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.
Having entered our 25th year of operations, after a lot of internal deliberations, I am happy to release the organisation’s Shared Vision and Mission statements and Core Values. This should stand in good stead for the decade ahead and give Brigadiers a clear sense of direction, enabling them to work with a unified sense of purpose and to achieve set goals and objectives. Every Brigadier has to remember and constantly remind oneself of Brigade Group’s core values and ensure these shared values are not compromised in any way.
Sheraton Bangalore Hotel at Brigade Gateway, which had its soft opening in mid-March, has received very encouraging feedback from guests and industry professionals. This well-appointed 230-room, 5-star deluxe hotel with six F&B outlets and a 1000-seater banquet hall, is bound to be amongst the best hotels in Bangalore, and will be the pre-eminent Sheraton Hotel in the country. General Manager Martin Wuethrich from Switzerland and Executive Chef Gustavo Maurelli from Italy will bring their international expertise to lead Sheraton Bangalore in the path of success.
It is a fantastic achievement by the Indian Cricket Team to have won the ODI World Cup, after a gap of 28 years. It is very difficult to live up to expectations, having been the favourites to win the Cup. The credit undoubtedly goes to the players for their outstanding teamwork, superb leadership of Captain Dhoni and Coach Kirsten, and performing when it mattered most in the knock-out stage. Many analogies can be drawn to the corporate world from the strategies adopted in winning the Cup.
India’s 2011 provisional census figures, indicating a population of 1.2 billion+, is certainly a cause for worry, and not celebration. Speedy urbanisation is a matter of great concern to city planners. Meeting the infrastructural needs of the growing population will be a huge, daunting task. Our planners have to work overtime to ensure that demand for space and services are met, if one has to stop proliferation of slums in urban centres. There is a great need to decentralise growth by ensuring development of each and every district and taluk centre.
The Karnataka State and Central budgets for 2011 have been passed. Unfortunately, policies and tax rates are being tinkered with frequently, leading to confusion and a loss of direction to the business community. Real Estate hardly finds favour with the tax authorities. A few examples: in Karnataka, stamp duty rates on Joint Development Agreements have been increased by an unbelievable proportion and the VAT applicability principle in the construction industry has changed to compound the confusion. In the Centre, tax exemption to SEZ units is withdrawn by imposing MAT; Service Tax is imposed for hospitality business … the list goes on and on.
Anna Hazare’s anti-corruption campaign was much needed and, hopefully, will serve as an eye opener to the government and corrupt people. The spontaneous response to Anna’s fast from all sections of society was most encouraging and heartwarming. High corruption in society is what is coming in the way of India’s planned and sustained growth, and stopping the country moving from good to great. If people’s simmering discontent about corruption in every sphere of life is to be avoided, fast and inclusive development across the country is the only answer. Otherwise, Egypt’s Tahrir Square kind of situation is not far off in our country. If one determined Narendra Modi and one determined Nitish Kumar can make so much of a difference in Gujarat and Bihar, imagine what a small battalion of such people could do to the growth of India. By showing honesty and progress, if Nitish Kumar can get 80%+ seats in the Assembly (highest ever by any party in any state in the country since elections came to be held), why don’t other politicians realise good development will ensure re-election and continuance in power?
Let us hope for the best!
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