As a part of our final presentation for Business Economics, I made this presentation in the 1st trimester of my B-school.

1. EVERGRANDE GROUP -
SKYFALL
A Presentation by
Aman Sharma, Hazia Agneza Fernandes, Prayas Abhinav Sahoo
Rajat Soni, Shayon Mukherjee, Trishit Biswas

2. COMPANY OVERVIEW

3. ABOUT
EVERGRANDE
A massive real estate company in China that was
declared too big to fail and made it to the list of
Fortune 500 companies.
Reckless expansion into other ventures has landed
the group in serious trouble and now its finances
hang by a thread. Its failure can lead to shockwaves
across the global market in the near future.
ABOUT

4. BUSINESS VENTURES
REALITY
ESTATE
TOURIS
M
FOOTBAL
L
TEAM
AUTOMOBILE
FOOD AND
AGRICULTUR
E

5. CONSUMER ALL ABOUT
BANKS
The banking industry would be among the first
to be hit if there are any contagion effects on
the wider property sector in China
HOMEBUYERS
Protests by angry homebuyers broke out in
recent days in some cities, and social unrest is
among the concerns
INVESTORS
Around 100 investors turned up at
Evergrande’s headquarters in Shenzhen,
demanding repayment of loans on overdue
financial products
SUPPLIERS
Evergrande’s trade payables stood at 667
billion Chinese yuan to construction companies
and other business creditors
THE FUTURE
Beijing will not bail out the company and
Evergrande failed to pay its due recently. It is
headed towards bankruptcy as per many
analysts
CONSUME

6. MARKET FUNCTIONING
Company Name Primary Focus Secondary Focus
China Evergrande
Group
Mass residential
markets in 2nd and 3rd
tier cities
Mid to high-end
residential
China Vanke Mid to high-end
residential markets in 1st
and 2nd tier cities
Mass residential
markets in 1st and 2nd
tier cities
China Overseas
Holdings
Mid to high-end
residential
Luxury residential
Country Garden
Holdings
Mass residential
markets in 3rd and 4th tier
cities

7. MARKET FUNCTIONING
SALES

8. MARKET FUNCTIONING

9. STATISTICAL FUNCTIONING
Evergrande Group – The Game of Numbers
RANKING
• 2nd largest property
developer In China by
Sales
• Ranked 122 on the
Fortune Global 500
PROJECTS
• Owns 1,300+ real estate
projects in over 280 cities
• Manages 2,800+ projects
across 310+ cities
EMPLOYMENT
• 200,000+ employees
• Creates 3.8+ million jobs
per year indirectly

10. STATISTICAL DATA – PART I
Finance Real Estate Market

11. STATISTICAL DATA – PART II
Debt Stock

12. REASONS FOR FAILURE
AGGRESSIVE EXPANSION
Evergrande expanded its business to football,
automobile, food and agriculture at the cost of
its main business
POLITICAL CONNECTIONS
Founder Xu Jiayin milked his political
connections to gain more money from creditors
PENDING DELIVERABLES
Started facing expensive lawsuits from
customers who were yet to receive their
homes or apartments
AUTOMOBILE UNIT FAILURE
The group failed to manufacture EV vehicles
and additionally, it couldn’t sell the business
SLOWING DEMAND
The property market boom in China had
“shown signs of a turning point,” citing weak
demand and slowing sales
REASON

13. LESSONS
LEARNT
PROPER WEALTH MANAGEMENT
A helps a company to sail through its dark phase
REFRAIN FROM BIZZAIRE INVESTMENT
Instead of repaying the loan the company purchased a football
team in 2010
MISUSE OF POWER
Founder flexed his political muscle to expand business into a
territory that lacked management experience
ON-TIME DELIVERY
If the company delivered the homes/apartments on time then
they might have avoided the unpleasant situation

14. CORRECTIVE ACTIONS
To be raised by selling its
stake in a local bank
By selling its automobile unit By selling parts of its property
services businesses and
office tower in Hong Kong

15. WHAT’S NEXT?
GOVERNMENT
Government appears to be starting to
intervene
They are taking measures to arrest the
losses
Held a meeting with top executives and
asked them to hire experts to handle the
crisis
BANKS
People's Bank of China has injected 100
billion yuan to keep liquidity going
The Central bank also vowed to maintain
the healthy development of the real estate
market
Officials directed the financial sector to
focus on stabilizing land and housing prices

16. REFERENCES
Bloomberg, Quint, Edition, NY Times, Fortune, CNBC, BBC,
Yahoo, The Hindu, Investopedia, ET, Business Standard, Money
Control, Google News, Statista
REFERENCE

17. THANK YOU
Dr. Chinmaya Behera
Assistant Professor | GIM
For encouraging us to study about the
company and create this presentation along
with a detailed report