this is a pestel analysis of l&T realty - the new baby of anilnaik

1. PESTEL ANALYSIS OF L&T
REALTY

2. ABOUT COMPANY
• Started in 2012
• Anil Naik’s youngest baby
• With in 3 years L&T has
launched multiple projects and
competes with top players like
DLF ,LODHA

3. CURRENT PROJECTS
• Cresent bay – parel ,Mumbai
(Sale price of 16000/sqft vs 22-28k of other developers )
(Construction Cost of 7000)
• Emrald isle – powai ,Mumbai
• Eden park – OMR ,Chennai
• Raintree Boulyard –Bengaluru
• Seawoods grand central – Navi Mumbai
• L& T Business park –Powai ,Mumbai .
0
2000
4000
6000
8000
Cost/sqft of cons. Area
COST

4. USP’S OF L&T REALTY
• Brand value of L&T and trust that
comes with that name
• company is converting their on
land parcels ,not buying land
parcels
• Not venturing to be a PAN india
player
• No prelaunch sales before getting
all approvals
Source : business standard

5. PESTEL ANALYSIS
WHAT WORKS?
• ‘Make in india’ campaign and
extra foreign investements
comes along with that
• ‘Housing for all 2022’ and its
effect on Real estate
developments
• Support of government in
rehabilitation (SRA) projects
WHAT IS AGAINIST?
• Revised draft DCR 2034 –
Mumbai and revised applications
on TDR ,Fungible FSI
• RERA BILL 2016
(Developer majorly
concentrates on mumbai as
majority of its land parcel is
in or around MMR)
POLITICAL

6. PESTEL ANALYSIS
ECONOM
Y

7. PESTEL ANALYSIS
WHAT WORKS?
• The government has recently
permitted 100% FDI in construction
sector.
• Indians (NRIs) are permitted to
invest in Housing and Real Estate
sector. This includes persons of
indian orgin
• Development of townships and
infrastructure
• REIT
WHAT IS AGAINST?
• INDIA is a sales driven market .
• Decline in real estate sector right
now.
ECONOMY

8. PESTEL ANALYSIS
WHAT WORKS?
• Brand name of a builder or the
company plays an important
role in convincing the buyer to
buy the house and be sure of
the quality of construction work
done. This is one thing L&T
realty has as a USP.
• Green Building Projects.
(All projects developed by L&T are
green certified)
WHAT IS AGAINIST?
• Resistive attitude of society
towards the modern construction
materials. This is due to the fear
of safety and security
• The concerns regarding powai
region projects .
SOCIAL

10. PESTEL ANALYSIS
WHAT WORKS?
• Emergence of new
construction technologies in
India
• Use of high end formworks in
projects
(mivan ,kumgkang ,self
climbing type formworks)
• Skills L&T construction
possess over this much years
WHAT IS AGAINIST?
• Indian construction industry is
atleast 10 years behind global
standards .
• Due to lack of technology,
construction can suffer in terms
of quality and design.
TECHNOLOGICAL

11. PESTEL ANALYSIS
• Various environmental
factors affect the cost of
construction like
• Availability of labor force
• Transportation cost
• Quality and cost of land
and demand
• Uncerain environmental
hazards
• Political unstabilities Uncertain environment
environmental

12. PESTEL ANALYSIS
• Most complex
system of taxes
and approvals
• Ranked 184 in
ease of getting
construction
approvals
Legal factors
• No pre sales before
approval strategy
What works?
• What is against?

13. Political • No new launch is declared till
establishment of RERA
• Very high support to SRA projects &
MHADA projects
Economical • Self standing stratergy
• Very careful with joint ventures
• Converting their own land parcels
Social • Knows peoples pulse
• Attracts NRI customers a lot and is a
part of strategy also
Technological • Best we get in india .
• Very specialised team of L&T backing
up
Environmental • Should be very careful with moef
guidelines
• All launched buildings have green
aspects in design
Legal • No pre sales before approval

14. THANKS FOR THIS OPPORTUNITY