After consumer finance and real estate, the Indiabulls Group is set to step into the retail business. Indiabulls Wholesale Services Ltd, a subsidiary of listed firm Indiabulls Real Estate Ltd, will set up 30 hypermarkets across as many smaller cities in the country in the next 15 to 18 months with an outlay of Rs 1,500 crore.

The first of these stores is expected to come up by March/April 2008 in one of the three cities the company is targeting simultaneously, confirmed Indiabulls director Gagan Banga.

These large-format stores, spread over 100,000 to 150,000 square feet, will be modelled on the lines of Costco Wholesale stores in the US, which operates the largest membership warehouse club chain in the world.

Costco focuses on selling products at low prices but at very high volumes. Goods are bulk-packaged and marketed primarily to large families and businesses — it expects customers to buy 10 kg of Surf against 500 gm.

Indiabulls hypermarkets would be a B2C (business-to-consumer) format and not business-to-business format like Metro (though the wholesale word may connote a different meaning). It will bank on a low operating cost model to provide higher discounts to customers.

“The value proposition to the consumer will be in the form of discounts,” added Banga.

Indiabulls plans to offer discounts of 15 to 18 per cent on maximum retail price (MRP) against 5 to 10 per cent offered by other organised retailers today.

Each small city may have just one store. “We want to connect with as many people as possible. So, instead of having ten stores in Ahmedabad, we want to just one and pass on the benefits of scale to our customers,” said Banga.

These stores will be located in the heart of the city, and not on the outskirts or suburbs as most hypermarkets are located in the US or Europe.

The company is targeting Ahmedabad, Jodhpur, Indore, Kanpur, Patiala and Ludhiana, many of which have seen a spurt in per capita income (India’s per capita income has doubled to $1,000 in the last five years).

“ http://ahmedabad-tagging.jiglu.com/tags/topics/tier-ii-cities!overlay - Tier-II cities are better suited for a discount model. Bulk-purchasing cannot take off in big cities as there’s no space to store,” said Banga.

The company has procured land in 21 of these 30 cities, where construction is on, claimed Banga. Indiabulls Wholesale will be the anchor tenant in these malls, which will also house a multiplex, and other smaller shops.

The malls will be owned by the parent, Indiabulls Real Estate Ltd, which is also developing 3.5 million sq feet of commercial space in Mumbai’s mill lands.

Indiabulls’ retail foray is being led by CEO Ikroop Singh, an Indian who was working with the Microsoft and has huge experience in deploying technology in retail and has done so for several wholesale companies in the US. Ikroop has put together a team of 70 to 80 people, including three expatriate executives.

Indiabulls’ entry into retail comes after big groups like Reliance, http://ahmedabad-tagging.jiglu.com/tags/people/Aditya%20Birla!overlay - Aditya Birla , and RPG and Future Group have got a headstart and are busy consolidating.





http://www.business-standard.com/common/storypage.php?autono=305617&leftnm=1&subLeft=0&chkFlg= - source :http://ahmedabad-info.blogspot.com/2007/11/indiabulls-to-enter-retail.html

MUMBAI: Domestic brokerage major Indiabulls Financial Services' three promoters -- Sameer Gehlaut, Saurabh Mittal and Rajiv Rattan have raised their shareholding in the company by purchase of shares worth an estimated Rs 375 crore.

The three founders and promoters have purchased a total of 50 lakh shares together from the open market, raising their collective holding by 2.19 per cent to 28.59 per cent.

The transaction was revealed in an insider trading disclosure notice filed by the company to the BSE.

The three promoters held a total of 26.99 per cent stake in the company as on September 30, 2007.

According to the disclosure filed by the company, Indiabulls Chairman and CEO Gehlaut purchased 25 lakh shares, while Rattan and Mittal have acquired 12.5 lakh shares each.

Following these transactions, Gehlaut's holding increased by 1.1 per cent to 14.42 per cent, while that of Ratttan and Mittal have increased by 0.55 per cent each to 7.31 per cent and 6.86 per cent respectively.

Now, Gehlaut holds 3.28 crore shares, while Rattan and Mittal have 1.66 crore and 1.56 crore shares each.

The three are together since they were studying at IIT Delhi and also worked together at global energy firms Haliburton and Sclumberger before founding Indiabulls.

Earlier this month, the three promoters had hiked their stake in another group company Indiabulls Real Estate through warrant conversion to 27.14 per cent, from 23.97 per cent previously. The company plans to issue a total of three crore warrants to promoters, after whose conversions the total promoter holding will go up to 37 per cent.

Shares of Indiabulls Financial today dropped 4.5 per cent on the BSE to Rs 745.35, while that of Indiabulls Real Estate shed 4.52 per cent to Rs 612.05
 

How good is the managment ?

Considering above case.

IBREAL share holders to get 3 shares of India bull power for every one share held by them...

I also knew/know a few people in IBSEC and they all had good things to say about the management .. In 2000 some one was working with them (he was one of their initial hires) and he used to come home and talk about the aggresiveness and hardwork of the founders

deleted

Yeah...true...Apologies.......Sorry, got a bit carried away with the one month statement....I'll delete my post.

Indiabulls expects lease income to increase 30-35%

Plagued by high cost of land, debt issues and slowdown in sales, the real estate pack has been seeing sluggish growth over the quarter. “The lower and mid-segment sales have been reasonable, and that compensated for the slow-moving premium market in Mumbai,” says Gagan Banga, chief executive officer, http://www.moneycontrol.com/india/stockpricequote/finance-general/indiabulls-financial-services/IFS03 - Indiabulls Group . The group's realty subsidiary, http://www.moneycontrol.com/india/stockpricequote/constructioncontracting-real-estate/indiabulls-real-estate/IRE01 - Indiabulls Real Estate  has come out with its first quarter numbers for the current fiscal.

Speaking to CNBC-TV18 in an exclusive interview, Banga says that more than 50% land has already been leased at Lower Parel, Mumbai. “Going forward, we expect lease income for the company to increase by 30-35%,” he says.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Your numbers were sluggish. Can you take us through which areas you are seeing this sluggishness from?

A: The Mumbai premium market is kind of slow. The lower-end and the mid-segment is doing reasonably okay. We believe that we had guided that sales this year should go up by about 30%, and given the base from which we come on the residential side, we are reasonably sure that we should be able to do that number.

Q: No new project for you crossed the revenue recognitions phase in this quarter. I believe even in areas like Navi Mumbai, which I imagine would not be premium housing, have also been seeing a slowdown. What gives you the confidence of hitting that guidance that you have set out? What kind of scale up do you see through the next few quarters?

A: Construction is on full swing. In times of uncertainty, there is generally a tendency of all types of consumers to prefer and buy both, completed and projects in which construction are on in full swing. Our job is to focus on construction and to ensure that the end product is made ready in time. Execution is what we are focusing on.

Q: In terms of which projects you think will get recognized by the end of this year where you are seeing initial bookings, what are the key projects in line for FY12?

A: Both, Panvel and Gurgaon are seeing reasonable traction. I believe that as these projects progress in terms of construction, it’s only a matter of time that sales pickup as well as construction activity allows us to do revenue recognition and increase the sales numbers.

Q: Your investors are quite concerned about the way Panvel and Gurgaon are going where sales have been quite weak so far. Would you concede that it has been disappointing so far?

A: I would not relate to Panvel and Gurgaon sales as being weak. I believe that given the overall liquidity, interest rate and therefore, the market sentiment, these projects seem to be doing reasonably well. We also have to keep in context the fact that as buildings will progress, they will see greater tractions. Actually, if the focus continues to be on execution, sales in that segment are just a matter of coming in line. Therefore, I don’t see a particular reason why sales should be tepid or weak.

Q: What about the leasing market in Lower Parel? Has that also turned a bit lackluster?

A: Premium markets are lackluster, there is no doubt about it. Premium markets are tending to value completed apartments more than even mid-end and the lower end of the markets. So Lower Parel, no doubt about it, it’s seeing very weak activity right now.

Q: So is it true that of those two office complexes that you have only about 50% is leased right now and how much of an increase do you expect to see then in leasing income?

A: Slightly more than 50% is leased. We have given out these complexes to pretty large tenants whose fit-out work is currently going on. So I believe that the lease income should go up by as much as over 30-35% towards the end of the year.

Q: How soon you see the demerger happening for Indiabulls Power because it was cleared at the start of this year in January but we haven’t heard any words since?

A: It’s a court-led process, and so far, the progress has been very good. Shareholders gave their approval and then, we had to go and get the approval from the lenders which have also come in. Now the court has convened a date in October for the final hearing. I expect post that, towards the end of the calendar year, the process should be complete. That makes it sometime in mid-December.

Q: So what's Indiabulls response to a sluggish market? Are you considering reducing rates both on sales and on leases?

A: We have been reasonably ahead of the curve. Especially on the leasing side, we have seen good traction and good names come to our buildings, essentially because we have priced our products pretty sensibly. So Indiabulls Finance Center today gets priced depending on the quantum that one is taking on lease around Rs 125-150. So at those rates, we are not where the rest of the Lower Parel market is, which continues to price their product at about Rs 180-200. I believe sensible pricing is one aspect of how to grow the business. The other is to continue to focus on execution.

Q: Just a clarification on the Elphinstone Mill project… there were some reports about work being stopped there because of an environmental clearance. Is everything okay there?

A: That I believe was completely misunderstood and there was a clarification later. The IT part of the building is complete. There are people who are sitting in that building and the IT Park doesn’t even come under the miniscule approvals for environment. So, there is a deemed approval there. Hence, there was no issue and I am currently sitting in Elphinstone Mill which is the Indiabulls Finance Center.

Q: If you are working with lower rates than some of your peers in the areas that you function in, are you holding with your FY12 guidance in terms of margins of 25% because this quarter has been half of that?

A: We believe that sales will grow by about 30%. Margins should be in the range of about 20%.

INDIABULLS PROPERTIES INVESTMENT TRUST (IPIT) listed in Singapore Stock Exchange (www.SGX.com)
ANNUAL REPORT 2011 as at 31 Mar 2011

http://info.sgx.com/listprosp.nsf/AnnualReportByCompany/03D97167D07EE6F5482578BE0006F105?opendocument

The project includes two 60-storey towers that will house 2,000 sq ft apartments and two 50-storey commercial towers, estimated to cost Rs764 crore.

The project got a clearance from the state expert appraisal committee (SEAC) this month. This advisory body scrutinises all mega construction proposals over 20,000 sq meters.

Clearance was recommended on the condition that the developer complies with certain issues including that the additional floor space index (FSI) offered under the state’s IT policy and utilised for the commercial towers should not be availed for residential towers.

However, even as the green authority gave a conditional go ahead to the project, it has rapped the project developers for allegedly violating Environment Protection Act by clearing the site of all mill structures before obtaining a clearance.

The authority has asked the environment department to look into the matter and take action.

The project developers had informed the authority that the site had been cleared as per its agreement with the BMC.