Articles by Rohan

Real estate giant DLF plans to begin construction on a new 2.5 million square foot shopping mall in Gurgaon this quarter. The project is estimated to cost around Rs 1,700 crore as the company aims to meet the increasing demand for quality retail space. Currently, DLF has a retail footprint of approximately 4.2 million square feet, including malls and shopping centres in the Delhi-NCR region. Of this, 340,000 square feet is under DLF Ltd, while the rest falls under the joint venture between DLF and Singapore sovereign wealth fund GIC, known as DLF Cyber City Developers Ltd (DCCDL).

DLF’s Vice Chairman and MD (Rental Business), Sriram Khattar, highlighted that the retail sector has experienced a significant rebound following the COVID-19 pandemic, with strong growth in footfall and sales in shopping malls. Khattar stated that the construction of the Mall of India in Gurgaon is expected to begin in the third quarter of the fiscal year. The company already owns the land and estimated construction costs for the project amount to approximately Rs 1,700 crore. Additionally, DLF is constructing a premium mall in Goa spanning approximately 600,000 square feet.

To cater to the needs of residents in the vicinity, DLF is also developing high-street shopping centres near its housing projects. Currently, shopping centres are being constructed in DLF-phase 5 in Gurgaon and Moti Nagar in Delhi.

In its first-quarter investors’ presentation for the 2023-24 fiscal year, DLF emphasized a significant increase in retail presence, stating a goal to double its portfolio size within the next four to five years. DCCDL reported consolidated revenue of Rs 1,412 crore in the April-June quarter, representing a year-on-year growth of 12%. Consolidated profit for the quarter stood at Rs 391 crore, a 21% year-on-year increase. DLF’s revenue from the retail business reached Rs 187 crore in the first quarter of the fiscal year.

Overall, DLF Group recorded a 12% rise in consolidated net profit to Rs 527 crore in the first quarter of the fiscal year, with total income slightly increasing to Rs 1,521.71 crore compared to Rs 1,516.28 crore in the year-ago period.

DLF Group is primarily involved in the development and sale of residential properties as well as the development and leasing of commercial and retail properties. The company has developed over 158 real estate projects, covering more than 340 million square feet. With a land bank for the development of 215 million square feet, DLF Group operates in both residential and commercial segments.

The Indian stock market celebrated a significant achievement on Monday as the Nifty index reached the milestone of 20,000 points. One region in particular, Gujarat, which has long been known for equity investing, has outperformed the Nifty index with its corporate entities delivering considerably higher returns. In December 2002, the Nifty closed at around 1,000 points, and since then, it has grown twentyfold, reaching the 20,000 level in a span of 22 years.

Gujarat-based companies such as Symphony Ltd and Adani Enterprises Ltd have been especially successful, providing returns of over 180,000% and 65,000% respectively during these 22 years. This phenomenal growth has also been demonstrated by pharmaceutical giants like Torrent (23,000%) and Zydus Lifesciences (7,000%), making investors significantly wealthier over the last two decades.

For instance, Symphony Limited’s stock price was only 50 paise in December 2001, but it closed at Rs 905 on September 11, 2023, signifying an astonishing increase of 181,090% (or 1,810 times) over the course of 22 years.

Market analysts attribute this remarkable growth of Gujarat-based corporations to their strong performance in the business sector over the past two decades. Aasif Hirani, director of a stock broking firm, highlighted that while the Nifty has provided 20-fold returns in the last 22 years, corporate giants in Gujarat such as the Adani Group, Torrent Group, Zydus Group, and Symphony Ltd have delivered much higher returns. As an example, during the Nifty’s journey from 10,000 points in July 2017 to 20,000 points in September 2023, Adani Enterprises has generated a return of 2,871%, while Elecon Engineering has returned 1,211%. Astral Limited’s stock price has increased by 565% since July 2017.

Vaibhav Shah, director of another stock broking firm, commented, “Many privately managed companies in Gujarat have consistently outperformed and provided exceptional returns to their shareholders over the past two decades, surpassing the returns of the Nifty.”

Chief Minister Shivraj Singh Chouhan announced on Wednesday that September 14th will be a historic day for Bina. During a review of preparations for Prime Minister Narendra Modi’s visit to the Bina refinery complex in Sagar district on Thursday, the Chief Minister stated that the petrochemical project is one of the largest investments made in the state of Madhya Pradesh.

After an investment of Rs 50,000 crore in Bina, additional investments worth Rs 1 lakh crore will be made in different parts of the state, creating employment opportunities for two lakh people. The petrochemical project at the Bina refinery will generate over 4.15 lakh employment opportunities, with 2.15 lakh being direct or indirect, and the remaining 2 lakh through other means.

Chouhan emphasized that the youth will benefit from these employment opportunities, filling their lives with hope and enthusiasm. He urged people to celebrate the Rs 50,000 crore investment in petrochemical projects as a festival. Furthermore, he highlighted that the construction of the project will lead to the establishment of other industries in the area surrounding the Bina refinery, thereby increasing employment opportunities.

Following the commencement of the project, industrial hubs will be developed in nearby areas such as Bina, Sagar, Sironj, Kurwai, and Basoda. Chouhan mentioned that the expansion of the industrial area in Bina will also lead to growth in the hospitality and other business sectors.

The Chief Minister affirmed that the Madhya Pradesh government has provided many facilities to support the petrochemical project. He further highlighted that increased investment in Madhya Pradesh will result in more employment opportunities and overall progress in the state.

India’s commerce minister, Piyush Goyal, announced that the country is developing a new policy to attract electric vehicle (EV) manufacturers and foster increased investment in the sector. This announcement coincides with ongoing discussions between US EV maker Tesla and the Indian government regarding the construction of a factory in India. Reuters had previously reported that India was crafting an EV policy aimed at slashing import taxes for automakers that commit to local manufacturing, based on insider sources. Goyal revealed that consultations will be held with the industry to finalize the policy.

Goyal emphasized the government’s objective to attract more investment and promote expanded domestic EV production as quickly as possible. While he did not disclose the specifics of potential incentives, he stated that the benefits of the new technologies’ economies of scale will be realized as large-scale production is achieved.

In August, Tesla executives, interested in establishing a factory in India, met with Goyal. Tesla’s plan includes the production of a low-cost EV, priced at $24,000, which is approximately 25% cheaper than their current entry-level model, catering to the Indian market and export.

On Tuesday, Goyal remarked that Tesla aims to procure components worth $1.7 billion to $1.9 billion from India this year, signifying an increase from the $1 billion of components purchased in the previous year.