Founder's Message
We are in the middle of the 2024 parliamentary elections. What the resilient Indian economy needs is a stable government with a vision to make India into a seven trillion dollar economy by 2030, and to give ‘a better quality of life’ to its large masses. By June, we will know who will be in the saddle to lead the country for the next five years.
The huge population of India, what seemed like a curse few decades back, is now being portrayed as a ‘demographic dividend’ with 60% of India’s population below 35 years of age. The growth in GDP and, in turn, increase in per capita income is surely helping millions of Indians to come out of poverty month after month, thereby increasing domestic demand for products and services. PM Modi’s push to increase manufacturing activity through PLI and other schemes is slowly but surely helping create lakhs of blue collar jobs, although Vietnam seems to have over taken India in benefitting from the China Plus One strategy of MNCs.
While the world is chugging along with all the strife in Eastern Europe and the Middle East, one never knows when and what will upset the delicate balance that is making many countries function as if ‘nothing is happening around them’, and everything is ‘bold and beautiful’! Terrorism in di erent forms is the greatest threat to development and existence in the world. Israel’s response to the Palestinian terrorist activities is too severe and tough for us Indians to understand, as we are used to the soft pedalling nature of our governments in the past. It is very important for the ongoing conflicts to end for peace and co-existence.
The Indian economy is generally firing on all cylinders, and I wish it continues to do so, thereby helping achieve the aspirations of millions of Indians. With a higher educated younger population from rural areas seeking new pastures, urbanisation is increasing, as witnessed earlier in China and many other countries. Most countries with high industrialisation have upwards of 65-70% of its population in urban centres, as compared to 35-38% of Indians in urban centres due to India's economy still being dependent on agriculture in a big way. With greater urbanisation, one can imagine the increase in demand for housing and necessities like clean air, food, water, entertainment and good infrastructure.
Happy to record the good performance of Brigade in the financial year closing March 2024. We made fresh sales exceeding 7.50 million square feet, earned lease rental income of upwards INR 900 crores, and all eight operating star hotels posting best results.
The momentum for growth will continue as long as the Indian economy continues to perform well. There is no doubt on this aspect. We are still a country with a low per capita income below USD 3000, and a low global ranking of 125 out of 200 countries. One needs to look towards China to know what happens to the country’s economy and prosperity of its people when the per capita increases to $5,000 or $7,000 or more.
The Global Business Forum 2024 of WTC Association New York, hosted by our World Trade Center Bengaluru in March was a resounding success with the participation of more than 200 international delegates.
Jt. Managing Director, Nirupa Shankar qualifying as an ‘Ironman’ at the Copenhagen event is a phenomenal achievement due to the sheer toughness and endurance required.
As part of our CSR initiatives, Brigade is happy to have undertaken the much required renovation of the well-known state government owned Venkatappa Art Gallery. It should reopen by the end of the year. The 108-bed hospital, a philanthropic initiative in association with St. John's Medical College Hospital is in its final stage of completion at Brigade Meadows, Bengaluru South.
In closing, we should all hope and pray that our country and our state get a good monsoon to bring smiles to both rural and urban population alike, including the parched throats of Bangaloreans.
JAI HIND.
—Jaishankar CMD, Brigade.
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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.
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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.
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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.
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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.
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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.
