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HDIL: An Overview
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The Indian real estate sector plays a significant role in the country's economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost five per cent of the country's GDP is accounted for by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6 per cent. Given this context, HDIL is one of India’s largest realty brands and among the top five listed companies in the sector. It believes in people‐centred development, or sustainable development. HDIL is committed that development should be broad‐based and bottom‐up, redistributive, empowering and environmentally sustainable; seeking to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. This signifies HDIL is in the business of rejuvenating land for inclusive growth. Mumbai International Airport Slum Rehabilitation is a symbol of that commitment. The Project, categorised as a Vital Public Infrastructure Project by Government of Maharashtra, is one of the largest urban rehabilitation projects in India. As part of Mumbai Airport Expansion & Modernisation plan, at one of the world’s busiest airports, HDIL is rehabilitating 80,000 to 85,000 slum dwellers within next 4‐6 years. The Company has already started construction of Phase 1 of the project, wherein they are rehabilitating about 21,000 slum dwellers in three different locations. This is probably the world’s largest slum rehabilitation project and just one of the many that HDIL has undertaken in Mumbai, where over 60% of habitable land is occupied by slums. Since its incorporation in 1996, HDIL has developed 32 projects covering approximately 28.09 million square feet of saleable area. They have also constructed an additional 4.31 million square feet of rehabilitation housing area under slum rehabilitation schemes. Historically, HDIL has been focused on real estate development in the Mumbai Metropolitan Region, but as part of their growth strategy they are considering projects in other locations, including Kochi and Hyderabad. HDIL is also considering expanding into hotel projects, Special Economic Zone (SEZ) developments and “mega‐structure” complexes, which are large‐scale mixed‐use retail, commercial and residential developments. More recently, HDIL has forayed into the industrial real estate segment also, by launching a 50 acre mega industrial park in Virar (East). The aim is to develop Virar as a planned and organised industrial area that is in tune with modern industrial layouts. HDIL's total land reserves comprise approximately 124,800,000 square feet (11,590,000 square metres) of saleable area to be developed through 35 Ongoing or Planned projects. The Company has 21 Ongoing Projects, which are projects under construction and development, aggregating to approximately 45,500,000 square feet (4,230,000 sq. mt.) of saleable area, and they have an additional 14 projects planned for construction and development in the future, aggregating approximately 79,300,000 square feet (7,370,000 sq. mt.) of saleable area. As India joins the ranks of the world’s fastest growing economies, HDIL has identified many more opportunities as they scale up for growth, that underscores their core strength, such as oil and gas exploration, energy, power, financial services, broadcasting, leisure, breweries 1 HDIL: Rejuvenating Land for Inclusive Growth Page
and entertainment. HDIL is constantly reviewing their business portfolio aligned to the vision, capabilities and standards that eventually maximise value to their stakeholders. The beehive is the epitome of efficiency; carefully crafted and constructed in a well‐designed honeycomb pattern, symbolised in their logo, it provides a striking analogy to HDIL’s business approach. The beehive system works fantastically in nature. Replicated in the business environment, it is a man‐made, power distribution based on talents, resources, and goals for each business opportunity. This gives HDIL the ability to leverage some of the strongest traits and characteristics that best work for each of their portfolio businesses. Some of these businesses in HDIL’s business suite include: HDIL Entertainment The multiplex boom is the single biggest reason for the growth in India’s entertainment business, yet in India, there is a shortfall of approximately 40,000 screens nationwide. Identifying a huge business opportunity, HDIL Entertainment, a fully owned subsidiary of HDIL, has begun operations under the name of Broadway. HDIL entertainment’s projects are all one‐stop entertainment area for the family, with multiplexes, gaming zones, food courts and malls. The company has 13 screens, all located in landmark shopping and leisure destinations, and an outlay of nearly Rs 1000 crores is earmarked for growth. HDIL Entertainment plans to set up around 150 screens in major cities. With plans that embrace every aspect of the industry, HDIL Entertainment intends to be a true star in the entertainment business. HDIL Leisure The world is discovering India in a big way. For business and leisure, India is increasingly becoming a preferred destination. The country’s travel and tourism industry generates about $100 billion annually, and the number is estimated to touch $275 billion by 2018. The hospitality industry is witnessing a surge in occupancy as well as room rates. At the same time, there is a shortfall of nearly 1,50,000 hotel rooms. HDIL Leisure has been established with a mission to become a premium hospitality and lifestyle development company in India. The Company is already in the process of setting up luxury business hotels and mixed‐
use projects (incorporating high‐end apartments, office complexes, hotels, retail and fine dining) in India’s major metros. Exploring organic and inorganic avenues for growth, HDIL Leisure’s ambitions span luxury and deluxe business hotels, resorts, spas, fine dining restaurants, residential developments and premium villas across the country. Luxury fashion brands form a key part of HDIL Leisure’s retail footprint. HDIL has partnered with India’s apex body, FDCI (Fashion Design Council of India) to create India’s first ever Couture Week. HDIL India Couture Week features India’s finest designers, showcases India’s rich heritage and is a path‐breaking event on India’s fashion calendar. HDIL Broadcasting The television industry is witnessing a period of explosive growth. Channels, content, regional programming and audiences, are growing by the day. India’s cable TV market is one of the world’s largest with more than 60 million subscribers. The business of broadcasting is growing at an average of 35% per annum. HDIL Broadcasting has already taken its first steps towards building a high quality media major to meet the needs of this burgeoning market. The Company has acquired channels such as ‘Mi Marathi’ and ‘Live India’. Other news, regional and general entertainment channels are in the pipeline as are integrated offerings such as studios, content production and distribution. 2 HDIL: An Overview
HDIL: An Overview
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3 HDIL Finance Driven by the group philosophy of creating value amongst customers and stakeholders, HDIL Finance has made its entry into India’s fast growing financial services sector. The Company will focus on the promising area of investment management, with special emphasis on real estate as an investment class. The asset management business in India has grown 47% annually since 2003, making global fund managers believe that India offers the biggest and most profitable opportunity for the mutual fund business. Also, the dramatic growth of the Indian economy has led to a huge demand for all forms of real estate, an expansion phase that offers tremendous opportunities for all participants in the value chain within the sector. HDIL Finance is envisioned as a vehicle to ride this opportunity, by providing simplified and functionally effective products across the spectrum. A strategy that combines the growth potential in both the sectors ‐ financial services and real estate. The Group’s vast expertise and specialisation in this field, gives HDIL Finance a firm foundation and the conviction to forge ahead. On the anvil are initiatives like Venture Capital, a Real Estate Mutual Fund (REMF), Asset Management and Private Wealth Management. Plans that enable and strengthen the Company’s mission: to build the brand across business verticals, increase the retail base of investors and capitalize on emerging opportunities across the value chain. Privilege Industries As India’s economy aligns with the ranks of the world’s fast growing developed countries, Indian lifestyles, too, are evolving. The demand for fine dining experiences, premium brands and exotic tastes is growing steadily. Annual sales of alcoholic beverages are growing by about 20% annually. Beer consumption stands at over 100 million cases, making India one of the top three beer markets in Asia in terms of growth rates. Consumption of India made foreign liquor (IMFL) stands at over 115 million cases. Even with this spurt in consumption, India is still among the smaller markets in the world, with enormous growth potential. Privilege Industries Ltd. has been set up to explore this business opportunity, backed by the promoters of HDIL. Set on a 38.5 acre expanse of land in Lonand, about 250 kms from Mumbai, the Company’s brewery plant and distillery plant incorporate the latest international technology and equipment. The brewery has a proposed plant capacity of 2,50,000 hectolitres per annum, expandable to 5,00,000 hectolitres per annum in future. It features the reputed CO2 (Carbon dioxide) recovery plant from Norit Haffmans, Holland, which provides higher purity levels than any other CO2 recovery plant in India. The distillery plant will be a zero discharge effluent plant. Privilege Industries Ltd. is ready to offer India the highest standard in taste, sophistication and quality. These key initiatives in Entertainment, Leisure, Broadcasting, Finance and Breweries form part of an ambitious expansion and diversification strategy – that will propel HDIL on the path to fast track growth: and see its emergence as a major Conglomerate over the next decade. ###