Industry Analysis

Being second capital of Maharashtra State, many state & central Govt. offices are located in Nagpur City. There are many research institutes like CICR, NRCC, JNARDC, NEERI, MRSAC. Similarly, the city is also surrounded by thermal power stations like CTPS, KTPS. It is also surrounded by WCL collieries. Ordnance Factories, Cement industries like Ultratech, Manikgarh, ACC etc, steel industries viz. ISPAT, Sunflag, Lioyds steel. The industrial township of Butibori is also located very near to the city. Many people working in the township are residing in the city. The city is also famous for its educational institutions. The big MIHAN (MultiModal International Hub At Nagpur) is under progress.

Over the years, the city has attracted some of the country's major industrial corporates - The Tatas, Reliance etc. are all planning their retail outlets in Nagpur. HCL, Wipro, Dell are also planning to start their IT park in Nagpur. The city is connected with all the international flights. The upcoming Cargo project is the main-attraction of the city.

Due to this, the real estate market of the city both residential and commercial has grown very fast. The population of the city, especially the population with spending capacity has increased and is increasing at a very rapid pace. This along with modern shopping and emerging entertainment trends has increased the demand for shopping, entertainment and commercial complexes to a large extent. Along with this the people and enhanced income levels has also resulted in increase in demand for residential property.

The information technology industry predominantly employs younger generation population with reasonable levels of salary. Due to this factor and also the easy availability of housing finance, the demand for residential premises in the city is increasing at a very fast pace.

A general outlook of the real estate industry in the city is good and improving.

Competitive positioning of the Company :

The group has been engaged in the activity for more than 05 years and is one of the leading promoters and builders in the city. The group is known for quality of construction, cost and timely completion of the project. Most of the schemes started by the group get booked much before the construction of the same is completed. Another major advantage of the firm is its professionally qualified proprietor with rich experience in the same field. This indicates the competing strength of the group.

There are many builders of repute who are having similar schemes in this part of the city.

However, the sales of the scheme is determined by many factors such as:

Location of the scheme
Reputation of the promoter & developer
Market forces - demand and supply position
Amenities of the scheme and construction quality
Sale prices
Timely delivery

Due to the demand in the market and upswing in real estate scenario, all reputed and good builders are having excellent response to their schemes.

Operational and Financial Performance of the Firm/ Group :

Sales Turnover: The firm is engaged in Real Estate Development. The firm is following the completion method of accounting and as such all the work completed on the scheme is shown as work in progress till execution of agreement to sale/sale deed. Similarly, the booking and progress payments received from the customers are shown as advances and are converted into sales only after scheme completion.