Construction of Hotels. Accor is a big player and the business model in this sector is generally build & lease
India currently has more than 35,000 hotel rooms above five star
Caters to premium & ultra-premium segment and growing gradually.
5/n
SEZ Segment
- Special Economic Zones to promote growth with special tax rebates
- India formally approved 425 SEZs out of which 265 are already operational. Typically we see a lot of IT companies as a part of these SEZ businesses
6/n
Based on the sector, the business models vary and the risk-return ratio also vary by the model
Land bank model
Development model
Joint Venture
Contractors
Project types include New projects, Redevelopment, Govt Driven etc.
7/n
To manage the customer perception, often the players create sub-brands
Ex: Puravankara
8/n
How to read this sector? Some key metrics
Residential Real Estate Sector
- Inventory to Sales conversion cycle
- Area booked for construction
- Rental yield
- Realization - Value per square foot sold
- Advances & Collection
- New project roadmap
9/n
Commercial Real Estate Sector
- Cost of construction to Rental Yield
- Inventory to Sales conversion cycle
- Inventory with-held (Early stage vs. late stage)
- Certifications RERA, LEED etc.
Debt is often seen in reality businesses due to huge upfront construction costs
10/n
Reality OUTLOOK in India
India is a growing and its a good accelerator for infrastructure and reality growth.
11/n
Now where and how to invest??
Most of the experts say, Real-estate is a cyclical business. Indeed, its true and one needs to understand the cycles to invest in Real-estate.
12/n
India is currently at juncture of best affordable housing in 2.5 decades which will lead the growth forwards
13/n
Both residential and commercial real estate businesses are cyclic irrespective of builder class.
Indirect way to play this sector is through Ancillaries, Housing Finance Companies etc.
Even if the new demand in real estate goes down, the after-market keeps them stable
14/n
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The company manufactures, sells and distributes an outstanding portfolio of spirits
ranging from premium brands such as Johnnie Walker, Black Dog to Aspiring class including McDowell’s No1, White Mischief etc.
PRO - They have something for every class of income
2/n
Growing industry - Rs 3.9 trillion alcohol beverage market to grow at 6.8% till 2023: ICRIER
The share of the upper-middle income group in alcohol consumption has increased steadily from 7 per cent to 21 per cent and is expected to increase to 44 per cent by 2030
3/n