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Source:- IIPM-B&E , Initiative:- Prof. Arindam Chaudhuri - 2006
e to an oversupply in Tier II cities. There could be marginal decline in value in certain areas owing to oversupply, and without development being done in these areas, people have started doubting (the boom in the sector).” Additionally, around the festival time, one can look forward to the jumbo DLF IPO, which was the first to be launched in July, but got delayed owing to plummeting markets. DLF plans to raise around Rs.110 billion to armour its mega projects in the realty and hospitality sector. Many trade pundits believe that whatever be the size of DLF IPO, it is most likely to be oversubscribed. Nevertheless, the IPO will give an interesting insight into the current sentiments of investors in the real estate market.
If global behemoths like Wal-Mart and Carrefour are planning to come to town, the RPG group – with its Rs.200 crores planned investment and long creditworthy Spencers brand – might be the least of worries they’ll have to face. The biggest headache, a debilitating one in all probability, for these international leaders would definitely be Mukesh Ambani, who plans to invest an eye popping Rs.25,000 crores, and employ a soul stopping one million employees over the next few years on retail. Reliance could well be the Indian Wal-Mart. And I’ve not even started talking about companies like Pantaloon, which have already started consolidating their presence in the retail sector. In fact, even companies like Siyaram – one of the few brands that was able to give Raymonds a run for its money – are planning to introduce retail outlets across the nation.More IIPM-Sites:-
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