Friday, February 15, 2008

What happens to the huge amount of development being undertaken by property investors?

According to an article by Bundeep Singh Rangar, Chairman, IndusView, in FDI Magazine, retail will also be a key driver, with over 200 malls expected to be set up by 2008, K. P. SINGH OF DLF The richest man in India?which means 20 million sq. metres of retail space in India. Demand for commercial space will approach 112 million sq. metres by 2012- 13. Interestingly, even in the residential segment in urban India, the housing shortage is expected to touch 22 million units by year 2008.

Try saying that to a retail investor like Ram Chander Aggarwal, Chairman & Managing Director of Vishal Megamart, who assiduously argues against the real estate sector’s growth to us, saying out of 52 total Megamarts across India, he has only 4 in New Delhi and doesn’t plan even one more (not even in some other top line metros) because of the unbelievably high realty prices. That is a thought mirrored point by point by almost all other retail giants we talked to. Concrete jungle... Home is where the heart is. Really?Then what happens to the huge amount of development being undertaken by property investors?

Almost none of them is ready to even accept our take on the dastardly falling stock prices. The share prices of all realty majors have gone for a beating and are down to as much as 55% of their values over the last six months (see Finance National story); and this at a time when the Sensex has grown by historical benchmarks and is now fighting just 200 points shy of the 16,000 mark.


For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An
IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, February 05, 2008

Cutting the umbilical cord!

Ever since Gordon Brown took over as the British Prime Minister, a conspicuous shift in the English approach vis-à-vis the US is discernible. The difference was apparent recently,Stop pointing fi ngers & extend a helping hand to the world when the International Development Secretary in Brown’s cabinet, Douglas Alexander, told the US to reconsider its priorities, subtly criticising American foreign policy. Taking a dig at US, he stated that a nation’s strength must no longer be identified by its destructive power, pointing out instead that it “should be measured by what we can build together.”

Advocating the importance of multilateralism in Brown’s foreign policy agenda, Douglas Alexander added that UK will form “new alliances, based on common values,” that will help her reach out to the world. In as much, UK has been successful in sending the message to the US, loud and clear that, while Britain stood beside the US in countering terrorism, isolation does not work in an interdependent world.
For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, January 24, 2008

While Boeing logically chose the mid-sized path, Airbus planned big... and it all backfi red!

Simply stated – high-flying vision which Airbus clearly lacks as Craig Fraser, Analyst, Fitch Ratings, expressed exclusively to B&E as, “TheL. Gallios, CEO, Airbus Boeing 787 has the more favourable market outlook as the market for an aircraft the size of the 787 is larger than the market for a jumbo like A380! Currently, we rate EADS’s credit quality (Airbus’ parent) ‘A-’ with a negative outlook while Boeing’s is currently rated ‘A+’ with a stable outlook...”

Boeing’s twin-aisle aircraft s also provide the right sizes to fill-up demand gaps in terms of seat capacities while Airbus, below its 555-seater A380, has just the A340 which offers a seating capacity of Large wings, small pride!323 seats – a gap of 232 seats! Is it any wonder then Teal Group Corp. estimates Boeing to capture 62% of the market by 2015? Boeing also scores higher on its risk-sharing model as its Risk Sharing Partners (RSPs) share almost 80% of all ‘new model development’ R&D risks. Louis Gallois, CEO, Airbus also confessed, “Our long term future is at stake if we don’t act now...’ So while ‘wiring problems’ rattled Airbus’ & gave smiles to the American, you could shout – “Crisis in EU?! Yes & short circuits too!”
For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, January 17, 2008

Don’t tell us you didn’t see the movie Wild Hogs!

Still, let’s give the necessary quick run up to how the Wild ended up in Hogs-II. What was started as a trading company by Rahul’Wild Hogss grandfather, Jamnalal Bajaj, sometime in early 1900s, is today an estimated $3 billion group comprising no less then 29 companies in its manifold spread across automotive, industrial manufacturing, sugar, ethanol, electronics and insurance businesses. Bajaj Group’s flagship company, Bajaj Auto Ltd (with sales of $1.32 billion), followed by companies like Mukand Industries ($0.46 billion sales – managed along with the Shah brothers, focusing on steel and heavy industrial equipment), Bajaj Hindustan ($0.33 billion – one of India’s largest sugar and ethanol makers) and Bajaj Electrical ($0.20 billion – electronics and allied services) form the pillars of the group. But even though the ownership and management structures were clearly demarcated among the five Bajaj brothers, the once almost ‘invincibly united’ brothers have started playing truant!

For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative