A Report On Project Appraisal and Feasibility Analysisof Sahara City Homes Pvt. Ltd., Lucknow By:- Rahul Jagwani Under the guidance of Prof. S. Jeevananda Authorization:- This report is submitted in partial fulfillment of the requirements of the MBA program of Christ University, Bangalore. This report document titled: “Project Appraisal of Sahara City Homes, Lucknow.” Is done by Rahul Jagwani as part of the completion of the study at Sahara Prime City Ltd(SPCL) during my internship program under the Guidance of Mr. Sunil Pandey Acknowledgement I wish to convey my gratitude towards those people who are responsible for the completion of the project. First of all I would like to thank Prof. S.Jeevananda for providing all the help and support needed by me to complete this project. As I have learned a lot about the underlying principles of the corporate these days. He provided me with helpful insights and what I was to ask company guide and how to go about the project. Next I would like to thank Mr. Sunil Pandey for helping in completion of this project and giving me a chance to work in such a healthy and learning working environment. I would also like to thank the Head of the Departments for teaching me how the various aspects come together to form a synergy and work together to accomplish such a big project. Finance & Accounts – Mr. Abdul Mueed Siddique, Mr. Neeraj Tripathi & Mr. Dwivedi. S.C.M. - Mr. Joy Bhattacharya Planning & Execution – Mr. Vishal Srivastava Quality Control – Mr. Pankaj Ratan Srivastava Marketing & Sales – Mr. Rajesh Singh I would also like to convey my gratitude to the Project Manager Mr. Rajesh Kumar Srivastava who was always with me for any type of help that I needed. I would like to thank all others whose names could not be mentioned and have also helped me a lot about this sector and how to go about working it. I am really thankful to you all for your help in making this project a success. Table Of Contents EXECUTIVE SUMMARY The real estate sector in India has evolved from disorganization and inefficiency to greater organization and transparency, accomplished by various regulatory reforms. In the past, factors such as the absence of centralized title registry providing the guarantee, lack of uniformity in local laws affecting real estate and their application, the unavailability of bank financing, high interest rates and transfer taxes and the lack of transparency in the transaction values led to inefficiencies in the sector. INTRODUCTION About SPCL:- Sahara Prime City Limited We are one of the largest real estate development companies in India, based on the size of our Land Reserves available for development and number of locations in which our Land Reserves are located, which consist of approximately 8,484.65 acres of land, including 4,194.10 lacs square feet of saleable area, which we own or for which we hold contractual development rights. Our business plan is focused on developing 88 integrated townships under the "Sahara City Homes" brand name and 15 residential complexes under the "Sahara Grace" brand name across 99 cities in India. An integrated township typically will consist of a gated community with residential units in the form of apartment towers, townhouses and individual houses together with ancillary facilities such as schools, a hospital, a hotel, retail and leisure facilities. Our residential complexes typically will be smaller scale developments comprised solely of residential units. Our primary source of revenue is expected to be from the construction and sale of residential units within our integrated townships. We currently have construction under way for nine integrated townships and one residential complex, which in the aggregate are planned to comprise approximately 547.10 lacs square feet of saleable area, 85.00 lacs square feet of which is already under construction. We plan to deliver the first residential units in 2011 in our integrated townships in Indore, Nagpur and Lucknow, which are scheduled to be completed in 2013, 2013 and 2017, respectively. We refer to these 10 projects under development, for which land or land development rights have been fully acquired and construction has commenced, as Ongoing Projects. We have an additional 16 integrated townships for which we expect to commence construction within the next 12 months, which we refer to as Forthcoming Projects, which in the aggregate are currently planned to comprise approximately 884.70 lacs square feet of saleable area. We refer to our remaining 77 projects as Upcoming Projects, which in the aggregate are currently planned to comprise approximately 2,762.30 lacs square feet of saleable area. We are part of the Sahara Group, a major business conglomerate in India. The Sahara Group has operations in multiple sectors, including real estate, infrastructure and housing, financial services, housing finance, mutual funds, life insurance, print and television media and film production and distribution, information technology, medical, tourism hospitality and consumer products. The Sahara Group was founded in 1978 and has grown to an asset base of approximately US $12.0 billion to date. Over the past 10 years, the Sahara Group has completed four township projects under the "Sahara States" brand name, located in Lucknow, Hyderabad, Bhopal and Gorakhpur. During that same period, the Sahara Group completed two residential complexes, in Gurgaon and Lucknow, under the "Sahara Grace" brand name, two additional residential projects in Gorakhpur and Lucknow and five retail centers, for a total saleable area of 110.53 lacs square feet. This total saleable area was comprised of approximately 68.16 lacs square feet of residential area, approximately 23.82 lacs square feet of retail and commercial area, approximately 8.00 lacs square feet of healthcare-related area and approximately 10.55 lacs square feet of hospitality- related area. The Sahara Group also has developed approximately 150.00 lacs square feet of saleable area, including facilities to be operated by the Sahara Group or leased to third parties, at Aamby Valley City, a large scale luxury township project. In addition, the Sahara Group has developed approximately 85 kilometers of roads, 350 acres of landscaped area, an airport at Aamby Valley City with a 1,200 meter runway, 12 power stations, three dams and 11 artificial bodies of water. Layout Structure 1. Entrance gate 8. Executive Club 2. Hospital 9. Central Park 3. Sahara School 10. Highrise Apartments 4. Shopping Mall & Multiplex 11. Midrise Apartments 5. Hotel & Club 12. Independent Houses 6. Club & Community Centre 13. Secure Boundary Wall 7. Wave Pool 14. Bharat Maa Naman Sthal Location of the Project:- Lucknow - (North West of main city on 45.00 m wide road) Distance from: Main City (Kms.) 15 Distance from: Railway Stn. (Kms.) 18 Distance from: Airport (Kms.) 27 Distance from: Bus Stn. (Kms.) 15 Products Offered:- High Rise Apartments – 1. Great – 1 Bedroom 2. Crown – 2 Bedroom 3. Gorgeous – 2 & 3 Bedroom The high rise blocks rising upto nine floors on the stilt offer a panoramic view of well manicured greenery, amenities, facilities and the entire township. These apartments will have abundance of fresh air & sun shine. All the high rise blocks will have six/eight apartments on each floor and four penthouses on the ninth floor of Type B (Crown) and Type C (Gorgeous). Bounties of nature, security and social identity will be an integral part of all the dwellings. Continuous water supply through boosters and lifts backed by DG sets for non-stop movement will ensure convenience and comfort. Mid Rise Apartments – 1. Zenith – 3 & 4 Bedroom The duplex on six floors of mid rise blocks are equipped to meet the multi-faceted lifestyle of the more discerning populace. The three & four bedroom duplexes are well designed to maximise comfort while making a statement of style & elegance. Open in most cases on three sides, the apartments enjoy an unhindered view, natural light and cross ventilation. An oasis of tranquility, Duplex apartments are the latest trend in urban living. Independent Houses – 1. Exotic – 2 Bedroom ( Independent Row House) 2. Meridian – 4 Bedrooms ( Independent Row Houses) 3. Grandeur – 5 Bedrooms (Independent Bungalows) Designed on the plot area of 1844 sq.ft. these units (unit area 1823.93 sq.ft.) offer all the features of independent living. A patch of green in the front & a private courtyard at the back, the residents shall have their own share of sun, breeze & open sky. The majestic, well- designed, spacious and comfortable independent bungalow will undoubtedly be the symbol for a princely lifestyle. The entire bungalow has been conceived to fulfill the standards of sophistication and style which are second nature to the connoisseurs of good living. Nothing but the best can be expected from these luxurious homes. These bungalows are planned over a plot area of 473.98 sq. m (5100 sq. ft.) with unit area of 396.12 sq. m (4262.31 sq. ft.)#. The vast lawns, terrace and open spaces exude a touch of class which is discreetly evident. Price List :- Proposed Amenities -: 1. Multi Level Security 9. Infrastructure Backup 2. Transport services 10. Bharat Maa Naman Sthal 3. Central Park 11. Essential Services 4. Hospital 12. 100% Power Backup 5. School 13. Retirement Home 6. Mall & Multiplex 14. Sahara Care House 7. Hotel & Club 15. Environment Conservation 8. Clubs & Community Centre 16. Seamless Connectivity Quality, The Essence Integrated Management System The recent emergence of Integrated Management System (IMS) certification as per ISO 14001, OHSAS 18001 , and ISO 9001 provides an important opportunity to companies to acquire the label of sound enterprises in terms of its Environmental, safety and quality, social performance and improve their economic performance at the same time. IMS provides an organisation systematic, structured and documented approach to address environmental, safety and quality issues effectively in an auditable manner.