Kay2 Steel launches premium quality TMT bars at affordable price

New Delhi: Steel bars are the integral part of construction industry as they help hold the entire building against the onslaught of various natural and environmental effects.

However, due to paucity of time or lack of awareness, people generally don’t pay attention while selecting steel bars for foundation and pillars. Even price factors too forces building contractors to choose low quality steel, which can prove detrimental for the buildings' life.

But things are changing now as steel companies are making high quality steel bars which are stronger and affordable too.

Kay2 Steel Limited, a relatively new player in the TMT industry, has recently launched premium quality Steel Bars (TMT bars) under the brand Kay2 which are equipped with best earthquake resistant technology.

The Kay2 TMT Bars including FE-415 & FE-500 have become the most preferred TMT bars for constructions which also come at highly affordable prices. However, the company did not specify the possible price factors.

These editions of TMT bars are made from premium quality materials using product innovation, structural flexibility and advanced technology. They are manufactured with strict adherence to quality standard and can withstand highly saline and damp climate for a very long span of time, a company release said.

The high strength and ideal flexibility of Kay2 TMT bars adequately meet building requirements. Moreover, the quality standards of Kay2 TMT bars are higher than BIS norms, and the special feature of earthquake resistant to provide more strength to the various constructions. These properties of Kay2 TMT Bars make it widely used materials in commercial and industrial building construction.

According to Sunil Agarwal, Director Kay2 Steel Limited, “With the launch of Kay2Steel, our mission is to offer best quality steel bars at the doorsteps of the people. We want people should compromise on steel when it comes to prices. At Kay2 we have given the optimum combination of technology quality and pricing.”

Though Kay2 Steel is a new entrant in the multi-billion dollar steel bar industry, within a short span of less than 12 months the company has made a very strong foothold in key markets of India including Punjab, Haryana, MP, Bihar, UP and Rajasthan etc.

Today Kay2 has Approx 1000 sales points and distribution networks serving steel bars needs of India, the release noted.

Apollo Global Exits Ahuja Constructions' Mumbai Residential Project at USD 69.35 Million

DUBAI, United Arab Emirates: NYSE-listed global private equity fund Apollo Global Management has made an exit from super-luxury residential project Ahuja Towers of Mumbai-based Indian real estate company 

Ahuja Constructions at approximately 69.35 Million USD (Rs 460 crores).Apollo had invested approximately 30.1 Million USD (Rs.200 crores) in the Ahuja Towers project for 49 per cent voting rights in the company. 

With over $90 billion as corpus for India, Apollo Global Management is one of the largest global private equity funds investing in diverse sectors ranging from Logistics, Textiles, to Real estate etc. 

Apollo has taken successful exit from its investment in the Ahuja Towers project wherein they made approximately 69.35 Million USD (Rs.460 crores) for their investment of approximately 30.1 Million USD (Rs.200 crores approx.) resulting in multiple of 2.3 times on their investment value.

When contacted the spokesperson of Ahuja Constructions, they confirmed the exit.

This comes at a time when most realty funds are finding it difficult to exit their investments in Indian real estate projects amid a slowdown in the property market. Ahuja Constructions used the money invested by Apollo Global Management to develop the 53 storey super luxury residential project Ahuja Towers which has redefined the skyline of Worli Mumbai in India.

Apollo Global, with over $162 billion of assets under management, had recently set up real estate private equity platforms in Asia with offices in Shanghai, Hong Kong and Delhi, among other cities.

Joint Ventures for Sustainable Real Estate Development

The Indian real estate sector is currently passing through a critical phase and the government has finally realized the fact that there is a need to create positive environment in order to attract investments and kick-start the sector, if we are to achieve housing-for-all by 2022, writes Manju Yagnik, Vice- Chairperson, Nahar Group.

Towards this end, the government has begun the process of initiating a number of favorable industry policies like Relaxed FDI rules, proposed Development Plan 2034, State Regulatory bill,  Smart Cities, GST etc. These are some key drivers which have the potential to improve the market sentiments and propel growth of the realty sector in India. 

Real Estate sector is the second largest contributor to the economy after agriculture. The growth of this sector is therefore essential for the economic growth of the country.

The main challenges faced by developers during 2015 were uncertainties in government policy which directly affected the confidence level of the buyers and the developers alike, issues related to the easy access to funds and liquidity crunch faced by most developers during the year as banks and financial institutions were hesitant to lend to the sector and ease of doing business. Both these factors delayed new project launches and slowed down completion of ongoing projects.

In such a scenario where there is a dearth of capital or limited avenues to raise funds for development of projects, there is a growing trend being witnessed that of developers who are now looking at joint partnerships to develop projects. Here, there are two types of joint venture (JV) partnerships namely - one with the land owner and developer and the other where like-minded developers come together to develop projects. This kind of association takes care of capital requirements, reduces the risk involved and helps in faster development of larger residential projects.

The joint venture where landowner jointly develops the property with developer has been quite successful and currently a few leading developers are developing projects based on this type of a model. Here, developers partner with the land owners in jointly developing the property. This type of development is mutually beneficial to both the parties as the developer does not have to invest large capital to buy the land (which constitutes nearly 50% of total project cost) and the land owner will not have to arrange funds for the construction nor will he have to scout for developers to construct and market the project. The Joint Venture partnership also facilitates developers with local expertise in a new city where a developer wants to start a project. This way a developer can look at starting projects in multiple cities with local partners.

Nahar Group too has few of such projects which are on-going and upcoming.

This is currently trending in the real estate sector due to various reasons, one of them being market slowdown and dip in sales, which in turn has created liquidity crunch and limited access to funds by developers. In fact, with the passing of the Real Estate Regulatory Bill we may see more of such alliances as submission of 70% of project revenue into escrow accounts, being made mandatory, would ultimately limit the liquidity of the developers.

But on the flip side, the State Regulator bill could lead towards finally getting industry status for the sector. The HRA will help in weeding out fly-by-night operators who malign the industry and bring more transparency. Also, this will result in well established players getting a wider platform to operate, with more clarity and possibly single window permission being made available as the regulator would require the completion of the project in given stipulated time frame. Banks and financial institutions will also not hesitate in advancing loans once industry status is achieved.

The other recent trend that is gaining traction among leading developers across the country is that of a few developers forming an alliance to undertake residential projects jointly. Here the concept is based on individual developers bring to table their respective expertise in developing the project. For instance one developer will bring in the capital, another helps in getting necessary approvals from local authorities and third constructs the project while the fourth does the marketing of the project.

In this way each developer, based on the expertise, takes care of one department in the entire gambit of project development which ensures economy of scale, reducing risk and completion of project within the given time frame. Of course this is done with a lot of pre-arranged agreements acceptable by all partners.

These joint ventures seem to be the result of developers trying to beat the downturn and sustain themselves in a rather competitive and challenging environment. As the saying goes "Tough times call for Tough measures" can be apt to describe these innovative plans of developers in the given situation and time to come.

Therefore to conclude, joint venture is the new paradigm shift in real estate development and we can look at more of such associations among various stakeholders within the real estate industry partnering together in the hope of getting better valuation and self-sustenance in the long term.

About the author: 

Ms. Yagnik has been associated with Nahar Group for over two decades. After completing her graduation from Kurukshetra University, she decided to use her skills in a profession that was challenging but yet matched her passion. She entered the real estate industry by  joining the Nahar Group. Creating unique land spaces, coming up with unique initiatives for consumers, understanding consumer behaviour, being a decision maker, managing people, she has been a part of every activity in this group since then

IRB Infra to Build SE Asia's Longest Tunnel in J&K

NEW DELHI: IRB Infrastructure will build Southeast Asia’s longest tunnel at Zojila pass in Jammu & Kashmir at an estimated cost of Rs 10,050 crore to provide all weather connectivity to the Leh-Ladakh region.

Zojila pass, situated at an altitude of 11,578 feet on Srinagar-Kargil-Leh National Highway, remains closed during winters due to heavy snowfall and avalanches, cutting the Leh-Ladakh region from Kashmir.

“IRB Infrastructure Developers Ltd, one of the largest BOT road developers in India, has received a Letter of Award from Ministry of Road Transport and Highways (MORT&H) for the construction, operation and maintenance of the longest tunnel in Southeast Asia, Zojila Pass Tunnel, in Jammu and Kashmir,” the company said in a statement.

It is the biggest national highway project awarded in India in terms of project cost with a tunnel length spanning 14.08 km and costing of Rs 10,050 crore.

It will include approaches on NH-1 (Srinagar-Sonmarg-Gumri Road) in Jammu and Kashmir on design, build, finance, operate and transfer (annuity) basis, the statement said.

The project has a strategic and socio-economic importance as it will provide much needed all weather connectivity between Jammu & Kashmir and Leh-Ladakh, which remains cut off during winter due to heavy snowfall, it said.

The order also involves construction of tunnel spanning length of 14.08 km and approach road of 10.8 km with three vertical ventilation shafts, snow gallery of 700 meters and avalanche protection measures.

“We are happy to get the project and we are confident that our work force will meet the challenges of the Himalayan terrain and build the tunnel well in time,” IRB Infrastructure Chairman and Managing Director Virendra Mhaiskar said.

“The concession period for the project is 22 years. IRB Infra will receive semi-annual annuity of Rs 981 crore from commencing after completion of construction of the project which would be received twice in a year till the end of the concession period,” he said.

By bagging this contract, IRB expands its base to the ninth state in the country and the company order book size swells to Rs 16,430 crore.

The tunnel project is part of the Prime Minister Narendra Modi’s Rs 80,000-crore development package for Jammu and Kashmir, which he had announced in November.

The package included Rs 42,611 crore for development of roads and highways in the state. The highways packaged included “construction of Zojila tunnel” as per the PMO.

Last year, Road Transport and Highways Minister Nitin Gadkari had told PTI: “We are committed to all-round development of Jammu and Kashmir. We will begin work soon on Rs 10,000-crore Zojila pass tunnel, which would be even bigger than the 9-km long Chenani-Nashri tunnel in the state, which is India’s longest road tunnel at present.” 

Construction industry should be regularised to check pollution: ASSOCHAM

With fast deteriorating air quality in big cities like Delhi-NCR leading to tougher regulatory norms such as the odd-even policy for private cars, the high stake construction industry should be prepared to deal with possible public outrage and must devise ways for meeting such challenges, an ASSOCHAM Paper noted. 

"There are a number of environmental concerns that impact the Indian construction industry. These include erosion, contaminated soil, lead paint removal, air contamination by asbestos particles, disposal of hazardous material, dust control and noise level," it said. 

Mapping various policy and regulatory risks which have increased with rising environmental concerns, the paper stated these issues were also flagged by a working sub-group of the erstwhile Planning Commission. 

"We have begun this exercise of sensitising various stakeholders in the construction industry since a perception is gaining ground as if unplanned construction, done in a crude and unscientific ways is among the main culprits of pollution in big cities," ASSOCHAM Secretary General D S Rawat said. 

The paper highlighted the fact India is urbanised only the extent of 31 per cent but urbanisation at a faster pace is imperative for a sustainable economic growth. The construction industry has a major role in stepping up the urban development. 

  

"After an aborted attempt to smoothen land acquisition, any controversy on environment pollution is the last thing that the industry wants," the ASSOCHAM said. 

  

In the absence of planned and organised urban development, cities have witnessed mushrooming of slums which now account for a quarter of all urban housing. Mushrooming growth of slums with lack of sanitation and absence of waste disposal add to the city pollution.

“Pollution in some of the big cities is becoming unbearable and as happened in the past, the court intervention, accompanied by pressures from civil society, health activists and environmentalists would bring in tougher regulatory norms for a host of industries which should be living up to these challenges by technology innovation and going green in their approach,” the chamber said.  

  

Except for the top 20 players, the Indian construction industry is highly fragmented, family owned, or based on individual ownership. "The process of evolving has been painfully slow and unplanned. Even a lot of construction happens in the primitive way with concrete and bricks being moved by head load. Mechanisation has crept in as projects have become large but these are only a small fraction of the construction market, ASSOCHAM noted.

Carlson Rezidor Signs MoU to Open Seven Hotels in Jammu and Kashmir

NEW DELHI: Carlson Rezidor Hotel Group, one of the world's largest and most dynamic hotel groups, has announced the signing of a portfolio agreement with Mushtaq Group of Hotels to open seven hotels comprising 817-rooms under the Radisson Blu, Radisson and Country Inns & Suites By Carlson (SM ) brands, in Jammu and Kashmir. 

The seven hotels will be located in the main gateway markets throughout the state and will position Carlson Rezidor Hotel Group as the largest international hotel operator in Jammu and Kashmir. The first hotel is expected to open in the fourth quarter of 2016 in Srinagar, a release said.

"This multiple-hotel portfolio deal underscores the rapid rate of Carlson Rezidor's expansion and reinforces our leading position in India, a key market that we remain deeply committed to. We are pleased to be forging a new partnership and will be employing our proven strategy of signing conversions as well as new builds to establish a strong brand presence efficiently and expediently," said Thorsten Kirschke, president, Asia Pacific, Carlson Rezidor Hotel Group.

Raj Rana, chief executive officer, South Asia, Carlson Rezidor Hotel Group added, "The region enjoys strong domestic leisure demand and is home to some of the most visited leisure destinations in India. Integral to our growth in India is an emphasis on expanding in leisure markets and state capitals. With the signing of this portfolio, we will make inroads into the summer and winter capital of Jammu and Kashmir, as well as provide our Club Carlson members an international brand choice in high demand leisure driven markets such as Srinagar, Pahalgam and Gulmarg."

Across India, Carlson Rezidor has close to 120 hotels in operation and under development. Currently, the group's footprint extends across 45 Indian cities, including 14 state capitals. By 2020, Carlson Rezidor expects to have more than 170 hotels in operation and pipeline in India. The group's growing brand portfolio in the country spans the mid-scale to upper upscale segments. In 2015, the hotel group signed 15 new agreements in India, indicative of the strength of its brands and relationships.

"We are excited to tie up with Carlson Rezidor Hotel Group. We are a leading hospitality group with ownership across all major locations in Jammu & Kashmir. We have grown rapidly during the last decade and aim to continue this momentum. Our vision is to promote Jammu & Kashmir and make it a preferred tourist destination not only for travelers within the country but globally. I am confident our partnership will accelerate realization of our vision," said Mushtaq Chaya, chairman, Mushtaq Group of Hotels, that has interests in hospitality and commercial real estate development.

Radisson Blu Srinagar is a 225-key new build hotel located in the heart of Srinagar city. The site is well located and is within easy reach of Dal Lake and the city's main attractions. The hotel is located approximately 3 kilometers from the city centre and 10 kilometers from Srinagar Airport. Radisson Blu Srinagar is scheduled to open in the second quarter of 2020.

Radisson Blu Resort Tangmarg is a 150-key new build hotel nestled within a 25-acre site in the Himalayan mountains. The site is just 13 kilometers from Gulmarg, which is widely regarded as one of the top winter sports destinations of the world. Radisson Blu Resort Tangmarg is scheduled to open in the fourth quarter of 2021.

Radisson Srinagar is an 89-key conversion located in the heart of Srinagar within 2 kilometers of the main commercial and retail hubs of the city. It is close to golf courses, Dal Lake, Sher-i-Kashmir International Conference Center and Asia's largest tulip garden. Radisson Srinagar is scheduled to open in the fourth quarter of 2016.

Radisson Pahalgam Golf View Resort is a 118-key conversion located in Pahalgam, approximately 7,200 feet above sea level. It offers direct access to the picturesque Pahalgam Golf Course. Radisson Pahalgam Golf View Resort is scheduled to open in the third quarter of 2018.

Country Inn & Suites By Carlson Gulmarg is an 80-key conversion. Gulmarg has been rated amongst the top five ski destinations in Asia by CNN. Country Inn & Suites By Carlson Gulmarg is scheduled to open in the first quarter of 2020.

Country Inn & Suites By Carlson Jammu is a 55-key conversion located in Gandhi Nagar, an upscale commercial and residential area in the heart of Jammu city. The hotel is close to Jammu Airport and Jammu Railway Station. Country Inn & Suites By Carlson Jammu is scheduled to open in the third quarter of 2017.

Country Inn & Suites By Carlson Sonamarg is a 100-key new build hotel located close to scenic Himalayan glaciers and trekking routes in Sonamarg. The hotel is accessible by the Srinagar-Ladakh highway. Country Inn & Suites By Carlson Sonamarg is scheduled to open in the fourth quarter of 2018.

Carlson Rezidor currently has 102 hotels in operation across Asia Pacific and 92 more hotels in the pipeline. For more information and development opportunities, please visit www.carlsonrezidor.com.

Maharashtra Housing Regulator Will Ensure Fair Deals For Home Buyers

Arvind Jain, Managing Director - Pride Group

When the ruling NDA government at the Centre is still fighting to get Real Estate Regulatory Bill passed in the Rajya Sabha, Maharashtra is all set to have its own State-level realty regulator, as chief minister Devendra Fadnavis has cleared the decks for this much-awaited initiative.

The Maharashtra housing regulatory authority has the best of intentions at heart, and will enforce higher levels of transparency. It will fill a number of gaping loopholes at one go. One of the highlights of the policy is that it will make registration of real estate developers and contractors under a competent authority mandatory. Without such registration, developers and contractors will not be granted permission to conduct business at all.

Because registration was so far not been required by law, it was possible for literally anyone with some land and capital to become a real estate promoter. This is one of the primary reasons why there has been such a massive spate of illegal buildings of spurious construction in the peripheral areas of our cities. 

Unfortunately, a majority of buyers - especially in the budget housing segment - maintained a kind of blind faith that anyone who has the capacity to raise a building has to be registered somewhere, and that his activities are therefore happening according to some basic industry norms. This has led to countless buyers in Maharashtra being cheated by unscrupulous people who do not honour even the most fundamental criteria of ethics. 

The MHRA will go a long way in protecting home buyers from delays in possession timelines, literally empowering them to take control of a project that has been stalled because of any reason. In fact, the regulator will literally separate the wheat from the chaff by presenting a firm legal rationale for buyers to opt only for registered, properly capitalized developers who have a convincing record of timely completions and standardized quality of construction. 

In short, the HRA marks the beginning of the end for fly-by-night operators and the plague of malpractices that has been holding the real estate sector in Maharashtra to ransom for far too long. However, in its current draft, it does not appear to acknowledge the massive issues that real estate developers have been facing on their part. 

Apart from protecting buyers from unscrupulous developers, it should also protect developers from unscrupulous government bureaucrats and agencies who have rendered the entire development process an expensive nightmare. If the state government intends to play the role of facilitator and enabler with this policy, it should work both ways and ensure that credible developers are not hampered.  

About the Author:

Arvind Jain is Managing Director of The Pride Group, a world-class property development conglomerate that is changing the cityscapes of Pune, Mumbai and Bangalore. Established in 1996, Pride Group has built and delivered over 10 million sq.ft. of constructed area. Pride Group has recently launched Pride World City, the 400-acre luxury mega-township at Charoli, Pune.

Disclaimer: The opinion/s expressed by the author is his own and the moderator doesn't necessarily endorse the same.