Download The Moving Sky – A Case Study

JBS Case Study Series
Case No. JIITU/JBS/2008/01
The Moving Sky – A Case Study
Mohan Agrawal
Suresh Sannapu
Bill Koehler
Madhu Dutta
Abstract
The case is about a project named “Hyderabad Rocks”, which is based on the unique
concept of a moving skyscraper. Developed by architect David Fisher, a moving
skyscraper is a tall building which moves, changes direction and shape resulting in a
unique and ever evolving structure. With each floor rotating at different speeds, the
building adjusts itself with changing seasons and weather conditions. The focus of the
case in on the viability of “Hyderabad Rocks”, to be started by a real estate firm, Akash
Constructions in the city of Hyderabad, located in South India. A historical review of
skyscrapers is presented with emphasis on business needs and the technological
challenges faced. An overview of real estate demand in India, investment opportunities
and other key features and trends in India are also presented. The case also has details
about the city of Hyderabad in terms of its attractiveness related to real estate investment
and suitability of a moving skyscraper project. A SWOT analysis of the project is made
to assess the viability of Hyderabad Rocks. The case concludes with the marketing efforts
which are required to make the project successful and the marketing challenges lying
ahead.
Key words: moving skyscraper, luxury villas, real estate, dynamic towers, construction
Mohan Agrawal, Jaypee Business School, India, (www.jbs.ac.in)
Suresh Sannapu, Faculty Marketing, Jaypee Business School, India, (www.jbs.ac.in)
Bill Koehler, Associate Dean, Business School at University of Massachusetts,Boston,
USA, (www.umb.edu)
Madhu Dutta, Massachusetts Institute of Technology, USA, (www.mit.edu)
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Some anonymous visionary once said …. “ Hope is a walking
dream”, We, Human first hoped of flying on sky, Wright Brothers
Fabricated our hope with aero planes…..Now we hope of Living on
the Sky, ruling it…
Introduction
Akash Rao, CEO of Unique Constructions Ltd. Hyderabad was returning to his office
from his new project site, located at city outskirts, under deep thoughts. The car ride in
the heavy city traffic in the evening was telling his body to call it a day. Yet, he ignored
the exhaustion and opened his laptop to complete a brief about his new real estate project
‘Hyderabad Rocks’. Akash had recently taken over the family real estate business from
his father Mr.Jairam Rao who was a pioneer in real estate business in the city of
Hyderabad. His first venture, Rifle Rocks Enclave, was an instant hit. All the residential
plots and manufactured houses were sold out. Now Akash was planning his second
venture, ‘The Moving Sky- the project code for a moving skyscraper that actually moved
and changed shape with the time of the day. With a view to help him launch this
innovative project successfully, Akash intended to select a team of marketing consultants
for a market study and strategy. Several leading marketing firms had agreed to make the
pitch. The briefing note was in that direction.
An Overview of the Real Estate Demand in India
The Indian real estate sector has witnessed a revolution, driven by the booming economy,
favorable demographics and liberalized foreign direct investment (FDI) regime. The size
of the Indian real estate market is estimated at USD 12 billion and growing rate of about
30% annually. Booming economy, favorable demographics, relaxation of FDI norms, and
availability of finance has lead to increased demand for real estate across all sectors.
Rapid growth of the Indian economy has had a cascading effect on demand for
commercial property to help meet the needs of business, such as modern offices,
warehouses, hotels and retail shopping centers.
Traditionally known for unhealthy practices, the real estate sector in India is getting to be
a lot more transparent and professionalized. There are several reasons for it but primarily
it is because of the regulatory reforms after 1994. The result is improving the real estate
products in terms of quality, technology, adopting of more contemporary management,
marketing and maintenance models. After a boom in the metro and centers of mega
towns like Mumbai, Delhi, Chennai, Bangalore , real estate market in now in upsurge in
the suburbs and tier II and tier III cities such as Mathura, Kochi and Pune.
As per one estimate, the residential housing accounts for almost three fourth of the real
estate market. Yet there was an estimated shortage of 19.4 million dwelling units in 2007.
Growing at 30% per annum, housing sector promised better financial returns for the
investors. The demand for residential housing was driven by several factors including the
rising disposable incomes, availability of bank finance, increasing number of real estate
investors and a change in consumer attitudes towards owning a house.
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Commercial real estate such as office space, shopping malls etc. is another major demand
sector in the real estate market of India. The bulk of office space demand in India is from
IT and ITES (IT enabled service providers), followed by the financial services and
pharmaceutical units. In IT/ITES sector, the projected demand for the year 2010 is 150
million square feet of office space. As mentioned earlier, several secondary cities like
Pune, Chandigarh, Indore and Kochi are now emerging as the new preferred business
destinations. Real estate in India received a major boost from the organized retail
operators. The sector was a mere 3% in terms of total retail revenue in India but was
projected to grow at a whopping rate of 25 to 30% in the overall retail growth of 5-7%.
With large number of malls being developed across the globe, organized was poised for
an unprecedented growth in India. Finally, the real estate boom was fuelled by the hotel
industry as well. More than half of the demand for hotel rooms came from the tourist and
business travelers. The traditional 5-star hotels though accounted for no more than a
quarter of the total hotel segment , they still projected a demand 80,000 additional rooms
by 2010 growing by no less than 18% per annum.
Exhibit 1: A sketch of moving skyscraper
David Fisher is the brain child of
moving skyscraper concept. It’s a tall
building which actually moves, changes
shapes and yet manages to stay erect. It
will change direction and shape from
spring to summer, from sunrise to
sunset and even adjust itself to the
weather
.
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As per one estimate, the residential housing accounts for almost three fourth of the real
estate market. Yet there was an estimated shortage of 19.4 million dwelling units in 2007.
Growing at 30% per annum, housing sector promised better financial returns for the
investors. The demand for residential housing was driven by several factors including the
rising disposable incomes, availability of bank finance, increasing number of real estate
investors and a change in consumer attitudes towards owning a house.
Commercial real estate such as office space, shopping malls etc. is another major demand
sector in the real estate market of India. The bulk of office space demand in India is from
IT and ITES (IT enabled service providers), followed by the financial services and
pharmaceutical units. In IT/ITES sector, the projected demand for the year 2010 is 150
million square feet of office space. As mentioned earlier, several secondary cities like
Pune, Chandigarh, Indore and Kochi are now emerging as the new preferred business
destinations. Real estate in India received a major boost from the organized retail
operators. The sector was a mere 3% in terms of total retail revenue in India but was
projected to grow at a whopping rate of 25 to 30% in the overall retail growth of 5-7%.
With large number of malls being developed across the globe, organized was poised for
an unprecedented growth in India. Finally, the real estate boom was fuelled by the hotel
industry as well. More than half of the demand for hotel rooms came from the tourist and
business travelers. The traditional 5-star hotels though accounted for no more than a
quarter of the total hotel segment , they still projected a demand 80,000 additional rooms
by 2010 growing by no less than 18% per annum.
While Exhibit 2 summarizes the taxonomy of real estate Market in India, Exhibit 3 lists
the key features of the same.
Exhibit 2: Taxonomy of Real Estate market in India.
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Exhibit 3: Key Features of the Real Estate Market in India
Industry Structure
1. Highly fragmented sector with few organized players of scale
2. Most real estate developers have only a local or regional presence
3. Modest participation of large corporations in the sector
4. Margins are higher in India (>20%) as compared to the developed markets (5-6%)
5. Participation of institutional finance in Real Estate is just beginning
6. Real estate venture funds permitted: Prominent Indian corporates like ICICI
Bank, SBI and HDFC have promoted real estate venture funds
7. Proposal to allow Real Estate Investment Trusts (REITs) being examined
8. Various foreign Real Estate and Finance companies like GE Commercial Finance,
Tishman Speyer, Ascendas and Farallon Capital have entered the Indian market
Policy: 100% FDI is allowed in real estate development subject to minimum scale norms
of either:25 acres in case of serviced plots or integrated townships or 50,000 sq. mtrs. of
built-up area for construction development projects.
Outlook : The Real Estate market is projected to grow to $50 billion by 2010 with a
CAGR of over 30% p.a
Potential
1. Several factors are expected to contribute to the rapid growth in Real Estate.
2. Large demand-supply gap in affordable housing.
3. Demand fuelled by the availability of loans at low interest rates, tax incentives
and a growing middle class with higher savings
4. Increasing demand for commercial and office space especially from the rapidly
growing Retail, IT/ ITeS and Hospitality sectors
5. The recently announced Urban Infrastructure Renewal Mission is expected to give
further boost to the sector. $11.5 billion earmarked over 5 years for 60 cities
6. Investment opportunities exist in almost every segment of the business
- Housing: About 20 million new units expected to be built in five years
- Office space for IT/ITES: Five-fold increase in office space requirement
over the next 3 years
- Commercial space for organized retailing: 200 million sq. ft. by 2010
- Hotels & Hospitality: Over 50,000 new rooms in the next 5 years
7. Investment opportunity of over $50 billion in the next five years
8. Major foreign institutional investors have shown interest in investing in Indian
real estate.
Opportunities for Investors in Indian Real Estate
India in the recent times has been the potential goldmine for investors all over the world.
With a booming economy and liberalized government policies, investors from all over
the globe are choosing India as their business destination.
Driven by positive growth in the real estate scenario and the Government of India’s
decision to allow100% FDI under the 'automatic route' in the construction and
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development there has been a significant rise in the number of Indian as well as foreign
investors in the realty sector.
Some of the trends related to investments in real estate market related are depicted below.
Exhibit 4: Performance of real estate index vs sensex
Source: Citi Investment Research
Exhibit 5: Indian Tier I and Tier Developers’ Stock Price Performance
Source: Citi Investment Research
Exhibit 6: Indian Tier I and Tier II NAV Discount/Premium
Source: Citi Investment Research
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Exhibit 7: NAV Discount Trend for Select India and China Developers.
Source: Citi Investment Research
While top developers in India like the DLF, Omaxe, Sobha Developers, Bengal Ambuja,
Unitech, Vatika and Sahara Infrastructure among a few have initiated large scale real
estate developments in the residential sector catering to all segments of the society. With
more corporate houses entering real estate, corporatisation of real estate can be witnessed.
The sector is now much more professionally managed. There are no monopolistic
positions in real estate, as there are more players today in the development game. The
greater the number of players, the healthier the competition and the beneficiary of all this
would at last be the end-user.
In the residential segment, with the increase of disposable incomes and easy availability
of home loans, most builders are trying to woo investors with lucrative features and the
latest inclusions are premium luxury apartments and condominiums fitted with the most
modern accessories in home luxury.
The commercial ventures include state-of-the-art office spaces, sprawling malls,
multiplexes and retail outlets. Reports indicate that around 200 new malls with a
combined retail space of Rs.2.5 crore / sq.ft and investment of Rs.12500 crore are
expected to come up in this year.
The boom and the relaxation in FDI are also attracting interest from foreign investors to
invest in India and many are seen tying up with the local developers in expanding their
business. As the competition in the market is intense, builders are going out of their way
to be different and provide quality services.
Major real estate investor’s in the foray
Emmar Properties, of Dubai one of the largest listed real estate developer in the world has
tied up with the Delhi-based MGF Developments to announce India's largest FDI in the
realty sector for mall and other facilities in Gurgaon. On the other hand, in a recent
development DLF and UK-based construction major, Laing O'Rourke (LOR), has joined
hands for participation in airport modernization and infrastructure projects. DB Real
Estate, a unit of Deutsche Bank AG, has set up plans to start a global fund that will invest
as much as US$ 300 million in India to tap an expected surge in demand for property.
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Vancouver-based Royal Indian Raj International Corporation (RIRIC) will invest a
whopping US$ 2.9 billion in a single real-estate project named Royal Garden City in
Bangalore. Estimated to be of retail value of Rs 41,000 crores, this project is to be
completed in a period of 10 years. Indonesia-based Siputra Selim group is slated to invest
$200 million into the housing sector in Kolkata.
Indiabulls Real Estate (IREL) is proposing to enter into arrangements with Dev Property
Development, a company incorporated in the Isle of Man, whereby Dev shall subscribe to
new shares and also acquire a minority shareholding in the company, in Indiabulls
Property (IPPL), Indiabulls Real Estate (IRECPL) and Indiabulls Infrastructure
Development (IIDL). Dev has completed an initial public offering of its ordinary shares
for a total amount of Rs 12 billion or GBP 138 million and shall be listed on the
alternative
investment
market
of
the
London
Stock
Exchange.
As the real estate investments open up opportunities for the associated fields like Home
Loans and Home Insurance, a number of global insurance companies have shown interest
in the sector. This include companies like Cesma International from Singapore, American
International Group Inc (AIG), High Point Rendel of the UK, Colony Capital and Brack
Capital of the US, and Lee Kim Tah Holdings to name a few. As India opens up its
market to foreign players more competition is expected to give quality-based
performance for customer satisfaction which will consequently bring in quality
technology and transparency in the construction and realty sector. And the ultimate
winner irrespective of all is surely to be the buyers.
The Skyscrapers
A skyscraper is a tall, continuously habitable building. There is no official definition or a
precise cutoff height above which a building may clearly be classified as a skyscraper.
However, as per usual practice in most cities, the definition is used empirically,
depending on the relative impact of the shape of a building to a city's overall skyline.
Thus, depending on the average height of the rest of the buildings and/ or structures in a
city, even a building of 80 meters height (approximately 262 ft) may be considered a
skyscraper provided that it clearly stands out above its surrounding built environment and
significantly changes the overall skyline of that particular city.
The word "skyscraper" originally was a nautical term referring to a tall mast or its main
sail on a sailing ship. The term was first applied to buildings in 1880’s shortly after first
tall buildings were constructed in Chicago and New York City. The traditional definition
of a skyscraper began with the "first skyscraper", a steel-framed ten storey building.
Chicago's now demolished ten storeys steel-framed Home Insurance Building (1885) is
generally accepted as the "first skyscraper".
The structural definition of the word skyscraper was refined later by architectural
historians, based on engineering developments of the 1880s that had enabled construction
of tall multi-storey buildings. This definition was based on the steel skeleton—as
opposed to constructions of load-bearing masonry, which passed their practical limit in
1891 with Chicago's Monadnock Building. Philadelphia's City Hall, completed in 1901,
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still holds claim as the world's tallest load-bearing masonry structure at 167 m (548 ft).
The steel frame developed in stages of increasing self-sufficiency, with several buildings
in Chicago and New York advancing the technology that allowed the steel frame to carry
a building on its own. Today, however, many of the tallest skyscrapers are built almost
entirely with reinforced concrete. Pumps and storage tanks maintain water pressure at the
top of skyscrapers.
Skyscrapers were preferred because of their ability to build more real estate out of a
relatively small ground area. Most Americans liked to have their offices near the centre
of the city. This led to the development of skyscrapers as architects found it easier to
expand the metropolis upward than outward. The major challenges in building a
skyscraper were the vertical force of gravity, horizontal forces of the wind, safety and
comfort of the users. The main obstacle in building upward is the downward pull of
gravity. As new floors are added, the total force on the floors below continues to increase.
To counter this force, the lowers floors need to be thickened for every new floor added to
a point where there is very little space left in the lower floors. This makes it impractical
to occupy lower floors as the building height increases.
A major technological advancement that made skyscrapers widely possible was the
development of mass iron and steel production. The long beams of solid iron could
support much more weight than the solid brick walls in older buildings, while taking up
only fraction of the space. Later iron gave away to steel which was lighter and stronger.
Building comfort and safety was the key consideration in the design of skyscrapers.
Since stairs are not comfortable to use after the fifth or sixth floor, the skyscrapers
needed lifts or elevators. The first passenger elevator was installed in New York's
Haughwout Department Store in 1857. Threat of fire was another key concern in building
skyscrapers as huge number of people work thousands of feet above a safe exit.
Skyscrapers used fire resistant building material and are equipped with sprinkler
equipment that extinguishes the fire before it spreads too far. Because of the force of
wind, like a swaying tree, skyscrapers can move several feet in either direction, , without
damaging their structural integrity. If the building moves a substantial horizontal
distance, it can affect occupants and damage loose furniture and equipment. The methods
to control the horizontal sway are to tighten the skyscraper structure and construct strong
cores through the centre of the building. This also provides protection from the
earthquake-induced horizontal sway.
Several other new technologies are under use or development to control the horizontal
swing among sky scrapers. For example, Citicorp Center in New York, uses a tuned mass
damper where its oil hydraulic systems pushes a 400-ton concrete weight back and forth
on one of the top floors, shifting the weight of the entire building from side to side. A
sophisticated computer system carefully monitors how the wind is shifting the building
and moves the weight accordingly. Some similar systems shift the building's weight
based on the movement of giant pendulums.
Style became another important consideration in building skyscrapers especially
following the art deco movement of 1920s. Some of the most famous skyscrapers,
including the Empire State Building and the Chrysler Building (above), came out of this
era. In 1950s, as per the then international styles, these buildings were made mostly with
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glass, steel and concrete with little or no ornamentation. Since 1960s, many interesting
variations have come. For example, the Sears Tower in Chicago consists of nine aligned
tubes that reach to different heights giving the building an ‘interesting and staggered
appearance’.
Moving Skyscrapers
A tall building which actually moves, changes shape and yet manages to stay erect is the
simple essence of the moving skyscrapers. Many of us may have now probably been to
many revolving restaurants, but a building that revolves floor by floor is at the core of the
moving skyscrapers as envisioned by David Fisher, the visionary architect (Exhibit 3)
and creator of the Dynamic Tower as the world’s premier moving skyscrapers (Exhibit
4). “All buildings including skyscrapers would follow the rhythms of nature. They will
change direction and shape from spring to summer, from sunrise to sunset, and even
adjust themselves to the weather. In other words, buildings will be alive", said Fisher
while unveiling his plan to the media in New York in June 2008.
"From now on, buildings will have four dimensions. The fourth dimension is 'time', to be
made part of architecture," Fisher further said, adding, "Buildings in motion will shape
the landscape. Whether they are tall or small, residential buildings, office towers or
hotels, each room will have a view." By combining motion, green energy and efficient
construction, the Dynamic Tower will change architecture as we know it, and herald a
new era of 'dynamic living'.
Exhibit 8: David Fisher, the creator of Dynamic Towers
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Exhibit 9:
skyscraper
Each
Case No. JIITU/JBS/2008/01
floor
rotates
independently
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in
a
typical
moving
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The Dynamic Towers offer infinite design possibilities, as each floor rotates
independently at different speeds, resulting in a unique and ever evolving structure The
Dynamic Towers are environmentally friendly and have the ability to generate electricity
for itself as well as for several other buildings nearby; making it the first building
designed to be self-powered. It achieves this feat with wind turbines fitted between each
rotating floor. An 80-story building has 79 wind turbines, making it a true green power
plant. Dynamic skyscrapers offer several other explored and unexplored innovations.
Hyderabad Rocks
The firm Unique Constructions Ltd. Hyderabad under the leadership of Akash Rao was
most fascinated by the concept of moving skyscrapers and was equally determined to
build one in Hyderabad. “Hyderabad Rocks’ the pilot name given to the project proposed
80 floors, and would be 420 meters (1,380 feet) tall. The apartments ranged in the sizes
from 124 square meters (1,330 square feet) to villas of 1,200 square meters (12,900
square feet). They were complete with a parking space inside the apartment. Villa
residents on the other hand, will be able to drive directly into the building where a special
elevator will take their car to their floor and park at the entrance to their villas. (Refer to
Exhibit 5 below for a car parking in the proposed moving skyscrapers). As per the
emerging world class luxury standards, all bathrooms in the Hyderabad Rocks were to be
preassembled at the Leonardo da Vinci factory in Italy and were to be made of precious
Italian marble, sauna, Turkish bath, chromatography and sound therapy. The first 20
floors were offices, floors 21 to 35 for a luxury hotel, floor 36 through 70 were to be
residential apartments, and top 10 floors were to be luxury villas with swimming pools.
The Hyderabad Rocks was to be located at Banjara Hills- a prime location of Hyderabad.
The project excited Akash no end. While he was largely sure of what features the project
should contain, he was unsure as to whom the project might mean the most and how to
market it to them. Should the marketing approach be ‘product centric ‘ or ‘service
centric’ Or, were there other alternatives to identifying market, marketing mandate,
efforts and outcome. One thing Akash was sure of though: any marketing plan of the
‘Hyderabad Rocks’ had to be most imaginative, creative and rocking as the project itself
was. It must ‘Rock ‘n Roll instantly with the marketing plan’ he willed to tell each of the
consulting firms that were there to pitch for his multi-million dollar marketing account.
Exhibit 10: Location Map of Hyderabad Rocks
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Exhibit 11: Location of Hyderabad
INDIA
HYDERABAD
Highlights of Hyderabad
•
•
•
•
•
5th largest city of India
Capital of Andhra Pradesh
Referred as Silicon valley of India
150 I.T. companies registered in S/W Technology Park
Population: 70 lakhs
Real Estate in Hyderabad
Hyderabad, the city of Nizams, is one of the "most promising" destinations for foreign
direct investment (FDI) such as joint ventures and Real Estate investments in India. The
realty sector of India is on an upsurge due to the favorable FDI policies so this is the best
time to materialize a property deal in one of the most evolving cities of the world.
Investment in Hyderabad
Hyderabad, the capital of Andhra Pradesh offers a right mix of heritage, traditional
hospitality and a thriving software revolution. This wonderful city is known for its rich
history and culture with monuments, mosques, temples, rich and varied heritage in arts,
crafts and dance. With the development of a township with state-of-the-art facilities
called HITEC City in Hyderabad, the place has emerged as one of best places for
property investments. Today Hyderabad is known for IT and ITES Services,
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Pharmaceuticals and Entertainment industries. Many call centers, Business Process
Outsourcing (BPO) firms, dealing with IT and other technological services were set up in
the 1990s making it one of the major regions for call centers in India. The city also
houses Ramoji Film City, one of the largest regional film studios in the world.
The Indian economy has registered growth of 8.7% for the year ’08 and is expected to
grow at same level in next decade. The mounting pressure has raised prices of residential
and commercial properties in Hyderabad. Hyderabad contributes 15% to the state’s GDP
and 78% of its revenue is generated through
• IT & ITES
• Bio -Tech
• Pharmaceutical & Engineering
• Telecom
• Retail Banking, Financial & Insurance Services
• Hospitality
• Tourism
• Public and private transportation
• Luxury residential space
Apart from its technological prowess, the city is also known for its Metal crafts, Ikat
fabrics, Perfumes, Bangles, Pearls and above all a delectable cuisine. The city of
Hyderabad is a natural and sophisticated blend of old and new - an old 'Nawabi' culture
with a new pro-active approach and hospitality. The benefits offered by the city in terms
of education, infrastructure and technology has made Hyderabad an obvious choice for
corporate and commercial investment. Hyderabad has been rated as the 4th largest
growing city in the world (Source: US International Market Research Report). The
growing cityscape has led the Hyderabad Metropolitan development authority to step up
the infrastructure and facilities in the city. Hyderabad has yet another first to its credit.
The city has become the first and favorite destination for several international players
interested in real estate business to foray into Indian real estate market. Over the last 12
to 18 months, the city has attracted biggies like Sunway Berhad, Malaysia, ACI Real
Estate - an affiliate of German Investment Company Alternative Capital Invest GmbH,
Property and Building Corporation (PBC), Electra Real Estate from Israel and the list
goes on.
The internationally acclaimed players have chosen Hyderabad as their gateway to explore
the real estate business in the country. They either forged alliance with a local partner, or
appointed franchisees to make a beginning. The city is also receptive to new ideas.
Foreign players look at Hyderabad as a good testing ground. They feel that whatever
succeeds here will succeed in other metros as well. Also the government is very
proactive. Hyderabad is rapidly becoming a hot investment hub for NRIs, with many of
them investing in Hyderabad real estate as the luxury housing segment is on an upsurge.
Hundreds of US firms and big IT heads are also showing interest in investing in
Hyderabad real estate.
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Banjara Hills
Banjara Hills is on the west of Hyderabad city. The locality is primarily a residential
place with impressions of the nearby Hitech City. The regions around the township
include Panjagutta, Jubilee Hills and Mehdipattnam. The place as such shares a little with
the famous technological city. There are many software companies who do regular
business in these parts. The region has excellent accommodation and catering facilities
available. The Rock Castle, Mount Banjara, Taj Krishna and Manali Guest House are the
best in the township. Some famous eating places in the region include Gallopin
Gooseberry, Flame, Southern Spice, Fusion 9 and Our place. There are many educational
institutes including schools and other private training institutes established at Banjara
Hills. Anwar-Ul-Uloom College of Management is one of the reputed institutes in and
around the city of Hyderabad and is located within the premises of this township.
In the north east of Banjara Hills is present a small park called Banjara Park. The Banjara
Super Market is located further north east and on the Panjagutta Road. There are many
small roads that provide access to the interiors of the city. Banjara Hills lies north west of
the city center which is Abids. The two places are connected by a series of inter linked
roads. Banjara Hills is about 6 kms from Abids. Bus services are available from many
parts of the city. Khairatabad Railway Station is the nearest one to Banjara Hills. It is
located towards the east of the region and about 3 kms from it.. The airport is about 6
kms from Banjara Hills.
Banjara hills tops the list of retail rentals - India ranks 16th in the most expensive high
streets across the world and the South Indian cities, Hyderabad, Chennai and Bangalore,
emerged as the top retail locations to have witnessed highest high street rental growth
across India according to the Cushman & Wakefield India Retail survey.
Banjara Hills and Jubilee Hills, though traditional markets, are preferred by the new age
retailers with the highest annual rent rise in the country. These markets are prime
residential locations. Banjara Hills in Hyderabad was the highest gainer in India with an
annual rental growth of 114% appreciation over last year. This market is a prime
residential location and home to the city's HNIs. Furthermore, the demand for space here
far supercedes the supply.
Exhibit 13: Real Estate Market Scenario in Hyderabad.
Source: Property plus / Cushman and Wakefield
REAL – ESTATE MARKET SCENARIO
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Hyderabad contributes 15% to GSDP.
Increasing participation from large local and international players.
Government allows 100% FDI; created by affordable financing options
and rising disposable incomes.
Apart from the IT sector, demand for commercial space is also expected
to be driven by the SEZ.
Demand-supply gap for international quality real estate space in
Hyderabad, created spillover demand in smaller cities.
A CAGR of 3.8% is anticipated for the five-year period 2005-2010,
bringing the industry to a forecast value of $514.6 billion in 2010.
Multi-storey prefabricated structures could just be the solution to Indiaʹs
growing housing problem. Never mind if the concept of prefab
buildings is yet to catch up in the country.
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Exhibit 14: Self powered moving sky scraper
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Exhibit 15: Parking space at ‘Hyderabad Rocks’ Apartment- hundreds of feet above
the ground
Exhibit 16: Each floor moving independently
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Exhibit 17: Luxury villas on the top floors of ‘Hyderabad Rocks’
Exhibit 18: View of an Apartment at Hyderabad Rocks
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Exhibit 19: Overview of the surroundings from the top
Exhibit 20: State of the art luxury bathrooms
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Exhibit 21: Car elevator and parking
Exhibit 22: Another view of car parking
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Exhibit 23: Luxury hotel
Exhibit 24: Self generated power systems
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Exhibit 25: Lateral view of Parking at Hyderabad Rocks
Exhibit 26: Swimming pool at the top
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Features of Hyderabad Rocks
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Number of floors are 80
The height of building is 420 meters
The size of each apartment is 124 sq. metres
Size of each villas 1200 sq. meters
There would be 20 floors for offices
There would be 15 floors for luxury hotel
There would be 35 floors for resident
The top 10 floors would be for luxury villas
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First LIVING building in the world
Changes Shape Constantly with time and season
There is parking space inside the apartments
It will be the first self powered building with 79 Wind turbines between each
floors and solar cells to produce energy
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Special Elevator to park their cars in their floors
Each floor revolves independently
Fire resistant building material
Italian marble Bathrooms with Sound therapy, sauna bath, chromatography
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More foreign investment
Attraction for foreign tourism
MNCs and business firms will open there offices
Generates Electricity
Land mark for the city as well as India.
Hyderabad Rocks – Building, Construction and Remodelling
“ The spinning floors, hung like rings around an immobile cement core, would offer
residents a constantly changing view of the city's futuristic skyline.
“ The crucial developments for modern skyscrapers were steel, glass, reinforced
concrete, water pumps, and elevators.
“ A few penthouse villas would spin on command using a voice-activated computer.
The motion of the rest of the building would be choreographed in patterns that could
be altered over time.
“ Giant wind turbines installed between every floor, will generate enough electricity to
power the entire building, and lifts will allow residents to park their cars right at their
apartment.
“ Plumbing pipes will connect to the core via attachments similar to the ones used by
military aircraft for in-flight refuelling.
“ Building's modular construction will allow easy access to parts that need to be
replaced.
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“ To further improve the energy efficiency of the Dynamic Tower, insulated glass and
structural insulating panels will be employed.
“ In addition, natural and recyclable materials including stone, marble, glass and wood
will be used for the interior finishing.
“ We will provide you with the craftsmanship, experience, and professionalism
demanded by today’s discerning customer.
Building Materials - Resources
“ Beautifying your pool deck, porch, walkways, patio & backyard areas with an
attractive, safe and durable 100% virgin granule rubber which is kid-safe (used in
playgrounds across the USA), slip-resistant and easy on the feet.
“ For those seeking the finest quality building materials, Tuscan Resource offers an
extensive selection of custom-crafted natural stone including marble, limestone and
travertine.
“ Recessed lighting with dimmers gives you the modern look and feel, without any
cords to trip over.
“ Designs and manufactures custom, one of a kind, old-world style Chandeliers, Swag
Lamps, Table Lamps and Floor Lamps, Wall Sconces, Candelabras, and Home
Accessories.
REVOLUTIONIZING OFFICE PREMISES:
The first twenty floors of the skyscraper would be the area meant for office space. These
offices will have numerous distinct and exclusive features. It would be well equipped
with video conferencing and audio visual facilities. There would be provision for separate
meeting rooms, conference suites, lounge areas and board rooms. Additional facilities
would include hygienic pantry services to provide timely refreshments to employees,
CCTV cameras and highly sensitive security alarms for security purposes, availability of
round the clock internet access via WI-FI. There would be provision for centralized air
conditioning. We would also incorporate temperature control systems which would
regulate the office temperature in case of adverse deviations. This will make the office
environment more comfortable and soothing for the people working there. Leisure
facilities for employees will be provided in terms of indoor games like snooker, table
tennis, chess etc. which would provide a sense of relaxation to employees.
LUXURY HOTEL:
The hotels will be equipped with world class luxury spas, restaurants, bars, presidential
suites and also a provision for a movie theatre. The interiors of the suites too will be
designed tastefully with contemporary furniture along with spacious and well fitted
bathroom accessories. It will have the most modern and well equipped conference
centers.
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APPARTMENTS:
Keeping in tunes with the needs of the market and the latest trends the apartment which
includes following features:
Apartments would spin a full 360 degrees at voice command.
1. LIVING & DINING ROOM- Separate living room features with contemporary sofas
& armchairs and a dining area with a seating capacity of 4 to 6 people, several four
bedroom apartments with a private patio and garden furniture overlook the pool and are
ideal to soak in sun or enjoy the evening over some great wine.
2. BEDROOM & BATHROOM- We offer comfortable erogenous beds, feather pillows
& electronically controlled shades, room equipped with individual temperature
controllers, LCD’s etc. and bathroom with Italian marbles, spacious bath areas, steam
bath, Jacuzzis etc.
3. KITCHEN-Western style kitchen with cabinets, counter tops, top off the line
refrigerator, electric cookers, silverware glassware etc.
RESIDENTIAL VILLAS:
The villas would be set within 12900sq ft with features such as wood paneling, marble
floors, terrace garden, and swimming pool equipped with bar, sauna, and gym. An ultra
modern air conditioning would be provided in each room operated by an individual
remote control. Villas would be accompanied with a brand new Italian mosaic tiled
private pool having an under water light for night time swimming acting as a lovely back
light to the terrace and garden.
Exhibit 27: Inside of a residential Vila
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Exhibit 28: Dinner by the poolside
The top ten floors will be luxury villas and the target customers would be the elite class
and NRIs.
CAR PARKING
An automated car parking system can be introduced where residents can directly drive
into their building and a special elevator will take their car to their floor and park at the
entrance to their villas. Such a parking system would be available for offices and hotels.
Certain advantages of such a parking system are:
1. Security
2. Cost effective
: Vehicle is safe from damage, adverse weather condition and
theft is impossible
: both construction and follow up cost of such system is
comparatively modest
MARKETING HYDERABAD ROCKS
What is Hyderabad Rocks?
Designed by Italian architect David Fisher, the 80-story Dynamic Skyscraper gives
residents the ability to completely change their view. With the use of a simple voice
command, the apartment’s entire floor can rotate 360 degrees. Hyderabad Rocks is
constantly battling the effects of wind; this dynamic building uses the wind’s rotation to
generate power for the entire building. As if that wasn’t enough, residents can park cars
inside their apartment using a special elevator
Why Hyderabad Rocks?
Today’s world of business involves a number of professionalized models working in a
contemporary way. The underlying essence is to be as different, unique and marketable
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you can be to roll over the cash registers. The focus is on making something only when it
can be sold.
No sector is yet untouched by the above analysis.
One of the examples of being innovative, unique and yet working to create a niche for
such product through proper channels and concepts of marketing, is the business case of
Unique Constructions.
Why the need to build a skyscraper, that too which moves?
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Its ability to build more real estate out of small area.
Continued to evolve with time in terms of stability, safety, technology and demand.
The simple essence of the moving towers was that they move, change shape yet manage
to stay erect.
The unique concept is unheard and unseen in India complete with never experienced
before facilities.
SWOT ANALYSIS
For formulating a comprehensive marketing strategy one needs to analyse the internal
appraisal of the organization which can be done effectively through a SWOT analysis –
which needs to include an assessment of the present situation as well as the portfolio of
the product, services and an analysis of the product life cycle.
S.W.O.T ANALYSIS
STRENGTH
Reputed brand name,
Innovative concept,
unique features, well
known location
First mover advantage
Real Estate becoming
more transparent
OPPORTUNITY
Booming economy and
sector, encouraging
consumer attitude –
investment oriented, real
estate as an investment
© 2008 Jaypee
Business
School, demand.
Noida (U.P.), India
option,
growing
Favourable demographics
WEAKNESS
High price of the product
High risk as customer
response is unknown
SWOT
ANALYSIS
THREAT
Inflation, rising interest
rates.
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MARKETING GOAL
Transforming, developing & enhancing business and marketing concepts by going
beyond the boundaries of traditional people capital support.
To make things happen, against the odds in a collaborative way.
Market Competition and Position Analysis
• Highly fragmented sector with few organized players of scale.
• Most real estate developers have a local/regional presence.
• No other firm is working on a similar concept. Also, as of now, no other firm is
equipped with the infrastructure to start a project on similar lines.
• Hence, the firm enjoys every advantage of being the pioneer of Moving
Skyscrapers in India.
Marketing Efforts
• No special efforts required to promote the brand. Because of the unique features
and lack of competition the brand will gain wide publicity on its own.
The skyscrapers are more of a status symbol, fashion statement along with the necessity
for the Royal Class.
It’s all because of endless facilities, elegance, royalty, exclusivity and last but not the
least is a splendid and every second changing view.
For the above reasons, the target clientele would be
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Business Tycoons
Top Executive of Leading Companies.
Movie Stars.
NRIs
Examples of some of the Target Customers :
“ For Offices/ Banks
o SBI Capital Markets Limited
o PNB Housing Finance Limited
o Bajaj Capital Limited
o Birla Global Finance Limited
“ IT and ITES Companies
o Wipro Infotech
o Satyam Computers
o Infosys
o TCS
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“ Airline Companies
o Indian Airways
o Kingfisher
o Lufthansa India Airlines
o Jet Airways
“ For Hotels
o ITC Hotels
o The Park Hotel
o Taj Hotels
o Oberoi Hotels & Resorts
o
“ For Residential apartments, penthouse and villas
o Lakshmi Mittal (Mittal Steel)
o Azim Premji (Wipro)
o Mukesh Ambani (Reliance Group)
o Kumar Mangalam Birla (Birla group)
o Sunil Mittal (Bharti Group)
o Shiv Nadar (HCL Group)
o Adi Godrej (Godrej Group)
ADVERTISING AND SALES PROMOTION PLAN
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Promotion of “Hyderabad Rocks” by presenting the models in front of high
profile people by holding parties in five star- seven star hotels.
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Holding press conferences where international media is also invited
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As a part of sales promotion, the first flat will be given to the Man of the series in
the upcoming WORLD CUP T- 20. This will give lead to international awareness
and popularity.
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z Airplane advertising
Unique advertising methods like airplane advertising can be used along with wide
publicity in international airports. Advertisements can be displayed on the LCD
screens embedded in the seats of executive/business class in elite airlines
z Advertising in high class business magazines like – Global Travelers, Vogue etc.
z Developing a personalized website.
A website for the project Hyderabad Rocks can be made where in all the detailed
information along with the photographs and videos can be provided. Database of
those interested can be collected for follow up.
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z Documented footage of the construction site can be promoted via channels like
Discovery and National Geographic. This will help in highlighting special
features of the product like moving apartments, self power generation, elevated
car parking and the luxury features.
Marketing Challenges
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Will moving skyscraper project be successful in India?
Does the country have the technology and infrastructure to back up such a huge
investment?
Can Hyderabad Rocks really herald a new era of “dynamic living”?
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References
SkyscraperPage.com
Indian Real Estate Sector, City group equity research
www.virtusglobal.com
www.dbresearch.com
Sify news
Indiatimes.com
www.rediff.com
www.ecogeek.org
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