Global Tracks

“Rediscovering India”

Manoj Motta – Session Chairman

AVP – Inorbit Malls (India)
May 22nd 2007 - Las Vegas
 Presentation scope & flow :

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
nce upon a timeIndia was the lan

everyone wanted
 Exotic Diamonds
Lush Palaces

Monuments in Gold

Majestic Forts
not to forget snake charmers, elephants
& Art forms like kathakali
 come
thetimehas back
Rediscovering “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
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 have ideas
Educated
Assertive

This is the NEW INDIA

Demanding

Opportunities And wanting more

now let’s get into the heart
of the matter
1. Macro Economic
Indicators
Macro Economic Indicators
- India
 Macro Economic Indicators
- India (Continued)
Improving macro economic variables…
Average growth of 6% since 1998 Inflation has remained at 5-6% range

GDP Growth Rate (%)

Year

 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

Source : Business World, Marketing White Book – 2003 & 2005

 Forex

India is achieving
self sufficiency – generating
disposable surpluses
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)
2. Consumption Forecasts
Consumer Behavioral Trends
 Overview of the Retail Market
in India.
Contribution from Organized Retail
 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 Years taken growing from <5% to current
of organized retail will rise to 10-12% by 2010. This represents huge market share
opportunity for prospective new players.
Percentage of Outlets by Square feet
 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
Source: HSBC Jumbo Retailing, May 2005
India are less than 250 sq ft
Source: Chain Store Age, KSA Technopak, CLSA
 Demographics
Shifting Age Profiles
60 & 6.3% 7.0% 7.9% 8.9%
above

58.2%
15-59 60.4%
62.5%
yrs 64.0%

0- 14 35.5%
yrs 32.6% 29.6% 27.1%

Y2001 Y2006F Y2011F Y2016F

Source : Business World, Marketing White Book – 2003 & 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
 Improving socio economic profile
1. Rising per capita GDP since 2. Increased literacy among
1997 masses
Per Capita GDP in US $ (at constant prices) Education cess of 2% is being charged on all direct
growth has been particularly high at 12.7 % p.a. and indirect Central taxes. The proceeds of the
during the period 2002-2004 at back of a robust cess are channeled into the “Prathmik Shiksha
and booming economy. Kosh” maintained by the Ministry of HRD & are
available for basic education and Mid Day Meal
NSSO’s survey indicates that people living Scheme.
below the poverty line declined during the Higher education system in India is very robust and
period 1997-78 and 1999-2000 from 51% to one of the largest in the world with:
26% respectively (from 329 m to 260 m in  259 Institutions
absolute terms)  10,750 Colleges
 8 million Students
Improved Literacy Rate  4,00,000 Teachers

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%

Source: Planning Commission, Ministry of Health and Welfare

 Improving socio economic
profile… (2)
3. Healthcare
The 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

Life Expectancy has gone up indicating better welfare

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 146 110 80 63

1000 births)

Source: Planning Commission, Ministry of Health and Welfare

Consumption Forecasts
 Changing Consumer Behavior

Demographic Changes Kids become more demanding Lifestyle branding

Willingness to experiment Increase in no. of working women More Nuclear families

 In View Of The Rapidly Expanding
Spend Categories…

1991 2005 2012

1. Food and Grocery 1. Food and Grocery 1. Food and Grocery
2. Clothing 2. Clothing 2. Clothing
3. Footwear 3. Footwear 3. Footwear
4. Consumer durables 4. Consumer durables 4. Consumer durables
5. Home linen 5. Expenditure on DVDs and VCDs 5. Expenditure on DVDs and VCDs
6. Movies and theatre 6. Home linen 6. Home linen
7. Eating out 7. Home accessories 7. Home accessories
8. Accessories 8. Accessories
9. Gifts 9. Gifts
10. Take-away/ Pre cooked / RTE meals 10. Take-away/ Pre cooked / RTE meals
11. Movies and theatre 11. Movies and theatre
12. Eating out 12. Eating out
13. Entertainment parks 13. Entertainment parks
14. Mobile phones and service 14. Mobile phones and service
15. Household help 15. Household help
16. Travel packages 16. Travel packages
17. Club membership 17. Club membership
18. Computer Peripheral & Internet 18. Computer Peripheral & Internet Usage
Usage 19. ???
20. ???
21. ???
22. ???
Source : Technopak
Note: The above categories account for 80% of consumer spending
 Organized retailing is set to enter
a high growth stage
Expected 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.

FDI*Regime

Earlier Regime Present Regime Future Expectations

No Foreign Investment 100% FDI in single brand 100 % automatic FDI in All retail formats
allowed Rationalization in Custom Duties
* These rules are only pertaining to area limit. For details of FDI rules, refer to FDI slide in Real estate Overview Section
3. Response of Stake
Holders
a. Retailers & Marketers
 Evolution of Indian Retail
Environment
Modern Formats/
International

Traditional/Pervasive Government Supported

Reach
Historic/Rural Reach

Exclusive Brand
Outlets
Hyper/Super
Markets
PDS Outlets
Department Stores
Convenience Stores Khadi Stores
Shopping Malls
Mom and Pop/Kiranas Cooperatives
Weekly Markets
Village Fairs Availability/ Low
Shopping
Melas Neighborhood Experience/Efficiency
Costs / Distribution
Stores/Convenience
Source of Entertainment
 Retailers Response
From “Street Smart” Locations & Bazaars…
 Retailers’ Response
To well attended “High Streets”
 Retailers’ Response
To well attended “High Streets”
Retailers Response cont…
Retailers Response cont…
3. Response of
‘Stake Holders’

b. Real Estate
 Real Estate Overview

Size and Growth: The size of the Indian real

FORWARD LINKAGES
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. Residential

Real Estate Hospitality Retail

High Contribution to GDP: Real estate Commercial Warehouses/

logistics
forms one of the key components of economy Office Space
IT/ ITES

and the contribution of real estate services, Others

housing and construction sector to the economy

is ~14% (2004-05).
BACKWARD LINKAGES
Multiplier Effect: Established significant
linkages with other sectors and an estimated Steel
Core
250 associated industries apart from the Cement
Industries
Paints/ Chemicals
considerable multiplier effect it has on the Heavy Engineering Equipments
economy as a whole. Brick/ Tiles
REAL ESTATE/
Electronics CONSTRUCTION
(Equipments, Raw Materials Copper &–Aluminum)

Importance for Indian Economy: Survey by

ICRA highlights that Construction ranks third
amongst 14 major industries in terms of direct, Transportation/ Logistics
Service Labour Services
indirect & induced effect on all sectors of the Direct Labour
economy. 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
Distribution of retail space - 2007
S ou th Zon e, 18%
N o rth Zon e, 39%
E ast Zon e, 1 0%
W est Zon e, 3 3%
Source: Images Retail, Knight Frank
 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.
 INDIA
State-wise Malls
Punjab,
33 Malls
11.45 Mn
NCR, 115 Malls
19.0 Mn Total No. of Malls
Rajasthan,
5 Malls
proposed in India* : 558
1.20 Mn
Total B/U area of Malls in
Gujarat,
India* : 123 Mn
Madhya Pradesh,
24 Malls
Malls, 4.45 Mn
7.10 Mn

W. Bengal,
25
Malls 5.80
Mn
Maharashtra,
251 Malls 54.35 Mn

*Note: The number of

AP, 26 Malls Malls and B/U area
Karnataka,
4.73 Mn above stated are from
23 Malls,
6.90 Mn
11 states only

Tamilnadu,
Kerala, 23 Malls
3.34 Mn
25 Malls
4.47 Mn
 INDIA
City-wise Malls
Amritsar (5)
1.35 Mn
Ludhiana sft
(13)
5.25 Mn sft Faridabad (12)
2.40 Mn sft
Jalandhar (5)
1.04 Mn sft ` Ghaziabad (12)
2.30 Mn sft
Chandigarh/Mohali (8)
3.6 Mn sft
Noida (14)
4.9 Mn
Total No. of Malls
Jodhpur (1) New Delhi (49)
10 Mn sft
sft (28)
Gurgaon proposed in India* : 558
0.15 Mn 5.3 Mn sft
sft
Jaipur (2)
0.2 Mn sft Total B/U area of Malls in
Rajkot (1)
Udaipur (2)
1.0 Mn sft
India* : 123 Mn
0.12 Mn sft Bhopal (1)
Vadodara (9) 1.0 Mn sft
Ahmedabad (8) 2.62 Mn sft
2.69 Mn sft Indore (6) Kolkotta (25)
Surat (6)
2.68 Mn 5.78 Mn sft`
1.66 Mn sft
sft
Kalyan (3) Nasik (3)
0.85 Mn 0.82 Mn
Gr.Mumbai (104) sftNagpur (5)
sft
20.74 Mn sft
1.03 Mn
Thane (22) sft
6.36 Mn sft Aurangabad (10)
Navi Mumbai (18) 1.71 Mn sft
5.21 Mn sft Hyderabad (18)
Pune (68) 3.33 Mn sft
13.93 Mn sft
Secunderabad (4) Vijayawada (4)
0.75 Mn sft 0.67 Mn sft
*Note: The number of
Mysore (8)
B’lore (15)
6.03 Mn
Malls and B/U area
0.86 Mn
sft
sft
above stated are from
Calicut (10)
1.29 Mn sft
Chennai (23)
3.34 Mn sft
11 states only
Kochin (15)
3.18 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 5800Retail start ups

Blackstone Group 1000Commercial and Residential

Carlyle 500-750 Commercial and Residential

GE-Ascendas Fund 500IT Parks

Trikona Capital Group's Trinity Capital Fund 450Real Estate & Infrastructure

Infrastructure Leasing & Financial Services Realty Fund 502Equity-linked instruments of real estate companies

Och Ziff 400Residential Property Development

ICICI Ventures (India Advantage Fund III) 300Office, Residential & Retail Property Development

Santa Fe 300Infrastructure and housing development

Rreef/DB Real Estate, a unit of Deutsche Bank AG 300Housing

JM Morgan Stanley 300Tier I, II and III city development

Walton Street 300Residential Property Development

Kotak Mahindra Realty Fund 300Retail, Hotels, Hospitals

American International Group 250 -300 Residential Townships

Horizon International Fund (Pantaloons) 263Areas of more than 50,000 sq ft

Ascendas IT Park Fund 230IT Parks

Siachen fund ( Equity Fund ) 100Luxury Apartment Development

Response of Stake Holders

d. Government
 Government’s response
Setting up Regulatory & Information
Dissemination Framework… enabling growth

CSO
Central Statistical Organisation
 Improving urbanization levels…

1981 1991 2001

Population growth 24.7% 23.8% 21.3%

(decennial)

Urban population (% to 23.3% 25.7% 33.4%

total)

% of urban population in 60.4% 65.2% 73.7%

Class I cities India-Rate of Urbanization (1971-2011)
Source : Census of India

 Urban population has grown by 31% against 18% in rural areas for the period 1991 – 2001

 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

 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
 and infrastructure growing…

Roads & Highways Sector Aviation Industry

 Road Development Plan – Vision 2021 of  Huge traffic growth demands strong airport
Indian Road Congress, estimates road infrastructure. Worldwide air traffic will grow at an
development of around 242,000 Kms by annualized rate of 5% that is double every 14
2011 with an estimated investment of 60 bn years. India air traffic to grow faster than the
USD average on the back of strong GDP growth
 Plans to develop 100% of National
Highways, 50% of State Highways and  Proposed Investment = Rs 136 Bn
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

Ports

 Privatization of ports has gathered momentum. The sector is likely to attract 100-120 bn
over the next couple of years
 Proposed outlay for 10 th plan Rs 163 bn
 Sagarmala Maritime project – Planned outlay of Rs 1090 bn
 Railways

 Indian Rail network of 63000 km is the world’s second largest under a single management.
Network growth has been slow
 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

 Proposed investment (modernization + National Rail Vikas Yojana) = Rs 320 bn

Power

 India has a total installed power generation capacity 105000 MW. The growth in generation
capacity has lagged behind demand for power.
 Annual Power deficit of 7.3% observed in previous years

 The government’s programme “ Power for All by 2012” aims to close this gap

 The power sector is poised for fresh investments of about Rs 1717 bn over the next 6-7 years.
4. 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
 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
 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
 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…

Key challenges in the Indian retail market

Large geographic
Area 59

Infrastructure
59
Constraints

Distribution costs 46

Fragmented Market 44
Lack of
Distribution networks 42

Lack of distribution
32 (% respondents who chose)
hub

Source: KPMG Consumer Markets Survey

 Transparency International - Asia
Real Estate
2006 2004
Transparency Index

Tier 1 – Highly Transparent Australia Australia

New Zealand New Zealand
Hong Kong
Singapore

Tier 2 – Transparent Malaysia Hong Kong

Japan Singapore

Tier 3 – Semi Transparent Taiwan Japan

South Korea Taiwan
The Philippines South Korea
Thailand The Philippines
India Thailand

Tier 4 – Low Transparency The People’s Republic of China The People’s Republic of China
Macua India
Indonesia Indonesia

Tier 5 - Opaque Vietnam Vietnam

Source: JLL Global Real Estate Transparency

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.
 Bribe Payers Index 2006

Source: Transparency International

A score of 10 indicates a perception of no corruption, while 0 means corruption is seen as rampant.

 Global Real Estate Transparency Index - 2006
Score 1-5 04 06 Transparency
06 04 Country 06 Tier Tier change

25 29 Mexico 2.51 3 3
26 24 Czech Republic 2.69 3 3
27 25 Hungary 2.76 3 3
28 28 Poland 2.76 3 3
29 30 Israel 2.86 3 3
30 27 Taiwan 2.86 3 3
Source: Jones Lang LaSalle, LaSalle Investment Management
Denotes a country moved up one tier from 2004 31 34 South Korea 2.88 3 3
Denotes a slight improvement in transparency 32 Na Slovakia 2.99 na 3 na
Denotes a moderate improvement in transparency 33 31 Chile 3.11 3 3
34 32 Greece 3.13 3 3
Denotes a significant improvement in transparency
35 38 *Russia 3.22 4 3
36 35 Philippines 3.30 3 3 no change

37 37 *Brazil 3.31 4 3
38 Na *Slovenia 3.35 na 3 na

39 36 Thailand 3.40 3 3 no change

40 40 Argentina 3.41 4 3
41 41 *India 3.46 4 3
. Changing Urban Landscap
Case Study – Pune,
Maharashtra
 Pune Location - Map

Maharashtra Map

India Map
Map Source: www.mapsofindia.com

Pune Map
 Geography – Pune - Maharashtra

• 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
City Urbanscape Growth - 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
Urban Fabric-Past - Pune - Maharashtra
Urban Fabric-Present – Pune - Maharashtra
 6. Infliction
6. Infliction points
points
 Inflection Points

Favorable long-term demographics

2001 2013
55+
54-54
35-44
Age

25-34
15-24
5-14
0-14
200 100 0 100 200 (millions)
Population
Source: DB research Source: Bric Report
Consumption Forecasts
 Growth of Services Sector…
Percentage Share in GDP Number of Seats in call centers
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
Source: RBI, DB Research

Thailand 11,000 13,000

Significant job creation in ITES sector
Singapore 10,000 10,100

Source: Industry Interaction

 Real Estate Demand Drivers –
Growth Spurt in IT & ITES Industry
1. Preferred Destination: India has emerged as the preferred destination for IT enabled services and is the
global hub for outsourcing activities i.e. back office/ support functions, Business Process Outsourcing
(BPO) or Knowledge Process Outsourcing (KPO).

GROWTH OF IT & ITES INDUSTRY

2. Size & Growth: The IT and ITES industry
has witnessed a CAGR of 28% over the last
five years (adjacent graph) and is expected
to grow at a CAGR of 32% (2003-12) from
US$ 12 billion to US$ 148 billion by 2012

3. Main Occupier of Office Space: The

industry is the predominant occupier of
office space in the country accounting for
close to 80% of all office space absorption
currently
Source: Nasscom

4. Future Requirements: The total requirement from IT & ITES industry for next 4-5 years expected to
be about 100 – 150 million sq ft i.e. 25 - 30 million sq ft annually as against an absorption of about 14
million sq ft in 2004
 Real Estate Demand Drivers –
Growth of Tourism Industry
GROWTH OF TOURISM INDUSTRY

Source: Ministry of Tourism

High Growth: India recorded a growth of 20.2% in foreign exchange earnings from tourism in the year
2005 with total receipts at US$ 5731 million and US$ 3514 million till July 2006.The influx of tourists is
at a high with a record 3.8 million tourists arrivals in the country in 2005.
Potential for being a Leading Tourist Destination: By 2020, India is expected to be a leading tourist
destination in South Asia with more than 8 million tourist arrivals
Fueling Growth of Hotel Segment: Fast paced growth of the tourism industry in India, would fuel the
Hotel Segment of the real estate industry
 Infliction Points

From To
While the mystery continues to unfold….
 there we are
at the wonder once again
ne need not look hard enough
ealize it’s all being made here
right now, as I speak
It’s time to be part of that
wonderful unfoldment
Welcome to India!

Inorbit’s Future Development
Plan and Phasing
Inorbit Malad
•Operational since 2003
•BUA=510,000 SFT/ Carpet=360,000 SFT
Inorbit Village Pocharam
•Trading Date 1st March 2008
•BUA=360,000 SFT/ Carpet=320,000 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 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 Lifestyle,Vadodara
•Trading Date 1st Sept ember- 2009
•BUA=400,000 SFT/ Carpet=300,000 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 Indore
•Trading Date 1st March 2010
•BUA=450,000 SFT/ Carpet=280,000 SFT
Inorbit Whitefield, Bangalore
•Trading Date 15th July 2010
•BUA=280,000 SFT/ Carpet=190,000 SFT
Inorbit
•Trading Date 2011
•Koba-Ahmedabad,
•Kadamba-Goa,and Airoli
Thank you
Manoj Motta
manoj.motta@inorbit.in
mmotta@kraheja.com
 Real Estate Demand Drivers –
Large and Growing Consumer Class
Disposable Income has grown at 11%
600 18.0%

The Classes 1994 -

Personal Disposable Income (US$ bn.)

16.0%
500

14.0%

Y-o-Y growth (%)

400 12.0%

10.0%

The Rich
300

8.0%

200 6.0%

4.0%
100

(Above Rs 215,000) 1 millio

2.0%

0 0.0%
FY98 FY99 FY00 FY01 FY02 FY03 FY04

1. India would have 160 million families in

the consuming class

house 2.
 Target market for organized retail

Historic trend in household income levels

have been positive
Negative growth in ‘destitutes’
Consuming class has grown by 14%
Source: The Marketing White Book, Business World – 2003, 2005
Super Rich’ segment has doubled

Source: National Income Statistics – October 2004