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Founder's Message

Founder
MR M.R. JAISHANKAR
CMD
"It may seem strange that while the Indian economy is subdued, the Indian stock market indices are breaking records every other month. While too much hot money is channelled into the stock market, one only hopes, that this reflects the underlying strength of the economy. Our country is slowly but surely recovering from the shock of Demonetisation and GST. Unfortunately for the government, Demonetisation did not succeed as expected and it also did not give the government, the expected windfall. Despite this, Demonetisation was a bold initiative which helped in bringing idle black money into mainstream circulation, resulting in softer interest rates.

On the other hand, GST implementation is a mammoth effort. We must credit the State & the Central Government for all the proactive steps, they are taking to make this most complicated initiative a success. Over time, the benefit to the country will be immense and there will be a paradigm shift in the way, business is conducted across the country. While there are many critics, one should remember - Nothing ventured, Nothing gained. GST is one major legislation to help integrate our subcontinent. It is generally felt that other initiatives like ‘Make in India’ are beginning to make the intended impact, as order books of several Indian manufacturing companies are believed to be full.

The much-awaited RERA has come into effect in most States during the last 6 months. It is bound to have its disruptive impact on the sector but will help separating the ‘grain from the chaff’. Realizing that the Indian Real Estate is still reeling under the three-pronged attack (Demonetisation, GST & RERA) , the Central government has liberalized the Pradhan Mantri Awas Yojana (PMAY) scheme by extending credit linked subsidy of about INR 2.30 lakhs to even good sized apartments of upto 150 sq. mts. for people with income up to INR 18 lakhs. This should surely help in giving the required push, to improve demand for real estate. With ‘profit booking’ expected in stocks & mutual fund investments, some amount of the profits are expected to flow into the Real Estate sector, which is also showing ‘green shoots’ in Q3 as compared to earlier quarters.

During the last few months of the year, we were able to complete a number of projects (Brigade AT No 7 in Hyderabad; Brigade Mountain View & Pearl at Brigade Palmgrove in Mysore; Brigade Cosmopolis and Brigade Lakefront ‘A’; Brigade Omega and Wisteria @ Brigade Meadows; Cedar, Deodar and Parkside @ Brigade Orchards; Brigade NorthRidge; Brigade Bhuwalka Icon, all in Bangalore). Our 274 keys CBD hotel, Holiday Inn Express Race Course Bengaluru became operational helping us cross the magical 1000 room mark, under our portfolio. And we are gearing up to launch several exciting, new Commercial & Residential projects, mostly in Bangalore and a few in Mysore.

With all the surprises and shocks of the last twelve months behind us, one hopes that the New Year will auger well for Brigade and for the Indian economy. With that hope, wishing everyone, Season’s Greetings and a Happy and Prosperous New Year."

—Jaishankar CMD, Brigade.
CONTACT HIS OFFICE
Call         +91-80-40467666
ARCHIVE INDEX
"A few thoughts…" is a column that our CMD Mr M.R. Jaishankar writes regularly for our house journal Brigade Insight. A few of his columns are reproduced here."
April 2009

The last 7-8 months have been the most challenging in this millennium. Economies the world over have been badly affected. Relatively speaking, India is less affected than the western economies and countries whose GDP is exportdependent. Indian exports comprise less than 20% of our GDP, as compared to 40% in the case of China and about 60% in the case of East Asian economies like Japan. Though, by and large, India is perceived as less dynamic and aggressive during the boom time, in the present circumstances, the country would be classified as conservative, wise and not greedy. Probably, the same rationale is applicable to Brigade Group also.

When will the economy recover to its previous glory? In my opinion, not in the immediate future, although one can say with reasonable confidence that the worst is behind us. There are several predictions that in 6–18 months, there will be a marked improvement in the world economy. A lot will depend on the US, which is the world’s largest economy, with its GDP 14 times bigger than India and with less than 30% of the population of our country.

The response by the developed countries to the global recession has been swift and substantial, which has helped in preventing the ‘recession’ from becoming a ‘depression’. Other than reduction of interest rates by 2-3%, the Indian government hasn’t taken many positive steps, as compared to say China, which is pumping in USD 250 billion+ to stimulate their economy. The biggest impetus to the Indian economy seems to come from unexpected quarters—parliamentary elections! An estimated Rs 10-15,000 crores is likely to be spent before 31 May. One shudders to think what kind of a fractured coalition of parties will come to govern us soon. We should all pray for a stable and progressive government at the centre.

As regards interest rates, since the inflation has been brought to under 1%, there seems to be tremendous scope and opportunity to bring it down further—at least by 2%. Interest rates should always be a function of inflation rate and GDP growth rate.

****

The welcome news is that Swiss banks and banks in other tax havens are willing to announce the names of the account holders. If the billions of dollars stashed away by corrupt businessmen, officials and politicians comes back to our country, it will be the biggest stimulus package we would receive to revive the economy.

****

Negative sentiments are on the downward mode, as can be gauged by the 50% jump in stock sensex in the last 2 months. But one can never be sure whether it is due to technical reasons and manipulations by the operators, or due to improved fundamentals of the companies. Even the real estate business has shown good signs of recovery from March onwards, though it is one of the last sectors to recover since the decision to acquire a property can always be postponed. But, a smart investor will treat the current situation as an opportunity to pickup good properties at reasonable rates. For those who missed the bus in 2002-04, this is the right time to buy.

As for NRIs, they cannot ask for more. It is a golden opportunity, what with the rupee depreciating by 25% in value against dollar (compared to January ‘08) and property prices having come down between 15-25%, depending on projects. Fence sitters are bound to regret it, if they don’t act now.

****

Brigade Group achieved a major milestone on 4 April ’09, with the opening of its 4-star serviced residences, with the internationally reputed Accor Group managing the co-branded property: Mercure Homestead. The positive feedback on the quality of rooms, F & B, and facilities like gym, spa and swimming pool is heartwarming.

****

June ‘09 will also see the opening of a second school—The Brigade International School—by Brigade Group’s not-for-profit trust, the Brigade Foundation. It is a boon for the residents of Whitefield and surrounding areas to get quality education with great infrastructure and convenience at a reasonable fee structure.

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Team Brigade is making all efforts to quickly complete our flagship projects—Brigade Metropolis, Whitefield Road and Brigade Gateway, Malleswaram-Rajajinagar—which are in an advanced stage of execution. So also Brigade Courtyard in HMT Township, Brigade Palmsprings in J.P. Nagar, and Brigade Solitaire and Brigade Citadel in Mysore. I thank all our customers for showing their confidence, patience and support. 



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