Pestel analysis of l t realty

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Information about Pestel analysis of l t realty

Published on December 18, 2016

Author: abinrjky

Source: slideshare.net

1. PESTEL ANALYSIS OF L&T REALTY

2. ABOUT COMPANY • Started in 2012 • Anil Naik’s youngest baby • With in 3 years L&T has launched multiple projects and competes with top players like DLF ,LODHA

3. CURRENT PROJECTS • Cresent bay – parel ,Mumbai (Sale price of 16000/sqft vs 22-28k of other developers ) (Construction Cost of 7000) • Emrald isle – powai ,Mumbai • Eden park – OMR ,Chennai • Raintree Boulyard –Bengaluru • Seawoods grand central – Navi Mumbai • L& T Business park –Powai ,Mumbai . 0 2000 4000 6000 8000 Cost/sqft of cons. Area COST

4. USP’S OF L&T REALTY • Brand value of L&T and trust that comes with that name • company is converting their on land parcels ,not buying land parcels • Not venturing to be a PAN india player • No prelaunch sales before getting all approvals Source : business standard

5. PESTEL ANALYSIS WHAT WORKS? • ‘Make in india’ campaign and extra foreign investements comes along with that • ‘Housing for all 2022’ and its effect on Real estate developments • Support of government in rehabilitation (SRA) projects WHAT IS AGAINIST? • Revised draft DCR 2034 – Mumbai and revised applications on TDR ,Fungible FSI • RERA BILL 2016 (Developer majorly concentrates on mumbai as majority of its land parcel is in or around MMR) POLITICAL

6. PESTEL ANALYSIS ECONOM Y

7. PESTEL ANALYSIS WHAT WORKS? • The government has recently permitted 100% FDI in construction sector. • Indians (NRIs) are permitted to invest in Housing and Real Estate sector. This includes persons of indian orgin • Development of townships and infrastructure • REIT WHAT IS AGAINST? • INDIA is a sales driven market . • Decline in real estate sector right now. ECONOMY

8. PESTEL ANALYSIS WHAT WORKS? • Brand name of a builder or the company plays an important role in convincing the buyer to buy the house and be sure of the quality of construction work done. This is one thing L&T realty has as a USP. • Green Building Projects. (All projects developed by L&T are green certified) WHAT IS AGAINIST? • Resistive attitude of society towards the modern construction materials. This is due to the fear of safety and security • The concerns regarding powai region projects . SOCIAL

9. PESTEL ANALYSIS WHAT WORKS? • Emergence of new construction technologies in India • Use of high end formworks in projects (mivan ,kumgkang ,self climbing type formworks) • Skills L&T construction possess over this much years WHAT IS AGAINIST? • Indian construction industry is atleast 10 years behind global standards . • Due to lack of technology, construction can suffer in terms of quality and design. TECHNOLOGICAL

10. PESTEL ANALYSIS • Various environmental factors affect the cost of construction like • Availability of labor force • Transportation cost • Quality and cost of land and demand • Uncerain environmental hazards • Political unstabilities Uncertain environment environmental

11. PESTEL ANALYSIS • Most complex system of taxes and approvals • Ranked 184 in ease of getting construction approvals Legal factors • No pre sales before approval strategy What works? • What is against?

12. Political • No new launch is declared till establishment of RERA • Very high support to SRA projects & MHADA projects Economical • Self standing stratergy • Very careful with joint ventures • Converting their own land parcels Social • Knows peoples pulse • Attracts NRI customers a lot and is a part of strategy also Technological • Best we get in india . • Very specialised team of L&T backing up Environmental • Should be very careful with moef guidelines • All launched buildings have green aspects in design Legal • No pre sales before approval

13. THANKS FOR THIS OPPORTUNITY

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