Are you really dreaming to ride some luxurious cars? The wait is over now. Droom, an online marketplace for buying and selling of automobiles, gives you once in a lifetime chance to fulfill your wish! With the largest collection of supercars in India, it now partners with Uber to present ‘Supercars on Demand’.Karun Arya, Communications Lead, South Asia & India, Uber, said, “This is the first time we’re bringing #UberSUPERCARS to India, for real. Uber is all about providing amazing and unique experiences to its riders and this is one way of giving them an opportunity to sit back, relax and enjoy the supercar ride.”All you have to do is get on the Uber app between 1 to 4 pm on 15 July 2015 to get your favourite supercar on demand and let the four wheeled wonder sweep you off your feet as you speed away!Rishab Malik, Co-founder & VP of Business Development, at Droom, said, “With this latest category, we now offer the widest range of pre-owned, exotic and classy cars for sale. Through this campaign we wish to bring people who have longed to enjoy a first-hand experience of super cars one step closer to owning their very own mean machine.”This will be a memorable experience for Uber and Droom users who can post on Twitter, Facebook and Instagram pictures with these supercars. Surprise gifts will also be given away to select riders!
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Gold prices dropped by Rs 100 to Rs 26,250 per 10 grams at the bullion market in the national capital on Tuesday (14 July) on weak global trend amid low demand from jewellers.Silver also declined by Rs 250 to Rs 35,400 per kg on reduced offtake by industrial units.Traders said a weak trend overseas where gold fell for the second consecutive day after Greece reached a bailout deal with its creditors, damping demand for the metal as a safe-haven asset and shifting investors' focus to the probable timing of a US rate increase, mainly pulled down the precious metal's prices.In addition, a stronger dollar also weighed on prices, they said.Gold in Singapore, which normally determine price trend on the domestic front, lost 0.3 per cent to $1,154.93 an ounce and silver was 0.9 per cent lower at USD 15.37 an ounce.In Delhi, gold of 99.9 and 99.5 per cent purity declined by Rs 100 each to Rs 26,250 and Rs 26,100 per 10 grams, respectively. It had gained Rs 20 on Monday.Sovereign, however, held steady at Rs 23,000 per piece of eight grams in scattered deals.Following gold, silver ready fell by Rs 250 to Rs 35,400 per kg and weekly-based delivery by Rs 135 to Rs 35,330 per kg.Silver coins, however, remained unchanged at previous level of Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.(PTI)
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Slothful economic growth and high property prices have resulted in falling unit sales, says Arshad KhanThe country’s real estate sector has been in a limbo for some time. Burdened with loans and a sluggish economic growth has made it nearly impossible for general buyers to invest in projects. Study and reports by various agencies also confirms less chances of improvement for the sector in the years to come. A recent study by a rating agency Fitch group (Ind-Ra) affirmed that the country’s real estate sector will continue its current stand-still state in the years to come, maintaining a negative to stable outlook on the real estate sector for FY16.According to reports, the prime reason for the sluggish growth of the sector will remain the lower demand and unaffordability. Slothful economic growth and high property prices have resulted in falling unit sales.Data released by RBI for the sector deployment of credit to various sector also reflects that lending to real estate sector is below the overall lending. As per data, the overall lending by banks grew by 8.5 per cent during a period of one year ending 29 May 2015 compared to lending by banks to commercial real estate which grew by just 7.5 per cent in the same period. The primary reason was public sector banks have accumulated high amounts of bad loans and are being cautious in lending new loans.Inability to pay back loans has reduced banks' confidence in real estate sector. Major players of the sector are restoring to other means to complete their unfinished projects and fend off debts. Big companies are offering high returns on equities to attract more investors.For instance, the country’s largest real estate firm DLF's net debt stood at Rs 20,965 crore as on March 31, 2015, up by Rs 628 crore from Rs 20,336 crore at the end of the October-December quarter. DLF has proposed to raise Rs 5,000 crore via non-convertible debentures, including other debt securities, on private placement basis for long-term resources for business needs and to reduce reliance on the banking system. In other words, in hopes to increase its revenue and reduce the level of debts via fresh bank-free raising.The government too has shown its intention to improve the present condition of the sector and bring in more transparency. But the proposed amendments face protests. Blamed with anti- buyer reforms, the government has a mammoth task of uplifting the sector and acting on the best interest of marginal buyers and land holders. The sector is often blamed with delay in project completion and as a pumping zone for black money.Improvement in property demand largely depends on a positive change in consumer expectations of economic growth, job and income prospects and also lower property prices. Property prices have remained high and are unaffordable to end-customers. While economic growth is likely to improve in FY16, property prices might not correct. This could lead to end-customers postponing purchase decisions, thus stagnancy will prevail in the sector.
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Globally, REITs have demonstrated the ability to attract and effectively manage investments in real estate, says Monica BehuraThe Real Estate Investment Trust (REIT) is likely to be set up next year as the complex tax regime of the country is keeping investors at bay. Post announcement of commencement of REITs in India, the government received a diversity of feedback from the industry participants. Acting promptly, the government has resolved most of the hurdles, which does indicate that it is committed to making REITs a success in India.“However, Dividend Distribution Tax (DDT) still remains a concern for industry participants and investors. Any positive step towards resolving this will make the whole model a lot more attractive,” says Shobhit Agarwal, managing director - Capital Markets & International Director, JLL India.As of now, expecting REIT listings in 2015 is a bit unrealistic - it is likelier to happen in 2016 says real estate analysts.Agarwal says that not only can REITs create a level playing field for even common investors to share the gains of this asset class but it can also become a game changer in many other ways. By encouraging public ownership, it can provide the framework for real estate companies to become more transparent and better managed.Globally, REITs have demonstrated the ability to attract and effectively manage investments in the real estate sector. Besides other advantages, REITs bring increased transparency in the sector by adopting better corporate governance. By providing institutional exits to funds that invest in realty projects, REITs encourage developers to take to public financing as a new source of project funding. This way they also help the industry to become more transparent to confirm with the stringent and continuous reporting requirements and disclosure norms required of publicly-owned firms.Indian real estate companies like Blackstone, DLF, Unitech, Ansals, Purvankara, Supertech among others are having discussions with the government on a regular basis regarding REIT. These property developers have large portfolios of investment properties from which they can collect rental can use REITs to divest part of their portfolio, particularly commercial or industrial properties. In addition, implementation of a REITS regime will provide a new platform to divest their real estate. REIT funds can buy the real estate assets from business owners and also enable them to enter into an agreement to lease it back to them for a long period of time. It can therefore enable businesses to liquidate their real estate and free up capital for businesses.
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The diamond industry of Surat, one of the major sources of foreign revenue and livelihood for millions, has hit a rough patch. A number of polishing units are in the grip of recession, with the fear of closure looming large for some. A slowdown in overseas demand and stagnant rates of polished diamonds as against the growing cost of rough stones are why. "The overseas demand is very low and there is no increase in the prices of polished diamonds if you compare them with (the increased rates of) rough diamonds since 2014," Surat Diamond Association president Dinesh Navadia told PTI. Navadia termed the downturn as "unprecedented". "This happens quite a time, but after three or four months, the situation usually improves. This time, the crisis has lasted for a long time," he said, adding that rumours are only worsening the situation. While Godhani Gems, a diamond unit with 1,500 workers, has shut shop, some 25 units have gone bankrupt, he said. On the plight of diamond workers, Navadia said it's difficult for unskilled or semi-skilled workers to find jobs in a slowdown. Aniruddh Lidbide couldn't agree more. "There is very less demand (of polished diamonds) from China, South-East Asia, the Gulf, Europe and the US. Because of that, a lot of inventories are still lying with diamond industries," said Lidbide. "Prices of roughs (rough stones), which are the raw material for the cut and polished diamonds, have gone up to 65-70 per cent in three years. Corresponding to that, the polished diamonds prices have not gone up. It's stagnant so that the profit margin has become very thin," said Lidbide. Money Diverted To Other BusinessesBesides, some of the diamond industry owners have diverted money to other businesses, which has also hurt, he said. "In the last few years, most of the diamond industries have diverted their finances to different business. They have invested mainly in property business and also in the stock market or in crude oil and forex trading," Lidbide said. He also pointed to the difficulty in getting credit from banks. "A lot of firms defaulted after 2008 and a major one among them was Vincent Diamond. In 2013, it defaulted to the tune of Rs 4,500 crore and has left the country. That gave a very strong shock to many banks. Some 12-13 banks had provided finance to Vincent Diamond," Lidbide said, adding that default by many others has forced a write-off of around Rs 8,000-10,000 crore in the past 3-4 years. "More than that, the main financier bank, the Antwerp Diamond Bank in Belgium closed its business on June 13. That is also a big jolt to the diamond industry as it was a key source of finance," he said. Synthetic DiamondsLidbide said synthetic diamonds which look very similar to the original ones, mainly produced by Russia and China, have also impacted the business. Many diamond units, he added, have curtailed their operations due to the ongoing crisis. "Those who were working with 100 per cent capacity have now reduced their operations to 50-60 per cent, depending on their operation and inventories they have," he said. President of the Gem and Jewelleries Export Promotion Council (GJEPC) Chandrakant Sanghvi was also the same page. "The international demand for the polished diamond has gone down, which has created the situation of slowdown. This may continue for 3-4 months," he said. "We have faced such a slowdown many times, but we have emerged out of it," he added. Pravin Nanavati, owner of the Surat-based She Jewellers, blames reduced exports for the current state of affairs. "About 90 per cent of the diamond business is based on exports. But as the demand from foreign countries came down in the past couple of months, our industry has been facing the slowdown," Nanavati said. He also thinks synthetic diamonds are also making people doubt adulteration when they buy precious gems. "The government should establish a unique university for the diamond industry offering courses of skill development and management," he suggested. Since lakhs of people are dependent on the industry, Nanavati said, "This is high time the government took steps in the interest of one of the highest revenue-generating industries". (PTI)
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NIIT Technologies, an IT solutions organisation, reported a revenue increase of 11 per cent for the first quarter over the same period last year at Rs 641.1 crore. Operating Profits grew 34.5 per cent over same period last year to Rs 104.2 crore and profit after tax (PAT) expanded 35.5 per cent to Rs 58.5 crore.Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd, said, “The quarter witnessed robust 8.9 per cent sequential growth in international geographies which helped maintain operating margins at 16.3 per cent despite wage hikes."Among industry segments, BFSI grew 15.2 per cent sequentially due to growth in new insurance accounts and integration of Incessant. BFSI now contributes to 36 per cent of total revenues, travel and transportation to 37 per cent, manufacturing/distribution to 6 per cent and government to 5 per cent of the revenue mix.Order intake during the quarter was $97 million resulting in $300 million of order book executable over the next 12 months.“With the integration of Incessant, the company acquired 15 new significant clients”, said Sudhir Chaturvedi, COO, NIIT Technologies Ltd. “In all 17 new logos were added during the quarter”, he added.The company’s strategic investment in Incessant Technologies provides it with the ability to be a leader in the Digital Integration space. The opportunity being exploited is where Digital front ends have to be integrated with complex legacy systems which most large corporations have to provide for their customers to get a seamless experience. Processes that earlier required manual intervention can be done in a straight through manner through these services, and complex processes are orchestrated automatically through intelligent business process management services.“NIIT Technologies has leapfrogged into the emerging Digital Integration space”, said Rajendra Pawar, Chairman NIIT Technologies Ltd. “14 per cent of the company’s global revenue is now around Digital Services”. 734 people were added during the quarter taking the total headcount to 9,228 at the end of the period under review. Rate of attrition declined to 14.30 per cent.
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As bigger cities would reach saturation point soon, the next phase of retail real estate growth is expected to come from non-metros, writes Pankaj RenjhenAs incomes rise, aspirations change and brand awareness increases among the non-metro consumers, an increasing number of international and Indian brands have started foraying into these largely untapped markets.As the markets in metros mature, brands have started expanding their footprint in non-metros to capitalise on the growing demand. However, as supply of quality malls is less, many brands have to either open their stores in the already-established high-streets, generally located in the heart of a city, or explore built-to-suit (BTS) options.The lack of entertainment options and organised retail, when compared to the metros, has paved a way for high-street retail culture and rising demand for such offerings. Despite a lack of supply and options in terms of organised retail, non-metros like Ahmedabad, Jaipur, Ludhiana, Indore, Chandigarh, Bhopal, Surat, Amritsar, Nagpur and Lucknow have witnessed considerable growth in retail development in the last four-five years.With these cities having favourable demographics and a high propensity to consume, many national and international brands are creating their presence here. Consumers in some of the Tier-II cities around New Delhi travel to the malls here to shop for luxury and high-end brands.Interestingly, it is the mid and mass-segment brands that are expanding the most in non-metros owing to the market dynamics and demand potential. Many are trying to gain first-mover advantage.Customisation Is KeyInclination towards cultural events and traditions continues to remain strong in Tier-II and Tier-III cities. Therefore, customising to the local culture becomes very important in each city as standardised store formats do not necessarily work. The formats, sizes and pricing – all need to change as per the spending power and target audience in each city.Many of the food and beverage (F&B) players customise their menus to include local flavours and suit the taste palate. Department stores and hypermarkets incorporate F&B brands or cafes in their stores to attract more footfalls and extend the time spent by consumers in the store. Likewise, fashion brands also customise their merchandise according to demand and demographic parameters.Store SizesSales per square feet and productivity of space utilised have become an important parameter for success of a brand. A majority of the brands are focussing on right-sizing their stores according to the location, format and demand from consumers. Due to the onslaught of discounts from ecommerce players, smaller formats are also coming up apart from the standard formats.A comparison between the average store sizes in malls located within metros vis-à-vis non-metros reveals that there is hardly any difference between them. Also, no direct correlation between the store sizes and their locations exists, i.e. the average store size in one of Delhi’s leading mall could be the same size as the size of a store in Bhopal, Ahmedabad or Baroda.The flagship stores, which showcase a brand’s variety of merchandise, are generally bigger in size, and are generally found in prominent locations across these cities. So while store sizes may be comparable in the metros and non-metros, brands generally have a larger footprint in the metros by having several smaller stores in different malls and high-street locations vis-à-vis a single store in a non-metro.It could also be due to brands wanting the non-metro consumers to have the same experience as their metro counterparts. The same holds true if we compare the store sizes at high-street retail locations in metros and non-metros. Gazing Into The FutureA look at the average rentals across some of the established high-streets in metros like Delhi and Mumbai shows how non-metros like Chandigarh have a similar range of rentals as the former while Goa has higher rentals than Bangalore.As bigger cities would reach saturation point soon, the next phase of retail real estate growth is expected to come from non-metros. The rentals in non-metros may increase in quality mall supply and prominent high-street locations depending on the economic conditions and consumer demand in the long run. The upward movement, though, will be in line with growth in consumption.The author is managing director, retail services at JLL India
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Organisations around the globe are gradually adopting the concept of green building over traditional workspaces, writes Pradeep MisraThe Society of Human Resource Management (SHRM) in a poll defined Green Workplaces as environmentally sensitive, resource efficient and socially responsible workspaces. The concept of Green Workplaces is driven by corporate strategies for leveraging Human Resources in the best possible way, which in turn drives optimal productivity. These strategies are innately linked with psychological aspects, health and hygiene as well as the holistic concept of sustainability. The US Harris Poll based on linkages of HR and "Green" aspects of workplaces has found that 33 per cent of the country's populations are inclined to work in Green Buildings compared to companies without any effort to promote social and environmental friendly practices.As the link of productivity of Human Resource and environmental aspects of a workplace is subservient, corporations are now on the process of transformation of their existing offices to Green Spaces. Health is related intrinsically with intellectual and physical development of human and hence with productivity. In the backdrop of a deteriorating environment simulated by surging pollution and facets such as global warming, the concept of Green Building is emerging on the mainstream. As the positive effects of Green Construction on health is becoming increasingly clear, its advocacy of productivity in human resource also becoming evident. Healthy body connotes a healthy mind increasing competency and hence, productivity of human resources.Workplaces have substantial impact on human resource performance. A number of scientific studies have concluded that productivity is directly proportional to sustainable aspects of environment in any workplace. Surroundings have profound impact on Reading Speed, Comprehension, Signal Recognition as well as Typing Speed. These are the basic elements of any work operation translating to productivity. A strong link exists between quality of indoor air and the incidence of allergy and asthma symptoms. In adequate ventilation causes higher concentration of carbon dioxide that incurs a number of health hazards including fatigue, headaches and increased risk of Sick Building Syndrome. Ambient temperature is intrinsically related to performance.Studies have proven that the most amicable temperature for employees is 22 degree centigrade. Performance is reported to increase up to 21 to 22 degree centigrade and is reported to decrease with temperature above 23 to 24 degree centigrade. Lighting has mixed results in office workers. A test performed in School students showed improvements of 16-26 percent in performance of students in day lighting. Environmentally sustainable aspects have clear relationship with productivity elements such as absenteeism, retention, engagement and turnover.A research by U.S. Green Building Council proved that level of indoor pollutants can be higher than that of outdoors by 10 times. Green buildings are healthier as they provide cleaner environment and hence, health benefits. Studies have indicated that these buildings yielded $53 to $71 per square foot back on investment over an average period of 20 years. It is also found out that industry sectors could save up to $130 Billion only by saving electricity through Green Buildings. Investment risk in these buildings is much less than conventional construction. A survey by International Energy Agency indicated that existing buildings across the globe contributes to more than 40% of total primary energy consumption and 24% of global Carbon Dioxide Emission.The aesthetics aspects of Green Building are paramount to promote human productivity. Green architecture and design offers a sustained environment, which is in harmony with nature. Such surroundings guarantee reduction of noise and thereby propagate peace of mind. This feature is substantial to induce productivity in human mind and develop quality human resources. A proportional relation exists between a peaceful mind and creativity. Natural environment supports innovation and creative thinking, which has been the backbone human civilisation. Worker Productivity is among the most important aspects of Green Building. Increased productivity and employee's positive approach to workplace are directly correlated. Certain aspects of Green Building such as lighting, reduced pollution, proper ventilation and reduced toxins have direct impact on worker's productivity.Organisations around the globe are gradually adopting the concept of green building over traditional workspaces. Apart from optimal utilization of human resource these allows to save cost and contribute towards holistic development. Corporations such as Ford, Pepsico and so on are emerging as pioneers to adopt the idea and in realty sector; Green Building is becoming a strong USP. Many companies across the globe are now opting for Green workspaces to leverage its benefits.Green Buildings are the juxtaposition of every aspect that fosters healthy lifestyle. Human performance, in present times, must be considered as important as energy performance and the increasing paradigms of technological development. With the emergence of technological amenities, human beings seem to stray away from their actual level of competence, both mentally and physically. Prioritizing this issue is crucial and development pattern that supports human abilities to grow should be initiated, rather than rendering further depreciation of performance.The author is CMD at REPL
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