautiful capital city of Chandigarh, Mohali, is all set to unleash an

ultra-modern commercial landmark called the ‘Mall Matrix.’ Already recognized

as the silicon valley of north India , wherein multinationals like ‘Dell & Quark’

have made their base. Mohali serves as the perfect host for Parsvnath ‘Mall

Matrix’ which is going to be the ultimate shopping, leisure & entertainment zone

for the huge population having high disposable income, high literacy rate & a

spirit to live life to the fullest.

Strategically located at the base for the base for the headquarters of Punjab Urban

Development Authority (PUDA), and close to the picturesque Mohali Cricket

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stadium, ‘Mall Matrix’ promises to be the cynosure for commercial activity in

near future. Some of the corporate giants who have already arrived here include

Reliance Infocom, HFCL, Infotel, Spice Telecom, Bharti Telecom, Semi

conductor Complex Ltd., Ranbaxy, National Institute of Pharmaceutical

Education and Research, Godrej & Boyce, ICICI India Ltd, Punjab Tractors and

PCA.

Just as Water & Earth create the base for life, just as Red, Blue & Green form the

base for a spectrum, Entertainment Hospitality & Retailing form the base for

‘Mall Matrix’ which is all set to convert Mohali into a new living Planet. This

gigantic commercial hub seamlessly converges within its complex- a mall, a

multiplex and a luxury star hotel of international standards.

Parsvnath Mall, Rohini

Parsvnath Mall, Rohini is located at one of the most potential locations of North

West Delhi. It has a huge catchment area in the form of HIGH INCOME GROUP

of more than 10 lac people in Rohini, Pitampura, Shalimar Bagh, Punjabi Bagh,

Lawrence Road, Vikaspuri, etc., who are lifestyle savvy and have huge

disposable income. With its unique character, multiple pull factors and global

brand mix, it will ensure enormous attraction value and footfall consistency for

the prospective business outlets.

• Located at the most happening and premium Commercial Centre of

Rohini next to Metro station

• Largest project of the District Centre with biggest floor plates

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 • Maximum visibility to the traffic flow of Ring Road, resulting in

attraction value

• Multiple pull factors

• Global matrix of mall management

Parsvnath Metro Malls

Shopping is one of the most vivid form of community activity, which dates back

to the ages of caves and stones. By whatever name it has been known, shopping

has always played a pivotal role in changing the face of society, its choices and

habits. Shopping in Delhi dates back to the era of Mughals when the same took

place amidst the hustle and bustle of the narrow streets of Balli Maran and around

the glitters of Chandni Chowk.

After Independence, the growth of Delhi was characterized by Delhi being

recognized as the as the political hub growth of population and conglomeration of

people from all sectors of India demanded that the Delhi market being

categorized into sectoral modes like Sarojini Nagar, Lajpat Nagar, and Gandhi

Nagar Markets etc. With the government opening up the economy in the early

90s, Indian market got fresh impetuous. Integration of shopping hubs led to shops

being converted into Plazas, and finally in the fast decade the new shopping

extravaganza “The Mall” was unleashed.

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COMPERATIVE ANALYSIS

 The prices of the Housing and Apartments available for the customers are
4.5% lower than other companies like Sahara, Parsvnath, Eldeco and
Sushant. Real Estate Companies.

 Big Apple provides 875 sq. ft. where as all the other companies provide
800 sq. ft. of the accommodation at the same price.

 Big Apple provides its services at the place or in the area where the other
real estate companies don’t even provide nor think of construction and the
people of such areas are in need of such construction.

 None of the projects of the Big Apple are not less than 200 acres where as
Sahara are constructing in 100 acres and Parsvnath are constructing in 90
acres.

 Big Apple is coming up with projects involving in construction of

Hospitality, Housing and Multiplex in many of the states of India like
U.P., Chennai, Mumbai, N.C.R., Bangalore where as others are involved
in one or the two of the projects at one place.

73
 GOVERNMENT POLICY AND INITIATIVE

Rationalisation of processes
The Government has moved towards modernising and rationalising other areas of

regulation impacting real estate, which are perceived to being barriers to further

investment and growth. To date this has included simplification of urban

development design guidelines and a trend towards reducing and rationalising

stamp duties across the states. Steps are being taken to address the record

keeping of land ownership and transaction records, thus improving transparency

and possibly reducing transaction costs.

Snapshot of Key regulations in the real estate

sector

74
 In India, residential housing is a state subject and federal government can only

provide policy guidelines on the. Some of the key legislations that have

significant impact on the real estate market are described as under.

Union budget 2008: Impact on Real Estate

Policy Impact Direct Tax Impact Indirect Impact Tax

• NHB to introduce reverse • No extension of tax holiday • Excise duty decrease on

mortgage for small sized cement costing less
• Senior citizens to receive housing units than US$ 4.6 and increased duty
monthly income • Increase in tax deduction for cement
against their property from 20 to 40 costing more than US$ 4.6 per
• They do no have to repay per cent for Public company bag
the loan finance for • Service tax proposed to be
• Regulations for mortgage construction/purchase of levied on services
guarantee houses relating to renting of immovable
companies • No ‘pass through’ status for property
• Guaranteeing mortgages venture capital • Service tax is proposed to be
on the behalf investments levied on services
of the banks and finance • 100 per cent tax holiday for 5 relating to execution of a works
companies years for hotels contract as an
& convention centres in NCR additional service category

75
 if they start • Levy of ‘Secondary and
functioning before March Higher Education Cess’
31,2010 at the rate of 1 per cent on
• Corporate tax increases from customs, excise and
33.66 per cent service tax
to 33.99 per cent due to
Secondary & Higher
Education Cess
• Fringe Benefit Tax (FBT)
imposed on ESOPs
• Tax holiday conditions made
stringent to
prevent existing business to
migrate to SEZ

FDI Regulation

GUIDELINES FOR FDI IN REAL ESTATE IN INDIA

Conditions for Conditions for investment Miscellaneous Conditions

Development

76
• Minimum 10 hectares to
be developed for serviced
housing plots
• For construction-
development projects
,minimum built-up area of
50,000 sqaure meters
prescribed
• In case of a combination
project, any one of the
above two conditions
should suffice
• At least 50 per cent of
project to be
developed within 5 years
from date of
statutory clearances
• Minimum capitalisation of US$
10 million for
wholly owned subsidiaries &
US$ 5 million
for joint ventures with Indian
partners
• Infusion of funds within 6
months of
commencement of business
• Original investment cannot be
repatriated
before a period of 3 years from
completion
of minimum capitalisation
• Investor may be permitted to
exit earlier with
prior Government approval
• Investor not permitted to
sell undeveloped
Plots
• Project to conform to norms
and standards laid down by
respective State authorities
• Investor responsible for
obtaining all necessary
approvals as prescribed under
applicable rules/by-
laws/regulations of the State
• Concerned Authority to
monitor compliance ofabove
conditions by developer

Government now allows 100 per cent FDI for townships ,housing, built-up

infrastructure and construction development projects (including commercial

premise hotels , resorts, hospitals, educational institutions, and recreational

facilities), subject to certain guidelines.

Urban Land (Ceiling and Regulation) Act

1976/Rent Control Act
ULCA was enacted primarily with the objective of preventing land hoarding by

developers and to increase supply. The Act imposes a ceiling on ownership and

hoarding of land in cities and towns

Rent Control Act

Various states and Union Territories have formulated their own rent control

legislation with respect to regulating chargeable rents, recovery and possession of

77
property, and tenancy rights. These laws act as disincentives towards investment

in housing for rental purposes.

Regulatory and Policy Interventions

Special Economic Zone: Growth Engine of India

One of the principal interventions in regional development and the attraction on

investment has been the formation of Special Economic Zones (SEZs). The term

SEZ is widely used in international regional policy and many countries have

developed variations on the model The SEZ Act of Government of India, 2005

has presented a lucrative development alternative for all the realty players. SEZs

are specifically delineated, duty- free enclaves outside the customs territory of

India. SEZs are approved by the Ministry of Commerce and can be set up by

private developers or by central/state government or jointly by any two or more

of these. Government now allows 100 per cent FDI for townships, housing, built-

up infrastructure and construction development projects (including commercial

premises, hotels, resorts, hospitals, educational institutions, and recreational

facilities), subject to certain guidelines.

Minimum Area required for Various Types of SEZs in India

Type Minimum Area Minimum Processing
Requirement Area Requirement
Multi Product 1,000 Hectares 50 Per cent

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 Multi Service 100 Hectares 25 Per cent
Sector Specific 100 Hectares 50 Per cent
IT, Gems and10 Hectares with 50 Per cent
Jewellery, Bio-minimum built up
tech and and non area of:
Convectional energy - IT : 100,000 sq mtrs
- Gems & Jewellery:
50,000 sq mtrs
- Bio-Tech & Non
conventional energy:
40,000 sq mtrs
Free Trade 40 Hectares 50 Per cent
warehousing Zone (minimum built up
area of 1 lakh sq
mtrs)

Businesses operating in SEZs enjoy a corporate tax holiday on export earnings,

indirect tax exemptions and liberal exchange controls. Developers also receive

several fiscal benefits. The income-tax incentives for a SEZ developer include a

10-year tax holiday; exemption from dividend distribution tax; tax-exempt

interest on long-term financing; tax-exempt long-term capital gains arising on the

transfer of shares in the developer’s company and no minimum alternative tax.

GUIDELINES FOR FDI IN REAL ESTATE IN INDIA

ANALYSIS OF FINDINGS

(1) How often do you visit Malls?

79
 Options Percentage
Weekly 50
Fortnight 20
Monthly 20
Rarely 10

Numberof Vists

Weekly
Fortnight
Monthly
Rarely

INTERPRETATION:-

As par the sample size, 50% respondent were weekly visit the mall, 20% of the

respondent were like to visit fortnightly, 20% like to visit monthly & remaining

10% like to visit occasionally

(2)Which of the following Malls do you visit frequently?

Options Percentage
Sahara Ganj 60

80
 Fun Mall 17
Wave 23
River Site 10

60

50

40

30

20

10

0
Sahara Ganj Fun mall Wave River Site

INTERPRETATION:-

60% of the respondent visit Sahara Gunj mall, 17% visit Fun mall,
23% visit wave & remaining respondent i.e. 10% visit River Site

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(3)Rank your preferences for shopping at the above mentioned malls on the
basis of different parameters i.e. Proximity, brand mix, Zoning :

Name of the Mall Least satisfied Satisfied Highly satisfied

Sahara Ganj 20% 50% 35%
Fun Republic 22% 15% 22%
East End Mall (Wave) 28% 25% 25%
River site 30% 10% 18%

INTERPRETATION:-

from the above data, it is concluded that satisfaction level of people

those are visit to Sahara Gunj is very high as compared to other malls.

(4) Does advertising and promotion influence your shopping decisions at

these malls

82
 Option Percentage
Yes 62
No 38

(a) If yes then which type of advertising

Options Percentage
T.V. 28

83
 News Paper 48
Radio 24

INTERPRETATION:-

24% from T.V. and 48% from News paper and 28% of the people
give pre frences for this

(7)How do you feel now, the Phoenix United Mall is launched in

your area?

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 Option Very happy Happy Neutral Not Happy

% of Costumer 76% 12% 7% 5%

80%
70%
60%
50%
40%
30%
20%
10%
0%
VeryHappy Happy Nuteral Not Happy

INTERPRETATION:-

from the above data, it is concluded that satisfaction level of people

those are visit to Sahara Gunj is very high as compared to other
malls.76% are very happy 12% are happy 7% are the netural and 55
are not happy

(8)What is the purpose of visiting the Malls?

85
 Purpos Shopping Entertainm Fooding others
e ent
% of 34% 32% 28% 6%
Custm
er

35%

30%

25%

20%
Series 3
15%
Series 2
10% Series 1

5%

0%

(10) Which time do you prefer to visit the mall?

86
 Time
Preference 5pm-7pm 7pm-9pm 9pm-11pm others

% of 18% 28% 44% 10%

Customer

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
5pm-7pm 7pm-9pm 9pm-11pm others

(9) What will be your preference to the following:

(a) Bowling Alley

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 (b)Night Club

(c) Bar

(d)Family Entertainment Centre

Response Bowling Night Club Bar Family

Alley Entertainment

% of Customer 18% 34% 26% 22%

INTERPRETATION:-

from the above data, it is concluded that satisfaction level of people

those are visit to Sahara Gunj is very high as compared to other
malls.18% people prefrences for Bowling Alley and highest 345
people prefer for night club.

10. Are you satisfied with the facility of sanitation and

cleanliness in the mall?

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From the above data, we have known the satisfaction level of
100 respondents regarding the cleanliness and sanitation
facilities of the mall.

11. Are you satisfied with the parking facilities in the

mall?

89
From the above graphs, we have concluded that satisfaction
level of 100 respondents where 85% are satisfied and the
remaining are not.

12. How will you rank the security procedures in the

mall?

From above graph,we have concluded that 100 respondent who

were asked the question about the security had ranked the
security procedure according the above graph

90
 CONCLUSION

A project is not considered completed unless and until it is concluded. Based on

the title “ ANALYSIS OF RETAIL ESTATE DEVELOPMENT IN CONTEXT
TO BIG APPLE REAIL ESTATE PVT LTD LUCKNOW”, it is concluded that
Big Apple is playing a very vital role in Indian economy. The Economy of India
is growing at an increasing rate with heavy investment in Real Estate Sector. As
more and more investment is being done in this sector the company is having
great opportunities for growth and so is having a bright future prospect.
Even after having so many competitors the company is able to grow itself at a
very good pace. Association with companies like Uppal Group, Kshitij
Edelweiss, the company has well established itself in India and with its offering
the company has a very long way to go. The projects that the company is
handling at present at places like U.P., Mumbai, Chennai and Bangalore the
company is attracting more and more customers. The technology and the
advancement used by the company are very advanced because of which also the
customers are being attracted.

The prospect of Big Apple is very bright as according to the survey the customers
are very happy because Big Apple is providing its customers what they want at
very cheap prices.

Everything has a positive and a negative side, India to have it. Other than
negative aspect the, the positive aspects attracted many foreign investors and
companies who are ready to work with Big Apple and are still attracting many
other foreign companies and investors to enter and invest in India.

91
 SUGGESTIONS

 The water coolers provided in the malls should not be placed near the
wash rooms.

 The stair cases should be inside the malls and not outside the malls.

 There should be a proper segmentation of the shops; shops on one kind

should be at one place.

 ATM Machines should not be inside the malls as due to this the place
becomes much crowded.

 There should be proper security and the Security Guards should keep on
moving all over the mall.

 Parking tickets should be provided by the machines.

 Kitchens should be placed outside the malls as people face many types of
problems.

 There should be a proper and large area with more number of seating
arrangement in the food court.

 There should be proper instruction for entry, exit and way directions in
the mall.

 There should be proper arrangement of the lights in the basement and

parking area.

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BIBLIOGRAPHY

93
 Companies literature and manual

 International Marketing Research-V.Kumar

 www.google.com

 www.wikipedia.com

 Bussiness Magizines

 www.Bigapple realty.com

 International business – Fancis Cerulinum.

 www.BusinessIndia.com

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ANNEXURES

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