SUMMER TRAINING PROJECT REPORT ON “ANALYSIS OF RETAIL ESTATE DEVELOPMENT IN CONTEXT TO BIG APPLE REAL ESTATE PVT LTD” SUBMIT REQUIREMENTS FOR THE MASTER’S DEGREE IN INTERNATIONAL BUSINESS OF H.N.B. GARHWAL UNIVERSITY, SRINAGAR SUBMITTED TO: INTERNAL GUIDE EXTERNAL GUIDE MS PARVI BHARTI MR ABHISHEK LECTURER MANAGEMENT TRAINEE IMS BIG APPLE REALESTATE DEHRADUN LUCKNOW SUBMITTED BY: MOHIT SINGH ( MIB 0914) INSTITUTE OF MANAGEMENT STUDIES- DEHRADUN BATCH 2009-2011 1 2 ACKNOWLEDGMENT Before I go into the details of my study, it will not be fair on my part if I fail to acknowledge the helping hand considerably supported me for summer project. I express my profound sense of gratitude to SANJAY BANERJEE, GM of Big Apple for giving encouragement in taking up the project. A special mention of Mr. Abhishek (Finance Manager) and Mr. Sumit Jalota (Marketing Manager), Big Apple, for their valuable guidance throughout the training. It would be my privilege to thank the whole team of Big Apple, Luknow, for being cooperative and extremely helpful through out the tenure of the internship. It would be my pleasure to grant the sincere word of gratitude to my teacher and internal guide Ms. Parvi bharti guiding me all through the 1st and 2nd semester of my M.I.B. in IMS without whom this project would not have been a success. At last but not the least, I express my indebtness to my parents, friends and other trainees who provided me support throughout this project. They have been a perennial source of inspiration for me. MOHIT SINGH MIB- 2nd Sem IMS Dehradun 3 CERTIFICATE I have the pleasure in certifying that Mr./Ms. ...…………..……........………..……... ………………… is a bonafide student of III Semester of the Master’s Degree in International Business (Batch 2008-2010), of Institute of Management Studies, Dehradun under H.N.B. Garhwal University Roll No. ………..……. He/She has completed his/her project work entitled ………………........................................................ …………………………………………………………………………………………… ……….…….. under my guidance. I certify that this is his/her original effort & has not been copied from any other source. This project has also not been submitted in any other Institute / University for the purpose of award of any Degree. This project fulfils the requirement of the curriculum prescribed by this Institute for the said course. I recommend this project work for evaluation & consideration for the award of Degree to the student. Signature : …………………………………… Name of the Guide : …………………………………… Designation :……………………………………. Date : …………………………………… 4 EXECUTIVE SUMMARY A summer Training of two months is an integral part of M.I.B. programme. It provides the student with opportunity to experience the market condition in which the company works in a war zone of rapidly changing competitions. The project undertaken by me at Big Apple Real Estate Co., Lucknow as part of Summer Internship Program provided me an opportunity to understand about the real estate construction industry and to gain an insight into the various strategies employed to cater this segment of the industry. The project deals with the housing, hospitality, retail construction industry. There are many companies in the world that are involved in the construction of these things but still Big Apple is able to maintain a good position amongst all. In today’s competitive world the topper is always doing something different from others or may be the same thing in a much more different way. The same logic goes for the business world too. With new competitors coming every now and then the field of business, the company positioning should be strong enough to retain its position in business. The main aim was to study the Indian market in context to future prospects and comparative analysis of the companies with Big Apple involved in construction industry. It also comprises of the study about the customer satisfaction, government policies and market opportunities in the real estate sector. The analysis of Indian market reveals the useful data to evaluate the Indian Market for entry and investment by foreign companies. 5 The conclusions drawn from the study clearly indicate that in today’s scenario somewhere or the other Big Apple is playing a very important role in the development of the infrastructure in India but still needs a proper planning and better strategies to reach the top. Indian industry has a potential for international markets like USA, U.K, Germany etc. so it should adopt more reliable strategies and sophisticated technologies. 6 INDEX . TITLE PAGE. 1 . ACKNOWLEDGEMENT. 3 . INTERNAL GUIDE CERTIFICATE. 4 . COMPANY TRAINING CERTIFICATE. 5 . EXECUTIVE SUMMARY. 6 . LIST OF CONTENTS. 7 . LIST OF TABLES AND FIGURES. 8 . OBJECTIVE OF THE STUDY. 10 . INTRODUCTION. 12 . COMPANY PROFILE. 36 . RESEARCH METHODOLOGY. 50 . FINDINGS. 58 . DATA ANALYSIS. 72 . CONCLUSION. 87 . SUGGESTIONS. 88 . BIBLIOGRAPHY OR REFERENCES. 89 . ANNEXURES. 91 7 LIST OF TABLES & FIGURES page no 1) Graph representing visit to Malls 78 2) Graph representing visit to particular malls 79 3) Graph representing preference of shopping at malls 80 4) Graph representing different influential decisions involved while 81 purchasing in malls 5) Graph representing about the feedback of PHOENIX mall 83 6) Graph representing purpose of visiting malls 84 7) Graph representing feedback of the time to visit malls 85 8) Graph representing feedback regarding visits to malls 86 8 OBJECTIVES 9 OBJECTIVES I have been given this project titled “ ANALYSIS OF RETAIL ESTATE DEVELOPMENT IN CONTEXT WITH BIG APPLE REAL ESTATE PVT LTD. LUCKNOW” The key areas of the project are:- . Identifying the major competitors of real estate in the global market. Identifying the prospective areas for project . Comparison of different services provided by big apple with there competitors . identify the need & wants of the real estate customers . knowledge of the government policies and norms . knowledge of the FDI Regulations . Identify the market opportunities of big apple 10 INTRODUCTION 11 INTRODUCTION The Indian economy has transformed substantively over the last two decades, growing consistently at an average of 8 per cent and is poised to take its place among the leading economies in the years to come. Strong performance of the economy can be particularly attributed to healthy growth in manufacturing and services sectors. The economic performance of India has provided strong impetus to the real estate sector, which has been witnessing heightened activity in the recent years. Substantial end-user and investor interest, large scale investment in infrastructure and rapid urbanization have contributed to the growth trajectory of Indian real estate. The real estate growth story is clearly visible in urban centres such as Delhi, Mumbai and Bengaluru which have acquired global character and recognition. Indian Real Estate: Riding the growth wave The strong fundamentals of the Indian economy are having a favorable impact on all asset classes of Indian real estate viz. housing, commercial – office space and retail and hospitality. In recent years, the growth has spread out to tier-II and III cities as well. High growth in services as well as manufacturing sector has resulted in high demand for commercial and industrial real estate. Further the economic growth has trickled down to the large Indian middle class increasing affordability and affluence. Improving living standards are driving the demand for better quality housing and urban infrastructure. In fact, housing in India is today moving from being viewed as a purely basic need to an aspirational purchase. Though high interest rates coupled with soaring property prices have temporarily impacted affordability of home buyers the demand-supply mismatch and low home loans to GDP ratio in India (a meager 5 per cent as against more than 50 per cent in US, UK and Germany) are expected to fuel demand for housing in the medium long run. The growth of the sector has been complemented by favorable policy changes like liberalization of Foreign Direct 12 Investment (FDI) guidelines and significant increase in investment on physical infrastructure. Booming Indian real estate Demand Pull Factors Resultant Impact Supply push Factors Resultant Impact . Robust and . Increasing . Policy & . Entry of sustained occupier base Regulatory number of macro . Significant reforms (100 domestic & economic rise in demand per cent FDI foreign growth for Relaxation) players . Upsurge in office/industri . Positive increasing Industrial al space outlook of competition business . Demand for global & consumer activities, esp. newer Investors affordability new economic avenues for . Fiscal . Easy access sectors entertainment, incentives to to mean of . Favourable leisure & developers project demographic Shopping . Simplification financing Parameters of urban . Increases . Significant . Creation of development developers rise in demand for guidelines risk appetite consumerism new housing . Infrastructure & allows . Rapid support & large scale urbanisation development development . Gamut of by . Improved financing government quality of options at real estate affordable assets interest rates 13 Booming Indian Real Estate REAL ESTATE The recent times have also witnessed an evolution of the sector - towards greater institutionalization and corporatisation. With the entry of global players, inflow of foreign capital, evolution of capital markets, geographical diversification and introduction of reforms, the sector has undergone some significant structural