Founder's Message
Our world is in turmoil. The mindless war in Ukraine continues. The number of Covid cases across the world has gone up to 650 million with 1% mortality. In other words, about 6.5 million deaths. The numbers are going up in the United States and more particularly in China – thebirthplace of the Wuhan virus.
With inflation levels inchingtowards double digits in Europe and parts of America, talk of recession in the western world is gaining momentum. Our country, by and large, seems to be insulated. The question is for how long will we be insulated in this globalised world. Only time will tell. Despite what is going on around us, Indian stock indices have reached an all-time high! It is an enigma. There is money with the Indian public with few options to invest. Unfortunately, big investments in the industrial sector are not happening to the desired extent to match the government’s expectations. Probably, Indian businessmen feel the risk factors are high based on macro indicators with impending elections in many States during 2023, and the Parliamentary elections in 2024, which is not far away. To reduce inflationary effects, Central Banks across the world, led by the US Federal Reserve, have increased the base interest rates significantly. The Reserve Bank of India has followed suit. The full effect of increased interest rates is yet to be felt by the business community. However, it is bound to hit profit-ability across sectors and the risk factors of higher borrowing will only increase.
In such a scenario, the Indian real estate sector is holding the fort and has shown a lot of resilience. The residential sector continues to do well. Business in retail malls and multiplexes is at an all-time high. Hotel occupancies and ADRs have also bounced back and have exceeded pre-COVID levels in many cases. The only area of concern is office leasing business, where companies in the IT sector are showing cautious approach and postponing major decisions. Employment generation is a key factor for the health of real estate business. However, Indian companies in the software sector and GCCs (Global Capability Centres) expect higher offshoring over time to ensure companies profitability is maintained in their home countries.
Having received all approvals for our residential projects – Brigade Valencia on Hosur Road and Brigade Calista on Budigere Road, the team is geared up to launch both large sized projects in the new year. Response to our maiden large plotted development project – Brigade Oasis on Devanahalli to Doddaballapur Road is very encouraging, having sold the 1st phase in a short period.
Succession in leadership is a necessity at various levels in any organisation. The time has come for me to take a step back from day-to-day routine activities. Having crossed 67 years in age, our Board of Directors have decided to elevateExecutive Directors Pavitra and Nirupa to Managing Director and Joint Managing Director, respectively. They are both eminently qualified with MBA degrees from Ivy League colleges – Columbia Business School and Cornell Business School, and each with more than 15 years’ work experience. They are both young, energetic, full of ideas and ready to work hard. I will continue as Executive Chairman.
I am happy and proud that FKCCI (Federation of Karnataka Chambers of Commerce and Industry) conferred on me the ‘Bharat Ratna Sir M. Visvesvaraya Memorial Award 2022’ on his birth anniversary, September 15, which is also celebrated in his honour as ‘Engineers Day’, across the country. It is in recognition of my services and contribution in the construction and building sector, as well as in the fields of education, health, community development, social and philanthropic work. I dedicate this recognition to all in Brigade Group. Without the support of Brigadiers, it was impossible to achieve, whatever has been achieved.
Lastly, I wish all the Brigade stake-holders season’s greetings, and the very best during the New Year 2023. We need a Santa Claus for the business sector also.
—Jaishankar CMD, Brigade.
The most significant happening in the last quarter is the manner in which Barack Obama was elected as the President of the world's biggest economy, on the plank of promise of CHANGE. For me it was a moving experience to watch the final stages of the US election process and to listen to the high quality speeches. If one reads Obama's Audacity of Hope, one can realise what a clear thinking person he is. It certainly brings hope of a better tomorrow for the world as his views are full of sense.
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By and large, the last quarter has seen the stock markets world over getting battered, India not being an exception. Once the December quarter results start pouring in, the mood is unlikely to become better. The spectre of falling rates, increasing unemployment and tougher visa conditions in the western economies is not the fodder stock markets like.
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Unlike the bold 'bail out' packages of the US and European economies, the stimulus package/s announced by the Indian Government are at best knee-jerk reactions which are unlikely to have a significant positive impact. What is required is an extraordinary response to an extraordinary situation. Also required is a major initiative to spend US $50 to $100 billion on infrastructural projects like building highways—completing the golden quadrilateral and networking other roads that will generate large employment and improve the core sectors. Why not a 'Great Wall of India' bordering our problematic neighbours, which will also help in reducing infiltration? The three most important sectors of the old economy are agriculture, automobiles and construction. In the new economy unquestionably it is the IT sector. All these sectors require great support if the government is even half serious about improving the state of the economy.
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The November terrorist attack in Mumbai is the most heinous and boldest ever, exposing all the chinks in our armour. It has made the citizens angry, dumbfounded and helpless. Many political leaders were behaving like Nero when Mumbai was under attack.
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If the government does not ACT now by taking measures similar to what United States took post 9/11, I do not know what will make them move. The time has come to stop barking and start biting when driven to do so.
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In an otherwise gloomy quarter, the highlight event for Brigade Group is the recognition from Forbes Asia as one of the 200 Best Under a Billioncompanies in the Asia Pacific region. It is a recognition of the hard and result-oriented work of the entire Brigade team for the past two decades. My sincere thanks to the valuable contribution by our Board Members, the entire staff of Brigade Group and our associates.
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As the curtain comes down on what can be called as the most forgettable year in the recent times (from the economic stand-point), let me sincerely wish all the readers a brighter, happier and peaceful 2009.
