Tatas, the best Indian brand in the world: ASSOCHAM

The $ 100 billion house of the Tatas is perceived as India’s best known global brands not only within the country but also overseas, an ASSOCHAM Perception Survey of top CEOs.

A broad view emerging from the survey conducted among 78 top CEOs and heads of companies spread over major cities, including Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, London, Singapore and New York was that the group head Ratan Tata occupies the well-deserved iconic status, who has taken the group from largely an Indian family-owned business house into a professionally managed global conglomerate. 

The group has interests in steel, automobile, telecommunication, information technology, chemicals, beverages and hospitality, among other areas.

About 77 per cent of those who participated in the survey, conducted in the first fortnight of December, said they are confident that Tata’s successor Cyrus Mistry will be able to steer the group well.

Infosys Technologies, Wipro, Mahindra and Mahindra and Aditya Birla Group were the other major Indian corporate house brands, listed to have made their mark on the global business landscape, the survey pointed out.

However, the brand Tata stood out among all the top Indian corporates, perceived as the truly international brand, it said.   

 However, the biggest challenge for Mistry would be to ensure that the Tata companies are able to sail through the global slowdown, since the group operates in some 80 countries, several of which are in the grip of difficult times.

While the change of guard at the Bombay House, the headquarters of the Tatas later this month is on the corporate calendar, it would go down as a landmark occasion, among the most watched events for several years.

Emergence of TCS as India’s number one software export company with a turnover of USD 10 billion,   launch of the Nano car in 2009, takeover of Anglo-Dutch company Corus, (renamed as Tata Steel Europe), acquisition of Jaguar Land Rover from Fort Motor Company in 2008 and acquisition of the Tetley brand by Tata Tea (renamed as Tata Global Beverages) have gone down as the major milestones  for the group, the survey respondents said in their e-mail responses. The Rs 4.51 trillion group gets about 58 per cent of the turnover from the global operations.

“The Tatas story which began in 1868 by Jamsetji N Tata has been the most successful story of India Inc. The role played by Ratan Tata and JRD Tata in making the group truly global has been deservedly recognized all over the world, ASSOCHAM President Rajkumar N Dhoot said in his comments on the survey.

The best of the perceptions for the Tatas was seen in Western Europe, followed by the US and the south-east Asia, the survey found. The recent acquisitions and Europe and turn-around of Jaguar Land Rover even in the difficult business made quite a difference in the brand perception. 

Besides making bold business decisions and running the businesses professionally, one of the hallmarks of the group has been its ethical business practices. “It requires a lot of courage and guts to remain steadfast in a business environment, which we find, is often mired in controversies. This is one group anyone in the world can bet on,” Dhoot said.

Mahindra and Mahindra, led by its dynamic leader Anand Mahindra and the Infosys Technologies were rated quite high among the Indian corporate, known for their courageous global moves.

Realty software firm AMP Tech to expand Chennai facility

Chennai: US-based real estate software and services company AMP Technologies plans to increase its headcount at its Indian centre here ten-fold to 1,000 by 2015 with primary focus on the commercial real estate market back home, said a top company official.

"Our focus is the US market and not India. In addition to products we also have services division that caters to the commercial real estate market in the US out of Chennai," AMP's chairman and co-founder Sabeer Bhatia told reporters here Thursday.

According to him, the company will be growing its services business which in turn would also grow the software sales.

AMP Technologies offers software products that products business intelligence and analytics to large players in the commercial real estate segment, an IANS report said.

The company's services division offers services like lease administration, finance and accounting and due diligence for the commercial real estate players.

According to Bhatia who founded Hotmail and later sold it, he is the only sole financial investor in the company.

The idea to float the company came about when he and Neel Naicker, co-founder and CEO, were not able to get information on the commercial real estate market, Bhatia said.

He said the real estate players use software products that were developed several years back and the data generated by them are inadequate.

Naicker said the company offers three software products - AMP Intelligence (business analytics), AMP Lease (tracking of lease agreements during the entire lease life) and AMP Files that enables sharing of files.

Bhatia said the company's software extracts information from various sources and provides the same to the customers with analytics on varied devices- personal computer, laptop, tablet or mobile phone.

Speaking about the market, Bhatia said globally around $1 billion was spent on commercial real estate services alone and out of that nearly 50 percent was spent in the US.

Interestingly Naicker, with his roots here - as his grandparents were from the city - is coming to the city for the first time and for Bhatia, the visit here is after 24 years.

"The last time I came here was about 24 years back to get my visa to go to the US," Bhatia said.

In the US, he founded Hotmail which was later sold to Microsoft.

Dismal mall space supply recorded in key Indian cities

India’s total mall supply for the year 2012 has witnessed a disappointing 3.44 million square feet (MSF) mainly due to deferment of over 58% of the announced projects in top eight major cities, according to Cushman & Wakefield’s latest retail reports, which put the blame on government’s announcement of FDI in both single and multi-brand retail. 

Jaideep Wahi, Director, Retail Agency, Cushman & Wakefield India said, “The expectation from FDI announcements in retail – both single brand as well as multi- brand – has been welcomed by developers as it would generate greater demand for quality space. However given that the actual demand resulting from these announcements would take 12- 18 months to start manifesting, many developers with initial plans for retail have pushed their projects for next year thus widening the gap between expected to actual mall supply for the year. An expected 12 msf of new mall space is expected in 2013 which will be a mix of deferred spaces as well as new projects.” 

The highest deferment of supply was recorded in Mumbai and Hyderabad where none of the planned supply entered the market, followed by Chennai (87%) and NCR (75%). Total of 10 new malls started operations in 2012 with Bengaluru witnessing the highest mall supply of 1.86 million sq. ft. in this year, the report further said.  

Average mall vacancy across cities stood at 20%, a decline of 1% over last year, partly aided by the large deferment of malls. Ahmedabad has witnessed the sharpest drop of 7% in mall vacancy levels even while it recorded the highest vacancy levels in 2012. Hyderabad, Mumbai and NCR witnessed marginal improvements of 1-2% each on account of increased leasing activities. Bengaluru and Chennai witnessed approximately 2% rise in mall vacancies owing to influx of new mall space and a general non availability of quality mall space in these cities. 

“Established retailers are scouting for quality retail spaces, be it malls or main streets. Quality has been a key concern for most retailer especially international brands, thus despite existing available retail space, mall vacancy remained high. Good connectivity to large catchment areas with ample infrastructural support is the pre-requisites for retail spaces in malls and main streets of any locality to attract the retailers and command good rentals,” Jaideep Wahi added.

MALLS

While Ahmedabad witnessed the highest average mall rental increase of 23% over last year followed by Kolkata at 12%, Pune saw a decline of 4% in mall space rentals owing to a slowdown in retailer activity and an oversupply condition for mall space in certain micro markets, the report pointed out. 

Vastrapur in Ahmedabad has showed the strongest growth of 60% while Pune (Nagar Road) and Bengaluru (Banerghatta road) rose considerably by 30% during the year. Many micro markets in Bengaluru (Cunningham Road, Rajarajeshwarinagar, Whitefield and Mysore Road) recorded year on year drop in mall rental values. 

The highest year on year drop of 43% was recorded in Cunningham Road while the rest of the locations dipped in the range of 13-25%. Pune’s MG Road micro market also witnessed slight mall rental decline of 6% over the year in the absence of demand due to the low availability of quality mall space.

HIGH STREETS

Mumbai saw the highest average increase in high streets rentals of approximately 16% year on year which was closely followed 14% in Kolkata. The high street of Vittal Mallya Road in Bengaluru experienced maximum rise of approximately 58% in rentals closely followed by Colaba Causeway (approximately 56%) in Mumbai. 

Khan market remained the most expensive retail location with rental values at INR 1250/sf and registered a rise of approximately 4% over last year. While most high streets experienced rise in rentals or remained stable, select high streets of Bengaluru (Brigade Road, Sampige Road, Kamanahalli Main Road and Commercial Street) and Chennai (Usman Road – North and Anna Nagar 2nd Avenue) witnessed year on year drop in rental levels, the report further stated.

Maken lists schemes to provide affordable housing for urban poor

To help the urban poor, who have been overlooked by banks and financial institutions to lend housing loans stating their ‘informal nature of employment’, the centre has been implementing Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) wherein 5% interest subsidy is given for loans upto Rs. 1 lakh, said Ajay Maken, Union Minister of Housing & Urban Poverty Alleviation (HUPA), in the Rajya Sabha.

A Credit Risk Guarantee Fund with a corpus of 1,000 crore has also been set up to secure the housing loans provided to EWS/LIG beneficiaries upto Rs. 5 lakh, the minister said in a written reply to a question raised by Jharna Das Baidya.

The Minister stated that banks and financial institutions hesitating to lend for housing to Economically Weaker Section (EWS) households as they lack demonstrable credit worthiness due to informal nature of their employment and irregular cash flows. Channelization of credit EWS / Low Income Group (LIG) segments is also affected by the higher risk perceptions by the banks.

Pointing out that ‘land and colonisation’ are the state subjects, he said, “It is the primary responsibility of states to provide affordable housing to all citizens. However, in order to supplement and complement the states’ initiatives, the centre has been implementing various schemes in this regard like Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Rajiv Awas Yojana (RAY), ISHUP and Affordable Housing in Partnership (AHP).

Technical Group on estimation of urban housing shortage in the country which was constituted by Ministry of Housing & Urban Poverty Alleviation, has estimated that the total urban housing shortage at the beginning of the 12th Five Year Plan period i.e. 2012 is 18.78 million. According to Census of India 2011, the total number of vacant houses in the urban areas is 11.09 million (or 10.10%) of the total number of census houses in urban areas i.e. 110.14 million.

Hitachi hosts ‘green technology, clean city’ forum in India

Gurgaon: Hitachi India,  a leader in the air-conditioning systems and construction machinery, has recently hosted an Environment Forum "Green Technology, Clean City" at The Oberoi Hotel in New Delhi to discuss the importance of green technological solutions for meeting India's infrastructural challenges and urban growth requirements. 

The forum was inaugurated jointly by P.K. Tripathi, the Chief Secretary of Government of NCT of Delhi and Takeshi Yagi, Ambassador of Japan to India. The forum was one of events of the 60th year of India-Japan global relationship.

Takashi Kawamura, the Chairman of Hitachi Ltd. and Hiroaki Nakanishi, the President of Hitachi Ltd were present on the occasion. Nakanishi said, "As a corporate citizen, all the employees at Hitachi are sharing the responsibility and accountability and joining such a global effort to improve the world environment and create better life. In 2008, Hitachi set Environmental Vision 2025, our long-term plan for reducing CO2 emissions by 100 million tons by fiscal 2025 through our products and services. We are also aiming to make all of our products and services eco friendly by fiscal 2025. I am delighted that these activities could also serve the needs of India in its endeavor to create cleaner and greener society."

The Forum was attended by host experts from government, NGOs, industry representatives, civil society activists, academicians and media to deliberate on the hurdles faced by India's urban development. The Forum successfully stimulated the debate for adoption of eco friendly policies and practices, eco friendly solutions and help build sustainable urban centers.

Hitachi Environment Forum "Green Technology, Clean City" was chaired by Prodipto Ghosh, Distinguished Fellow TERI and Ex Secretary, Environment, Government of India, who initiated discussions on urban transport, energy efficiency, water recycling and clean air. He was joined in the panel discussions by Sanjeev Kumar Lohia, OSD, Urban Transportation, Ex-officio Joint Secretary, Ministry of Urban Development; Mahesh Babu, MD, IL&FS, Environment Infrastructure Service Ltd.;. Iwao Miyamoto, Chief Representative, New Energy and Industrial Technology Development Organization (NEDO); Ravi Agarwal, Founder Director, Toxics Links; and Yukiko Araki, Executive General Manager, CSR Division, Hitachi Ltd.

Hitachi Ltd. also organised an exhibition at the venue, displaying eco friendly products like Air quality control systems, Water Treatment Plant, Mass Transport System, Power station equipments, Hybrid Excavator, Amorphous metal products, Router switches, Energy saving ACs - which was well received by the guests.

Hitachi also announced "India Business Strategy 2015" on 13 December. Hitachi is targeting consolidated revenue of 300 billion yen (200 billion rupee) from India in fiscal 2015. At the same time, this will allow Hitachi to contribute to the development of the Indian society and to provide eco friendly products and services over the medium to long term.

Manesar, the new Gurgaon in making

Manesar in Haryana is the new hot spot for real estate developers. If the top industrial body ASSOCHAM’s recent study to be believed, industrial town Manesar in Haryana is likely to attract a massive 1 lakh crore investment apart from an additional Rs 10,000 core revenue to state exchequer and will also generate about 15 lakh skilled and unskilled jobs by 2020. 

ASSOCHAM study “Manesar-Golden city of Haryana”, jointly released by Sunil Kumar Dahiya, Co-chairman, ASSOCHAM National Council on Real Estate & convener of “Manesar Development Council” and D S Rawat, Secretary General, ASSOCHAM,  said that large  number of Japanese – small scale industries (SSIs) are likely to be shifting their manufacturing base to Manesar.

 Dhaiya said Manesar has transformed into an industrial and commercial hub with the availability of all basic services like health facilities, schools, a post office, banks, warehouses and cargo facilities, Industrial Model Township (IMT) Manesar has seen a massive influx of corporate traders, realty players, manufacturers, industrialists, and also MNC.

“Already, leading global brands like Toyota, Mitsubishi, Honda, Suzuki, etc, are making colossal investments in Manesar real estate. Also, the proposal to build an expressway to Jaipur is adding value to Manesar's real estate. Most of the topnotch builders in India like Reliance, DLF, Unitech, Raheja, Vatika, Orris Infrastructure, Amrapali, Antriksh, etc, have already bought land banks on this stretch to develop townships”, said Dhaiya.

The government has acquired 2,000 acres for the education city and is all set to make Manesar a dream destination for education. "The unique aspect of Manesar is the simultaneous development of residential complexes for both executive and non-executive staff. The HSIIDC acquired 250 acres across the national highway and has allotted it to various units for building staff quarters there. The commercial property in Manesar offer state-of-the-art office spaces, said Dhaiya.

Manesar will emerge as a Mecca of industry-specific infrastructure, service ancillaries, commercial services, and an array of other essential services. The developing area is a perfect choice for trade towers, corporate offices, industrial units and shopping malls. A flyover on NH-8, which links the residential zone with the industrial zone, has helped in making the city more alluring to end users", added Rawat.

Making of another Gurgaon

 

According to ASSOCHAM analysis, the real estate market in Manesar has been growing at a frenzied pace ever since several top MNCs moved in Manesar. Rates of commercial properties in Manesar have increased by 40-45 % in the last five months, added Dhaiya.

Manesar is also projected to have a shortfall of over 7 lakh housing units over the next few years due to steep rise in the demand of real estate, whereas the availability of authorized housing will only be around 65,000 units in the same period, reveals the ASSOCHAM paper.

The new developmental plan for Gurgaon - Manesar Urban Complex has been formulated taking into consideration the projected growth of the city up to 2025. The Gurgaon- Manesar Master Plan projects a population of around 40 lakh by 2020. With infrastructural developments taking place at a good pace, Manesar is all set to become an ultramodern city.

It is a high-potential area for actual usage and investment, as there is really no authorized housing facility available to the over two lakh executives at IMT Manesar. The USP of the project is that only 20% of the total area will be covered while 80% will be open greens, said Mr. Rawat.
The place is all set to become a vibrant commercial hub shortly. The NH-8 is being widened to an eight lane expressway, between Gurgaon and New Delhi; flyovers have been planned on this stretch, which will make the road signal-free and reduce the commuting time, adds the paper.
As per the employment opportunities, Manesar and nearby regions like Bawal, Tapukara, Neemrana, Khushkhera etc. are expected to attract nearly 16 lakh skilled and semi-skilled working people from all over the country including abroad, highlights the ASSOCHAM paper. 

Several planned SEZs around Manesar will give further push to speedier industrialisation and real estate growth of the area. The SEZ is to be developed as a modern township for manufacturing of automobiles and auto ancillaries, high precision industries, textiles, pharmaceuticals, IT industry, light engineering goods, food processing, biotech, besides services like BPOs. A number of other SEZs planned around Manesar will act as catalyst for industrial, commercial and residential zeel estate development.

Ways to go

With a view to become a Manesar biggest Industrial Hub by 2020, ASSOCHAM has further suggested certain plans to develop and upgrade existing infrastructure, these are as under:
-- The Kundli-Manesar-Palwal Expressway will improve connectivity to a number of areas in Northern, Western and Southern parts of the NCR.

-- Manesar is fast turning into one of the biggest industrial hubs of Northern India with the rapid pace of infrastructural, institutional and industrial development.

-- Emerging as a "Next Generation IT-ITeS Destination".

-- Increasing number of Industrial units are heavily investing.

-- Huge employment opportunities both for skilled and semi-skilled emerging.

-- Already listed among top prospective investment locations in India. Large number of MNCs are preferring to invest.

--  Between Gurgaon and New Delhi, flyovers have been constructed to facilitate signal free flow of traffic and commuting time from IMT Manesar to Delhi only a few minutes.