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Mumbai Economy Thread

192K views 717 replies 88 participants last post by  blackgold27 
#1 · (Edited)
Mumbai Economy And Real Estate Thread

With permission from Sudeesh I have set this thread up to post articles about the economic growth and jobs generated in the city.

Mumbai as we know has been tipped by many round the world to be one of the shining stars of the next decade.

Post all economy related articles in this thread. This includes real estate news.

Floating the rupee has to be the single most important policy for the city which has the nations two largest stock exchanges.
 
#193 ·
NTC to begin sale of 3 properties in April

NTC has raised Rs4,034.6 crore from the sale of mill assets, according to the latest report by the committee on public undertakings, a parliamentary panel


New Delhi: Mill owner National Textile Corp. Ltd (NTC) plans to auction prime property spread over 150 acres of land in Mumbai, Kanpur and Indore, with the exercise kicking off next month.

“As the Indian realty market is reviving from the slump, there is need for more land to create housing,” state-run NTC’s chairman and managing director K. Ramachandran Pillai said at a seminar in the Capital on Wednesday.

“We plan to begin the process in April by placing notices in major national dailies,” Pillai said.

NTC, which has 25 mills in Mumbai alone, has raised Rs4,034.6 crore from the sale of mill assets, according to the latest report by the committee on public undertakings (Copu), a parliamentary panel. It sold five plots for Rs2,200 crore at the height of the property boom in 2005-06.

No minimum price has been set for the land that it plans to auction, Pillai said. “This depends on location and the market demand. But we would soon take a decision on this.”

Pillai hadn’t responded to queries for further details sent by email till the time of going to presss.

The committee’s report also said NTC got 180-350% higher than the base price from the sale of the five properties in Mumbai, primarily because of location and demand.

The next round of auctions in Mumbai may not provide as high a return, said Ashutosh Limaye, associate director, strategic consulting, Jones Lang LaSalle Meghraj, a property consultant.

“The developers are in no hurry to enter the Mumbai market this time, as it was seen in the previous auction,” he said. “Moreover, NTC mills are not the only ones available in the market for auction. There are other property owners who are willing to offload. Third, cash-starved developers will not be able to pay a higher price for the land.”

The land in the smaller towns may generate more demand.

“If the land in Kanpur and Indore are located in prime areas, developers will readily give better price,” he said. “Smaller cities are the next destination in terms of housing.”

NTC was incorporated in April 1968 with the main objective of managing the affairs of sick textile undertakings, eventually coming to control 119 mills through nine subsidiaries.

All the subsidiaries were declared sick by the end of year 2005 under the Sick Industrial Companies Act, 1985. The NTC board subsequently approved industrial and financial reconstruction programmes that included the closure of unviable mills.

According to these schemes, 77 mills were to be closed, 40 to be revived and two to be transferred to the Tamil Nadu government.

An assets sale committee was constituted for each subsidiary to take decisions regarding the sale of surplus assets. All the nine subsidiaries were merged with the holding company, thus making NTC a single company.

devesh@livemint.com

http://www.livemint.com/2010/03/19213957/NTC-to-begin-sale-of-3-propert.html
 
#198 ·
http://www.unhabitat.org/documents/SOWC10/R2.pdf

interesting read.

India has lifted 59.7 million people out of slum conditions since 2000. Slum prevalence fell from 41.5% in 1990
to 28.1% in 2010. This is a relative decrease of 32%.
Lessening poverty and improving conditions in slums are part of India’s urban development policy. It has achieved
this, first, by building the skills of the urban poor in their chosen businesses, and by providing them micro-credit;
second, by providing basic services and development within slum settlements, thus improving living conditions;
third, by providing security of tenure to poor families living in unauthorized settlements, improving their access
to serviced low-cost housing and subsidized housing finance; and fourth, by encouraging the poor to take part
in decision-making and community development efforts.
http://www.unhabitat.org/documents/SOWC10/R8.pdf

India, that make various subsidies available to low-income groups tend to
feature lower consumption inequality, as they enable people to access basic goods for free or at reduced
 
#200 ·
point noted mm

however i would like to see mumbai related stats on slums as they have been IMO on the increase in the city and on the decrease in the further metropolitan area.

But in general yes point noted and you were right
 
#201 ·
Thanks IchimaruGin1. The report is poorly laid out with separate pdfs for each chapter, but I was able to understand the original germ of information from which the "most productive city" wording is derived. As usual, the Indian press have taken a valid fact and twisted it into meaningless drivel.

Mumbai will be in the top 30 cities by aggregate GDP in 2010. This is not the same as being the most productive. Productivity is typically defined as output per hour of work, and it would be an incredible achievement if the average Indian worker in Mumbai were able to produce a comparable amount of output per hour to an average worker in New York.

Being in the top 30 cities by GDP itself is an achievement of which anyone in India should be proud. It needn't be cheapened by calling it something it's not.
 
#203 ·
#205 ·
One-bedroom flats making a comeback in Mumbai


When aspiring actress Maarishaa S Kumar first set out to fulfil her dream of buying a house in Mumbai, what she had in mind wasn’t a 500-sq-ft

(builtup area) apartment with a tiny bedroom, a small hall, and a barely functional kitchen.

Even with a budget of Rs 45-50 lakh, finding anything else — in fact, anything at all for almost two years — in the area of her choice was proving impossible. Finally, after several weeks of deep deliberation , she closed the deal on the long-forgotten quintessential Mumbai phenomenon — the One-BHK .

Maarishaa, a prototype of the middle-class buyer who had been pushed outside the city limits over the last four years due to luxury apartments available at exorbitant prices, is now a home owner in the posh Andheri-Lokhandwala area.
“With my budget, I would’ve had to go to Bhayender or Thane for a two-BHK . I thought I don’t really need the space since I’m a single woman, and this area is much more convenient since the television industry is around here. After two years of hunting, I settled for a one-BHK ,” Maarishaa said.

For house-hunters like Maarishaa, who wanted to live in Mumbai city but had been priced out of the market, the one-bedroom seems to be making a comeback.

NEW PROJECTS

Andheri (West) will soon have two 21-storey towers near the Lokhandwala complex with only one-BHK apartments. The towers will have 250 flats of around 500-sq-ft (built-up area) at a price of Rs 37.5 lakh.

“There is little competition in this segment since very few developers are making onebedroom apartments. Also, our location is suitable for TV actors and young professionals who are living on rent in the area and are keen to buy,” said builder Raju Manwani of the Ravi Group.

Not surprisingly, Manwani says almost half the building has already been booked. The company is now considering similar projects in Goregaon and Malad, where Super Constructions is already building a 15-storey tower. This tower will have 70 one-BHK flats of 600-sq-ft (built up) at around Rs 36 lakh.

Further North, in Kandivali, one BHKs of 448 sq ft (carpet area) are coming up in Hiranandani’s Pristina complex. “Smaller houses give you lesser margins, but that gets compensated because of the volume of flats you sell,” says Niranjan Hiranandani, chairman of the group. “We’ve had a great response for our smaller houses in Kandivali. I believe 50 per cent of the total housing product in the country in the next five years will be in the affordable range.”

For those who’re fine with venturing further away, Casa Essenza close to Dahisar highway is offering 190 new 1-BHKs . Their 585-sq-ft (built-up ) flats cost Rs 30 lakh, and their 603-sq-ft apartments come for Rs 33 lakh, with an attached ‘sun-deck’ !

SIZING VS PRICING

“The success of any developer lies in sizing and pricing. Pricing has gone up by 25-30 per cent in last six months. To the keep the product within the reach of your target buyer, the only thing the developer can play with is sizing, said Pranay Vakil, the chairman of international property consultants Knightfrank. “So, it’s back to the 1-BHKs !”
That this is a new trend is clear from a survey conducted by property consultants Liases Foras in December , 2009. Out of the close to 90,000 flats at various stages of construction in the Mumbai Metropolitan Region (MMR) at that time, only 13,600 were 1-BHKs (mostly beyond Mira Road and Thane).

Pankaj Kapoor, managing director of Liases Foras, was still sceptical about the sudden surge of 1-BHKs . “There is a huge segment that wants to buy flats in the Rs 50 lakh range, sure, but that kind of budget immediately pushes you to the outskirts because builders stopped constructing 1-BHKs after 2006,” he said.

“The new trend may be a trial run in the market. If your budget is Rs 50-60 lakh, your income is around a lakh. With that kind of money, do you want to live in a pigeonhole?”

But the varied considerations of buyers are not always easy to second-guess . For example, Madan Talreja, who had been living on rent in Andheri for almost a decade with his wife and kids, has also recently booked a one-BHK in his neighbourhood. “We were paying Rs 20,000 per month as rent, and my family didn’t want to leave Andheri,” Talreja said. “I wanted a two-BHK because I have two grown-up children but I couldn’t find anything in my budget. Now, at least I’ve managed to buy something.
http://economictimes.indiatimes.com...-a-comeback-in-Mumbai/articleshow/5726519.cms
 
#206 ·
IT MNCs in Mumbai!

I hope i am posting in the right thread.

As i am an IT professional, i was wondering why the major IT MNCs are missing here in the city of Mumbai? When compared to Bangalore, Pune , Hydrabad, Noida and even Chennai? I am talking about bigies like HP, IBM, Honeywell, Infosys,Wipro, Huawei, Cisco, Oracle etc ( some of these are present here, but AFAIK most of them have there BPO centres here.) Is it the talent availibilty or the high cost of setting up a Buisness here acting as a dampner? I am sure the high skilled talent can always migrate here. Is the GOVT providings any SOPs for IT cos like the states of Karnataka, Tamilnadu, AP etc? Navi Mumbai can really be promoted as an IT destination given the good infrastructure and connectivity. Is the state GOVT doing anything to push the IT industry here and attract investment? I know that there are some companies like Patni, TCS and Hexaware operating out of Mumbai, but still lot of big players are missing here. What do you guys think? What should the GOVT do? Hope to see some replies.
 
#207 ·
I hope i am posting in the right thread.

As i am an IT professional, i was wondering why the major IT MNCs are missing here in the city of Mumbai? When compared to Bangalore, Pune , Hydrabad, Noida and even Chennai? I am talking about bigies like HP, IBM, Honeywell, Infosys,Wipro, Huawei, Cisco, Oracle etc ( some of these are present here, but AFAIK most of them have there BPO centres here.) Is it the talent availibilty or the high cost of setting up a Buisness here acting as a dampner? I am sure the high skilled talent can always migrate here. Is the GOVT providings any SOPs for IT cos like the states of Karnataka, Tamilnadu, AP etc? Navi Mumbai can really be promoted as an IT destination given the good infrastructure and connectivity. Is the state GOVT doing anything to push the IT industry here and attract investment? I know that there are some companies like Patni, TCS and Hexaware operating out of Mumbai, but still lot of big players are missing here. What do you guys think? What should the GOVT do? Hope to see some replies.

i dont have the data on the MNC's in Mumbai. Most of whom you mentioned do have offices in Mumbai. But dont employ the levels of employees that the other cities do.

The IT centre in the mumbai metropolitan area is Navi Mumbai. (as you said yourself) Especially the millennium business park. There are a lot of companies setting up base there.

Maharashtra state does have a comprehensive IT policy on similar lines to Karnataka (tax breaks etc) . However Maharashtra as a state still very much relies a lot more on industry than services compared to other states. So major push has been to build more sez's for big industrial projects
 
#216 ·
There is no chance that IT is going to get into Mumbai city till Andheri. Even Thane and Navi Mumbai costs as much as the CBD of Bangalore/Chennai/Hyd/Pune/Noida. And the IT campuses in these cities will be in the suburban areas which will cost even lesser. Cost reduction is the main agenda of IT services companies. Even Microsoft, Google etc will find Mumbai very expensive.

This phenomenon is not new and prevalent across all financial cities of the world. Mumbai is likely to hold only a small fraction of IT services to satisfy the non-relocatable human resources.Even in the talent pool, Mumbai has more of ITES talent, rather than IT. IT talent is more in South India
 
#218 ·
^
its not as bad as you make it out to be. Mumbai does have a significant chunk of Indian IT exports.

All Indian cities are also in the top BPO destinations including Mumbai (ranked third after Bangalore and Delhi)

http://business.rediff.com/slide-sh...ties-among-global-bpo-hotspots.htm#contentTop

Obviously Pune gets more action of the IT sector than Mumbai. Many firms are actually setting up in Mumbai after having their primary campus somewhere else in the country



@abhi

yes your right.
 
#221 ·
That rediff article is a opinion survey.

As per STPI statistics, this is the ranking of the cities for total IT/ITES exports - 1) Bangalore 2) Chennai 3) NCR 4) Hyd 5) Pune 6) Mumbai. Will post links when I get it.

Mumbai would have large chunk of ITES, there is no statistics that gives IT exports alone. My guess is 1) Banglore, 2) CHennai, 3) Hyd 4)Pune 5) NOida, 6) Mumbai /Kolkata.

There is nothing to worry here. Even Delhi does not have many IT companies for the same reason. IT companies are usually located in semi urban and rural areas in western countries - as they dont need casual client visits, field visits etc. If connectivity (data connectivity) and social infrastructure are available, IT can be located in small towns of India too.

Khargarboi, what you are saying is correct. The root cause is what I said. That is the reason, Mumbai's IT workforce get less in spite of high cost of life.
 
#226 ·
Realty sector in Mumbai: High prices hit demand



Realty sales in Mumbai Metropolitan Region (MMR) have fallen. The total area (m sq ft) sold in MMR in December 2009 as compared to September 2009

quarter, has come down. Prices have risen or remained flat in some cases. This shows that homebuyers are holding on to their demand and exercising restrain. Demand for big-ticket houses has been the worst hit.

As per the data compiled by Liases Foras, a real estate research agency, flats costing Rs 1 crore to 2 crore have seen a sharp fall in demand which is contrary to what many developers in the region have been saying. Homes costing over Rs 2 crore are also witnessing the same trend. This is in contrast to cities like Bangalore, Hyderabad and NCR, where sales have risen, thus proving again that Mumbai property market defies rules applicable to other markets. The main reason for the same being that prices have fallen in the above-mentioned cities whereas Mumbai based developers have been increasing their prices.

MMR’s business turnover index (BTI) registered a 32% decline in the last quarter of FY09. BTI is the measure of movement in the sector, which takes into consideration the price, and area of the total number of units sold across projects across regions. Nonetheless, what is noteworthy is that despite a 20% growth in sales in NCR, the overall increase in its BTI is very small. This is due to the fact that there has been a more than proportionate increase in sales of low-ticket units.

Mumbai developers have scarce land resources to build upon when compared to NCR builders, the reason why they make the most of what’s available. The efficiency index in MMR has also come down, the highest decline seen in the Rs 1 crore to Rs 2 crore category. The market efficiency is the ratio between the average sale movement per building and the rate per sq ft. It suggests demand elasticity.

So, if the average sale per building is increasing with the increase in rate, the market is efficient. Conversely, reduced sales means the market has become relatively inefficient to that extent. Developers must realise that if they increase price irrationally, they will be left with unsold inventory and thus lead to the vicious cycle of debt trap as was the case in 2008.

They must realise that ‘Customer continues to be the king’, at least for the time being.

http://economictimes.indiatimes.com...igh-prices-hit-demand/articleshow/5744881.cms
 
#227 ·
PharmARC Opens Office in Mumbai to Provide Consulting and Analytic Solutions Specifically in the Asia Pacific Region

Read more: http://www.earthtimes.org/articles/show/pharmarc-opens-office-in-mumbai,1227770.shtml#ixzz0jkkScXnz


PharmARC to enable efficiencies in pharma commercialization for customers in the Asia Pacific region with a special focus on emerging markets such as India.

Mumbai (PRWEB) March 31, 2010 -- PharmARC, a leading provider of consulting and analytic solutions to the pharmaceutical industry today announced the opening of its new office in Mumbai. In a clear demonstration of its growing focus in the Asia Pacific region, the company stated that the new office will cater to customers exclusively in the Asia Pacific region, especially India.

“Pharmaceutical companies in the Asia Pacific region face unique challenges of diverse local markets, lack of health care data, pricing and threats from generics. We have a tremendous opportunity to enable efficiencies in pharma commercialization for customers in this region,” said Amit Sadana, President and CEO. “The Mumbai office will lead all our Asia Pacific initiatives with a special focus on emerging markets such as India.”

Rohit Kumar, who is spearheading the India initiative and practice operations for Asia Pacific, said, “We are confident that with this expansion, we can now build a stronger footprint in the Asia Pacific region. We will continue to expand our team of regional experts who will provide insightful and actionable analytics.”

About PharmARC PharmARC is trusted by customers, including 15 of the Top 20 pharmaceutical companies in the world, to enable efficiencies in pharma commercialization. We are 100 percent focused on life sciences and have a unique engagement model to enable customers to benefit from efficient commercialization, making it the new source of competitive advantage.

Our engagement model is led by a consulting approach to understand the real issues faced by customers. We then work backwards to develop a solution that is enabled with the right data, analytics and technology.
 
#228 ·
DHR Internatonal Moves in Mumbai, India Office

MUMBAI, India, March 31 /PRNewswire-Asia/ -- Global executive search firm DHR International is pleased to announce moving into its own office at Bandra-Kurla Complex, Mumbai, an up market business and financial district that is rapidly attracting major local companies and multinational corporations.

Christine Greybe, President, DHR International, said, "This move clearly underlines DHR's long term commitment to the vast India market, and reinforces the firm's confidence in Mumbai and in the overall Indian economy."

Since starting its first office in Mumbai in 2008, DHR has grown and set up additional offices in New Delhi and Bangalore. The firm and its team of senior and experienced consultants specialize in C-level searches that cover a large number of industries and sectors.

For over 20 years DHR International has been a leading, privately held provider of executive search solutions with more than 40 wholly-owned offices spanning the globe. DHR's renowned consultants specialize in all industries and functions in order to provide unparalleled senior-level executive search, management assessment and succession planning services tailored to the unique qualities and specifications of our select client base. For more information on DHR International, a "Top 5" executive search firm, visit http://www.dhrinternational.com

http://www.webnewswire.com/node/519774
 
#229 ·
Credit Suisse gets nod to set up bank branch

Credit Suisse on Monday said that it has received an in-principle approval to establish a bank branch in Mumbai, enabling it to substantially expand the range of services it offers in the Indian market.

Once established, the Mumbai bank branch will be able to accept deposits and use its balance-sheet to provide financing to clients, complementing the capabilities of Credit Suisse's non-bank financial company in India, it said in a statement.

http://beta.profit.ndtv.com/news/show/credit-suisse-gets-nod-to-set-up-bank-branch-32619
 
#230 ·
Hindustan Petroleum May Shut Mumbai Refinery by Next Week

April 5 (Bloomberg) -- Hindustan Petroleum Corp., India’s third-largest state refiner, may shut a crude distillation unit at its refinery in Mumbai by next week as part of a plan to expand capacity.
The refiner plans to shut the crude unit at the 6.5 million metric ton-a-year Mumbai plant for 35 days “starting this weekend or early next week,” refineries director K. Murali said by telephone today. After the Mumbai refinery restarts, the company will close a fluid catalytic conversion unit at the 7.5 million ton-a-year Visakhapatnam plant, its biggest, for about 60 days, he said.
“We have planned the shutdowns one after the other to meet our fuel requirements,” Murali said.
The Mumbai refinery’s annual capacity will increase by as much as 1 million metric tons, he said. The unit to be upgraded at Visakhapatnam will have its capacity boosted to 1 million tons from 700,000 tons, Murali said.
Hindustan Petroleum plans to partially shut its refineries in April, Murali said in an interview Feb. 11 without specifying dates.

http://www.businessweek.com/news/20...um-may-shut-mumbai-refinery-by-next-week.html
 
#231 ·
RBS sells Worli property for Rs 37.25cr: Sources

In what is Mumbai's most expensive real estate deal, CNBC-TV18's Priyanka Ghosh learns that RBS has sold an apartment in Worli for a breath taking Rs 37crore.
CNBC-TV18 learns that RBS has sold its apartment in Samudra Mahal for Rs 37.25 crore. The 3,300-3,600 sq ft apartment is located in Worli.
The apartment sale values the property at Rs 1,08,000 per sq ft. DTZ acted as the property consultant to the deal.
In 2008, Actor-politician Vinod Khanna had purchased a 2500 square feet apartment at Malabar Hill for Rs 31 crore and in 2007 an unidentified NRI had bought 3475 square feet in NCPA Apartments for Rs 34 crore.

http://www.moneycontrol.com/news/cn...i-property-for-rs-3725cr-sources-_450073.html
 
#232 ·
Bharat Diamond Bourse gets final nod for takeoff

A big step has been taken to fulfil the nearly two-decade-old dream of shifting the diamond market from South Mumbai’s Panchratna to a new trading hub with single-window facilities. The Bharat Diamond Bourse (BDB) has got the final occupation certificate for the building, being built in Central Mumbai’s Bandra-Kurla Complex.

Anil Wankhede, deputy commissioner of the Mumbai Metropolitan Region Development Authority, confirmed that the way was now clear for BDB members to begin business at the new premises. The BDB plans to meet later this month to finalise the remaining formalities on allotment of share certificates to members, after which the latter will start shifting to the new premises.

Anoop Mehta, president of the bourse, believes commercial activity on the new premises will start within two months, while full occupation will happen in another four months.

The first major step would be to set up a dedicated Customs facility (for which 20,000 sq ft has been kept) in the complex to clear imported rough diamonds and exports. Banks are also expected to open branches in the premises. Mehta said he was confident the process would be over within six months.

The development is being described as an important step towards anchoring India’s leading role in global diamond trade. Currently, nine of every 10 rough diamonds processed in the world are routed through India. Therefore, successful implementation of the BDB plan would help attract more business to India, said Mehta.

The project was planned in 1992 as a new-age complex with all modern amenities and infrastructure. Around 30 banks were planned to be housed there, besides the Customs house and 25,000-odd safe deposit vaults, with security measures on a par with the world’s best.

The initial cost estimate was Rs 600 crore. But, disputes between the BDB committee, its architects and contractors, and payment defaults by members during the 1995-99 property slump put the project on hold in 1998. It was restarted in 2001. Informed sources said the 2,427 members of the bourse fought over various details even after allotments were decided. Therefore, many members did not release payment due to differences over costs, antagonising committee members.

Most of these issues have since been addressed, with 14 lakh sq ft of area out of the 18 lakh sq ft planned already allotted. Some area has been kept for common utilities, which is non-saleable and will house the trading floor, the Customs area and conference halls.

Satishchandra Shah, vice-president of the bourse, said, “Differences are over now. We are ready to come together for the betterment of the Indian diamond industry.”

http://www.business-standard.com/india/news/bharat-diamond-bourse-gets-final-nod-for-takeoff/391020/
 
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