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Transcript of “Rediscovering India ” Global Tracks Manoj Motta – Session Chairman AVP – Inorbit Malls...
“Rediscovering India”
Global Tracks
Manoj Motta – Session Chairman
AVP – Inorbit Malls (India)
May 22nd 2007 - Las Vegas
1. Macro Economic Indicators
2. Consumption Forecasts & Consumer Behavioral Trends
3. Responses & Reactions of stake holders
a) Retailers/Brands
b) Real Estate
c) Financial Institutions
d) Government
4. SWOT Analysis
5. Changing Landscape
6. Infliction points
7. Summary
Presentation scope & flow :
everyone wanted
Once upon a time India was the land
Lush Palaces
Majestic Forts
Exotic Diamonds
Monuments in Gold
not to forget snake charmers, elephants & Art forms like kathakali
the time has come backRediscovering “India”
It started with the humble IT geek
but now the list is endless
Express ways, A 380s
lifestyle boutiques, trendy fashion, rocking entertainment
and of course
Mallsand of course
Malls
MALL has always been an Indian word – it means “Material”.
And is used vividly to describe good business,good thinking.
all this is fueled by
they are the heroes of today
they are the heroes of today
Educated
Demanding
Assertive
And wanting more
They have ideas
Opportunities
This is the NEW INDIA
now let’s get into the heartof the matter
1. Macro EconomicIndicators
1. Macro EconomicIndicators
Macro Economic Indicators- India
Improving macro economic variables…
GDP Growth Rate (%)
Years
Average growth of 6% since 1998 Inflation has remained at 5-6% range
Source : Business World, Marketing White Book – 2003 & 2005
4th largest economy in the world in terms of purchasing power parity
2nd largest economy in terms of population
Amongst the top 10 GDP generators in the world
Global outsourcing hub – More than 200 of Fortune 500 companies use Information Technology (“IT”) services from India
Macro Economic Indicators- India (Continued)
India is achievingself sufficiency – generating
disposable surpluses
Forex
The Global Retail Development Index (GRDI)
GRDI 2006 market attractiveness
Most Attractive Developing markets for retail by region
Window of opportunity analysis (based on GRDI Rankings for 1995 -2006)
Formats and timing patterns (based on GRDI ranking for 2004 – 2006)
Consumer Behavioral Trends
2. Consumption Forecasts2. Consumption ForecastsConsumer Behavioral Trends
Retail market is estimated at approximately US$ 250 billion (2005) , is already one of the ten largest retail markets in the world. A.T. Kearney’s Global Retail Development Index 2005 suggests that the Indian retail market has the largest growth potential of worldwide retail markets. The study forecasts an annual growth in turnover of around 10% in the next few years. Such growth trends present immense opportunities in the retail real estate segment.
12 million retail stores resulting in the highest number of per capita retail outlets in the world
Organized retail currently accounts for only 2-3% of the retail market in India (compared to up to 17% in China), but the sector is undergoing structural change, with leading domestic retailers such as Pantaloon, Shopper Stops,Westside and Big Bazaar going through rapid growth, format migration and consolidation. Retail consultancy KSA Technopak forecast that the share of organized retail will rise to 10-12% by 2010. This represents huge opportunity for prospective new players.
Contribution from Organized Retail
Years taken growing from <5% to current market share
Over 10000.4%
501-10001.0%
251-5005.7%
Upto 25092.9%
The adjoining chart shows the number of years taken by organized retail in some of the developing economies to grow from < 5% to the current market share. The economies have taken anywhere between 8 – 15 years to reach the current levels.
More than 90% of the outlets in India are less than 250 sq ft
Percentage of Outlets by Square feet
Source: Chain Store Age, KSA Technopak, CLSA
Overview of the Retail Market in India.
Source: HSBC Jumbo Retailing, May 2005
35% of the population under 14 years
Median age of population is just 24 years
More than 60% of the population would be in the working age (15-60) till 2050
Shifting Age Profiles
Source : Business World, Marketing White Book – 2003 & 2005
35.5% 32.6% 29.6% 27.1%
58.2% 60.4%62.5% 64.0%
6.3% 7.0% 7.9% 8.9%
Y2001 Y2006F Y2011F Y2016F
0- 14 yrs
60 & above
15-59 yrs
Demographics
1. Rising per capita GDP since 1997Per Capita GDP in US $ (at constant prices) growth has been particularly high at 12.7 % p.a. during the period 2002-2004 at back of a robust and booming economy.
NSSO’s survey indicates that people living below the poverty line declined during the period 1997-78 and 1999-2000 from 51% to 26% respectively (from 329 m to 260 m in absolute terms)
Literacy Rate
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
Male 27% 40% 46% 56% 64% 76%
Female 9% 15% 22% 30% 39% 54%
Total 18% 28% 34% 44% 52% 65%
2. Increased literacy among massesEducation cess of 2% is being charged on all direct and indirect Central taxes. The proceeds of the cess are channeled into the “Prathmik Shiksha Kosh” maintained by the Ministry of HRD & are available for basic education and Mid Day Meal Scheme. Higher education system in India is very robust and one of the largest in the world with:
259 Institutions 10,750 Colleges 8 million Students 4,00,000 TeachersImproved Literacy Rate
Source: Planning Commission, Ministry of Health and Welfare
Improving socio economic profile
Life Expectancy 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01
Male 33 42 46 51 59 64
Female 32 41 45 50 59 67
Infant Mortality Rate (per 1000 births)
146 110 80 63
3. HealthcareThe expenditure on healthcare was around 5.1% of total government expenditure in 2005-06
Diseases like malaria, leprosy and polio have been tackled effectively and their incidence is now minimal
Source: Planning Commission, Ministry of Health and Welfare
Life Expectancy has gone up indicating better welfare
Improving socio economic profile… (2)
Consumption Forecasts
Demographic Changes Kids become more demanding
Willingness to experiment
Changing Consumer Behavior
Lifestyle branding
Increase in no. of working women More Nuclear families
Note: The above categories account for 80% of consumer spending
In View Of The Rapidly Expanding Spend Categories…
1. Food and Grocery2. Clothing3. Footwear4. Consumer durables 5. Home linen6. Movies and theatre7. Eating out
19911. Food and Grocery2. Clothing3. Footwear4. Consumer durables 5. Expenditure on DVDs and VCDs6. Home linen7. Home accessories 8. Accessories9. Gifts10. Take-away/ Pre cooked / RTE meals11. Movies and theatre12. Eating out13. Entertainment parks14. Mobile phones and service15. Household help16. Travel packages 17. Club membership18. Computer Peripheral & Internet
Usage
20051. Food and Grocery2. Clothing3. Footwear4. Consumer durables 5. Expenditure on DVDs and VCDs6. Home linen7. Home accessories 8. Accessories9. Gifts10. Take-away/ Pre cooked / RTE meals11. Movies and theatre12. Eating out13. Entertainment parks14. Mobile phones and service15. Household help16. Travel packages 17. Club membership18. Computer Peripheral & Internet Usage19. ???20. ???21. ???22. ???
2012
Source : Technopak
Organized retailing is set to enter a high growth stage
Expected TrendsExpected Trends
With less than 300 fully operational malls in India, Indian Retail Sector by 2006-07 is expected to have 330 malls, shopping centres and multiplexes under construction. It is also estimated to open 35 hypermarkets, 325 large department stores, 1500 supermarkets and over 10000 new outlets.
Though, pan-India organized retail penetration is at 2.5%, there are several categories that have organized retail penetration of more than 10%. First among them is the footwear, which has a 22% organized retail penetration. Following the footwear is Apparels and clothing with a retail penetration of 12% and Books and Music with 9% penetration.
The government could further liberalise. The Real Estate sector would witness a major fillip with the opening up of FDI in retail
The total retail space in India is set to grow 181 % from 32 million sq ft as of August 2005 to 90 million sq ft by 2007, according to a report ‘Malls of India’ released by Images Multimedia at the India Retail Forum. The organised retail industry is growing at an average of 30 % per annum and by 2010 is expected to stand at $ 24 billion, around 10 % of the estimated size of the overall retail industry, the report said. It is also expected that at least two or three of the Indian players would have crossed the $1 billion mark by then.
Earlier RegimeEarlier Regime Future ExpectationsFuture ExpectationsPresent RegimePresent RegimeNo Foreign Investment allowed
100% FDI in single brand
FDI*RegimeFDI*Regime
* These rules are only pertaining to area limit. For details of FDI rules, refer to FDI slide in Real estate Overview Section
100 % automatic FDI in All retail formats
Rationalization in Custom Duties
a. Retailers & Marketersa. Retailers & Marketers
3. Response of Stake Holders
Evolution of Indian RetailEnvironment
Exclusive Brand Outlets
Hyper/Super Markets
Department StoresShopping Malls
Shopping Experience/Efficiency
Modern Formats/ International
Weekly MarketsVillage Fairs
Melas
Source of Entertainment
Historic/Rural Reach
Convenience StoresMom and Pop/Kiranas
Neighborhood Stores/Convenience
Traditional/Pervasive Reach
PDS OutletsKhadi StoresCooperatives
Availability/ Low Costs / Distribution
Government Supported
From “Street Smart” Locations & Bazaars…
Retailers Response
To well attended “High Streets”
Retailers’ Response
To well attended “High Streets”
Retailers’ Response
Retailers Response cont…
Retailers Response cont…
3. Response of‘Stake Holders’
b. Real Estateb. Real Estate
Real Estate Overview
FORWARD LINKAGES
BACKWARD LINKAGES
Size and Growth: The size of the Indian real estate industry is estimated to be at approx. US$ 14 billion, with housing, construction and real estate services growing at a CAGR of 14.6% during the period 1993-94 to 2005-06. High Contribution to GDP: Real estate forms one of the key components of economy and the contribution of real estate services, housing and construction sector to the economy is ~14% (2004-05).
Multiplier Effect: Established significant linkages with other sectors and an estimated 250 associated industries apart from the considerable multiplier effect it has on the economy as a whole.
Importance for Indian Economy: Survey by ICRA highlights that Construction ranks third amongst 14 major industries in terms of direct, indirect & induced effect on all sectors of the economy.
Real Estate Hospitality
Commercial
Residential
Retail
Warehouses/ logistics
Office Space
IT/ ITES
Others
REAL ESTATE/REAL ESTATE/CONSTRUCTIONCONSTRUCTION
Steel
Paints/ Chemicals
Heavy Engineering Equipments
Brick/ Tiles
Electronics(Equipments, Raw Materials –Copper & Aluminum)
CementCore Industries
Transportation/ Logistics
Service Labour
Direct LabourServices
Financial Services
Overview of Mall Development in India
Modern malls made their entry into India in the late 1990s, with the establishment of Crossroads in Mumbai and Ansals Plaza in Delhi. By early 2001, several mall projects were announced.
The first targets were the major metros like Mumbai, Delhi, Hyderabad, Chennai, Bangalore and Kolkata.
The growth in the retailing sector was focused on Major Metro cities only, the retailer focus has gradually broadened to include cities such as Nagpur, Indore, Jaipur, Chandigarh, Lucknow and Kochi.
Key drivers of mall activity remain apparels and the food and beverages (F&B) sectors.
On the basis of announced projects by year 2007, the North zone will account for 39 per cent share of the total mall space in India followed by the West zone accounting for 33 per cent share, the South zone with 18 per cent share and the remaining 10 per cent
While NCR will remain the hub of all mall activity in India over the next couple years, cornering approximately 35 per cent share of total mall space, the share of Mumbai is likely to get reduced, mainly on account of shortage of available space to expand further.
In the southern region, Bangalore followed by Hyderabad and Chennai will have the maximum mall space. By 2007, Bangalore will have approximately 12 per cent of the total mall space in the country.
The viability of setting up mall in particular location can only be assessed through a detailed study of each location.
North Zone, 39%
South Zone, 18%
East Zone, 10%
West Zone, 33%
Distribution of retail space - 2007
Source: Images Retail, Knight Frank
Total No. of Malls proposed in India* : 558
Total B/U area of Malls in India* : 123 Mn
*Note: The number of Malls and B/U area above stated are from 11 states only
INDIAState-wise Malls
NCR, 115 Malls 19.0 Mn
Maharashtra,
251 Malls 54.35 Mn
Punjab, 33 Malls 11.45 Mn
Rajasthan,5 Malls 1.20 Mn
Gujarat, 24 Malls 7.10 Mn
Madhya Pradesh, Malls, 4.45 Mn
Karnataka, 23 Malls,
6.90 Mn
AP, 26 Malls 4.73 Mn
Tamilnadu, 23 Malls 3.34 Mn
W. Bengal, 25 Malls 5.80
Mn
Kerala, 25 Malls 4.47 Mn
Total No. of Malls proposed in India* : 558
Total B/U area of Malls in India* : 123 Mn
*Note: The number of Malls and B/U area above stated are from 11 states only
INDIACity-wise Malls
Gr.Mumbai (104) 20.74 Mn sft
Thane (22) 6.36 Mn sft
Kalyan (3) 0.85 Mn
sft
Pune (68) 13.93 Mn sft
Navi Mumbai (18) 5.21 Mn sft
Nasik (3) 0.82 Mn
sft
Aurangabad (10) 1.71 Mn sft
Nagpur (5) 1.03 Mn
sft
B’lore (15) 6.03 Mn
sft
Mysore (8) 0.86 Mn
sftCalicut (10) 1.29 Mn sft
Kochin (15) 3.18 Mn
sft
Chennai (23) 3.34 Mn sft
Hyderabad (18) 3.33 Mn sft
Secunderabad (4) 0.75 Mn sft
Vijayawada (4) 0.67 Mn sft
Ahmedabad (8) 2.69 Mn sft
Vadodara (9) 2.62 Mn sft
Surat (6) 1.66 Mn sft
Rajkot (1) 0.12 Mn sft Bhopal (1)
1.0 Mn sft
Indore (6) 2.68 Mn
sft
Jaipur (2) 0.2 Mn sft
Udaipur (2) 1.0 Mn sft
Jodhpur (1) 0.15 Mn
sft
Kolkotta (25) 5.78 Mn sft`
New Delhi (49) 10 Mn sft
Noida (14) 4.9 Mn
sftGurgaon (28) 5.3 Mn sft
Ghaziabad (12) 2.30 Mn sft
Faridabad (12) 2.40 Mn sft
`
Amritsar (5) 1.35 Mn
sftLudhiana (13) 5.25 Mn sft
Jalandhar (5) 1.04 Mn sft
Chandigarh/Mohali (8) 3.6 Mn sft
Response - Real Estate
Response of Stake holders
c. Financial Institutions
Indicative List of Funds ( Based on India Plans Announced )
Fund Corpus ( USD mn ) Target Segments
Oak Investment partners 5800 Retail start ups
Blackstone Group 1000 Commercial and Residential
Carlyle 500-750 Commercial and Residential
GE-Ascendas Fund 500 IT Parks
Trikona Capital Group's Trinity Capital Fund 450 Real Estate & Infrastructure
Infrastructure Leasing & Financial Services Realty Fund 502 Equity-linked instruments of real estate companies
Och Ziff 400 Residential Property Development
ICICI Ventures (India Advantage Fund III) 300 Office, Residential & Retail Property Development
Santa Fe 300 Infrastructure and housing development
Rreef/DB Real Estate, a unit of Deutsche Bank AG 300 Housing
JM Morgan Stanley 300 Tier I, II and III city development
Walton Street 300 Residential Property Development
Kotak Mahindra Realty Fund 300 Retail, Hotels, Hospitals
American International Group 250 -300 Residential Townships
Horizon International Fund (Pantaloons) 263 Areas of more than 50,000 sq ft
Ascendas IT Park Fund 230 IT Parks
Siachen fund ( Equity Fund ) 100 Luxury Apartment Development
Response of Stake Holders
d. Government
Government’s response
Central Statistical Organisation
CSO
Setting up Regulatory & Information Dissemination Framework… enabling growth
1971 : 20%
1981 : 23%
1991 : 26%
2001 : 28%
2011 : 41%
Urban
Rural
Percentage of Urban Population in India
1971 : 20%
1981 : 23%
1991 : 26%
2001 : 28%
2011 : 41%
Urban
Rural
Percentage of Urban Population in India
India-Rate of Urbanization (1971-2011)Source : Census of India
Improving urbanization levels…
1981 1991 2001
Population growth (decennial)
24.7% 23.8% 21.3%
Urban population (% to total)
23.3% 25.7% 33.4%
% of urban population in Class I cities
60.4% 65.2% 73.7%
Urban population has grown by 31% against 18% in rural areas for the period 1991 – 2001
According to Census of India 2001 estimates, 41% of the total population of India will be living in urban
areas by 2011. The number of cities with one million plus population is also expected to double from
35 in 2001 to 70 cities by 2025
13 cities have population in excess of 2 million
35% of Indian population live in urban centres, the target market for organized retail
Top 10 centres account for 88% of the retail spending in India against 100% 5 years back
and infrastructure growing…
Ports
Road Development Plan – Vision 2021 of Indian Road Congress, estimates road development of around 242,000 Kms by 2011 with an estimated investment of 60 bn USD
Roads & Highways Sector
Plans to develop 100% of National Highways, 50% of State Highways and around 20% of Major District Roads by 2011
Estimated investment in NHDP – Rs 540 Bn, Pradhan Mantri Gram Sadak Yogana – Rs 600 bn, State Highways and non-NHDP - Balance
Aviation Industry
Huge traffic growth demands strong airport infrastructure. Worldwide air traffic will grow at an annualized rate of 5% that is double every 14 years. India air traffic to grow faster than the average on the back of strong GDP growth
Proposed Investment = Rs 136 Bn
Privatization of ports has gathered momentum. The sector is likely to attract 100-120 bn
over the next couple of years
Sagarmala Maritime project – Planned outlay of Rs 1090 bn
Proposed outlay for 10 th plan Rs 163 bn
Indian Rail network of 63000 km is the world’s second largest under a single management. Network growth has been slow
Railways
Proposed investment (modernization + National Rail Vikas Yojana) = Rs 320 bn
Total track renewal targeted to be achieved by the end of tenth five year plan is 34,990 km
Indian Railways have created a Rs. 170 bn non-lapsable Special Railway Safety Fund (SRSF), to be invested over the next five years. Rs. 120 bn comes from a budgetary grant Rs. 50 bn through a surcharge on rail fares
India has a total installed power generation capacity 105000 MW. The growth in generation capacity has lagged behind demand for power.
Power
The power sector is poised for fresh investments of about Rs 1717 bn over the next 6-7 years.
Annual Power deficit of 7.3% observed in previous years
The government’s programme “ Power for All by 2012” aims to close this gap
4. SWOT Analysis4. SWOT Analysis
SWOT – Real Estate Industry Strengths
Development primarily based on strong realistic demand with limited speculative activity
Among the highest yield in the region and globally
Robust and well developed financial market and system that can tap into RE anytime
Demonstrated political ‘will’ to take RE to the future Relaxation of FDI Repeal of laws
Weaknesses Certain archaic laws continue to exist
ULCRA still to be repealed by certain states, unclear titles, high property tax & stamp duties which differ across states
High transaction cost and need for greater transparency
Still largely an unorganized market with dominance of independent local level developers
Opportunities Has strong demand drivers going forward –
IT-ITES, tourism, increasing consumerism, industrial manufacturing outsourcing etc.
Institutional participation is just opening up REIT/REMF Overseas investors are sold on the ‘India’
story and India “RE story” – eg. Ishaan,Hirco etc in overseas markets
Threats The fast pace of development may not be
sustainable for a long term period Pace of infrastructure not consistent with
real estate development pace which may lead to a bottleneck going forward
Yields not keeping pace with the increase in capital values
Key Challenges…
Large geographicArea
InfrastructureConstraints
Distribution costs
Fragmented Market
Lack of Distribution networks
Lack of distributionhub
Source: KPMG Consumer Markets Survey
(% respondents who chose)
59
59
46
44
42
32
Key challenges in the Indian retail market
Though India’s improvement from low transparency to semi-transparency is worthwhile mentioning, It’s a long way before there is availability of market information, improving general accounting and reporting processes, and substantial improvement among market participants, legal process that relate to contract enforcement and legal relief.
Transparency International - Asia
Tier 1 – Highly Transparent
Tier 2 – Transparent
Tier 3 – Semi Transparent
Tier 4 – Low Transparency
Tier 5 - Opaque
AustraliaNew ZealandHong KongSingapore
MalaysiaJapan
TaiwanSouth KoreaThe PhilippinesThailandIndia
The People’s Republic of ChinaMacuaIndonesia
Vietnam
AustraliaNew Zealand
Hong KongSingapore
JapanTaiwanSouth KoreaThe PhilippinesThailand
The People’s Republic of ChinaIndiaIndonesia
Vietnam
Source: JLL Global Real Estate Transparency
Real EstateTransparency Index
2006 2004
A score of 10 indicates a perception of no corruption, while 0 means corruption is seen as rampant.
Bribe Payers Index 2006
Source: Transparency International
Source: Jones Lang LaSalle, LaSalle Investment Management
Denotes a country moved up one tier from 2004
Denotes a slight improvement in transparency
Denotes a moderate improvement in transparency
Denotes a significant improvement in transparency
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
29
24
25
28
30
27
34
Na
31
32
38
35
37
Na
36
40
41
Mexico
Czech Republic
Hungary
Poland
Israel
Taiwan
South Korea
Slovakia
Chile
Greece
*Russia
Philippines
*Brazil
*Slovenia
Thailand
Argentina
*India
2.51
2.69
2.76
2.76
2.86
2.86
2.88
2.99
3.11
3.13
3.22
3.30
3.31
3.35
3.40
3.41
3.46
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
na
3
3
4
3
4
na
3
4
4
na
no change
no change
na
06 04 CountryScore 1-5
0604
Tier06
TierTransparency
change
Global Real Estate Transparency Index - 2006
5. Changing Urban Landscape
Case Study – Pune, Maharashtra
India Map
Map Source: www.mapsofindia.com
Pune Map
Pune Location - Map
Maharashtra Map
• Pune is situated near the Western margin of the Deccan Plateau. It lies on the leeward side of the Sahyadri ranges and Western Ghats, at the confluence of Mula and Mutha rivers. Two more rivers, Pavana and Indrayani traverse the Northwestern outskirts of the urban area
• Altitude: 560 m Above Mean Sea Level. • Latitude: 18°32' North• Longitude: 72° 51' East • Area: 430 km²
• Climate
Winter Temperature: 15 to 25 °C
Summer Temperature: 35 to 39°C
Rainfall (mid-June to mid-September): 722 mm
Lowest Recorded Temperature: 1.3 °C
Highest Recorded Temperature: 43.3 °C
Geography – Pune - Maharashtra
Early 8th Century AD Developments (Kasbe Pune)
Khadki Cantonment during 1860
Pune Cantonment
Formation of Pune Municipal Corporation in 1950
Areas developed such as Koregaon Park etc.
Fringe Developments along Kothrude, Nagar road, Warje, Karve Road, Pimpri chichwad and Aundh
City Urbanscape Growth - Pune - Maharashtra
Urban Fabric-Past - Pune - Maharashtra
Urban Fabric-Present – Pune - Maharashtra
6. Infliction points6. Infliction points
Inflection Points
Favorable long-term demographics
Source: Bric ReportSource: DB research
Ag
e
200 100 0 100 200 (millions)
55+54-5435-4425-3415-245-140-14
2001 2013
Population
Ag
e
200 100 0 100 200 (millions)
55+54-5435-4425-3415-245-140-14
2001 2013
Population
Consumption Forecasts
Significant job creation in ITES sector
Country 2003 2004
Australia 1,35,000 1,46,000
India 96,000 1,58,000
China 38,000 54,000
Philippines 20,000 40,000
New Zealand
12,000 13,500
Thailand 11,000 13,000
Singapore 10,000 10,100
Number of Seats in call centersPercentage Share in GDP
Source: RBI, DB Research
Source: Industry Interaction
Growth of Services Sector…
From To
Infliction Points
While the mystery continues to unfold….
there we are
at the wonder once again
One need not look hard enough
to realize it’s all being made here
right now, as I speak
It’s time to be part of that wonderful unfoldment
Welcome to India!Welcome to India!
Inorbit Malad•Operational since 2003•BUA=510,000 SFT/ Carpet=360,000 SFT
Inorbit Vashi•Trading Date 15th March 2008•BUA=550,000 SFT/ Carpet=350,000 SFT
Inorbit Cyberabad•Trading Date 15th November 2008•BUA=690,000 SFT/ Carpet=470,000 SFT
Inorbit Village Pocharam•Trading Date 1st March 2008•BUA=360,000 SFT/ Carpet=320,000 SFT
Inorbit Lifestyle Vijaywada•Trading Date 1st December 2008•BUA=430,000 SFT/ Carpet=300,000 SFT
Inorbit Village Verna-Goa•Trading Date 1st July 2009•BUA=500,000 SFT/ Carpet=400,000 SFT
Inorbit Pune•Trading Date 1st August 2009•BUA=510,000 SFT/ Carpet=310,000 SFT
Inorbit Chennai•Trading Date 1st Feb 2010•Under planning
Inorbit Makarpura, Baroda•Trading Date 15th March 2010•BUA=700,000 SFT/ Carpet=500,000 SFT
Inorbit Whitefield, Bangalore•Trading Date 15th July 2010•BUA=280,000 SFT/ Carpet=190,000 SFT
Inorbit Indore•Trading Date 1st March 2010•BUA=450,000 SFT/ Carpet=280,000 SFT
Inorbit Lifestyle,Vadodara •Trading Date 1st Sept ember- 2009•BUA=400,000 SFT/ Carpet=300,000 SFT
Inorbit•Trading Date 2011•Koba-Ahmedabad,•Kadamba-Goa,and Airoli
Inorbit’s Future Development
Plan and Phasing
India would have 160 million families in the consuming class Target market for organized retail
Historic trend in household income levels have been positiveNegative growth in ‘destitutes’ Consuming class has grown by 14%Super Rich’ segment has doubled
Disposable Income has grown at 11%The Classes 1994 - 95 1999 - 00 2005 - 06The Rich(Above Rs 215,000) 1 million 3 million 6 million
households households households
Consuming(Rs 45000-215,000) 29 million
households
Climbers(Rs 22,000-45,000)
48 millionhouseholds
Aspirants(Rs 16000-22000) 48 million 32 million 33 million
households households households
Destitutes(Less than 16,000)
35 million 24 million 17 million households households households
55 million households
75 million households
66 million households
78 million households
Source: The Marketing White Book, Business World – 2003, 2005
Source: National Income Statistics – October 2004
Real Estate Demand Drivers – Large and Growing Consumer Class
0
100
200
300
400
500
600
FY98 FY99 FY00 FY01 FY02 FY03 FY04
Pers
onal
Dis
posa
ble
Inco
me
(US$
bn.
)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Y-o-
Y gr
owth
(%)
1.
2.