Tag: MD

Business World

Inputs on RBI Monetary Policy Review- Real Estate Industry Experts

Aug 6, 2020 by Gouri Achary 0 Comments #Affordable Housing Committee, #CREDAI (National), #Gaurs Group and Chairman, #Manoj Gaur, #MD, #RBI Monetary Policy Review Meeting - Real Estate Sector

Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI (National)
“Real estate sector needs hand-holding at this point in time. Though unchanged repo rate is understandable the need to have special measures in place cannot be denied. The buyers are coming back to the sector after realizing the importance of real estate asset-backed by historically low EMIs, the developers too need some interventions that can help them expedite the process of development”.

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com
“As the economy is still to recover to pre-COVID levels and the risk to aggregate demand in the near future remains high, it is important that the transmission of past rate cuts are more effectively passed on to consumers as well as industry. However, It is indeed heartening to hear that the average lending rates have fallen by close to 90 bps since March 2020. Additionally, the liquidity in the banking system seems to be at comfortable levels. Nevertheless, the RBI’s decision to provide additional liquidity to the tune of Rs 5,000 crore to NHB augers well for the stability of HFCs that will provide some growth impetus to the real estate sector in turn.”

Uddhav Poddar, MD, Bhumika Group
“The main issue is that banks have not taken adequate steps to reduce the rates or to ease the liquidity. All the good steps taken by RBI earlier will not bear fruit if the banks don’t take necessary action at their level. Real Estate is badly affected due to the pandemic and we need support from the banks by providing adequate liquidity to the sector and providing cheap home loans to the customers, to make sure the segment can flourish again. We have to understand that real estate is an integral part of economic growth as it is the largest employment generator”.

Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development
“It was an expected move by the RBI to keep the repo rate unchanged and it is commendable that it is doing its part to ensure that the economy stays on the right path. However, the banks have not yet passed on the benefits to the consumers, which are not benefitting the real estate sector that in turn is affecting the allied industries too. RBI should take action so that banks should extend loans to the real estate sector. Liquidity crisis has to be tackled soon as the situation after Corona is dismal; this cannot happen until and unless banks take a firm decision to back the sector that has many allied industries attached to it”.

Amit Modi, President (Elect) CREDAI Western UP and Director ABA CORP
Market experts predicted a repo rate cut by 25bps in today’s announcement by RBI, but fortunately, the longing demand from the real estate sector of loan restructuring was declared. With the consumer confidence low due to the ongoing pandemic situation, and real estate sector going through a period of strife, we appreciate the government’ efforts and a keen eye to look into initiatives that will help us in generating more demand in the real estate market as well as helping millions of first-time homebuyers to realize their dream. Loan restructuring will strengthen the real estate outlook for developers in the coming years and pave way for consistent growth.

Ashish Bhutani, MD, Bhutani Group
“RBI Monetary Policy Committee has kept the repo rates unchanged, even when market experts cited the conditions being favourable for it. This decision was taken due to the signs of revival, that the MPC has observed with unlock. However, the continuous surge in cases is constantly hampering the stability that commercial real estate needs for planning the expansion, mapping the already allocated funds, driving international investments, and dispersing some amount of capital to construction and permissions required. We are hoping apex financial institutions assess the realty market closely to deliver, if not repo rate cuts then some other kind of relaxation to improve sentiments of associated stakeholders”.

Dhiraj Jain, Director, Mahagun Group
India is going through one of the biggest economic crises because of the global pandemic situation, and real estate is also facing the pinch like other sectors. A sector that contributes handsomely to the GDP needs handholding and the developers are voicing their concerns in a bid to make the government pay heed to their demands. One of the demands is of loan restructuring will help tackle the liquidity crunch that real estate has been struggling with for quite some time now. Developers are not getting fresh loans or even the top-ups which are hurting the construction activities. Loan restructuring has been done for the MSMEs and we were expecting that the Apex bank would consider it for real estate too. Liquidity is a big concern and a halt in activities during the lockdown affected the cash flow. The government has to consider it in order to ensure the smooth functioning of infrastructural development.

Mohit Goel, CEO, Omaxe Ltd.
With a sharp reduction in policy rates announced since March, a pause was always on the cards. But we expected the apex bank to announce some measures like the restructuring of loans, which could have reduced the stress on the sector and given a boost to demand. However, the decision to constitute an Expert Committee under imminent banker KV Kamath to recommend financial parameters, along with the sector-specific benchmark for resolution plans is a welcome step. The infusion of Rs 5000 crore in NHB is also a step in the right direction to boost liquidity.

Vikas Bhasin, CMD, Saya Homes
The government and apex bank are making efforts like never before to overcome the damage done to the economy due to Covid-19. Repo rates are already at historic low and are benefitting the buyers. However, real estate is passing through a challenging phase and we would request the apex bank to consider one-time loan restructuring that has been a long-standing demand is warranted at the earliest.

Harvinder Singh Sikka, MD, Sikka Group
Real estate has been going through a challenging phase. Last financial year too, the situation was not good for the first 9 months and it got worse with the onslaught of a global pandemic. It has become difficult for many developers to manage cash flow to meet the requirements of construction, salaries, vendor payment, and then at the same time they have the loan obligations. The overall sentiment needs a boost and with one-time loan restructuring, the confidence of the buyer will be back.

Raman Gupta, Director- Branding & Construction- GBP Group
In today’s announcement, the apex bank has kept the repo rate unchanged to 4% which was an expected move to keep the economy of the country afloat amidst the pandemic. Being one of the major contributors to the economy of the country, the benefits provided to the sector will have a positive impact on the overall growth of the nation. With the schemes like CLSS & PMAY along with the low repo rates, the customers are moving back towards the real estate sector. Along with providing one-time loan restructuring to MSMEs, we expect the apex bank to announce the same for real estate sector as well.

Ashok Gupta, CMD, Ajnara India Ltd.
We understand the status quo on repo rates but not a single word was said about one-time loan restructuring for the real estate sector. Such demand or need for restructuring is not happening for the first time. In 2008, RBI asked banks to restructure and around Rs, 40,000 crore of debt was restructured across all sectors, which included real estate too. It proved beneficial for real estate as the infusion of funds helped the developers in completing the projects at hand and win the confidence of the buyers leading to the revival of the sector. Real estate needs last-mile funding and outstanding loans are acting as roadblocks; one-time loan restructuring will make the banks consider the credit requirements of developers, which in turn will help the developers in completing the stalled/delayed projects. The situation in 2008 arose because of the Lehman Brothers crisis and at that time loan restructuring helped revive the sector which saw a capital appreciation in properties in 2010 after a lull period of around two years. At present we have a similar situation at hand and thus the sector needs help from the government.

Business World

Non-ISI helmet ban: Two Wheeler Helmet Manufacturers Association applauds Govt.’s move

Aug 6, 2020 by Gouri Achary 0 Comments #Bureau of Indian Standard’s (ISI) safety standards, #MD, #Mr. Rajeev Kapur, #Steelbird Helmets & President

Mr. Rajeev Kapur, MD, Steelbird Helmets & President, Two Wheeler Helmet Manufacturers Association, welcomes the latest notification from the Ministry of Road Transport and Highways according to which helmet manufacturers will no longer be able to manufacture, stock and sell helmets that do not comply with Bureau of Indian Standard’s (ISI) safety standards.

Commenting on the Government’s decision in the public interest to enforce the regulations of the Bureau of Indian Standards, Mr. Rajeev Kapur said, “I applaud the decision taken by the Government in ensuring that manufacturers do not make sub-standard helmets and subsequently riders don’t use them. As per WHO statistics, about 3,00,000 people died in 2016 in road accidents in India and about 40% of these accounted for two-wheeler riders without helmets. Similar data by MORTH shows that in 2018 about 43,614 people died in India in road accidents who were not wearing a helmet while riding a two-wheeler. The implementation of mandatory ISI marked headgear is a major step for the safety of two-wheeler riders and will go a long way in reducing the huge number of two-wheeler accidents across the country. We are going to save millions of lives. The huge number of riders are dying on the road for not wearing a helmet or wearing a non- ISI marked helmet. At the time of the accident, if the rider is wearing a sub-standard helmet, it can crash and enter the head causing brain haemorrhage that could prove to be fatal. After the Government’s notification, each and every rider will be compelled to use an ISI marked helmet. No one will be permitted to manufacture, stock, sell and import helmets that do not have an ISI mark if they do so it will be considered a criminal offence.”

The new norms for lighter helmets and ventilation have been rightly enforced by the government given the reasons motorcycle riders maintain for barring the helmets. Lighter helmets are further suitable for the Indian conditions. The members of Two-Wheeler Helmet Manufacturers Association are already making lighter helmets starting from about 700gm. “If there are any companies that make heavier helmets, the new norms will help compel them to improvise and add value to their product. Maintaining the highest standards of quality and safety of helmets is a priority for us at Steelbird, and that further makes us applaud the Government’s decision in the direction of banning the non-ISI helmets,” he added.

Welcoming the Government’s move, Mr. Kapur added, “This initiative is going to be highly beneficial to the people of this country. All imported helmets that are flooding the Indian market cannot be verified for their quality standards. We do not know whether they are genuine or fake. It is difficult to determine whether the imported helmets coming from other countries are following all the quality standards. After this notification, the Government can get control over the quality of helmets that we import in the country. The consumers will have the privilege to use the right ISI marked product that has passed all the crucial quality tests and standards of the country.”

Business World

Time to invest in the realty sector

Aug 5, 2020 by Gouri Achary 0 Comments #Dhiraj Bora, #Head Marketing and Communication, #Managing Director Sikka Group, #MD, #Mr. Harvinder Singh Sikka, #Paramount Group, #SAYA Homes, #Vikas Bhasin

There is no denying that every crisis comes with some opportunities which allow us to find solutions, work for life & livelihood, and to do well. And a similar thing is with global pandemic coronavirus. Various sectors have faced the impact of this pandemic including real estate but the real estate sector has done tremendous work by using advanced technologies. With unpredictability all around, maximum people are looking for a sense of security. As per the recent reports people would like to have a physical asset during these tough times.

According to Mr. Harvinder Singh Sikka, Managing Director Sikka Group, “The impact of the lockdown on homebuyers has been positive so far. Various schemes announced by the developers, all-time low-interest rates, and subdued prices for quite some time are reasons enough to rekindle the interest of the customers. After the slew of measures taken by the government, the market was seeing an uptrend and the post-lockdown schemes have provided additional reasons to invest in real estate assets before the market goes northward. The resilience of the government towards the economy is being reflected in measures it is taking.”

Vikas Bhasin, MD, SAYA Homes said, “When the entire world is facing an uncertain scenario, the realty sector is considered as the safest investment option as it offers maximum stability. After the stock market crash, people do not want to risk their money in volatile instruments. Fixed income options are not looking very attractive even after a flurry of rate cuts. Higher returns could be expected once the economy starts recovering, which certainly makes this a perfect time for customers to invest in their dream homes.

Dhiraj Bora, Head Marketing and Communication, Paramount Group said, “We cannot say that only schemes are the lucrative factor as buyers are more aware and they weigh in a host of factors before taking a call. The market in real estate saw a dip during the lockdown but it was mostly due to the inability to physically see the property. Post-lockdown, the sector is at a stage where the buyers should get influenced by the government policies that are aimed at easing out the pressure on buyers. So it all boils down to the incentives/schemes/relaxations that a buyer is getting from the government. It is a time when the policies/incentives are in their favour. These revival signals in the economy are propelled by consumer confidence and entrepreneur optimism. The further push will come from the construction and trade sectors. It will also meet the dual objective of the present government that is industrial growth and employment creation. The government has taken a number of steps through stimulus packages to boost the real estate sector so that Indian growth story and consumer confidence can be sustained.”

Schemes are being lapped up immediately by the buyers as they were waiting for the additional benefits that they can get while buying a property. The market has improved and this will reflect in the overall performance of real estate in this quarter. For rates, I would say the market is stagnant as developers have realized that the rates are already at par with the buying capacity of the customers. The likelihood of increase is low and we can see a change of 5-10 per cent in the coming months. Due to various reasons, property prices have not increased for quite some time now and the recent prices can be termed as 35% less than what it should have been. At present, prices in the realty sector are at their bottom and rearing to pick up, making it the best time to invest in property. This time is right for investment because of beneficial home loan rates. The present market conditions are best for buying a home as the home loan interest rates are at an all-time low. A decrease in home loan interest rates post-COVID has become a big trigger for end-users to buy a home.

Business World

3M strengthens support towards disaster relief

Aug 5, 2020 by Gouri Achary 0 Comments #3M India, #Chief Executive Officer, #donation of USD 5Mn to United Way Worldwide’s COVID-19 Community Response and Recovery Fund t, #Manish Michael, #MD, #Mr. Ramadurai, #Mr. Ramesh Ramadurai, #United Way India

CoVID-19 and the ongoing lockdown has created unprecedented health and humanitarian crisis bringing a sharp focus on the plight of migrant workers across the country. As the pandemic evolves, 3M India has extended its efforts to help the vulnerable communities build resilience to brave its impact on their lives. In this direction, the US-based parent company has announced that they will provide USD 300,000 contribution from 3Mgives. 3Mgives’ mission is to improve every life through innovative giving in education, community and the environment. 3Mgives has made a donation of USD 5Mn to United Way Worldwide’s  COVID-19 Community Response and Recovery Fund to support vulnerable populations. Out of the total contribution, USD 300,000 has been allocated to India. Leveraging its partnership with United Way India, 3M will use these funds to strengthen healthcare infrastructure in government hospitals in hotspot areas, covering critical medical equipment and general hospital up-gradation.

3M’s employees in India were keen to support the nation’s fight against the pandemic, which saw them voluntarily contributing towards relief funds for Karnataka and Maharashtra. To enhance this gesture, the company matched employees’ contributions, which was donated to the PM Cares fund.

In other COVID response activities, 3M India’s activities are being guided under three considerations-

  1. most affected geographies– dividing support to vulnerable communities across the top five affected states of Maharashtra, Karnataka, Rajasthan, Gujarat and Delhi NCR
  2. vulnerability of communities– allocation towards the migrant workers, hospitals and non-healthcare frontline workers such as police and sanitation workers and
  3. critical needs of communities– to focus on hunger and food security, healthcare infrastructure and safety of frontline workers.

Elaborating on the initiatives, Mr. Ramesh Ramadurai, MD, 3M India said, “Since the outbreak, we have been closely working with various government agencies and hospitals to ensure our personal safety products are available for medical, healthcare and other frontline workers. The USD 300,000 fund allocation is another testament of 3M’s global commitment to supporting our communities and improving lives. Through United Way of Bengaluru, we have identified a need for hospital infrastructure critical for COVID-19 treatment in vulnerable areas of several cities. We have decided to allocate 100% of the grant towards strengthening this”.

Even within the areas immediately surrounding 3M plants, the company is working with local authorities to address the needs in the community. During lockdown, the company served close to 3500 migrant workers and their families with cooked meals (lunch and dinner) near the Ranjangaon plant in Pune. The company distributed close to 50,000 meals till date from 3M approved canteen kitchens, taking care to observe social distancing norms. The company has also distributed dry rations of sugar and edible oil to the local community kitchens feeding over 90,000 people.

West Bengal was struck with CoVID first, followed by Cyclone Amphan. Leveraging its ‘adopt an Anganwadi” initiative in partnership with United Way, Kolkata, 3M has set up disaster response towards relief and rehabilitation work, to support the Amphan cyclone-affected regions in the slums of Shalimar, Howrah, Khidderpore, Chetla and Tollygunge. About 3700+ families are expected to be benefited by the intervention through creation of shelters and distribution of dry ration and hygiene kits. 

“Once the pandemic is controlled, it will be important to build resilience amongst the worst affected communities. We intend to strategically plan projects in these communities broadly focussing on education, community issues and long-term impact such as strengthening our healthcare systems to meet future pandemic outbreaks”. said Mr. Ramadurai.

Manish Michael, Chief Executive Officer, United Way India, adds “3M is a Global Corporate Leader of United Way Worldwide’s programs, working with our network across the globe to address the most pressing human needs. In India as well, 3M always stood to support communities’ immediate need as well as initiatives with long term sustainable impact. COVID-19 pandemic has unleashed unprecedented issues amongst vulnerable communities, and we are grateful for 3M’s support to hospitals in several Indian cities that are serving COVID 19 patients”.

Globally, 3Mgives has increased humanitarian aid commitment to fight COVID-19, providing $20 million for community partners that are working on COVID-19 support around the world.