Project real estate

Proposed Multi-Specialty Residential Project at New Town/Rajarhat

Project proponents: Bengal Shrachi Housing Development Limited 1
Submitted By: Soumya Majumder


ACKNOWLEDGEMENT

A task or project cannot be completed alone. It requires the effort of many individuals. I take
this opportunity to thank all those who helped me directly or indirectly in the completion of
this project.

I express my sincere gratitude to my Company Guide Mr. Anindya Sen for giving me the
opportunity to undergo the project in an esteemed organization. I further thank him to render
me his continuous support, encouragement and guidance while accomplishing this task and
also for lending a patient ear when it came to solving my problems related to the project. This
project would not have been possible without his valuable time and support.

I also forward my deep regards and thankfulness to my Faculty Guide Ms. Soumoshree
Tewary for guiding me throughout and providing me with valuable suggestions for making
this project a success.

There has been the true support and help of many individuals, the mention of whom
cannot be ruled out:

• Mr.Ansuman Sarkar, Marketing
Manager for being there beside me just
likes a guiding mentor.

• Mr.Prasun Banerjee, General Manager
for providing all the support whenever
required.

This project was a tough journey and would not have been successful without the blessings of
Almighty and the blessings of my well wishers throughout.

Any suggestions for further improvement shall be welcomed.



DECLARATION OF THE INTERNSHIP PROJECT
REPORT

I, Soumya Majumder, university roll number 09217009053 an
MBA 2nd year student of IBRAD School of Management & Sustainable Development declare
that the Summer Internship Project at BENGAL SHRACHI HOUSING DEVELOPMENT
LIMITED is done by me and has not been submitted in part or full to any authority for
award of any degree or diploma.

Date: Signature: __________________

Soumya Majumder.



Contents
Chapter 1 Project Proponent

Page: 8
Part 1.1 Prologue Page: 8

Part 1.2 Introduction of the Proposed Residential Project Page: 9

Part 1.3 Rationality of the Study Page: 11

Part 1.4 Objectives of the Study Page: 12

Chapter 2 Company Profile

Page: 13
Part 2.1 Company Diversifications Page: 13

Part 2.2 Shrachi Real Estate Page: 15

 2.2.1 Board of Directors Page: 16

 2.2.2 Organizational Structure Page: 16

 2.2.3 Completed Residential Projects of Bengal Shrachi Page: 17

 2.2.4 Ongoing Residential Projects of Bengal Shrachi Page: 19

Chapter 3 Indian Real Estate Scenario
Page: 21
Part 3.1 Market Overview Page: 21

Part 3.2 Growth Trends Page: 22

Part 3.3 Characteristics of the Real Estate Market in India Page: 22



Part 3.4 Growth Drivers Page: 23

Part 3.5 Market Segmentation Page: 23

Contents
Part 3.6 Commercial Office Space Page: 24

Part 3.7 Residential Space Page: 24

Part 3.8 Retail Space Page: 25

Part 3.9 Hospitality Space Page: 26

Part 3.10 Industry Infrastructure Page: 26

Part 3.11 FDI in Indian Real Estate Page: 27

Part 3.12 Current Standing of Indian Real Estate Page: 27

Part 3.13 Conclusion Page: 28

Part 3.14 Kolkata Real Estate Scenario Page: 29

 3.14.1 Overview of Kolkata Real Estate Page:
29

 3.14.2 Office Space Market Page:
29

 3.14.3 Retail Space Page:
30

 3.14.4 Residential Space Page:
30

 3.14.5 Kolkata in Future Page:
31

CHAPTER: 4 Market Research
Page: 32



Part 4.1 Introduction Page: 32

Part 4.2 Objective Page: 32

Part 4.3 Steps in Research Process Page: 33

Part 4.4 Research Methodology Page: 34

Contents
Chapter: 5 Research Analysis
Page: 37
Part 5.1 Demand Analysis Page: 37

 5.1.1 Income Group of Existing & Prospective Customers Page: 37

 5.1.2 Sources of Information Regarding Bengal Shrachi Page: 39

 5.1.3 Correlation of Income Level with Participants Demand Page: 41

 5.1.4 Factor Influencing Buying a Property Page: 42

Part 5.2 Competitor Analysis Page: 43

 5.2.1 Comparative Pricing of Competitors Page: 43

 5.2.2 Facilities Offered by Competitors Page: 44

 5.2.3 Total Area of Apartments Provided Page: 46

 5.2.4 Demand for the Apartments Page: 48

Chapter: 6 Recommendation


Page: 53
Part 6.1 Target Customer Page: 53

Part 6.2 Approximate Base Price Page: 54

Part 6.3 Product mix Page: 55

Part 6.4 Size of the Apartments Page: 55

Part 6.5 Facilities to be provided Page: 56

Part 6.6 Promotional Strategy Page: 57

Chapter: 7 Conclusion Page:
61

BIBLIOGRAPHY Page:
62

LIST OF ANNEXURE



Annexure I: Prospective Customer Questionnaire.

Annexure II: Existing Customer Questionnaire.

Annexure III: Common People Questionnaire.

Annexure IV: Competitor Information.

CHAPTER 1 : Project Proponent

1.1 Prologue

The 1000 crore Shrachi Group of Companies is involved in businesses as diverse as agro-
machinery, engineering, real estate, information technology and medical services.



Under the guidance of Mr. S.K. Todi, the Group has achieved a reputation which only a few
companies can boast of, a tradition which has been maintained by his illustrious sons Mr.
Ravi Todi who was the inspiration behind the setting up of Shrachi Securities Limited, the
flagship finance company of the Group, and Mr. Rahul Todi, the strength behind Bengal
Shrachi Housing Development Limited essentially the young faces of the company
representing a perfect blend of tradition and modernity.

Dynamism and evolution are what drive the Group’s enterprise. Rooted in strength the Group
branches out from a strong base, creating and passing new goals with each successive year.

The State Government and the State Housing Board felt the need for an active public private
partnership to take housing and infrastructure to the next level. Basic needs of Housing were
out of date and there was an evolving need for mass affordable housing with high standards
of life. Bengal Shrachi was thus formed. It is a classic example of one of the first and most
successful marriages between a public and a private enterprise.

Bengal Shrachi Housing Development Limited is a joint venture between the West Bengal
Housing Board and Shrachi Group. Having recently completed the much-awaited Greenwood
Park at Rajarhat, the Company has already started work and complied with the flat allotment
regulations for three mega-projects - Greenwood Park Extension, Greenwood Nook and
Greenwood Sonata. Also work is on in full swing on Block By Block, a first of its kind
complete home solution mall. The mall, which will come up at New Town, will be dedicated
exclusively to homemaking accessories and allied resources. It will also house a first of its
kind call centre.

Shrachi Group has over 10 years of experience with proven track record in delivering quality
real estate solutions. As builders & property developers, the group has constructed a number
of prestigious residential and commercial buildings - Shrachi Gardens, Shrachi Abasan,
Shrachi Ushabas, Shrachi Manor and Shrachi Niket, to name a few. Bengal Shrachi aims at
delivering quality housing for all in the years ahead, based on value management, ethical
trade practices and quality commitment.



1.2 Introduction of Bengal Shrachi’s Proposed Residential Project

Real Estate is a legal term that encompasses land along with improvements to the land, such
as buildings, fences, wells and other site improvements that are fixed in location with
addition the sky above and ground bellow. The demand for residential real estate projects in
Kolkata has gained momentum in the past few months after battling a phase of slowdown.
With the softening of interest rates and introduction of affordable housing, potential home
owners have started showing interest in the residential sector again.

The Government’s stimulus package, the marginal improvement in the economic condition
along with the already recovery in the share market, have indeed helped this sector to be back
on its feet. In fact, the city’s housing market started looking up in April, 2009 and has
regressed since.

Kolkata property market has not witnessed any significant change in price between October
2008 and March 2009. Property prices have started rising since 3 rd quarter, 2009, especially
in the areas such as Jessore Road, Goria, Ballygunge and New Town/Rajarhat.

The significant rise in New Town/Rajarhat real estate property is mainly due to the
emergence of India’s major developers such as DLF, Unitech, Shapoorji Pallonji, Salarpuria,
and RMZ’s investment in creating huge commercial spaces Within the New Town/Rajarhat
area. Also the close proximity of the already developed office market Salt Lake sector-v and
also the Airport has attracted a lot of attention to the people of I.T sector residing in Kolkata
and also NRI’s who are interested in investing in a residential property.

Bengal Shrachi has completed landmark projects like Greenwood Sonata, Greenwood Park,
Greenwood Park Extension in the New Town/Rajarhat area and residential projects like
Greenwood Elements, Rosedale Complex are near completion. These projects were aimed to
satisfy the needs of the end-user so that they could enjoy their lives and live out of the box.

Bengal Shrachi has enjoyed a proven track record in delivering quality real estate solutions in
Eastern India by providing state of the art housing for the Higher Income Group [H.I.G],
Middle Income Group [M.I.G] & Lower Income Group [L.I.G] families. So by understanding
consumer demand and the prospect of New Town/Rajarhat property Bengal Shrachi has



proposed an ambitious venture for the people who want to be a part of their movement of
providing better living & lifestyle.

The project will be called as ‘EPICENTRE’ and it is going to be of 18 acre in which 9 acre is
going to be commercial property and the rest will be for the residential complex. The
residential project will include Three state of the art ground plus twenty nine [G+29] floored
towers. EPICENTRE is situated in Action Area III in New Town approximately five minutes
from TATA Cancer Hospital and Delhi Public School.

The Location and The Architects impression are given below,

EPICENTRE is due to launch in the end of 2010 and hand over of apartments is to be given
thirty six months after starting of piling.

This study paper is being done to identify the market potentiality of EPICENTRE which is
the newest venture of Bengal Shrachi.

1.3 Rationality of the Study

Indian Real Estate Sector in today’s time has become very competitive and there are lots of
variables involved in the process of making and selling a property. So in every organization
huge amount of time and money are spent to ensure the project’s success, although this sector



is basically controlled by the end users which means the consumers but not only consumer
demand analysis is important but also competitors analysis and current real estate scenario
should be taken into consideration so that the company may act according to the situation.

The Purpose of this study was to provide answers to all the questions that generally occupy
the minds of the top level management, at every stage of decision making which are,

 What will be the demand of the product?

 What should be the ideal price offered?

 What should be the product mix?

 What should be the preferable media to promote the product?

 What facilities to provide?

Understanding these questions is crucial to sustain a product and this study tries to forge a
path towards these answers.

1.4 Objective of the Study

The basic objective of this project is to study and analyze the market potential for the
upcoming residential project of Bengal Shrachi. To fulfill this objective the entire project has
been subdivided into the following parts which are as follows,



 Understanding the current scenario of Indian Real Estate.

 Understanding the Current scenario of Kolkata Real Estate.

 Computation of consumer demand analysis

 Conducting Comparative analysis amongst the ongoing Real Estate

projects in New Town/Rajarhat.

 Recommendations for the upcoming residential project

“EPICENTRE”

CHAPTER: 2 Company
Profile

The late Sri Brijlal Todi, entrepreneur and visionary, had a dream, a dream to partner the
thriving state of Bengal and grow with it and, by so doing, partner the nation. He laid the
foundations of an enterprise which became the present Shrachi Group.

In those early days, Shrachi was in the business of aluminum rolling mills, utensils,
enamelware, ceramics and hospital supplies. Today Shrachi’s achievements are landmarks on
the skyline of Eastern India and the Group has offices in New Delhi, Chennai and Mumbai..



The Group is involved in businesses as diverse as agro-machinery, engineering, real estate,
information technology and medical services.

Under the guidance of Sri S.K. Todi, the present Chairman, the Group has achieved its
present position of strength, a tradition which bids fair to be continued by Sri S.K. Todi’s
eldest son, Sri Ravi Todi who was the inspiration behind the setting up of Shrachi Securities
Limited, the flagship finance company of the Group.

Working always to strengthen the company’s standing in the market.

2.1 COMPANY DIVERSIFICATIONS
Information Technology
Having found its base in 1998 and headquartered in Kolkata, Web
Development Company Limited (WDC) offers a wide range of IT
services, ranging from Software development, Website designing,
IT resourcing to SAP ERP solutions and Linux solutions in Kolkata
India. At WDC, we are committed to complete customer
satisfaction in all the aspects of IT services that we provide and
pride ourselves on a high level of professional service and after-
sales support.

Shrachi Engineering
SEIL was formerly known as APV Engineering Company Ltd.,
incorporated in West Sussex, UK. The Company pioneered the
setting up of turnkey projects for dairies, food plants, breweries,
chemicals, fertilisers, pharmaceuticals and petrochemicals. In fact,
it was responsible for the engineering, installation and
commissioning of India’s first dairy plant and the largest ice cream plant in Asia.



Hospital
Since its inception, Advanced Medicare & Research Institute Ltd.
has led the marketplace by introducing key innovations that make
health care services more accessible and affordable for customers,
improve the quality and coordination of health care services, and
help individuals and their doctors make more informed health care
decisions. Now at AMRI 530 beds are available to expand the facility of heath care.

Shrachi Agro
Bengal Tools Ltd. Agro Division started the Agro Machinery
Division in 1992 and has been assembling Power Tillers with
Chinese technology under the Shrachi brand name. Sales of these
power tillers are carried out by a dealer network. Representative of
the Division are on the sectional committee of Power Tillers under
the Bureau of Indian Standards and are regularly contacted by research institutes.

Air Preheaters
Bengal Tools Ltd. (BTL) began its journey in early '60s as a
modest engineering manufacturing unit. Over the years it has
expanded its activities to keep pace with time. Today the company
has become one of the most reliable designer and manufacturer of a
wide range of products like industrial Knives, Spares for Thermal
Power Plants, Material Handling System, Heavy Fabrication of
Mild Steel, Stainless Steel & Aluminium, and various Defence Products. All of them have
been achieved through its continuous and sustaured in-house research and developmental
efforts.

Financial Services
Magma Fincorp Limited (formerly Magma Leasing Limited) was
incorporated in 1988 and commenced operations in 1989. To

15
Project proponents: Bengal Shrachi Housing Development Limited



strengthen its business, the company merged with Arm Group Enterprises in 1992. Magma
has emerged one of India's largest financial services companies during the past five years. In
early 2007, to strengthen its services even more, Shrachi Infrastructure Finance Ltd. (SIFL), a
non-banking retail financing company, merged with Magma to create a new financial
services powerhouse: Magma Shrachi Finance Ltd. On August 2008, we renamed ourselves
as Magma Fincorp.

2.2 Shrachi Real Estate

The 800 crore Shrachi Group of Companies is involved in
businesses as diverse as agro-machinery, engineering, real
estate, information technology and medical services. Bengal
Shrachi Housing Development Limited is a joint venture
between the West Bengal Housing Board and Shrachi Group.

Bengal Shrachi Housing Development mainly works in the residential and commercial
segments. After creating projects like Greenwood Park, Greenwood Nook, Greenwood Park
Extension, Greenwood Sonata and Synthesis Business Park, the company has entered into a
number of joint ventures as well to deliver the best of real estate solutions to Eastern part of
the country.

2.2.1 Board of Directors

Mr Gopal Kumar Mukherjee[Chairman] Mr Shrawan Kumar Todi[Director]

Mr Ravi Todi[Director] Mr Rahul Todi[Managing Director]

Mr Sandeep Agarwal[Director] Mr Gour Hari Majee[Director]

Mr Dilip Kumar Dutta[Director] Mr Sanjeev Agarwal[Director]

Mr Sudhansu Sekhar Naskar[Director]



2.2.2 Organizational Structure

Managing Director

Directors Directors’ Secretaries

Head Legal President
Head Marketing

Sr. V.P. Corporate
DGM Resources Head Accounts
AM Head IT

DGM AGM
AM
AM Company
Sr. Exe Secretary
Sr. Exe
MGR
Exe AGM Asst C.S
Exe
Exe
Project Exe
MGR
Trainee
Head Customer
Head Head Sales Head Head BD
Support Sr.
Corporate Retail
Engineer
Communicat
ion MGR AGM - DGM -
Sr. MGR AGM Jr. Purchase Contracts
Engineer
Exe AM AM
Sr. Exe MGR MGR
Supervisor
Exe Exe Exe Jr. Eng
Sr. Exe
Store
Keeper Exe
Exe

2.2.3 Completed Residential Projects of Bengal Shrachi

Greenwood Park is a project of the outstanding joint effort put in and incorporated by Bengal
Shrachi Housing Development Ltd. & West Bengal Housing Board to capacitate and realise
the dreams of Calcuttans to dwell in an ambience
which is pollution free, clean, serene and green. Only
10 kiloliters away from the central business district of
Kolkata. The site is located in Rajarhat, New Town



Kolkata. The Southern edge is adjacent to Salt Lake
Township and the Northern end to the existing
Rajarhat Road which takes off from Kazi Nazrul Islam Sarani near Baguihati crossing. The
area is within 6 kms off Bidhan Nagar Railway Station, 9 kms off Dum Dum Railway Station
and only 1 km away from Airport. Greenwood Park comprises LIG, MIG and HIG units of
different sizes along with support services, institutional and recreational requirements and a
convenient market complex. Greenwood Park comprises of 62 LIG units, 128 MIG units and
200 HIG apartments.

The synergy of West Bengal Housing Board with Shrachi Group is a perfect blend of security
of the public sector and efficiency of the private sector. The joint
venture company’s project, GREENWOOD NOOK, is located at
an ideal location on the western bank of Eastern Metropolitan
By-Pass within one km to the south of Ruby Hospital. A well-
developed transport infrastructure and access to all other general
amenities offer a lucrative blend of the comforts of the city, away
from the hustle and bustle and yet not too far from the centre of
the city.

This project provides a wide range of housing facilities for varied income groups of the
society. The HIG Block (Coral Isle), comprises of 190 flats including 10 duplex apartments is
a 17 storied skyscraper with a number of innovative features like elevated landscaping that
will ensure a greener look to the surroundings. The sky path and steel trusses in the elevation
offer a new dimension to the idea of high-rises in this city of palaces. In addition the project
also comprises a MIG (G+10) (Palm Court)tower with 54 flats as well as an LIG (G+3) (Oak
Town) tower with 40 flats that offers compact one-room flats at subsidized costs. Each block
is separated by green stretches to maintain privacy and security of the individual blocks and
at the same time ensure an environmental friendly concept.



Beauty lies in the eyes of the beholder. Time and again, this saying has held its ground. Time
and again, our vision has accounted for some of the most spectacular creations. Vision. Our
ability to see, perceive, behold. The gift of our eye. Eyes that
perceive not only what is without, but also what lies within – the
peace, the beauty, the tranquillity that is so close, yet so elusive.
And so, our search goes on. Relentlessly. Endlessly. Its like going
around in circles that throw forth surprise anew. Beautiful, exotic
surprises, that often leave us over – awed, gasping for breath.

“Greenwood Sonata at New Town will offer people a chance to come home to Kolkata,
promising them all the comforts of city life in the middle of the
lush greenery of the suburbs. The complex will be provided with
high quality infrastructure and services that include effective
drainage with a proper landscaped canal system, captive water
system, adequate power supply, hygienic sanitation system and
good road and street system.”

Greenwood Sonata will comprise of 68 LIG, 144 MIG and 248 HIG units of different sizes
along with support services, institutional and recreational facilities and a convenient market
complex. The total built – up area is 3.94 lakh sqft.

2.2.4 Ongoing Residential projects of Bengal Shrachi
There are many ongoing residential projects being constructed by Bengal Shrachi but only
the projects in New Town/Rajarhat are mentioned bellow

In the age of receding greenery, Greenwood Elements brings in
hope for the future of realty. Built to break the jinx of living in a
box, it is a fine blend of the natural elements at play. Streaming



sunlight in every apartment with a gentle southern breeze for a company and wide open
spaces to stretch your lungs, that's what makes living a pleasure at the Greenwood Elements.
But life here finds a new meaning with natural pleasures teemed with luxury, class and
convenience. Spread across 5 acres, each of the three units of HIG, MIG and LIG are grouped
around their own Court that acts as a courtyard, a concept popular in India, Spain, Italy and
Mexico.

Aria the HIG unit stands apart for its design and composition. Based on a simple structural
module, there are 6 Towers. Among them 4 are G+12, 1 is G+4 and 1 is G+5. There are 224
units located at six corners of the Court and the structure will imitate the classical
composition of a fort ensuring daylight, breeze and the much coveted privacy for every
apartment. The Court will have a club and a swimming pool on a podium level. Exquisitely
landscaped this area will be unique traffic free urban space, an asset for any residential
complex. Apartments in each tower are located around a lift core and a secondary Court. This
mini Court recreates ambience of Hanging Garden of Babylon, opened at various floors to
bring in the element of green architecture.

As children, we were happy with simple things. Like the
joy of making your very own balsa wood glide r.
The joy of building a sand castle on the beach.
Like setting up a playhouse in your room or on
the back lawn.

That child in you never goes away. It lives on inside
you.



That’s why you still feel that childlike joy whenever you have accomplished something.

It’s the same feeling when you book an apartment at Rosedale. And it’s the same feeling when
you see it grow, brick by brick, wall by wall, in front of your eyes.
We at Rosedale will post updates regularly on this page to show the building progress of your
apartment and the tower that you will be living in.

Based on the winning design from Living steel’s
International Architecture Competition, Restello reinvents
luxury living

Conceived by UK firm Piercy Conner Architects &
Designers, Restello combines traditional Eastern
architecture with innovative sustainable practices to create the very latest in modern living
experiences. The steel structure allows for long spans, creating uninterrupted living spaces; and
the perforated façade filters the light while providing natural ventilation. It’s your very own
urban utopia.

Featuring 12 boutique duplex homes, with enviable double height terraces, Restello espouses
the latest in smart, sustainable residential design without compromising on liveability

CHAPTER: 3 INDIAN REAL ESTATE
SCENARIO

3.1 Market overview

The current contribution of real estate to India’s GDP is about 5 per cent.



The real estate sector is one of the highest FDI attracting sectors in India, having recorded
FDI inflows worth more than 2.8 billion between 2000 and 2009.

Growth has been driven primarily by the IT & ITeSsector, with an increase in the demand
for office space, growing presence of foreign businesses in India, global strides of Indian
corporates and a rapidly increasing consumer class.

The major Indian players in the sector are DLF, Unitech, Ansal Properties, K. Raheja
Corporation and Parsavnath Developers.

After the 2008–09 global economic slowdown, the Indian real estate industry is now
charting a path to recovery.

In the last decade, FDI in real estate has increased due to the growing interest of foreign
players in the Indian market. Many international players, including developers such as
Emaar, Ascendas, Keppel Land, Tishman Speyer and Nakheel Group, and investors such as
Morgan Stanley, Och-Ziff Capital, Citigroup, Goldman Sachs, JP Morgan, Warburg Pincus
and Deutsche Bank, have entered the Indian real estate market during the last decade.

3.2 Growth Trends

Driven by positive growth in the economy, real estate in India is booming. The year 2006
started on a promising note when the Government of India opened the construction and
development sector in February 2006, and allowed 100 per cent foreign direct investment
(FDI) under the 'automatic route' in order to spur investment in the vital infrastructure sector.
By 2015, it is projected that the market size would grow to $ 90 Billion.



Estimates suggest that, the urban housing sector would require investments to the tune of $25
billion (Rs. 1.10 lakh crore) over the next five years. Prices have remained buoyant as new
construction lags. According to surveys, there was a shortage of 19.4 million units (12.7
million units in rural areas and 6.7 million units in urban areas) in the country about three
years ago, which will require real estate in India.

3.3

3.4



3.5 Market Segmentation

 In recent years, the industry has evolved from a highly fragmented and
unorganised market into a semi-organised market.

 The sector can be divided into residential, commercial, retail and hospitality
asset classes.



3.6

3.7



3.8



3.9

3.10
Industry infrastructure —SEZs
The Government of India introduced the SEZ
Act, 2005, to generate additional economic
activity, promote exports and create
employment opportunities in the country.

Developing an SEZ is approximately 15 to 20
per cent cheaper than developing non-SEZ
commercial space, given the various fiscal
benefits available to SEZ developers —several
real estate developers have been attracted to
these projects.

Under the new SEZ Policy, formal approvals
have been granted to 574 SEZ proposals as of
March, 2010.

As of March 2010, there were 350 notified
SEZs and 146 have received in-principle
approval.

The SEZ Policy allows usage of as high as 50 per cent of the SEZ area as non-processing
zone, offering significant potential for residential and support infrastructure.



3.11 FDI in Indian real estate

FDI inflows were recorded at US$ 2.80 FDI Investment model

billion in 2008–09, as per the Department of
Industrial Policy and Promotion (DIPP).

Over the years, FDI in real estate has
increased due to growing interest of foreign
players in the Indian market.

Majority of FDIs are from West Asia and
investors from the US and Europe, who
have shown keen interest in the launch of
several real estate funds.

FDI in the real estate sector is expected to
witness an increase of US$ 21 billion from
the current values over the next 10 years

3.12 Current Standing of Indian Real Estate Sector



3.13 Conclusion

The Indian real estate sector promises to be a lucrative destination for foreign investors into

the country. The Indian realty sector, if channelized properly, could catapult the growth of

several other sectors in India through its backward and forward linkages. However, there are

potential constraints for domestic as well as foreign investments in India. Absence of a single

regulator to monitor business practices prevailing in Indian real estate market is perceived to

be a risk factor by investors. The SEZ guidelines which are issued by the Commerce Ministry

are constantly modified, creating uncertainty. Since the liberalization of FDI norms,

significant foreign investments have flown into real estate; but availability of suitable exit

options for such investments is still constrained.

Maturity of the real estate markets will lead to infusion of foreign investment and adoption of

international best practices by real estate players. Developers will get more organized, and

become more transparent to avail opportunities emerging in the market. With the Indian

securities market regulator SEBI allowing real estate mutual funds (REMFs) in India, equity

investors will have an exit option available to them. All these factors will contribute in

making the Indian real estate market more organized and structured, thus providing better

investment opportunities.



3.14 KOLKATA REAL ESTATE
SCENARIO

3.14.1 Overview of Kolkata Real Estate Sector

Kolkata has all the ingredients for high growth in its real estate market, according to real
estate services firm Jones Lang LaSalle Meghraj (JLLM).

One of the oldest urban agglomerations in the country, Kolkata lost its position as the
erstwhile commercial capital of India to Mumbai due to the sot manifesto adopted by the
West Bengal government post-independence.

Now it is believed that the state is witnessing a resurgence driven by government policy and
support for the service industry and infrastructure development that is once again attracting
industry and capital to the city.

3.14.2 Office Space Market

The office space market in Kolkata is to treble from 3.7 million sq ft in 3Q 2007 to 12 million
sq ft by 4Q 2008, says JLLM.

The CBD, comprising of the old Dalhousie district, Chowranghee, Camac and Park Streets,
and AJC Bose road, is not expected to have any significant addition to commercial stock in
the near future due to unavailability of land parcels.

Avani Signature, a Grade A building with a built-up area of 107,000 sq ft is to be operational
in 4Q 2007. About 75% of commercial buildings in the CBD are old and would classify as
Grade B space.



However, the suburban districts such as Salt Lake City and Rajarhat are expected to witness
an addition of 8 million sq ft in 2007-2008 driven by high growth of the IT sector. Vacancy
levels in the CBD and suburbs are low at 0.6% and 4.5% respectively. A majority of
upcoming Grade A projects were also pre-leased early.

Rental and capital values in the CBD and suburbs have seen a compounded annual growth
rate of 50% and 23% respectively in the last two years. Average gross rentals in the CBD
grew to Rs 120 per sq ft in 3Q07, a 19% growth over the previous quarter. Average monthly
gross rentals in the suburbs grew to Rs 45 per sq ft in 3Q07, a 16% growth over the previous
quarter.

3.14.3 Retail Space

Currently there are seven operational malls - Forum Mall, Home Land, Avani Heights,
Gariahat Mall, Orchid Mall, City Centre, Metropolis Mall, and Orchid Mall - with 1.4 million
sq ft of built-up space in total. Vacancy levels are low around 1%. With the emergence of
Axis Mall and City Centre New Town and many others on the way will surely impact the
retail market and will definitely give new opportunities to the retailers and shoppers alike as
well as increasing the value to Kolkata’s retail space.

3.14.4 Residential Market

According to N.K Realtors research Kolkata residential sector has consistently been an end-
user driven market. The city’s residents, especially the younger generation, with increasing
purchasing power at their disposal, are Middle Income Group (MIG) and Lower Income
Group (LIG) segments. Incidentally, there is a substantial gap between the demand and
supply of MIG and LIG housing in the city.

With the real estate market looking up, developers are launching or firming up plans to build
new projects, however majority of them are affordable and low cost housing. So it can be said
that from the beginning of New Year, prices are likely to go up by 5% to 10% in the MIG and



upper MIG sectors whereas demand and price in premium segment are likely to remain
stagnant up to the last quarter of 2010.

3.14.5 Kolkata in Future

The corporate scenario in Kolkata is on an upward trend with the present state government's
initiative in reviving the weak and sick industrial sectors of Kolkata and also inviting large IT
companies and other industries from India and all over the world to invest in the city.

 Royal Indian Raj International Corporation (RIRIC), an NRI group, is going to invest $1
billion in Indian real estate, which is going to be the biggest FDI in Indian real estate aimed to
develop large scale commercial and residential township in Kolkata along with other
metropolises.
 The city at present is experiencing major construction activity especially around the Eastern
Metropolitan Bypass and further east in Rajarhat area where a planned township named "New
Town" is being built and will certainly be the new face of Kolkata real estate in the next 5
years.
 Rajarhat project, the new IT hub of Kolkata will have retail stores and entertainment facilities
and a 5, 00,000 sq. ft open-air landscaped podium, Touted to be the largest IT Park in
Kolkata, Rajarhat spans an area of 1.3 million sq. ft and can accommodate 20,000 executives.
 Wipro, which set up a sprawling 17 acre campus in Kolkata's Salt Lake is now planning to get
another 50 acre plot in Rajarhat, the proposed IT hub in east Kolkata.
 Major IT companies such as Satyam Computers, ITC InfoTech, HSBC Electronic Data
Processing India (HDPI), ICICI One Source and GECIS will set up their centers in the city
shortly.
 Major Real estate developer DLF has developed an IT park in Kolkata in Rajarhat area with a
super area of 1.3 million sq. ft. and is now largely operational.
 Unitech, world's one of the top 50 real estate developer is developing a 100-acre residential
project called "Uniworld City" which is only 10 minutes to Dumdum Airport. Unitech is also
developing a 50-acre IT project.



 The state government announced plans earmarking 500 acre for an IT-cum-Biotech park near
the city airport as part of a Rs.5, 000-crore program to upgrade industrial infrastructure.

CHAPTER : 4 Market
Research

4.1 Introduction
Marketing research is the systematic gathering, recording, and analysis of data about issues
relating to marketing products and services. Alternatively, marketing research may also be
described as the systematic and objective identification, collection, analysis, and
dissemination of information for the purpose of assisting management in decision making
related to the identification and solution of problems and opportunities in marketing.

4.2 objective
The task of marketing research is to provide management with relevant, accurate, reliable,
valid, and current information. Competitive marketing environment and the ever-increasing
costs attributed to poor decision making require that marketing research provide sound
information. Sound decisions are not based on gut feeling, intuition, or even pure judgment.

The objective of marketing research in managerial decision making is explained further using
the framework of the "DECIDE" model:

D : Define the marketing problem – Examination of the key features of the residential
projects of New Town, which will give a proper insight into the existing mindset of
people and allow for to pin point the area of concern.

E : Enumerate the controllable and uncontrollable decision factors – The identification of the
marketing problem can further be segregated into various controllable and uncontrollable
factors and provide a path to arriving at various strategic initiatives for the uncontrollable
factors.

C : Collect relevant information – Surveying general people, prospects and existing
customers will give a plethora of analytical data based on which various alternatives can
be arrived at.



I : Identify the best alternative

D : Develop and implement a marketing plan – For the potential consumers and competitors
alike so as to capitalize on the existing potential and demand.

E : Evaluate the decision and the decision process – For to fill in the gaps, if any in the
decision process or the implementation of the marketing plan.

4.3 Steps in Research process

A particular methodology was followed in the market research to arrive at a conclusive
objective stated above; the steps that were taken are as follows,




4.4 Research Methodology

To fulfill the objective of the study and to better understand the competitors and consumers
behavioral traits mainly two distinct forms of research were carried out which were Demand
Analysis and Competitor Analysis. In demand analysis mainly individuals mindset, needs and
aspirations were identified by developing a questionnaire, with proper analysis of these data
valuable information regarding individuals point of view can be collected so it may also be
incorporated in the final decision making process. In the Competitor Analysis mainly
competitor’s standings in respect to Bengal Shrachi’s products were identified by doing a
comparative analysis within the New Town area which is about 3075 hectors. With proper
interpretation of the collected data a glimpse of what to incorporate in the project can be
achieved. The research methodology of Demand Analysis and Competitor Analysis are as
follows,

Demand Analysis

Demand Analysis is the Study of sales generated, by a good or service to determine the
reasons for its success or failure, and how its performance can be improved. As this study
was done to understand the potentiality of the proposed residential project, total three types of
sector-specific questionnaires were developed for targeting to understand the requirements,
needs of the individuals in and around Kolkata regarding real estate. The questionnaires have
been annexed as Annexure – I, II, III respectively for the targeted segment.

The sample size of the individuals that was taken into consideration to gain a deep insight
into the real estate sector was approximately 100(Hundred).



The three types of questionnaire which have been developed are for Prospective Customers,
Existing Customers, and Common people. The data collection was done mainly by
Interviewing in person and by interviewing on the phone. The questions were developed in
such a way that the following answers can be found,

 General information about the participants for example age, gender, occupation

 Income level of the participant

 Knowledge about real estate developers

 Source of Information regarding real estate developer

 Consumer Satisfaction

 Factors influencing acquiring a property

Competitor Analysis

Competitor analysis is an assessment of the strengths and weaknesses of competitors. This
analysis provides both an offensive and defensive strategic context through which to identify
opportunities and threats. Competitor profiling coalesces all of the relevant sources of
competitor analysis into one framework in the support of efficient and effective strategy
formulation, implementation, monitoring and adjustment of Bengal Shrachi’s upcoming
residential projects overall standing. For this purpose a comparative analysis has been
conducted within the New Town/Rajarhat area by gathering information of the ongoing
residential projects which are being constructed by the reputed real estate developers. In the
comparative analysis several types of information has been gathered to ensure accuracy of the
study, this information was gathered by following certain criteria which are,



 The size & location of the competitor’s projects.

 The facilities that are being provided by the competitors.

 The Product mix of the competitors.

 The Price offered by the Competitors.

 The general size of apartments offered.

The data were gathered mainly by visiting the projects site office, by calling real estate
agents, by visiting real estate developer’s website and by meeting with the executives of the
real estate developers. Collected data have been annexed as Annexure – IV for the purpose
of recollection.



Chapter: 5. Research
Analysis
Analysis is the process of breaking a complex topic or substance into smaller parts to gain a
better understanding of it. The data that have been collected were sorted and put in order for
analysis so as to gain a better insight into the various aspects of the real estate sector in the
said region, which would be in consonance with the already identified market ergonomics
and demand.

The analysis that was carried out on the sorted data revealed the inherent situations that could
lead to marketability of the envisaged project and which can be summarized below,

5.1 Demand Analysis



Data collected from the questionnaires revealed valuable information regarding the
consumers, prospects and common people’s interests, knowledge , & other important aspects
towards the real estate sector, these aspects are summarized and mentioned bellow,

5.1.1 Income Group of Existing & Prospective Customers

Income group of people who are interested in acquiring a property in Bengal Shrachi are
taken into consideration for this calculation. The sample size of which was 60[Sixty], of
which twenty nine were collected from prospective customers who have shown interest in
acquiring a property in Bengal Shrachi and the rest was from existing customers who have a
property in Bengal Shrachi. Common people were not taken into consideration because most
of the common people interviewed had no interest in purchasing a property of any kind. The
income level was calculated by gathering the ‘monthly household income’ which is situated
at the top part of the developed questioners annexed as Annexure – I, II, III.

The above mentioned data are represented in a Table and also in a bar diagram for the
representation and simplification purposes which are as follows,

Income Group Existing Prospective
Customer Customer

Up to Rs.30000 6

Rs.30001- 8
Rs.40000

Rs.40001-50000 14 8

Rs.50001 & 17 7
above




In the questionnaire a specific question was presented to identify the income of a particular
participant by mentioning monthly household income of minimum of Rs. 30,000 to Rs.
50001 & above. These were distributed in four levels as to get a certain amount of accuracy
in the analysis. With all the data collected it found that,

 People who own and have shown interest in acquiring a property in Bengal Shrachi
are mostly of higher income group earning as much as Rs. 50,000 per month and
above as shown in the figure.

 For prospects all income group has more or less equal demand for Bengal Shrachi’s
product.

 At present people of higher income group are the existing buyers but it shows lower
income group is also showing good response for buying a property.

5.1.2 Sources of Information Regarding Bengal Shrachi

To understand the source of information from where the common people, Prospects and
existing customers got the knowledge regarding Bengal Shrachi’s residential projects, a
specific question was introduced in the questionnaire mentioning six of the probable sources
that might have given the participants relevant information. These sources were
Advertisement, Hording, Property Fair, Internet, Friends Relatives & newspaper. The format
of such questionnaire is annexed as Annexure – I, II, III.

The sample size of this was 87[Eighty Seven], of which twenty seven people were common
people but had prior knowledge regarding Bengal Shrachi and the rest were existing and
prospective customers.

The above mentioned data are represented in a Table and also in a bar diagram for the
representation and simplification purposes which are as follows,



Source Common People Existing Customer Prospective Customer

Advertisement 6 5 8

Hording 2 3 3

Property fair 2 2 0

Internet 1 4 9

Friends & Relatives 12 12 11

Newspaper 4 4 0

With the above mentioned table & graph the aspects which can be highlighted are as follows,

 Amongst all the types of participants the most common source of information that can
be found is from Friends & Relatives.

 Property Fair & Hoardings had the least percentage.



 Prospects figuratively the recent most people gaining knowledge regarding Bengal
Shrachi had a high percentage pointing towards the Internet as the source of
knowledge

 Existing customers apart from friends and relatives advertisements had an impact
gaining knowledge of Bengal Shrachi

5.1.3 Correlation of Income Level with Participants Demand

To understand the relation between the income level of the participants with their demand for
acquiring a property, a measure of statistical methods were used with the help of data
collected from the developed questionnaires which are annexed as Annexure – I, II, III.

The sample size taken was 97[Ninety Seven] only three participants questionnaire were
rejected for this analysis because they had no interest in buying a property. Only for common
people the interest in buying a property is seen and their income level collected. For
prospective and existing customers they either own a property or have interest in owning a
property or both so only their income level is collected.

The above mentioned data are represented in a Table for the representation and simplification
purposes which are as follows,

Income Group Mid Value Common People Existing Customer Prospective Customer

Rs.20000 - Rs.30000 25000 12 0 6

Rs.30000- Rs.40000 35000 8 0 8

Rs.40000 - Rs.50000 45000 13 14 8



Rs.50000 - Rs.60000 55000 4 17 7

Correlation -0.59637658 0.929045552 0.404519917

For the purpose of calculation mid value is calculated and from which correlation between common
people, existing customer & prospective customers are identified which are as follows,

 In the case of common people the correlation was in the negative so it is safe to say that
they are negatively related with income level. So as the income rises their demand for
product falls.

 For Existing buyers it is positively related so if income rises so as the demand for buying a
property.

 In prospective customers they are also positively related but at a lower rate because the
amount of correlation is way lower than the existing customers correlation

5.1.4 Factor Influencing Buying a Property

To understand the factors influencing Buying a property of common people, Prospects and
existing customers, a specific question was introduced in the questionnaire mentioning three
of the most relevant factors that might have created demand for a property. These factors
were Location, Price, and Goodwill of the developer. The mentioned questioned can be found
in the questionnaire which is annexed as Annexure – I, II, III.

The total sample size taken for this analysis is 100[Hundred], the table and bar diagram of
this analysis are given billow,

25 Influencing Common Existing Prospective
Factors People Customer Customer
20
Common
15 People Location 9 11 7

10 Existing
Customer Price 10 9 6
5
Prospective
0 Customer Good Will 21 10 16
Location Price Good
Will


With the above mentioned table & chart the aspects which can be highlighted are as follows,

 The majority of all the three types of factors were goodwill in all the cases except
existing customers.

 The existing customer’s main factor was location but goodwill was very close behind.

 Price was the least issue for the prospective customers.

 The common people mainly stressed on goodwill because reliability is a bigger issue
for them.

5.2 Competitor Analysis

To have an understanding about the competitors of Bengal Shrachi at the New Town/Rajarhat
a comprehensive comparative analysis was done to understand the strengths and weaknesses
of the competitors, so as to identify the opportunity and threats of the upcoming residential
project. The data that was collected were divided into several segments for the purpose of
simplification of the analysis these different segments were General information of the
competitor’s projects, Specifications of the apartments provided by the competitors, Facilities
provided by the competitors, Size of apartments provided, Price of the apartments,
Availability & open space of the competitors projects. These row data were collected by
calling the respective competitors site office, meeting with the real estate brokers, visiting the
site office and going through competitors website in the internet. The residential projects that
has been taken into consideration are Sunny Fort, Anahita , Eden Court, Highland Cypress,
Sunrise Greens, New Town Heights, Sankalpa, Bengal DCL Malancha, Unitech Vista,
Siddha Pine, Siddha Aspan, PS Ixora.

So from the data collected the analysis which were brought into consideration are as follows,



5.2.1 Comparative pricing of Competitors

To understand the comparative pricing of the competitors in the New Town area total of
fourteen ongoing projects prices were taken into consideration but after a close inspection
only nine of which were taken for analysis because the objective of this study is to give a
recommendation of Bengal Shrachi’s upcoming project which is of nine acres but some of the
projects were far bellow or far above what Bengal Shrachi’s project is providing, that is why
they were excluded from the analysis. Data that were collected for the comparative analysis
are annexed in Annexure VI.

The above mentioned data are represented in a Table for the representation and simplification
purposes which are as follows,

Name of the Basic Price in
Besic Price in per sq.ft. Be sic Price in per… Project per sq.ft.
4000 Sunny Fort 2700
3500 Anahita 2700
3000
Eden Court 3400
2500
2000 Hiland 2700
1500 Cypress
1000 Sunrise 2600
500 Greens
0 New Town 3275
Hights
Sankalpa 3200
Bengal DCL 2650
Malancha
Unitech Vista 2875

From the above table and graph we can identify that,

 The minimum price offered by the real estate developers are 2600 per square feet.



 The average of the basic prices was found around 2900 per square feet.

 Most has chosen to keep their price at and around 2700 to 2800 per square feet.

 The real estate giants like Tata and DLF had quoted their price above 3200.

 More renowned developer’s price is significantly higher than the rest.

 There is a trend of Oligopolistic competition amongst the developers.

5.2.2 Facilities offered

A residential project developed by reputed real estate developers has certain advantages; the
customers not only get a good quality apartment but also get certain facility which makes
their life a bit more comfortable. So these facilities are very much important in a big project
like Epicentre and with so many competitors and stiff competition effective implementation
of these facilities may make or break this project. For this reason an analysis should be done
about the competitors ongoing projects and facilities provided by them are carefully
measured. The analysis is done by taking the data which are annexed in Annexure VI.

Again nine out of fourteen collected projects were incorporated to insure accuracy of the
analysis. The above mentioned data are represented in a Table for the representation and
simplification purposes which are as follows,



Name of the sunny Anahit Eden Highland Sunrise New Sankalpa Bengal Unitech
compotators Fort a Court Cypress Greens Town DCL Vista
Projects Height Malancha
s
Large AC YES NO YES NO NO NO NO NO YES
multipurpose hall
Exclusive Residents’ YES YES YES YES YES YES NO NO YES
Club with Guest
Rooms
Swimming Pool with YES YES YES YES YES YES NO YES YES
Kids’ Corner
Lounge cum library YES NO YES YES NO YES YES YES YES
Gymnasium YES YES YES YES YES YES YES YES YES
Yoga room NO YES NO YES NO NO YES NO YES

Community Hall YES YES YES YES YES YES YES YES YES

Toddlers’ Play Room YES YES YES YES YES YES YES YES YES

Home Theatre Room YES NO YES NO NO YES NO NO YES
Open Air Theatre NO NO YES NO NO NO NO NO NO
Indoor games YES YES YES YES YES YES YES YES YES
facilities
Provision Store YES YES YES NO YES YES YES YES NO

General Store YES YES YES YES NO YES YES NO YES
Doctor’s Chamber NO YES YES YES NO YES YES YES NO
24-hours Electronic YES YES YES YES YES YES YES YES YES
Surveillance

From the above table we can identify that.

 In all the cases the most common facilities that have been offered are the Gym,
Community Hall, Toddlers play Room and Twenty Four Hour Electronic
Surveillance.

 Open Air theatre & large multipurpose hall had a poor response.

 Doctors Chamber & provision Stores had a mixed response.



 Projects which are in direct competition with Shrachi’s upcoming complex had on an
average of twelve facilities that they are going to provide.

5.2.3 Total Area of the Apartments Provided

In a residential complex there are many variants which are provided by the real estate
developers, which are one bedroom hall kitchen[1BHK] , two bedroom hall kitchen[2BHK],
Pent House
three UNITECH VISTA kitchen[3BHK], four bedroom hall kitchen[4BHK] excreta . To get an
bedroom hall
approximate idea of what the competitors are providing in the New Town area in respect of
the total size of the apartments this underlined analysis is done, Duplex

Bengal DCL Malancha
Size in Sq. Ft. 2BHK 3BHK 4BHK Duplex
4BHK Pent House
Sunny Fort
1115 1757 2230 0 3767
Anahita Sankalpa 1260 2035 0 0 3085
Eden Court 3BHK
1095 1555 0 0 0
Hiland Cypress
1553 1788 0 0 4659
New Town Hights 2BHK
Sunrise Greens
0 1535 2020 0 0
New Town Hights
1287 1966 2565 0 0
Sankalpa 0 1666 0 2829 0
Sunrise Greens
Bengal DCL
Malancha
1373 1500 0 2489 0
UNITECH VISTA
Hiland Cypress 956 1226 0 0 0

Eden Court

Anahita

Sunny Fort

0 1000 2000 3000 4000 5000


Size in Sq. Ft.

In the above analysis only the biggest area of the respected segments have been taken into
conisation as in most cases in every type there are several variants were present so for the
sake of the analysis this process has been followed. From the above table and graph the
aspects that can be suggested are as follows,



 The average two bed room hall kitchen apartments seemed to be leaning around one
thousand square feet mark.

 The most popular of all the variants were the three bedroom hall kitchen, it was
present in all the competitors but the sizes varied from one thousand three hundred
square feet to around two thousand. This was mainly because many of the competitors
were having several different variants of the same variant.

 The four bed room hall kitchen were not preferred as in comparison with two bed
room hall kitchen and three bed room hall kitchen but it was around two thousand
seven hundred to three thousand square feet.

 Duplex & Penthouses are expensive and have limited sections of buyers so most of
the cases it was not included but developers who have incorporated it are all made
over three thousand square feet . There are no benchmark in this variant and the
percentage incorporated is far too low.

5.2.4 Demand for the Apartments
To understand the demand for the apartments the availability of the competitor’s project were
collected by calling the concerned company and by meeting with the real estate brokers of
N.K Realtors, MMG, Amit International.

The analyse of the above mentioned collected data are as follows,

AVAILABILITY OF PS IXORA[14.july.2010]



AVAILABILITY OF UNITECH VISTAS[14.july.2010]

AVAILABILITY OF SIDDHA PINES [14.july.2010]



AVAILABILITY OF ANAHITA [14.july.2010]

AVAILABILITY OF TATA EDEN COURT[10.July.2010]



AVAILABILITY OF HIGHLAND CYPRESS[10.july.2010]

From the above given data the following assumptions can be made,

 The two bed room hall kitchen apartments are having the most amount demand
because only a few percent of flats are remaining.



 The most percentage of apartments remain are of the four bed room hall kitchen &
pent houses as they are more expensive.

 Three bedroom hall kitchen apartments have demand but it’s not as much as the two
bed room hall kitchen, in some cases a large percentage of apartments remaining
unsold.

Chapter: 6
Recommendation



As mentioned earlier, Bengal Shrachi’s upcoming
residential project ‘EPICENTRE’ is of eighteen
acres, from which nine acres are proposed for
residential complex & the rest for commercial use. In
the residential project there will be three towers of
twenty nine floors and the project will be launched at
the end of 2010. This project is in Action Area III
which after three years will be the most developed and high priced site in New Town. At the
present moment TATA cancer hospital, Unitech IT Park & Unitech 100 acre residential
township to name a few which has already completed construction made action area three,
the destination for acquiring property. For this reason this project has a lot of potential so
proper strategies must be developed from which positive results can be found. From the
demand and competitor analysis there are certain strategies that can be developed which can
ensure the successfulness of the project in hand which are as follows,

6.1 Target Customer

The sheer scale of the project and the proximity itself suggests that this project should be
accessible to the higher income group but as chapter 3.14.2 of page no. 29 suggests that there
is a boom in the IT sector in Kolkata & specially in Rajarhat so for that reason there will be
grater prospect in targeting the Higher Income group IT professionals in Kolkata.

Another aspect can be identified from chapter 3.14.4 of page no. 30 is that there is an
significant amount of increase in the purchasing power of the younger generation who are
generally from the Middle Income Group and this demand in Kolkata has not been properly
fulfilled. For this reason affordable homes for the Middle Income Group should give a good
result.

In the chapter 3.11 page no.27 it is made clear that under the present relaxed conditions, NRIs
can invest in property in India very easily. For that reason New Town has become the place
for an NRI to invest in, just because it is a planned township where NRI’s can live the
lifestyle they are accustomed without missing the charm of Kolkata. So they should also be
considered to be the target customer.



In The Chapter 5.11 page 37 an analysis was done from which it was identified that
Prospective customer’s income group varied from Rs. 40,000 to Rs.50,000 and above per
month so as it showed in chapter 5.13 page no.41, the correlation of prospects which suggests
that they will increase their demand as income rises so it proves that people who are showing
interest in Bengal Shrachi’s project are basically of higher income group because if demand
increases only they can respond politely to it. That is why HIG’s should be the primary target
customers.

So at the end it can be summarised that the target customer for Epicentre should be,

1. Higher Income Group for IT Professionals in Kolkata.

2. Younger generation of Kolkata for Middle Income Group.

3. NRI Investors for premium apartments.

6.2 Approximate Base Price

From the competitor analysis at chapter 5.2.1 of page no. 43, on an average the competitors at
Bengal Shrachi at New Town/Rajarhat had 2900 per square feet as their base price as on 1 st
July 2010. Some projects price were as low as 2600 per square feet but others were up to
3200 per square feet, this was mainly due to the location and the popularity of the developer.
TATA Housing, DLF, Unitecth’s prices were higher than the rest due to that.

To calculate an approximate price for Epicentre the location of the project must be judged. It
was found that Unitech’s 100 acre project and Shrachi’s very own Rosedale complex were
near completion also close by are the DLF IT park, Unitech’s SEZ, TATA Cancer Hospital &
Block by Block & Axis mall with all these the price should around the 3000 per square feet
mark. But to create a sense of urgency to the investors the Price should be fixed around 2800
per square feet but the rate should be increased in phases to ensure customers of the excellent
resale value.


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