Larsen & Toubro Outthink - 2016, IIM Rohtak Final Round

Taking into account demographic factors,
economic growth, financial factors and
availability of housing and office space,
the recommendation to execute the
project or to put it on hold has been
given for each state
From the lenders point of view, risks of
the real estate project have been
identified based on past projects of L&T
Realty, construction period and the
project life span
After identification of risks, they have been classified based on
when they are likely to occur in the course of the project (pre,
during and post) and have been put under the headers of legal,
labor, operational and maintenance risk
Each risk has been thoroughly
assessed, with a detailed
explanation of mitigation,
indicators, solutions and parties
involved along with the probable
financial impact on the project
The correlation between various risks are
found and these are used to identify the
risk that would have maximum impact on
the project. An integrated risk analysis is
performed to assess the overall impact of
the risks and the cash flow in case of
worst case scenario is also calculated
A comprehensive pan India analysis of twenty
states has been conducted including qualitative
and quantitative analysis like PESTLE, SWOT,
Competitors analysis and analysis of all financial
factors to arrive at an NPV for each state
2
Team: RadioActive

 Maharashtra and Tamilnadu are
the states with the highest urban
population
 It is to be noted that the urban
population in southern India is
higher than Northern India
 Kerala, TN, Maharashtra,
Gujarat and Haryana have the
highest GDP per capita
 The northern states have high
agricultural dependence, and
hence the low GDP per capita
The BIMARU states are still afflicted by poverty and lack of access to basic
facilities
 The coastal states of
Maharashtra and Gujarat
showcase high GDP growth
 The northern states have
shown insignificant
growth, and the lack of
human capital and
technology is the reason
for this
 The recent state elections
have resounded the strong
support of the people to the
National Democratic Alliance
 A single majority ruling
Alliance would ensure
uniformity in policies, making
trade and other related
activities easier
INDIAN ECONOMY AT A
GLANCE
3
Team: RadioActive

4
PAN INDIA ANALYSIS
Click on the state to see the
analysis of the respective state.
Financial
Risk
Legal Risk
Labor Risk
Operational
Risk
Risk
Correlation
Matrix
Maintenance
Risk
Team: RadioActive
R
G M
RISK ANALYSIS
Click on the TAB to see the analysis
Conclusion

PAN INDIA ANALYSIS CITY ANALYSIS RISK ANALYSIS RECOMMENDATIONS
Team: RadioActive
ANDHRA PRADESH
5
PESTLE
Demographics and Economic Indicators Porter’s 5 forces
APPENDIX FOR ANDHRA PRADESH (Click Here)
SWOT
MACRO-ENVIRONMENTANALYSIS
GSDP $77 Billion
GSDP/Capita $1,500
Area (Km2) 1,60,205
Population 49,386,799
Literacy Rate 67.41 %
HDI 0.6165
Government Majority (TDP)
Growth Rate 10.5%
Capital: Amaravati (present)
Andhra Pradesh is one of the fastest growing state and will become
developed state by 2029. Increase in demand and increase in
competition has led to the following forces of real estate
4
2
3
2
4
Threats of new
entrants
Buyer's Power
Supplier's Power
Competition
Rivalry
Threats of
substitute
Demand Driver
Supply Driver
RANGE High Medium Low
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Strength + Opportunities = 3.55
Weakness + Threats = 2..35
S + O > W + T
As strength and opportunities overcome weakness
and threats , hence we should explore further
Strength + Opportunities
Weakness+Threats
4.5
4
4.5
4.5
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Gross Domestic
Capital Formation
Govt. Schemes like
PMGSY and IAY
4.5
4.5
4
4.5
4
1.5
Political
Economic
Sociological
Technological
Legal
Environmental
3.5
3
3
4.5
4
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
Back to Index

Team: RadioActive
ANDHRA PRADESH
6
City Selection Analysis Competitor Analysis
Financial Feasibility Analysis
APPENDIX FOR ANDHRA PRADESH
FINANCIALFEASIBILITYANALYSIS
APPENDIX FOR ANDHRA PRADESH (Click Here)
Recommendation
City Area (Km2) Population REOR
Vishakhapatnam 681.96 2,091,811 4
Vijaywada 61.88 1,476,931 4
Tirupati 27.44 287,035 3
Guntur 168.41 743,354 4
 Satellite images shows percentage of available
land for construction in above mentioned city
 AP vision documents suggests rapid growth in
above mentioned cities
 REOR* ratings positive growth prospects in AP
REOR = Real Estate Opportunity Rating INDIABULLS is the major competitor in residential cum commercial segment
0
1
2
3
4
5
6
7
8
9
Price Quality Customer
Service
Locality Amenities Possession Product
Range
L&T Realty ASC INDIABULLS M.V.V BUILDERS ARC ESTATES Others
0
50
100
150
200
250
300
350
400
450
-1806.500405
-1575.777496
-1345.054587
-1114.331679
-883.6087696
-652.8858607
-422.1629518
-191.4400428
39.28286611
270.005775
500.728684
731.4515929
962.1745018
1192.897411
1423.62032
1654.343229
1885.066138
2115.789046
2346.511955
2577.234864
2807.957773
85% Occupancy
Monte Carlo Simulation by varying cost and revenues
Description Occupancy Cost factor Revenue factor NPV
Most Adverse 70% 1.15 0.85 -298
Adverse 75% 1.1 0.9 -115
Moderate Adverse 80% 1.05 0.95 70
Minimum Favorable 100% 0.95 1.05 469
-400
-200
0
200
400
Most Adverse Adverse Moderate Adverse Minimum
Favourable
NPVinRs.Crorers
Cash Flow Comparision for Cases
AFFO Net present value for different scenarios
Heat Map of Prices of
Major City23 Districts
Back to Index
By 2029, expected contribution in GSDP
by service and industries will be near 90%.
Hence, more opp. for real estate.
×Though builders have not increased
construction cost, the land price has
significantly gone up and this has resulted
in higher prices
Greenfield international airport is
proposed near Bhogapuram and as a
result, State registration revenue has
significantly increased.
RECOMMENDATION: EXECUTE

Team: RadioActive
BIHAR
7
PESTLE
Real Estate related Data Demand DriversPorter’s 5 forces
Supply Drivers
APPENDIX FOR BIHAR (Click Here)
SWOT
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
HDI 0.447
Government Coalition
Growth Rate 17.06%
Bihar is one of the fastest growing state but, high state has made it
difficult for government to find investment opportunities. The
State Government is setting up an Information Technology (IT) City
at Rajgir in Nalanda district. This may be one of the forces
3
4
22
4
Threats of new
entrants
Buyer's Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute
Capital: Patna
Weakness + Threats = 4
S + O < W + T
As weakness and threats overcomes strength and
opportunities , hence we should not explore further
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
3.5
4
4
3
3
2.5
Political
Economic
Sociological
Technological
Legal
Environmental
2
4
2.5
1
3.5
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
2
3
2
2
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital Formation
Govt. Schemes like
PMGSY and IAY
Back to Index

Team: RadioActive
BIHAR
8
Site Selection Analysis Competitor Analysis
APPENDIX FOR BIHAR (Click Here)
Recommendation
Patna 234.96 2,046,652 3
Gaya 90.88 470,839 2
Bhagalpur 110 410,210 1
Muzaffarpur 160 393,724 1
REOR = Real Estate Opportunity Rating
 Low GDP/Capita shows people will pay less.
Land is used for agriculture mostly
 Cheap labor and material cost can be
beneficial.
 REOR* ratings-negative growth prospects in
Bihar.
0
2
4
6
8
10
Service
Range
L&T Realty Rukmani Buildtech Shravani Engicon
AGR Estates Badal Construction Others
Rukmani & Shravani are the major competitors in residential cum commercial segment
Patna is the target city, other cities prefer contractor based construction
0
50
100
150
200
250
300
350
400
-2607.132361
-2344.61624
-2082.100119
-1819.583998
-1557.067877
-1294.551756
-1032.035635
-769.5195136
-507.0033925
-244.4872715
18.02884961
280.5449707
543.0610918
805.5772128
1068.093334
1330.609455
1593.125576
1855.641697
2118.157818
2380.673939
2643.19006
85% Occupancy
 About 35% of the simulation has shown negative NPV
Most Adverse 70% 1.15 0.85 -245
Adverse 75% 1.1 0.9 -88
Minimum Favourable 100% 0.95 1.05 358
-400
-200
0
200
400
Favourable
NPVinRs.Crorers
Back to Index
× The state government, through a
notification issued in December 2012,
banned the approval of maps for any
multistorey building over 11 metres height
till the proposed building bylaws come into
effect.
× Due to some policy problems, the
demand isn't converting into actual
market.
× The concept of township not present in
the state due to lack of electricity and
water provided by the state
RECOMMENDATION: CANCEL

Team: RadioActive
GUJARAT
9
PESTLE
Real Estate related Data Porter’s 5 forces
APPENDIX FOR GUJARAT (Click Here)
SWOT
GSDP $110 Billion
GSDP/Capita $1821
Area (Km2) 196,024
Literacy Rate 79.31%
HDI 0.522
Government Majority (BJP)
Growth Rate 8%
Gujrat is one of the fastest developing state. With lots of FDIs and
favorable government regulations, it is expected that GSDP per
capita will increase. It will increase the disposable income of the
people and hence competition among the companies will increase
3.5
4
4
3
3
2.5
Political
Economic
Sociological
Technological
Legal
Environmental
4
3
3
4
3
Threats of new
entrants
Buyer's Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Weakness + Threats = 2.8
S + O > W + T
As threats strength and opportunities overcomes
weakness and, hence we should explore further
4
3
33
4
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
Demand Drivers
5
4
4
4
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital
Formation
Govt. Schemes
like PMGSY and
IAY
Supply Driver
Capital: Gandhinagar
Back to Index

Team: RadioActive
GUJARAT
10
APPENDIX FOR GUJRAT (Click Here)
Recommendation
Ahmedabad 464 5,577,940 5
Surat 326.5 4,462,002 4
Vadodara 225 1,670,806 4
Rajkot 170 1,286,678 4
 High GDP/Capita shows people have high
disposable income.
 Good governance and friendly business
environment. Can charge higher price
 REOR* ratings-positive growth prospects Heat Map of Prices of
Major City
REOR = Real Estate Opportunity Rating33 Districts
0
2
4
6
8
10
Service
Range
L&T Realty Iscon Group Deep Group
Shree Sharanam Group Siddhi Developers Others
0
50
100
150
200
250
300
350
400
450
-1005.874923
-856.1496212
-706.4243194
-556.6990176
-406.9737157
-257.2484139
-107.523112
42.20218979
191.9274916
341.6527935
491.3780953
641.1033971
790.828699
940.5540008
1090.279303
1240.004604
1389.729906
1539.455208
1689.18051
1838.905812
1988.631114
85% Occupancy
Most Adverse 70% 1.15 0.85 -354
Adverse 75% 1.1 0.9 -136
-400
-200
0
200
400
600
800
Most Adverse Adverse Moderate
Adverse
Minimum
Favourable
NPVincrores
NPV in crores
Back to Index
Iscon group is the major competitor in residential cum commercial segment
AFFO Net present value for different scenarios Being developed as India’s first
International Financial Service Centre,
Gujarat International Finance Tech-City
(GIFT) will revamp the real estate scenario
of Ahmedabad and Gandhinagar.
× Certain modifications are required in the
system by AUDA, GUDA, and City
Development Cells so that they can be
investor friendly
× A recent study conducted by
ASSOCHAM, noted that outstanding
investments attracted by the real estate
sector in Gujarat have dropped 20 per cent

Team: RadioActive
HARYANA
11
PESTLE
APPENDIX FOR HARYANA (Click Here)
GSDP $58 Billion
GSDP/Capita $2100
Area (Km2) 49,212
HDI 0.644
Government Majority
Growth Rate 6.5%
Capital: Chandigarh
S + O ~ W + T
As weakness and threats is almost equal to strength and
SWOTSupply Driver
Demand Drivers
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Haryana, the land of agricultural activities and pilgrimages, has
been witnessing a fast paced infrastructural development.
Sudden boost in the real estate of Haryana has attracted several
multinational companies to bring industrial revolution.
Back to Index
2
3
54
2
Threats of new
entrants
Buyer's Power
Supplier's Power
Competition
Rivalry
Threats of
substitute
3
4.5
3
4
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3 2
4
3
3
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of
services sector
Growth of retail
and SEZs
4
3
3
4
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital Formation
Govt. Schemes
like PMGSY and
IAY

Team: RadioActive
HARYANA
12
APPENDIX FOR HARYANA (Click Here)
Recommendation
Faridabad 742 1,404,563 4
Gurgaon 732 901,968 5
Panipat 64 442,277 3
Ambala 62 407,934 3
 High GDP/Capita shows people have high
disposable income and can spend more
 Higher growth prospects due FDIs and
economic growth
 REOR* ratings-positive growth prospects in
Bihar.
Back to Index
0
2
4
6
8
10
Service
Range
L&T Realty DLF Mahindra Lifescape Sobha Limited Ansal Builwell Others
Cities in Haryana has very stiff competition and hence coming up with a right price and
correct value proposition is a challenge
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
Most Adverse 70% 1.15 0.85 -315
Adverse 75% 1.1 0.9 -122
-500
0
500
1000
Adverse
Minimum
Favourable
NPVincrores
Scenarios
NPV in crores
× Union water resources ministry has
asked Haryana to make districts of
Gurgaon, Faridabad, Mewat, Rewari and
Mahendragarh — to be a no construction
zone as it is an important groundwater
recharge zone of NCR.
×The decision by the Government to
impose value added tax (VAT) on
developers operating in the state of
Haryana is likely to push the overall pricing
of developed units higher.

Team: RadioActive
JHARKHAND
13
PESTLE
APPENDIX FOR JHARKHAND (Click Here)
SWOT
GSDP $26 Billion
GSDP/Capita $780
Area (Km2) 79,714
HDI 0.376
Government Majority
Growth Rate 6.06%
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
It has some of the most industrialized cities like Jamshedpur,
Bokaro and Ranchi that have been attracting people from
various states, thus providing a platform for the real estate
industry to thrive on the migrant population.Capital: Ranchi
Back to Index
Demand Drivers
Supply Driver
S + O < W + T
3
4
33
4
Threats of new
entrants
Buyer's Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute
4
4
2
3
3
4
Political
Economic
Sociological
Technological
Legal
Environmental
3
4
33
4
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of
services sector
Growth of retail
and SEZs
3
3
4
4
Foreign Direct
Investment
Lending patterns of
banks/NBFCs
Plan Outlay & Gross
Domestic Capital
Formation
Govt. Schemes like
PMGSY and IAY

Team: RadioActive
JHARKHAND
14
APPENDIX FOR JHARKHAND (Click Here)
Recommendation
24 Districts
Back to Index
Jamshedpur 742 1,337,131 3
Dhanbad 732 1,195,298 2
Ranchi 64 1,112,677 2
Bokaro 62 563,417 3
Major City
 Low GDP/Capita shows people have low
disposable income and will spend less
beneficial.
Jharkhand
0
2
4
6
8
10
Service
Locality Amenities Possession Product Range
L&T Realty S K Construction Rameshwaram Projects Vasundhra Homes J D Infra Others
Cities in Jharkhand has very stiff competition and hence coming up with a right price and
correct value proposition is a challenge
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
Case Description Occupancy Cost factor Revenue factor NPV
1a Most Adverse 70% 1.15 0.85 -343
1b Adverse 75% 1.1 0.9 -128
1c Moderate Adverse 80% 1.05 0.95 74
1d Minimum Favourable 100% 0.95 1.05 524
-500
0
500
1000
Favourable
NPVincrores
Scenarios
NPV in crores
× Rising costs of construction, higher
interest rates on housing loans, land
acquisition problems had slowed down the
pace of development for the last one year
× The Chotanagpur Tenancy Act (CNT) Act
and the Santhal Pargana Tenancy (SPT) Act
entail that tribal land cannot be bought by
a non-tribal
There is steady rise in real estate activity
on non-tribal patches in the areas .

Team: RadioActive
CHHATTISGARH
15
PESTLE
APPENDIX FOR CHHATTISGARH (Click Here)
GSDP $27 Billion
GSDP/Capita $967
Area (Km2) 1,35,194
Literacy Rate 71 %
HDI 0.537
Government Majority (BJP)
Growth Rate 7.5%
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Tremendous growth in all the sectors has made this state the
hottest choice of property investors.Capital: Raipur
Back to Index
Demand Drivers
Supply Driver
S + O < W + T
SWOT
3
4
3
2
3
Threats of
new entrants
Buyer's
Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute
3.5
4
3
4
2
2
Political
Economic
Sociological
Technological
Legal
Environmental
2
3
2
3
3
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
3.5
3
4
2
Foreign Direct
Investment
Lending patterns of
banks/NBFCs
Plan Outlay & Gross
Domestic Capital
Formation
Govt. Schemes like
PMGSY and IAY

Team: RadioActive
CHHATTISGARH
16
APPENDIX FOR CHHATTISGARH (Click Here)
Recommendation
27 Districts
Back to Index
Raipur 226 1,337,131 3
Durg 172 1,195,298 2
Bilaspur 345.8 1,112,677 2
Rajnandgaon 67 563,417 2
 Medium GDP/Capita shows people have less
beneficial.
Chhattisgarh
Major City
0
2
4
6
8
10
Service
Range
L&T Realty GT Capital Homes Shreeji Wallfort Balaji Others
Tremendous opportunity for real estate because of rapid growth, new market hence
competition is stiff. New value proposition is required. Skimming strategy is beneficial
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -368
1b Adverse 75% 1.1 0.9 -122
-500
0
500
1000
Adverse
Minimum
Favourable
NPVincrores
NPV in crores
AFFO Net present value for different scenarios  Real estate in Chhattisgarh is expected
to develop rapidly in the next decade due
to formation of the new capital “Naya
Raipur”.
 Apart from the regular Industrial
Estates, large tracts of land have been
reserved and earmarked in various
districts for mega-projects.
 The future of the hospitality segment is
bright, as the state’s dense forests, caves,
waterfalls, rich bio-diversity and
handicrafts have the potential to develop
into popular tourist attractions.

Team: RadioActive
MADHYA PRADESH
17
PESTLE
APPENDIX FOR MADHYA PRADESH (Click Here)
GSDP $75 Billion
GSDP/Capita $1036
Area (Km2) 308,245
HDI 0.375
Government Majority
Growth Rate 5.16%
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
The potential of real estate in Madhya Pradesh is still not
realized by the property seekersCapital: Bhopal
Back to Index
S + O < W + T
SWOT
Demand Drivers
Supply Driver
4
4
3
4
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3
3
44
3
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
3
3
4
3
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital
Formation
Govt. Schemes
like PMGSY and
IAY
3
3
4
3
2
Threats of new
entrants
Buyer's Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute

Team: RadioActive
MADHYA PRADESH
18
APPENDIX FOR MADHYA PRADESH (Click Here)
Recommendation
57 Districts
Back to Index
Bhopal 226 1,883,381 3
Indore 172 2,167,447 4
Gwalior 345.8 1,267,564 3
Jabalpur 67 1,101,981 3
 Medium GDP/Capita shows people have less
beneficial.
MadhyaPradesh
Major City
0
2
4
6
8
10
Service
Range
L&T Realty Man Developers Deveshi Infrastructure
SkyeEarth Developers APPOLO DB group Others
Stiff competition among the players. Skimming strategy is required. Man Developers is the
major competitor in Indore
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -325
1b Adverse 75% 1.1 0.9 -134
-500
0
500
1000
Adverse
Minimum
Favourable
NPVincrores
Scenarios
NPV in crores
20 Years
 With many manufacturing giants setting
shop here, Madhya Pradesh capital Bhopal
is in the middle of a realty development.
Expecting the city population to go up
substantially due to this, many builders
have flown to Bhopal. The city has as many
as 70 under-construction projects.
× An ASSOCHAM study said real estate
investments in the sector in Madhya
Pradesh (MP) have declined at a
compounded annual growth rate (CAGR)
of 29% in past four years.

Team: RadioActive
KERALA
19
PESTLE
APPENDIX FOR KERALA (Click Here)
GSDP $59 Billion
GSDP/Capita $1767
Area (Km2) 38,863
HDI 0.790
Government Majority
Growth Rate 7.36%
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Kerala has rightly earned the sobriquet ‘God’s Own Country’ for
many reasons but mainly on account of its natural lush green
settings and scenic landscape. The State has also attained a
unique status on account of making it to the list of the top must-
see global destinations
Capital: Thiruvananthapuram
Back to Index
S + O > W + T
As threats strength and opportunities overcomes
weakness and, hence we should not explore further
SWOT
Demand Drivers
Supply Driver
2.5
4
4.5
3
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3
4.5
4
3
4
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of
services sector
Growth of
retail and SEZs
3.5
2
4
4
Foreign Direct
Investment
Lending patterns of
banks/NBFCs
Plan Outlay & Gross
Domestic Capital
Formation
Govt. Schemes like
PMGSY and IAY
4
2
3
3
4
Threats of new
entrants
Buyer's Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute

Team: RadioActive
KERALA
20
APPENDIX FOR KERALA (Click Here)
Recommendation
24 Districts
Back to Index
Thiruvananthapuram 216 957,730 3
Kochi 95 612,343 3
Kollam 58 349,033 3
Thrissur 101 325,474 3
Major City
 High GDP/Capita shows people have more
disposable income and will spend more
beneficial.
Kerala
0
2
4
6
8
10
Service
Range
L&T Realty Nest Infra ABAD Builders VINAYAKA HOMES INFRA HOUSING others
Stiff competition among the players. Skimming strategy is required. Nest is the major
competitor in Kochi
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -343
1b Adverse 75% 1.1 0.9 -141
-500
0
500
1000
Most Adverse Adverse Moderate Adverse Minimum Favourable
NPVincrores
Scenarios
NPV in crores
 The large scale tourism-enhancing
activities that are being undertaken in
Kerala have been attracting the attention
and interest of many real estate
companies to invest in the State in order
to cater to the accommodation needs of
the tourists on a larger scale.
 Developments such as privatization of
the international airport and upgradation
of the sea port at Kochi have brightened
the prospects of the real estate scene in
the city.

Team: RadioActive
KARNATAKA
21
PESTLE
APPENDIX FOR KARNATAKA (Click Here)
GSDP $100 Billion
GSDP/Capita $1658
Area (Km2) 191791
HDI 0.508
Government Majority
Growth Rate 6.3%
Strength + Opportunities = 4
S + O > W + T
As strength and opportunities overcomes weakness
and threats, hence we should not explore further
SWOT
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Demand Drivers
Supply Driver
Back to Index
Capital: Bengaluru
2.5
4
3
4.5
3
3
Political
Economic
Sociological
Technological
Legal
Environmental
4
2
4
4
4
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of
services sector
Growth of retail
and SEZs
4.5
3
3
2
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital Formation
Govt. Schemes
like PMGSY and
IAY
4
3
4
4
2
Threats of new
entrants
Buyer's Power
Supplier's PowerCompetition Rivalry
Threats of substitute
One of the major reasons for the growing property market in the
city is its well developed infrastructure and basic amenities.
Bangalore has a much improved transportation system.

Team: RadioActive
KARNATAKA
22
APPENDIX FOR KARNATAKA (Click Here)
Recommendation
Back to Index
Bengaluru 539 8,520,435 4
Mysore 131 990,900 3
Mangalore 200 623,841 3
Belgaum 171 610,350 3
 High GDP/Capita shows people have more
beneficial.
Karnataka
0
2
4
6
8
10
Service
Range
L&T Realty Vandana Infra PURAVANKARA PROJECTS
KONCEPT AMBIENCE BRIGADE ENTERPRISES Others
Stiff competition among the players. Skimming strategy is required. Due to high
dependence on service sectors, competition is heathy
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -397
1b Adverse 75% 1.1 0.9 -163
-500
0
500
1000
NPVincrores
Scenarios
NPV in crores
 CREDAI to provide a platform for
Resource persons, including policy-makers
and financial experts to discuss the state of
real estate in the state
 The state is witnessing a steep rise in
prices as the demand for housing solutions
is increasing, and so is the interest of real
estate builders to invest in this territory.
 The overall picture of the real estate
sector in the state constitutes a 5%
increase in capital growth with a 14% hike
in supply.

Team: RadioActive
RAJASTHAN
23
PESTLE
APPENDIX FOR RAJASTHAN (Click Here)
GSDP $85 Billion
GSDP/Capita $1139
Area (Km2) 342,239
Literacy Rate 67 %
HDI 0.434
Government Majority
Growth Rate 5.4%
S + O < W + T
SWOT
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Demand Drivers
Supply Driver
Back to Index
2.5
3
2
3
3.5
4
Political
Economic
Sociological
Technological
Legal
Environmental
2
2.5
2.5
2
3
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
Capital: Jaipur
2.5
2
3
4
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital Formation
Govt. Schemes like
PMGSY and IAY
3
2
3
3
3
Threats of new
entrants
Buyer's Power
Rajasthan is the largest state of India and one of the richest in
cultural heritage. The property market in Rajasthan is flourishing
so it is beneficial to invest in property here

Team: RadioActive
RAJASTHAN
24
APPENDIX FOR RAJASTHAN (Click Here)
Recommendation
Back to Index
Jaipur 484 3,525,000 4
Jodhpur 79 1,320,000 3
Kota 527 1,200,000 4
Bikaner 155 700,000 2
 Medium GDP/Capita shows people have more
 Dependent on tourism and lack of service
sector
Rajasthan
0
2
4
6
8
10
Service
Range
L&T Realty UNIQUE BUILDERS UDB UPASNA GROUP TRIMURTY GROUP OTHERS
Stiff competition among the players. Skimming strategy is required. New players are
coming with new value proposition
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -328
1b Adverse 75% 1.1 0.9 -135
-500
0
500
1000
NPVincrores
Scenarios
NPV in crores
 The immense business potential of the
real estate market of Rajasthan has
already drawn large interests from some
of the leading Indian real estate
developers who are entering these
markets to invest on cheaply available
properties and make abundant profits.
 The owner of property here does not
have to pay property tax
 The establishment cost of setting up a
business or residential property in
Rajasthan is very low as compared to other
cities and states.

Team: RadioActive
UTTAR PRADESH
25
PESTLE
APPENDIX FOR UTTAR PRADESH (Click Here)
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
HDI 0.447
Growth Rate 7.06%
S + O > W + T
As strength and opportunities overcomes weakness
and threats , hence we should not explore further
SWOT
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Demand Drivers
Supply Driver
Back to Index
3
2.5
2
3
3
2.5
Political
Economic
Sociological
Technological
Legal
Environmental
2
4
2.5
2
3.5
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail and
SEZs
2
4
3
3
Foreign Direct
Investment
Lending patterns of
banks/NBFCs
Plan Outlay & Gross
Domestic Capital
Formation
Govt. Schemes like
PMGSY and IAY
4
3
4
3
3
Threats of new
entrants
Buyer's Power
Supplier's Power
Competition
Rivalry
Threats of
substitute
Capital: Lucknow
Uttar Pradesh is one of the largest state of India. It has two ends,
one very progressive end (near NCR) and other end which is not
so progressive. Progressive end has huge growth potential for
real estate

Team: RadioActive
UTTAR PRADESH
26
APPENDIX FOR UTTAR PRADESH (Click Here)
Recommendation
Back to Index
Kanpur 404 2,920,078 3
Lucknow 2522 2,904,474 4
Ghaziabad 132 2,358,525 4
Agra 70 1,746,467 2
 Low GDP/Capita shows people have less
 Few Cities have good growth prospects
UttarPradesh
REOR = Real Estate Opportunity Rating75 Districts
Major City
0
2
4
6
8
10
Service
Locality Amenities Possession Product Range
L&T Realty Amrapali Group GAURSONS INDIA LTD
IMPERIA STRUCTURES MAHAGUN INDIA Others
Stiff competition among the players. Penetrating strategy is required. Difficult to enter
without new value proposition
0
50
100
150
200
250
300
350
400
450
-1045.831873
-892.4907722
-739.1496719
-585.8085716
-432.4674713
-279.126371
-125.7852707
27.55582965
180.89693
334.2380303
487.5791306
640.9202309
794.2613312
947.6024315
1100.943532
1254.284632
1407.625732
1560.966833
1714.307933
1867.649033
2020.990134
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -401
1b Adverse 75% 1.1 0.9 -165
-500
0
500
1000
NPVincrores
Scenarios
NPV in crores
AFFO Net present value for different scenarios  Appointment of regulator and appellate
tribunal delayed to 2017, giving enough
time to builders to complete their existing
projects, thereby benefiting buyers who
are awaiting the possession of their
properties.
× Currently the availability of plots is low in
Lucknow as the Lucknow Development
Authority (LDA) and Uttar Pradesh Housing
and Development Board have been
developing residential units.
× Low purchasing power of the people and
rural population above 30% in the state.

Team: RadioActive
TELANGANA
27
PESTLE
APPENDIX FOR TELANGANA (Click Here)
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
HDI 0.447
Growth Rate 5.06%
S + O < W + T
SWOT
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Demand Drivers
Supply Driver
Back to Index
4
3
4
4
2
Threats of new
entrants
Buyer's Power
4
2
4
4
4
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of
services sector
Growth of retail
and SEZs
4
4
3
4
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
3
3
4
4
Foreign Direct
Investment
Lending patterns of
banks/NBFCs
Plan Outlay & Gross
Domestic Capital
Formation
Govt. Schemes like
PMGSY and IAY
As Telangana reached its one-year milestone, the real estate
sector in Hyderabad appears to have given up hopes of a quick
recovery of fortunes and instead remains content with slow and
incremental growthCapital: Hyderabad

Team: RadioActive
TELANGANA
28
APPENDIX FOR TELANGANA (Click Here)
Recommendation
Back to Index
31 Districts
Hyderabad 650 8,746,490 4
Warangal 407 811,844 2
Nizamabad 43 311,152 4
Khamman 97 305,000 2
Telangana
Major City
0
2
4
6
8
10
Service
Range
L&T Realty Mahindra Lifescape SMR Holdings APARNA Aditya Construction Others
0
50
100
150
200
250
300
350
400
450
-1109.470964
-949.8243216
-790.1776794
-630.5310372
-470.884395
-311.2377528
-151.5911106
8.055531623
167.7021738
327.348816
486.9954582
646.6421004
806.2887427
965.9353849
1125.582027
1285.228669
1444.875311
1604.521954
1764.168596
1923.815238
2083.46188
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -289
1b Adverse 75% 1.1 0.9 -119
-500
0
500
1000
Favourable
NPVincrores
Scenarios
NPV in crores
 Whenever Metro rail is going to be
operational, it will improve all markets
along the metro sector and will increase
the demand for housing and office space.
× Despite a very marginal rise in the last
one year, property prices in and around
the city continue to remain very less
compared to most other metro cities.
Apart from all other attractions, a builder
points out, the icing on the cake here
happens to be the low pricing.
× Banks in the state have been non-
cooperative in the past when it comes to
funding real estate projects..

Team: RadioActive
TAMILNADU
29
PESTLE
APPENDIX FOR TAMILNADU (Click Here)
GSDP $60 Billion
GSDP/Capita $578
Area (Km2) 94,163
HDI 0.447
Growth Rate 7.06%
Weakness + Threats = 4
S + O < W + T
SWOT
Low 1 2 3
Medium 4 5 6
High 7 8 9
Execute Hold Cancel
Weakness+Threats
Demand Drivers
Supply Driver
Back to Index
2.5
4
4.5
3
4
3
Political
Economic
Sociological
Technological
Legal
Environmental
2
3
2
3
3
Urbanization
Demographic
Dividend
Middle Income
Group
Growth of services
sector
Growth of retail
and SEZs
3
4
33
4
Threats of new
entrants
Buyer's Power
Supplier's
Power
Competition
Rivalry
Threats of
substitute
4.5
3
3
2
Foreign Direct
Investment
Lending patterns
of banks/NBFCs
Plan Outlay &
Gross Domestic
Capital Formation
Govt. Schemes
like PMGSY and
IAY
Capital: Chennai
Much developed social sectors along with essential infrastructural
facilities have made Tamil Nadu more ideal for building residential
real estate. The capital value of properties in Tamil Nadu is found
to be escalating in some parts due to rising housing demands

Team: RadioActive
TAMILNADU
30
APPENDIX FOR TAMILNADU (Click Here)
Recommendation
Back to Index
32 Districts
Chennai 404 4,320,078 3
Coimbatore 246 1,622,474 4
Maduri 242 1,461,525 4
Tiruchirappalli 96.9 2,746,467 2
Tamilnadu
Major City
0
2
4
6
8
10
Service
Range
L&T Realty Mahindra Lifescape SMR Holdings APARNA Aditya Construction Others
0
50
100
150
200
250
300
350
400
450
-1109.470964
-949.8243216
-790.1776794
-630.5310372
-470.884395
-311.2377528
-151.5911106
8.055531623
167.7021738
327.348816
486.9954582
646.6421004
806.2887427
965.9353849
1125.582027
1285.228669
1444.875311
1604.521954
1764.168596
1923.815238
2083.46188
85% Occupancy
1a Most Adverse 70% 1.15 0.85 -397
1b Adverse 75% 1.1 0.9 -163
-500
0
500
1000
NPVincrores
Scenarios
NPV in crores
 Chennai is also a major beneficiary of
the flooding e-commerce investments and
thus the demand for office space will
drastically rise over the next few years
 The state is renowned for contemporary
infrastructural developments, effective
educational facilities and rapid
industrialization in the past decade
 Velachery, in particular has seen a 40%
rise in capital values on a year-on-year
basis as improvements in infrastructure
and the ongoing metro work will provide
better connectivity and prices are
witnessing an upward trend in this micro
market.

Team: RadioActive
31
APPENDIX FOR ANDHRA PRADESHBack to Index
After analyzing all the major states, the shortlisted city for further construction is Bengaluru
4
3
4
3
3
Threats of new
entrants
Buyer's Power
Threats of
substitute
2.5
4
3
4.5
3
3
Political
Economic
Sociological
Technological
Legal
Environmental
0
1
2
3
4
5
6
7
8
9
Service
Range
L&T Realty Vandana Infra PURAVANKARA PROJECTS
KONCEPT AMBIENCE BRIGADE ENTERPRISES Others
PORTER 5 FORCES
PESTLE
Competitor Analysis
PRICE INDICATOR
One of the major reasons for the growing property market in the city is its well
developed infrastructure and basic amenities. Bangalore has a much improved
transportation system. Every part of the city is well connected with each other
thus very easily accessible. The city boasts of 24hour water and electricity supply.
Apart from this, Bangalore is abundant with super markets, malls, multiplexes,
specialty healthcare centers, educational institutes having a positive influence on
the real estate scenario of the market. With the numerous opportunities available
for the investment, the city has attracted a huge number of investors from all over
the world. The investment in the properties of Bangalore is assured of offering
maximum return due to its thriving real estate market.
0
100
200
300
400
500
-500
0
500
1000
Most
Adverse
Adverse Moderate
Adverse
Minimum
Favourable
NPVincrores
NPV in crores

Team: RadioActive
LEGAL RISK
32
PREPROJECTRISKANALYSIS
Procurement of NOCs (L1)
 NOC for construction / augmentation of residential pool accommodation is required from the
Directorate of Estate, Ministry of UD. CPWD also needs to obtain in principle approval from the
Ministry of UD for GPRA and later on case is sent to the Technical Committee of local body for
approval.
 NOC is required for height clearance of Buildings / Structures/ Masts from the Directorate of Air
Traffic Management, Airport Authority of India (AAI), when the project lies within 20 kms. radius
of air strips/ funnel.
 NOC from coastal zone management authority
 No Objection Certificate is required from MCZMA, when the land is near the coast as construction
is not allowed up to 500 meters from the high tide line.
 No Objection Certificate is required from the National Monument Authority
(NMA) / Archeological Survey of India (ASI), when the entire project site or
part/s of it is within 300 meter radius from the declared boundary of any
monument protected under Ancient Monument Act.
 NOC is required from the Railway Authority/Mumbai Port Trust/Defence
when the project site is along the railway corridor / within the jurisdiction
of Mumbai Port Trust respectively.
 NOC is required from the Road Owning Agency when cutting of footpath
or road or service lane or Right of way (ROW) is involved.
Parties Concerned MCGM, PWD, NHAI, MCZMA, AAI, Ministry of UD, ASI, NMA, Railway
Authority, Traffic & Coordination Dept. and the Mumbai Port Trust
Timeframe 6months-1 year to obtain all NOCs. Any delay would lead to higher costs.
Indicators Delay in inter dept transfer of documents for approval from multiple depts
Mitigation Timely submission of documents and to ensure the surveying is quickly done
Solutions To reduce the costs due to delay by postponement of inventory and labour
Expected Shortfall 3.81 Crores
Value at risk (95%) 1047.79 Crores
Parties Concerned Ministry of UD, MHCC, Fire Department, MEF, Tree Authority Committee
and the Municipal Corporation
Timeframe An average of 227 days to complete 30+ regulatory approvals
Indicators Order to review plans if found incompatible with any of the regulations
Mitigation Ensure that the plan is made in accordance with all the regulations
Solutions Work to be initiated after all the approvals are obtained to reduce costs
Land Approvals (L2)
 Land use plan approval required from local body and the State Ministry of UD, when the land use
is shown as Govt. land in the Master plan/Zonal plan of Mumbai.
 Approval for change in land use required from local body and the State Ministry of UD, when the
land use shown in master plan / zonal plan (where the plot is located)/ land allotment letter is to
be changed (as the same is not permitted / not compatible with master plan/ zonal plan).
 Relaxation in respect of density/ ground coverage/ FAR/ setbacks/ height prescribed in byelaws is
required from concerned local body and the Ministry of UD.
 Approval is required from the Tree Authority Committee of Municipal Corporation when there is
a proposal for tree cutting/ felling and transplantation at the site & protection of the rare species
of tree.
 Approval is required from the Maharastra Heritage Conservation
Committee (MHCC) or Appropriate Authority when the project has any link/
relation with any listed heritage building and precincts (as notified by local
Body from time to time) and within their compound.
 Approval /Fire Safety Certificate is required from Chief Fire Officer (CFO)
for the proposals at layout plan stage as stipulated in the local building bye
laws and National Building Code (NBC).
 ENVIRONMENT CLEARANCE IS REQUIRED FROM MINISTRY OF ENVIRONM-
ENT AND FORESTS (MEF)/
µ = 6% σ = 1 % µ = 8.5% σ = 1.2 %
1025 1035 1045
NPV for L2
1045 1050 1055
NPV for L1
Back to Index

Team: RadioActive
FINANCIAL RISK
33
PREPROJECTRISKANALYSIS
Debt and Interest Rate Risk (F1)
Parties Concerned Reserve Bank of India, banks and other lending institutions
Timeframe Over the lifetime period of the project(20years)
Indicators Churn of tenants and correlating it with the current state of the economy
Mitigation To predict the future of the market accurately and raise debt accordingly
Solutions To employ a competent financial institution to quantify and measure the risk
Parties Concerned Reserve Bank of India, banks and other lending institutions
Timeframe This risk is inherent throughout the project lifetime period(20 years)
Indicators Returns on capital are much lower than what was anticipated
Mitigation To calculate cap rate not only based on the market, but also on tenant mix
Solutions To look at past projects and their cap rates and observe the actual inflows
Value at risk (95%) -2181.9 Crores
Capitalization Rate Risk (F2)
 Of all the financial assumptions in a pro forma, cap rate risk is the most extreme since it has a
dramatic effect on an asset’s exit value, and that is why it is included in this list.
 Prevailing cap rates for different asset classes move in ranges and are subject to supply and
demand for that particular asset class.
 A small movement in a cap rate percentage can have a substantial effect on the residual value of
an asset and, in turn, the profitability (or loss) on a particular transaction.
 When an investment opportunity is analyzed, attention is to be paid to the entry and exit cap
rates and the following questions must be addressed:
 1) Is the entry cap rate attractive for this asset when compared to its competitive set
 2) Is the assumed exit cap rate is defensible over the prescribed holding
period?
 Artificially adjusted interest rates (such as those set by the RBI) can
artificially impact cap rates. In other words, with no underlying changes
to the real estate asset or inherent risk to the deal, a property’s cap rate
can fluctuate by 0.5% - 1.0% due to the change in interest rate. While that
may not seem like a lot, it can have a heavy impact on the property’s value.
 In commercial real estate, not all asset types are created equal when it
comes to perceived risk. Multifamily assets consistently have among the
lowest cap rates within a market, because they are considered to provide
lower risk relative to other asset types.
 Placing debt on a project is a common practice but placing too much debt on it or having it
mature at an inopportune time can imperil it, particularly in the event of a market downturn (see
market risk below). Debt risks can lead to foreclosure. Foreclosure isn’t as much of a risk itself but
the unfortunate outcome of the incurred risks of over leverage, debt maturity or a combination of
both.
 Over leverage: If a property loses too many tenants its net operating income can drop to the point
that its debt coverage service ratio can fall below 1.0, which now places the asset into risk of
defaulting on its mortgage. Prudent leverage on an asset can range anywhere from 0% to 80%
depending on the asset strategy. If an asset is leveraged in excess of 80% of value then it should
have a compelling justification for the use of that much leverage. Otherwise, it may be
overleveraged.
 Debt maturity risk: If a property’s debt matures in a down market or at
point when its net operating income is compromised, as noted above, then
the project may be unable to obtain a new loan in the same amount of the
outstanding debt. If investors are unable to infuse the additional capital
necessary to refinance the project then the asset is now in risk of mortgage
default. Debt maturity was one of the major culprits of why projects were
lost during the financial crisis.
 A number of Indian real estate firms saw a sharp rise in debt between
2012 and 2014 due to aggressive expansion plans, some of which failed to
take off because of a weak economy and delayed project clearances.
µ = 1 σ = 10 %
µ = 1 σ = 10 %
-2340 -1840
NPV for F2
285 385
NPV for F1
Back to Index

Team: RadioActive
LABOUR RISK
34
PROJECTPHASERISKANALYSIS
Wages and Productivity of the Workers (La1)
 Despite being the second largest employer in the country, the construction sector as a whole
faces manpower shortage. Further, the sector is heavily dependent on manual labour, faces
longer time lines for construction completions, which results in supply getting deferred.
 Worldwide, construction workers are three times more likely to be killed and twice as likely to be
injured as workers in other occupations. The costs of these accidents are immense to the
individual, to the employer and to society. They can amount to an appreciable proportion of the
contract price.
 In India it is estimated that up to 30 per cent of construction workers are women. They are
integrated into the bottom end of the industry, as unskilled workers or head-load carriers. women
are often employed as part of a family work unit, as the piece-rate system encourages workers to
engage their wives and children to increase output, and in these
circumstances women may work but may not(directly) receive any payment
at all. Also, women are more likely to leave work midway due to health
related issues, and thereby the construction work takes a set back.
 Many labourers are forced to work 10 to 12-hour day, for six days /week,
either because the rates of pay are so low or simply because they want to
earn as much as possible while work is available. This is particularly the case
of workers who have migrated from the countryside.
 The on-site accommodation provided for workers is also rudimentary,
with simple shacks with no running water or sanitation and poor ventilation.
Parties Concerned Contractual agencies, Department of Labour and the builder
Timeframe Over the construction period of 6 years for the project
Indicators Irregularity of workers, slow pace of work and more demands put by them
Mitigation Progress of work to be monitored using cctv and peptalk on fortnightly basis
Solutions Skill development, orientation programs, removal of piece wise wage system
Expected Shortfall 3.94 Crore
Parties Concerned Contractual agencies, Department of Labour and legal agencies
Timeframe Over the construction period of 6 years for the project
Indicators Complaints filed in the labour courts by contractors or in grievance cells
Mitigation To make redressal of complaints easier by means of an online system
Solutions To approach the contractor to go for arbitration rather than go to the court
Expected Shortfall 1.96 Crore
Value at risk (95%) 1076.5 Crore
Contractual Laws (La2)
 Building and other construction workers’ (regulation of employment and conditions of service)
act, 1996 & Rules OF 1998 (workers safety, health & Welfare measures including necessary
amenities). Every building worker registered as a beneficiary under this Act shall be entitled to the
benefits provided by the Board from its Fund under this Act. Any person aggrieved by an order
made under section 8 may, within thirty days from the date on which the order is communicated
to him, prefer an appeal to the appellate officer.
 Building and other construction workers’ welfare cess act,1996 (Cess Payment on cost of
construction for workers welfare). This law is to provide for the levy and collection of a cess on the
cost of construction incurred by employers. The cess rate not exceeding two per cent, but not less
than one per cent, of the cost of construction incurred by an employer
 THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970
(regulate employments of contract labours & provide necessary amenities)..
 THE PAYMENT OF WAGES ACT, 1936 (payment of wage in time). Any sum
required to be paid by an employer, under this chapter but not paid by him
shall be recoverable as delayed wages under the provisions of the Act(Sec 4)
 THE MINIMUM WAGES ACT, 1948 (minimum wage rate fixed by govt. to
be paid)
 EMPLOYEES’ STATE INSURANCE ACT 1948 (scheme of health insurance for
workers in case of sickness & injury)
µ = 4% σ = 1 % µ = 2% σ = 0.5 %
1055 1065
NPV for La1
1074.4 1079.4
NPV for La2
Back to Index

Team: RadioActive
LABOUR RISK
35
Strikes and Workers’ Union Power (La3)
 The Government of Maharashtra has taken a decision to mandate payments to all labourers,
including contract workers through cheque so that the full amount as stated on their pay record
actually reaches them and the government is able to monitor the same.
 Workers working as contract labourers under a contractor would directly register himself/herself
with the respective State Contract Labour Board to help the Government on keeping a track on
the number of workers employed in contract, formulating social security schemes and promoting
effective implementation of the Act. The Board shall regulate social security benefits, regulate the
employment of contract labourers and oversee functioning of the contract labour system in India.
The Central and State Boards shall be governed by the three social partners i.e. Government,
Employers and Workers representatives (Trade Unions).
 Industrial Disputes Act, 1947 is an Act to make provision for the
investigation and settlement of industrial disputes, and for certain other
purposes. Where any employer discharges, dismisses, retrenches or
terminates the services of an individual workman, any dispute or difference
between that workman and his employer connected with, or arising out of,
such discharge, dismissal, retrenchment or termination shall be deemed to
be an industrial dispute notwithstanding that no other workman nor any
union of workmen is a party to the dispute.
 Indian Trade Unions Act, 1926 governs formation of unions in the state.
Parties Concerned State Contract Labour Board, Contractors, Labourers and legal agencies
Timeframe Over the construction period of the project(6 years)
Indicators Labourers going on strike and union leaders pressing for demands to be met
Mitigation To hold weekly meetings with the union leaders to address grievances
Solutions To negotiate with the union leaders and to make sure an impasse is avoided
Examples
 17 buyers filled three cases in NCDRC for fraudulent practices adopted by M/S MVL Limited in
their project MVL Coral, Bhiwadi, Rajasthan. he project was planned with five towers namely
Avenue-1,2,3,4 and 5. Out of 5 towers, only tower no. 5 has been constructed at site as per
approved layout plan. The numbering and layout plans of all other towers were changed for
unprecedented gains by the builder. 3 complainants had booked in tower-5 and all others in other
towers. MVL Limited could not obtain mandatory occupancy certificate for the said project. For
all other complainants commission noted MVL Ltd. had changed its original plans and increased
the number of floors, flooring area, ratio and density per acre. It has caused inordinate delay in
completion of said projects. It has changed zoning plans, usage pattern, super area, carpet area
and alteration of structures.
 MVL Limited was directed to furnish the occupation certificate, within 9 months from date of
orders, as agreed, otherwise, it will carry additional penalty in the sum of
Rs.2,000/ per day for each of the complainants, after the expiry of said 9 months.
 This is an example of legal risk and maintenance risk being exemplified and causing addnl. costs.
 Nine labourers were killed and two more injured after the slab of an under-construction building
collapsed at Balewadi in Pune. A team of thirteen labourers were working on the 13th floor of an
under-construction building which was part of a housing complex known as Park Xpress, a project
by the Pride Purple construction group. Most hailed from the Eastern state of Bihar. He said the
contractors and the project owners were being investigated to ascertain who was responsible for
the tragedy and questions like whether or not the labourers were wearing safety harnesses while
working at that height or why was a safety net not erected below to preclude casualties were
being probed. It was also a case of “illicit construction” as the builders (Pride Purple) had violated
norms by constructing an additional storey (the 13th floor) as permission to build only 12 floors,
plus the basement, was given.
 This is an example of legal risk and rules and regulations were being flouted, labour risk as the
labourers were not adequately paid and operational risk(safety risk) as the labourers were made
to work on a high elevation without any safety gear or a safety net.
µ = 10% σ = 2 %
1010 1020 1030 1040
NPV for La3
Back to Index

Team: RadioActive
OPERATIONAL RISK
36
Safety Risk (O1)
 The average Fatal Accident Frequency Rate (FAFR) in the Indian construction industries is 15.8 for
1000 employees as against 0.23 in the USA. Construction hazards are also rated as eight times
more risky than those from manufacturing sector
 A construction site is a cluttered workplace, having many types of hazards due to complexity of
the work environment, coupled with involvement of unskilled, illiterate and mobile work force
making it all the more difficult
 45 per cent fatalities occur due to fall of persons, 12 per cent by fall of objects, 10 per cent hit
and run by vehicle, 9 per cent by electrocution and 3.5 per cent by collapse of structure or wall
Parties Concerned Builders of the project, Labour Department and the labour unions
Timeframe Over the construction period of the project(6 years)
Indicators Collapse of structures, instances of accidents and equipment failure
Mitigation Have mock safety drills, one safety officer/1000 workers, provide headgear
Solutions To have medical services available on site, regular checking of the site
Parties Concerned Suppliers of material/equipment, buyers and the Electricity/Water Boards
Timeframe This risk is inherent throughout the project lifetime period(20 years)
Indicators Rise in material costs, rise in prices of electricity/water, less buyers/tenants
Mitigation To make a contingency fund to cover extra operational/material costs
Solutions To predict material and operational costs accurately for the project period
Value at risk (95%) 1051 Crores
Inventory and System Risk (O2)
 Fluctuating input cost is a risk inherent to the real estate business. Company operations are subject
to budget overruns due to a number of factors like increase in construction costs, repair and
maintenance costs, sub-contracted service costs and labour costs. Increased operating expenses
may affect profit margins as the prices of properties sold cannot be altered.
 Real estate companies often use an enterprise resource planning systems for integrating its core
activities like architecture, engineering, projects and costing. A breakdown of existing IT systems or
a delay in implementation could disrupt the company’s ability to track, record and analyse the work
in progress, or result in loss of valuable data.
 Inventory in the sector has risen to 2.9 years in first half of 2015-16 (April-March) compared to 2.6
years in 2014-15 and 2.2 years in 2011-12, which is a concern especially in
the current scenario when sales are falling. Revival of property demand
would depend on a meaningful reduction in prices or a drastic improvement
in economic growth resulting in positive customer sentiments. This is unlikely
until FYE17.
 Energy insecurity risks—including higher electricity/diesel prices and
shortages—will likely affect major cities in all the focus countries as energy
demand is expected to outpace production capacity and energy infrastructure.
India faces the greatest price and shortage risks, considering the already
existing—and worsening energy supply-demand gap.
•
µ = 5% σ = 2 % µ = 5% σ = 2 %
State wise fall accidents in India (2015)
Fatal fall accidents in India (2001) 1043 1063
NPV for O1
1043 1063
NPV for O1
Back to Index

Team: RadioActive
MAINTENANCE RISK
37
POSTPROJECTRISKANALYSIS
Health Standards (M1)
Parties Concerned MCGM, MMRDA, NMMC and the CGWA
Timeframe This could pose a risk over the lifetime of the project i.e. twenty years
Indicators Failure of equipment, weakening of parts of building, wearing off of paint
Mitigation To have comprehensive project reviews yearly/bi-yearly to assess damage
Solutions To have a fund for maintenance of the building and levy fees from tenants
Parties Concerned Municipal Corporation, legal bodies and the police department
Timeframe After construction(6 years) till lifetime of project (20 years)
Indicators Low occupancies, dissatisfaction of tenants with the services provided
Mitigation Diverse tenant mix where single tenant can own only ≤ 20% of property
Solutions Formation of a feedback and grievance redressal committee for tenants
Expected Shortfall 0.04 crore
Tenant Rates and Laws (M2)
 Completion-cum-Occupancy Certificate is required from local body/ authority
(MCGM/MMRDA/NMMC) before occupation of a building or part of a building for any purpose.
The local body forwards the proposals to the various other concerned authorities (as mentioned
at S.No. 8 – 21 and 23 & 24) in the city as required for issue of case specific approvals/ NOC before
granting Completion-cum-Occupancy Certificate.
 NOC is required from the Lift Inspector, before granting Completion-cum-Occupancy Certificate
when lifts are installed in a building.
 Potential that unexpected costs may arise due to the condition of the property itself. Aging assets
tend to have more risk for unforeseen problems to surface, such as costly roof replacements or
equipment failure.
 The extent and type of after-sales / maintenance planned by the
developer for the project needs to be evaluated. This is generally
stipulated in the sale agreement and therefore a careful study of the
sale agreement with regards to these aspects must be undertaken.
 NOC is required from the Lift Inspector, before granting Completion
-cum- Occupancy Certificate when lifts are installed in a building.
 Permission is required from the Central Ground Water Authority
(CGWA) to abstract ground water through any energized means i.e. for
digging / installation of a bore well water connection in the site for
drinking water
 Assets that require individual customer service as an important part of executing a business plan
(e.g. multifamily, senior housing, hospitality and storage) are highly dependent upon property
management. In these scenarios, outstanding property management is critical as the day-to-day
onsite operations of the asset will have a direct effect on its performance.
 If a property has the risk of losing too many tenants its net operating income can drop to the
point that its debt coverage service ratio can fall below 1.0, which now places the asset into risk of
defaulting on its mortgage. Prudent leverage on an asset can range anywhere from 0% to 80%
depending on the asset strategy. If an asset is leveraged in excess of 80% of value then it should
have a compelling justification for the use of that much leverage. Otherwise, it may be
overleveraged.
 Rent roll quality refers to credit worthiness, stability and number of
tenants. It questions if tenants of a particular property have staying power,
or could the tenant go out of business, file bankruptcy or default on lease.
 Single tenant vs. Multi-tenant . Single tenants can be 100% leased but if
they default or vacate at expiration, your property is now 100% vacant but
multi-tenant buildings are rarely 100% leased or 100% vacant.
 Rollover risk refers to the remaining term left on leases at a property
and it affects both single tenant and multi-tenant properties.
 Demand and Supply Risk evaluates in terms of the existing supply and
lease rentals for the different type of properties, the vacancies in the
existing properties and disposable income of the consumers.
157 207
NPV for M1
µ = 17.5% σ = 2.5 % µ = 3.5% σ = 1.5 %
211 231
NPV for M2
Back to Index

Team: RadioActive
RISK CORRELATION MATRIX
38
Risk/Risk Legal Risk Labor Risk Operational Risk Maintenance risk Financial Risk
Codes L1 L2 La1 La2 La3 O1 O2 M1 M2 F1 F2
LegalRisk
L1 - 0.8 0 0.2 0 0.2 0.2 0.2 0.2 0 0
L2 0.8 - 0 0.2 0 0 0 0.2 0.2 0 0
LaborRisk
La1 0 0 - 0.8 0.8 0.6 0.4 0.4 0 0 0
La2 0.2 0.2 0.8 - 0.9 0.4 0.2 0.6 0 0 0
La3 0 0 0.8 0.9 - 0.8 0.2 0.8 0 0 0
OperationalRisk
O1 0.2 0 0.6 0.4 0.8 - 0 0.8 0 0 0
O2 0.2 0 0.4 0.2 0.2 0 - 0.2 0 0 0
Maintenance
risk
M1 0.2 0.2 0.4 0.6 0.8 0.8 0.2 - 0.6 0 0
M2 0.2 0.2 0 0 0 0 0 0.6 - 0.6 0.6
FinancialRisk
F1 0 0 0 0 0 0 0 0 0.6 - 0.8
F2 0 0 0 0 0 0 0 0 0.6 0.8 -
Legend
L1 Procurement of NOCs
L2 Land Approvals
La1 Wages and Productivity of the Workers
La2 Contractual Laws
La3 Strikes and Workers’ Union Power
O1 Safety Risk
O2 Inventory and System Risk
M1 Health Standards
M2 Tenant Rates and Laws
F1 Debt and Interest Rate Risk
F2 Capitalization Rate Risk
• The correlation
between various risks
are calculated in order
to determine the
cumulative effect of
the risks if they occur
together.
• It is seen that the
health standards risk
has the maximum
correlation with all the
other risks, hence this
risk when combined
with others would lead
to significant impact
on the revenues
generated by the
project, and this
should be given extra
attention by the
lender.

Team: RadioActive
INTEGRATED RISK ANALYSIS
39
Risk Definition
Overall
Correlation
Weight Score
L1 Procurement of NOCs 1.8 7% 4
L2 Land Approvals 1.4 5% 3
La1 Wages and Productivity of the Workers 3 12% 3
La2 Contractual Laws 3.3 13% 4
La3 Strikes and Workers’ Union Power 3.5 14% 2
O1 Safety Risk 2.8 11% 4
O2 Inventory and System Risk 1.2 5% 3
M1 Health Standards 3.8 15% 3
M2 Tenant Rates and Laws 2.2 9% 3
F1 Debt and Interest Rate Risk 1.4 5% 2
F2 Capitalization Rate Risk 1.4 5% 3
Overall Risk Occurrence Probability 9%
AFFO Net present value = Rs. -1937.7 crores
The integrated risk analysis is extremely
crucial from the lender’s point of view as it
gives an overall picture of the risks
associated with the project and their
impact.
The scores signify the impact the risk
would have on the revenues generated by
the project and the scores would indicate
the probability of the occurrence of the
risk.
The probability of the all the risks occurring
simultaneously is 9 % and the NPV in the
worst case scenario is given below:

Team: RadioActive
40
× Investments attracted by real estate sector from various public and private
sources across India have declined by 6% in past four years i.e. from a level of Rs
15.2 lakh crore as of 2011-12 to about Rs 14.3 lakh crore as of 2014-15
 Private sector accounted a major share of 85% of the total investments attracted
by the real estate sector across India while government or public sources
accounted for the remaining share
× Real estate projects with about 76% of the total investments attracted by the
sector across India remained non-starter during the aforesaid period
Five states namely Maharashtra (21%), Uttar Pradesh (14%), Gujarat (13%),
Karnataka (12%) and Haryana (8%) have highest share in total investments of the
real estate sector in India as of 2014-15
× Jharkhand (40%), Himachal Pradesh (37%), Madhya Pradesh (29%) and Haryana
(16%) have registered maximum fall in real estate investments
 In 2015, overseas PE players invested about $2.3 billion into the sector, as per a
Knight Frank estimate . This indicates a positive economic climate and indicates
more higher investments in the coming years, due to government policies
favouring FDI.
 It is favourable to set up a commercial realty project in Bangalore as the demand
there is high for office space due to the boom in the startup industry and the
opening of many IT offices in the area.s

41
Back
PESTLE ANALYSIS
SWOT ANALYSIS
Competitor Analysis Weighted Rating
Political
Commitment to
attain SDGs and
poverty by 2030
Significant amount
of investment from
Russia
Won accolades
from NITI Aayog
for excellent
governance
Economic
Borrowings of Rs.
21000 crore in
annual budget
Setting up of
industrial
townships of 100
acres in every
constituency
Four new
greenfield
airport projects
to come up in
state
Sociological Creation of 5 lakh
jobs in the state by
2020
CBDT extends 5
year tax sops to 7
districts
Issuance of
special
securities worth
Rs. 8,256 crore
under UDAY
scheme
Technological
UDAY and DISCOMS
working toward
"Power for All"
ADB to provide
funding over $630
million for
technological
advancement
Amaravathi to
become a tech
hub and house
hunting
business will be
'digital'
Legal
Dilution of powers
of APIA results in
lesser time of
clearance of
proposals
New act pertaining
to industrial
corridors to be in
place soon
Rs. 99.62 crore
to be released
under AMRUT
scheme
Environmental
NGT imposes strict
orders on
construction in new
Capital Amaravathi
Large areas of state
are frequenty flood
hit
Dispute over the
Krishna River
with Telangana
Competitors Price Quality
Customer
Service
Localit
y
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3L&T Realty 6.1
ASC 1.5 0.6 1 0.75 0.4 0.15 0.15ASC 4.55
INDIABULLS 1 1.6 1.2 0.9 0.8 0.3 0.2INDIABULLS 6
M.V.V BUILDERS 1.75 1 0.8 0.6 0.1 0.25 0.15
M.V.V
BUILDERS 4.65
ARC ESTATES 1.5 0.8 0.8 0.6 0.1 0.15 0.15ARC ESTATES 4.1
Others 0.75 0.6 0.8 0.75 0.3 0.25 0.25Others 3.7
Weights Ratings Score Weights Ratings Score
Strength Opportunity
Skillful Workforce 10% 4 0.4 Government’s investment initiative 15% 4 0.6
Disruptive growth in construction
equipment 10% 3 0.3 Stable Government 15% 4 0.6
Market leadership 20% 5 1
real estate sentiments index showcase
high demand 5% 2 0.1
Diversified revenues providing
resilience 10% 3 0.3
Exemption limit on account of interest
raised 5% 3 0.15
Weakness Threats
Increasing debt impacting financial
flexibility 15% 2 0.3 Rising material cost 20% 4 0.8
rising manpower and material costs 10% 2 0.2 High inventory levels 10% 4 0.4
lack of adequate sources of finance 10% 3 0.3 Low R&D activities 10% 3 0.3
Insurance for project 15% 2 0.3 Approvals and procedural difficulties 20% 5 1
Team: RadioActive

APPENDIX FOR BIHAR
42
Political
NSDC along with Rise
India to set up training
centres to impart skills
to 50 lakh people
Bihar worst on key
social welfare schemes
of Centre
Economic
Major progress in urban
municipal reforms like e-
governance, water and
energy audit and 90%
collection of municipal
taxes and user charges
State with the youngest
population
Construction sector
growth at 16.58 per
cent annually and
banking and insurance
sector at 17.7 per cent
Sociological
Law and order situation
on the decline
Development work
badly hit due to financial
constraints
Technological
MoUs signed up with
NTPC and NHPC to set
up greenfield power
plants
AAI to revive three
airfields
Legal
Industry promotion
policy in place including
land conversion fees and
stamp duty
Scrapping 20 per cent
capital subsidy to new
industries
Environmental
Madhav Chittle
Committee set up to
combat flooding due to
Farraka barrage
CEE, along with UNICEF,
to come up with new
hygiene model
Back
PESTLE ANALYSIS
Market leadership 20% 2 0.4
raised 5% 3 0.15
Weakness Threats
SWOT ANALYSIS
Customer
Service Locality Amenities Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.1
Rukmani Buildtech 1.5 1.2 1.4 0.9 0.5 0.3 0.25
Rukmani
Buildtech 6.05
Shravani Engicon 1.75 1.4 1.2 0.9 0.6 0.3 0.25
Shravani
Engicon 6.4
AGR Estates 1 1 0.8 0.6 0.3 0.3 0.2 AGR Estates 4.2
Badal Construction 1.25 0.8 0.8 0.6 0.3 0.35 0.15
Badal
Construction 4.25
Others 0.75 1 1 1.05 0.5 0.3 0.25 Others 4.85
Team: RadioActive

APPENDIX FOR GUJARAT
43
Back
PESTLE ANALYSIS
raised 5% 3 0.15
Weakness Threats
SWOT ANALYSIS
Political
Airbnb and the govt to
sign MoU to boost
tourism
Vibrant Gujarat
Summit to attract more
than 120 Singaporean
investors
Economic
Highest tariff of Rs.
6.12 per unit of power
quoted for state
Govt identified more
than 200 hundred
infrastructure projects
for next six months
Sociological
RoPax service to come
up next year leading to
socioeconomic
development
67000 youths to be
appointed in state
services soon
Technological
Telcos like Airtel and
Vodafone recently
introduced 4G services
leading to improved
digitization
Extensive petroleum
refining and port
activites lead to large
technological
developments
Legal
ADR mechanism to
reduce pendency of
cases
Swaraj Abhiyan to set
up district level legal
bodies
Environmental
Two of five Swacch
Bharat awards to be
awarded to the state
State faces 20% deficit
in seasonal rainfall
this monsoon
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 1 1.4 1.6 1.05 0.6 0.4 0.3 L&T Realty 6.35
Iscon Group 1 1.4 1.2 1.05 0.5 0.25 0.4 Iscon Group 5.8
Deep Group 1.25 1 1.2 0.9 0.5 0.25 0.2 Deep Group 5.3
Shree Sharanam
Group 1.5 1 1 0.75 0.4 0.35 0.2
Shree
Sharanam
Group 5.2
Siddhi Developers 1.25 0.8 0.8 0.6 0.3 0.35 0.15
Siddhi
Developers 4.25
Others 0.75 1.2 1.4 1.05 0.6 0.35 0.25 Others 5.6
Team: RadioActive

APPENDIX FOR HARYANA
44
Back
PESTLE ANALYSIS
raised 5% 3 0.15
Weakness Threats
SWOT ANALYSIS
Political
Haryana Tourism to
go for public-private
partnership model
BJP government in
shambles, with
leaders being
attacked time to time
Economic
Centre to invest Rs.
15,000 crore to
extend Panipat
refinery
Chinese real estate
agent Dalian Wanda
to develop industrial
parks in the state
Sociological
Jaat agitaion in the
state led to losses
over Rs. 20,000 crore
and fear in the people
State is second in
terms of number of
police complaints
filed
Technological
Symposium on
MICDTI results in
large technology
transfer
High tech system for
power transmission
to be set up soon
Legal
Swaraj Abhiyan to
set up district level
legal bodies
NITI Aayog
persuades state to
reform land lease
law
Environmental
NABARD takes steps
to revive water table
NABARD sanction Rs.
205 crore loan for
environmental
protection
Customer
Product
Range
Total
Score
L&T Realty 1 1.4 1.6 0.75 0.6 0.4 0.3 L&T Realty 6.05
DLF 1.5 1.6 1.8 1.05 0.9 0.35 0.2 DLF 7.4
Mahindra Lifescape 1.25 1.6 1.6 0.9 0.8 0.3 0.2
Mahindra
Lifescape 6.65
Sobha Limited 1.5 1.4 1.6 1.05 0.8 0.35 0.2 Sobha Limited 6.9
Ansal Builwell 1.5 1 1.4 1.05 0.8 0.35 0.2 Ansal Builwell 6.3
Others 1.5 1.4 1.2 1.05 0.6 0.35 0.2 Others 6.3
Team: RadioActive

APPENDIX FOR JHARKHAND
45
Back
PESTLE ANALYSIS
raised 5% 3 0.15
Weakness Threats
SWOT ANALYSIS
Political
CM Raghubar Das
invites US industries to
‘Make in Jharkhand’
Jamshedpur, Dhanbad
and Bokaro to turn into
smart cities
Economic
CCEA approves Rs.
1,955-cr Bihar-
Jharkhand link road
project leading to more
development
Government to part-
finance GAIL's Rs
13,000-crore pipeline
project leading to
availability of gas for
projects
Sociological
Continuous protests
against projects on
acquisition of land, relief
and rehabilitation
The number of agrarian
riots in Jharkhand
increased by 4,950%
from 2014 to 2015
Technological
Single window clearance
and online application
and approval reduces
project development
time
Digital Jharkhand to
lead to rampant data
driven change and
transformation
Legal
Jharkhand Industrial and
Investment Promotion
Policy, 2016 and
Industrial Park Policy to
support the business
community
Time bound grievance
handling is one of the
key initiatives of the
legal system
Environmental
Seraikela-Kharsawan is
the first district to give
environmental clearance
for small projects
Environmental
protection an integral
part of ‘business
reforms action plan’ to
ease business climate
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
L&T Realty 0.75 1.4 1.6 1.05 0.6 0.4 0.3L&T Realty 6.1
S K Construction 1.25 1.4 1.2 1.05 0.6 0.25 0.25S K Construction 6
Rameshwaram Projects 1.75 1.4 1.2 1.05 0.8 0.25 0.3
Rameshwaram
Projects 6.75
Vasundhra Homes 1.5 0.8 1 0.6 0.3 0.25 0.15
Vasundhra
Homes 4.6
J D Infra 1.5 0.8 0.8 0.6 0.3 0.3 0.2J D Infra 4.5
Others 0.75 1 1.2 0.6 0.5 0.3 0.25Others 4.6
Team: RadioActive

APPENDIX FOR CHHATTISGARH
46
Back
PESTLE ANALYSIS
raised 5% 3 0.15
Weakness Threats
SWOT ANALYSIS
Political
Air services to be
developed in all four
corners of state
Govt obtained
investment
proposals worth Rs.
6,50,000 crore in the
current fiscal
Economic
High number of
thermal power plants
due to availability of
coal
Fivefold increase in
mineral revenue
leading to local
development
Sociological
High naxal activity
leading to
continuous
disruption of civilian
life
Education city
established at
Dantewada for
children afflicted by
Naxal violence
Technological
Companies like
MachineHire help in
easy procurement of
earth moving
machines
Telcos like Airtel
launch 4G internet
leading to
digitalization and
people looking for
housing online
Legal
Bill passed for
privatisation of the
Shivnath River
First State To Have
Commercial Dispute
Resolution Centre
And Commercial
Court
Environmental
CWC approves 12
projects on
Mahanadi leading to
drying up of the
river by 2022
Govt set up panel to
revamp forest law
Customer
Service Locality
Amenitie
s Possession
Product
Range
Total
Score
GT Capital Homes 1 1.2 1.2 1.05 0.6 0.35 0.2
GT Capital
Homes 5.6
Shreeji 1.25 1.2 1 0.9 0.5 0.25 0.25 Shreeji 5.35
Wallfort 1.75 1.2 1 1.05 0.7 0.25 0.3 Wallfort 6.25
Balaji 1.25 0.8 0.8 0.6 0.3 0.35 0.15 Balaji 4.25
Others 0.75 1.2 0.8 1.05 0.6 0.25 0.25 Others 4.9
Team: RadioActive

APPENDIX FOR MADHYA PRADESH
47
Back
PESTLE ANALYSIS
raised 5% 3 0.15
Weakness Threats
SWOT ANALYSIS
Customer
Product
Range
Total
Score
Man Developers 1 1.4 1.2 1.05 0.4 0.25 0.15 Man Developers 5.45
Deveshi Infrastructure 1.75 1.4 1 0.9 0.7 0.3 0.1
Deveshi
Infrastructure 6.15
SkyeEarth Developers 1.75 1 0.8 0.6 0.3 0.25 0.2
SkyeEarth
Developers 4.9
APPOLO DB group 1.25 0.8 0.8 0.6 0.3 0.35 0.2
APPOLO DB
group 4.3
Others 0.75 1.2 1.4 1.05 0.5 0.35 0.25 Others 5.5
Political
Long outgrown its
"BIMARU" status and
experiencing fast-
tracked growth
Stands in fifth
position on ease of
doing business
Economic
Global Investment
Summit(2014) saw
investments worth
$66.1 billion,
witnessing a $20
billion increase from
previous year
Number one state in
the country for
allotment of industrial
land and online
construction permits
Sociological
Top 4 cities just
account for 11% of
the state's population
Human capital and
hman development
indices extremely low
in the state
Technological
Promotion of solar
power by having
biggest solar park in
India
Private intra state air
service to be in
operation soon
Legal
Swaraj Abhiyan to set
up district level legal
bodies to complete
backlog of cases
swiftly
The Code of Criminal
Procedure (Madhya
Pradesh Amendment)
Act, 2007 has ensured
swift justice to
victims, thereby
making the state
more safer and crime
free
Environmental
Failure in obtaining
required
environmental
clearances have led to
cancellation of MoUs
Air Toxicity levels
exceed permissible
limits in the city of
Gwalior
Team: RadioActive

APPENDIX FOR KERALA
48
Back
PESTLE ANALYSIS
raised 5% 2 0.15
Weakness Threats
SWOT ANALYSIS
Political
Allegations of violence
against political
representatives under
LDF rule
The Government has
laid down the roadmap
for India, signifying a
major support to
manufacturing and real
estate sector.
Economic
Opposition of Regional
Comprehensive
Economic Partnership
(RCEP) agreement
State with the high
state GDP per capita
Sociological
12.6% of the
population of the state
is elderly.
100% literacy in the
state, with 11% of
businesses being run
by women
Technological
Partnership with UK to
avail of technical
assistance in smart
cities and infrastructure
development
Collaboration with
Costford on cost-
effective and energy
efficient housing and
usage of renewable
materials
Legal
New legal assistance
facility provided for
NRIs in matters of
property
Vigilance and Anti-
Corruption Bureau is
an extremely strong
and reliable institution
in the state
Environmental
Environmental survey
of 200 acre land to to
faciliate development
of buildings and
commercial complexes
Drought-like situation
in Palakkad district
due to acute
deforestation and
reversal of action of
AHADS
Customer
Product
Range
Total
Score
Nest Infra 1 1.4 1.2 1.05 0.7 0.3 0.25 Nest Infra 5.9
ABAD Builders 1.75 1.2 1 0.9 0.6 0.3 0.3
ABAD
Builders 6.05
VINAYAKA HOMES 1.75 1 0.8 0.6 0.3 0.25 0.15
VINAYAKA
HOMES 4.85
INFRA HOUSING 1.25 1.4 1.4 0.9 0.7 0.35 0.15
INFRA
HOUSING 6.15
others 0.75 0.8 1 0.6 0.5 0.35 0.25 others 4.25
Team: RadioActive

APPENDIX FOR KARNATAKA
49
Back
PESTLE ANALYSIS
raised 5% 1 0.5
Weakness Threats
SWOT ANALYSIS
Political
State faces water dispute
issue with six states
Development sluggish in
North Karnataka due to
delay in proper
implementation of the Dr
Nanjundappa Committee
recommendations on
regional imbalance
Economic
Karnataka to foster
economic ties with Polish
region
NHAI has issued letter of
award (LOA) for two
national highways
sections in Karnataka on
engineering-procurement-
contract (EPC) mode
Sociological
Riots on political issues
are commonplace in the
state
State has a Total Fertility
Rate(TFR) lesser than 2.1
indicating an ageing
population
Technological
Israeli Technology to
resolve the water crisis in
the state
VTU, Karnataka Mines
Department sign MoU to
test suitability of M-sand
for construction
Legal
State law makes it
mandatory for builders
developing a project
where the land exceeds
500 square metre to
register themselves with
the regulatory authority
Several DisputesTribunals
set up to tackle the cases
dealing with water
Environmental
Untreated garbage piling
up at waste management
centres and state
directed by NGT to tackle
this
Grey water to be recyled
to reduce demand in
homes
Customer
Service
Locality Amenities Possession
Product
Range
Total
Score
Vandana Infra 1 1.4 1.2 1.05 0.4 0.25 0.15 Vandana Infra 5.45
PURAVANKARA
PROJECTS
1.25 1 0.8 0.75 0.7 0.3 0.2
PURAVANKARA
PROJECTS
5
KONCEPT AMBIENCE 1.75 1.6 1.6 1.05 0.7 0.4 0.35
KONCEPT
AMBIENCE
7.45
BRIGADE ENTERPRISES 1.25 1.2 1.2 0.9 0.6 0.35 0.25
BRIGADE
ENTERPRISES
5.75
Others 0.75 1.2 1.4 1.05 0.5 0.35 0.25 Others 5.5
Team: RadioActive

Larsen & Toubro Outthink - 2016, IIM Rohtak Final Round

Larsen & Toubro Outthink - 2016, IIM Rohtak Final Round

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