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 development of the last quarter is securing the license/franchise to rebrand our office building in Brigade Gateway as World Trade Center! With this, we join the elite group of 29 to own WTC buildings worldwide. WTC is the most recognised and sought-after business address anywhere in the world. WTC Bangalore is the tallest building in Bangalore (435 feet) with many unique features, including—for the first time in Bangalore—an observation deck. It should be operational in a few months. It is a proud and positive development for Brigade Group, the city of Bangalore and the State of Karnataka..
It feels good to find a place among the Top Ten Builders in the country, in the perception survey conducted by Construction World, the most circulated construction industry magazine in the country. What is particularly nice is that we may be the only developer in the country to be nominated for the award for four consecutive years (2007-2010), from the time the awards were instituted five years ago.
India’s GDP growth is right on track by achieving 8.8% growth, against the estimated 8.5%, in Q1 of 2010-11. While we have become a trillion dollar economy after 63 years of independence, due to our billion+ population, our per capita income is just over a thousand dollars—way behind the populous Indonesia and even our small neighbour, Sri Lanka, till recently a strife ridden country. While considerable progress is happening in the development of infrastructure in the country, it is always short of what is needed for the long-suffering population and India’s fast growing economy. The country has too many major problems to tackle—be it high corruption, whose tentacles are far reaching and growing by the day; terrorism in Kashmir; Maoist/Naxalite insurgency in Eastern India; increasing religious radicals even in Southern India; and, most importantly, the growing influence of China in Pak-occupied Kashmir and Sri Lanka. The answer lies in bringing prosperity to the population, thereby reducing the influence of extremist elements. From this angle, the motto of the WTCA (World Trade Centers Association, New York) is quite apt: to bring prosperity through trade; and peace through prosperity.
The much-awaited direct taxes Code Bill, which promised to bring far reaching reforms in tax administration, turned out to be a damp squib. A mountain was promised; but a mole is given. The so-called simplified version is 405 pages long! Tax consultants and advocates will have a feast, for the next few years, from the confusion it creates and the clarifications to be given by the Tribunals and Courts. Businessmen and industrialists will end up spending even more time in non-productive work.
KPL-2 (Karnataka Premier League) Cricket season will be held from September 16th to 30th. While the KSCA (Karnataka State Cricket Association) did well in pioneering the State Premier League concept in the country, it has fallen short in publicising, popularising and managing the event well. Their present efforts are not adding value to the franchisees. I hope the young bunch of Bangalore Brigadiers will better last year’s performance of reaching the semi-finals.
The Galaxy Club at Brigade Gateway is ready and looking beautiful. It is a boon to the campus occupants and its members. The same goes for The Brigade School @ Malleswaram, in the Brigade Gateway enclave, started by our Not-for-Profit Brigade Foundation. The school has received a very enthusiastic response from the neighbourhood in its very first year.
At last, our efforts to start projects in Hyderabad are on track. Our maiden project, Brigade Zenith, will soon be launched in the up-market Banjara Hills.
I am happy and thankful to the Board of Directors for instituting a ‘Chair’ at the Indian Institute of Technology, Madras to do research in the field of Construction Technology and Project Management. It will be in memory of our late Independent Director, Dr T. N. Subba Rao, who was always forthcoming with ideas and advice in the interest of Brigade Group.
The festival season is on with Ramzan, Ganesha Chaturthi, Dasara and Deepavali—all in the next ten weeks. I wish our readers happy celebration and a wonderful festival season ahead.
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