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 last few months have been event-filled and eventful at Brigade Group. In June, we successfully bid for a prime property of Hindustan Unilever and have taken private equity, for the first time, from the very reputed and huge sovereign fund of Government of Singapore (GIC). July saw the successful launch of Value+ Homes at Brigade Orchards, Devanahalli. To name a few more of the many significant events that took place in this period: we opened a representative office in Silicon Valley, through a tie up with Legion Real Estate; Orion Mall went into top gear with events; and another round of successful property exhibitions—Brigade Showcases—were held across India and abroad.
CREDAI, the industry body, recognising Brigade Gateway as the Best Integrated Township and WTC as The Best Commercial Office Space in the country is the icing on the cake. I thank the leading industry magazine,Construction World, for their editorial decision to bring out a special supplement on Brigade Gateway. When the editors visited Brigade Gateway, they were so impressed with the project that they took an instantaneous decision to feature it in a supplement!
IT feels good to get the recognition of Great Place to Work Institute for the second year in a row. Our standing has improved. On the subject of Brigadiers, I am amazed at the wealth of cultural talent in Brigade Group, which was wonderfully evidenced in the Annual Culture Fest.
PEOPLE in the know say that most western economies—the USA and Europe—are recovering. The gloom and doom of last couple of years should soon be over. But unfortunately, our country and state are continuing to witness political chaos and rudderless governance. With a billion-plus population and huge internal market, there was no need for India to be in this position after many years of 8%+ growth. It is a self-inflicted injury; the result of carelessness, complacency and lack of vision and thought for the future. I heard in a talk given by Singapore's Urban Development Minister last year at the CREDAI Annual Convention that after their Independence in 1965, the vision of the Singapore government was to make Singapore like our Calcutta! (Yes, one may feel it difficult to believe this!) Singapore’s current situation shows what one can achieve with proper vision and a desire to do good for the country.
As if adding insult to injury, many parts of Karnataka are facing drought. The weather pattern across the globe seems to have drastically changed, making meteorological predictions that much more difficult. Care for the environment should be the top agenda for any city, state or country.
THE demand for housing continues to be healthy, but is becoming more segmented. Still, there is a crisis of confidence in the way the economy will shape up in the months ahead. Top level changes in the finance ministry at the centre are expected to bring some cheer, after all the policy damage created in the last one year.
THE festival season has begun. It gives reason for people to forget the tough realities of life and celebrate with their near and dear ones. We wish you the very best for the festival season.
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