Winter Internship Project Report
On
“Consumer buying behavior while buying or investing in real estate sector
with reference to KOLTE PATIL DEVLOPERS LTD”
Anal”yzing the store layout, Design and Visual Merchandise in
CERTIFICATE OF
ORIGINALITY
I hereby declare that this Winter
Internship Project is my own work
and that, to the best of my knowledge
and belief, it reproduces no material previously published or written that
has been accepted for the award of any other degree of diploma, except
where due acknowledgement has been made in the text.
KOLTE PATIL DEVELOPERS
BY
SNEHAL SHARMA
PRN NO –DM18A46
BATCH-2018-20
UNDER GUIDANCE OF
EXTERNAL MENTOR NAME: Mr. Prateek Telang (Sr. Sales Executive)
INTERNAL MENTOR NAME: Dr. ADITI DANG (Marketing Professor)
SNEHAL SHARMA
DM18A46
Date:
CERTIFICATE
This is to certify that Ms. Snehal Sharma PGDM (2018-20 Batch) a student of P.I.B.M-
Pune Institute of Business Management, Pune has undertaken the project on “Project
Title”. The survey, data collection, & analysis work for preparing the project has been
carried out by the student in partial fulfillment of the requirements for the award of
PGDM, under my guidance and supervision.
I am satisfied with the work of Ms.Snehal Sharma.
Date:
Faculty Mentor’s Name:
Dr. Aditi Dang
(Signature)
ACKNOWLEDGEMENT
First of all, I want to thank God for his grace and for giving me good health and
strength throughout the completion of this project.
I would like to thank the college for giving me this opportunity to work in the
corporate world which I have earn a knowledge that I’m seeking for
I would also like to thank the Internal Mentor Dr. Aditi Dang and External Mentor MR.
PRATEEK TELANG for encouraging and inspiration me during the entire duration of the
project as it will not be successful without their guidance
Finally, I want to thank my family, especially my parents for all their support and care,
and all my dearest friends and classmates who encourage, support and help, had
enabled me to overcome all the obstacles and difficulties while doing this project.
PROJECT SYNOPSIS
Competencies Expected from the WIP –
Learning about the real estate sector
Various things which are done after selling a flat in the back office.
How to deal with the customers.
How to handle the different situations.
How to do pitching and making quotations.
To get the lots of confidence and to remove the fear to talk with the strangers.
Consumer buying behavior while buying or
Project Title investing in real estate
Company Name Kolte Patil Developers
Student Name Snehal Sharma
Student Roll No DM18A46
Project Guide Name Dr. Aditi Dang
Project Guide Designation Marketing Professor
Confidential Report (Yes/No) NO
Duration of project 49 DAYS (7 WEEKS)
About the real estate sector
The real estate sector is one of the most globally recognized sectors. Real estate sector
comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of
this sector is well complemented by the growth of the corporate environment and the
demand for office space as well as urban and semi-urban accommodations. The
construction industry ranks third among the 14 major sectors in terms of direct, indirect
and induced effects in all sectors of the economy.
It is also expected that this sector will incur more non-resident Indian (NRI) investments
in both the short term and the long term. Bengaluru is expected to be the most
favoured property investment destination for NRIs, followed by Ahmedabad, Pune,
Chennai, Goa, Delhi and Dehradun.
Market Size
Real estate sector in India is expected to reach a market size of US$ 1 trillion (65 lakh
crore) by 2030 from US$ 120 billion (12000 crores) in 2017 and contribute 13 per cent
of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also
growing significantly, providing the much-needed infrastructure for India's growing
needs.
Investments/Developments
The Indian real estate sector has witnessed high growth in recent times with the rise in
demand for office as well as residential spaces. Private Equity and Venture Capital
investments in the sector have reached US$ 4.1 billion between Jan-Nov 2018. Private
Equity and Venture Capital investments in the sector have reached US$ 4.1 billion
between Jan-Nov 2018. Institutional investments in India’s real estate are expected to
reach US$ 5.5 billion for 2018, the highest in a decade.
According to data released by Department of Industrial Policy and Promotion (DIPP), the
construction development sector in India has received Foreign Direct Investment (FDI)
equity inflows to the tune of US$ 24.87 billion in the period April 2000-June 2018.
Some of the major investments and developments in this sector are as follows:
New housing launches across top seven cities in India are expected to increase 32
per cent year-on-year by 2018 end to 193,600 units.
In September 2018, Embassy Office Parks announced that it would raise around
Rs 52 billion (US$ 775.66 million) through India’s first Real Estate Investment
Trust (REIT) listing.
New housing launches across top seven cities in India increased 50 per cent
quarter-on-quarter in April-June 2018.
In May 2018, Blackstone Group acquired One Indiabulls in Chennai from
Indiabulls Real Estate for around Rs 900 crore (US$ 136.9 million).
In February 2018, DLF bought 11.76 acres of land for Rs 15 billion (US$ 231.7
million) for its expansion in Gurugram, Haryana.
Government Initiatives
The Government of India along with the governments of the respective states has taken
several initiatives to encourage the development in the sector. The Smart City Project,
where there is a plan to build 100 smart cities, is a prime opportunity for the real estate
companies. Below are some of the other major Government Initiatives:
Under the Pradhan Mantri Awas Yojana (PMAY) Urban, more than 6.85 million
houses have been sanctioned up to December 2018.
In February 2018, creation of National Urban Housing Fund was approved with an
outlay of Rs 60,000 crore (US$ 9.27 billion).
Under the Pradhan Mantri Awas Yojana (PMAY) Urban 1,427,486 houses have
been sanctioned in 2017-18. In March 2018, construction of additional 3,21,567
affordable houses was sanctioned under the scheme.
Road Ahead
The Securities and Exchange Board of India (SEBI) has given its approval for the Real
Estate Investment Trust (REIT) platform which will help in allowing all kinds of investors
to invest in the Indian real estate market. It would create an opportunity worth Rs 1.25
trillion (US$ 19.65 billion) in the Indian market over the years. Responding to an
increasingly well-informed consumer base and, bearing in mind the aspect of
globalisation, Indian real estate developers have shifted gears and accepted fresh
challenges. The most marked change has been the shift from family owned businesses
to that of professionally managed ones. Real estate developers, in meeting the growing
need for managing multiple projects across cities, are also investing in centralised
processes to source material and organise manpower and hiring qualified professionals
in areas like project management, architecture and engineering.
The growing flow of FDI into Indian real estate is encouraging increased transparency.
Developers, in order to attract funding, have revamped their accounting and
management systems to meet due diligence standards.
PORTER’S FIVE FORCES MODEL
It is a model of analysis that helps to explain why different industries are able to sustain different levels of
profitability. This model was originally published in Porter’s book, “Competitive Strategy: Techniques for
analysing Industries and Competitors” in 1980. The model is widely used worldwide to analyze the
industry structure of a company as well as its corporate strategy. It includes:
Competition in the industry.
Potential of new entrants in the industry.
Power of buyers.
Power of suppliers.
Threat of substitutes.
Barriers to entry:
Entry of new players in an industry raises the level of
competition thereby reducing its attractiveness. The threat
largely depends on the:
Economies of scale
Capital/investment requirements
Customer switching costs
The Indian real estate Industry is characterized with modest
entry and exit barriers.
Threat of substitutes:
The presence of substitute products in real estate lowers
industry attractiveness and profitability because they limit
price levels. The threat of substitute products depends on:
Buyer’s willingness to substitute
The relative price and performance of substitutes
The costs of switching to substitutes
The demand for consumer product is elastic. There are several different products with very little
difference in their use. Companies entering a category/or trying to gain market share compete on
pricing which increases products substitution. Hence, threat of substitute is high in the real estate
industry.
Bargaining Power of Suppliers:
Real estate companies are price takers since the prices are generally governed by international
commodity markets. The real estate companies negotiate better rates during times of high input
cost inflation since they have been in relationship with suppliers for a long time.
Bargaining power of consumers:
Low switching cost and aggressive marketing strategies under intense competition between the
estate companies make customers to switch products. But, in case of high brand loyalty for a
product discourages customers’ product shift. In addition to it, a large number of buyers and
limited suppliers, the bargaining power of consumer is low in Indian real estate.
Intensity of rivalry:
Competitiveness among the Indian real estate players is high. Real esate industry has become
highly fragmented due to more MNCs entering the country. Marketing budget is increasing as
well as strategies are becoming more aggressive. Big companies provide.
ABOUT THE COMPANY & DEPARTMENT
KOLTE PATIL DEVELOPERS
About the company
Founded 2 decades ago and guided by a simple yet profound philosophy; 'Creation, not
construction', Kolte-Patil Developers Ltd. is one of the foremost real estate companies
which is headquartered in Pune. Listed on NSE and BSE Kolte-Patil is Pune's largest
developer and has completed 1.5 crore sq. ft. of landmark developments in Pune and
Bengaluru. It is also present in Mumbai with some upscale redevelopment projects.
Headed by a team of visionaries and dynamic leaders, Kolte-Patil has till date built
projects in multiple segments such as residential, commercial, retail, IT parks, and
integrated townships. The long standing mission of the company is to dedicate itself to
create spaces that blend in with the surroundings and exude vitality and aesthetic
appeal, making the spaces present-perfect and future-proof. The core values of the
company honesty, innovation, excellence eco-friendliness, technology, sustainability,
value and commitment to time schedules are perfectly aligned with the living and
working spaces it builds.
VALUES
Value for money Value for Premium
Customer delight Customer Insight, Design philosophy
Agility Systems & processes, Innovation, Thought leadership
Reliability Professionalism, 360-degree transparency
Ethics Corporate Governance, Environment & Safety
NAME OF THE COMPANY/LIMITED NAME OF THE PROJECT UNDER
LIABILITY PARTNERSHIP (LLP) DEVELOPMENT AND EXECUTION
Kolte-Patil I-Ven Townships (Pune) Limited Life Republic, Hinjewadi, Pune.
Bellflower Properties Private Limited Margosa Heights, Florence, NIBM Road,
Pune.
Kolte-Patil Real Estate Private Limited Down Town, Kharadi, Pune.
Tuscan Real Estate Private Limited Tuscan Estates, Kharadi, Pune.
KP-Rachana Real Estate LLP Cilantro, Nagar Road, Pune.
Snowflower Properties Private limited Three Jewels, Kondhwa, Pune.
Product offering and pricing
Residential Projects
Commercial Projects
Multiplex / Retail Project
PRICING
SL.NO TYPE AREA AMOUNT
1 1BHK 450SQ.FT 32,00,000
2 1BHK 470 SQ.FT 34,00,000
3 2BHK 701 SQ.FT 47,78,903
4 2bhk 706 SQ.FT 48,05,111
5 709 SQ.FT 48,20,836
6 3 BHK 1103 SQ.FT 88,00,000
7 1111 SQ.FT 96,00,000
8 VILLA 4000 SQ.FT 2.5cr
After sales services
Kolte patil strive hard and are committed to provide all such type of services
related to pre & post booking activities in order to enhance customer
satisfaction.
They assist all the esteemed customers to avail loan, help them in all type of
correspondences required an ensure them to handover timely possession.
It is our endeavor to sort out all the complaints / queries before and after sales to
achieve maximum customer satisfaction.
Financial Assistance:
ICICI Bank
Bajaj Finserv
Kotak Mahindra Bank
State Bank of INDIA
SWAT Analysis
Strengths
1. Mumbai’s premier real estate developer
2. Decades of experience in the field along with excellent operational efficiency
3. Unique branding strategy and marketing exercises
4. Location of the projects and head quartered at Mumbai adds value
5. Many prominent national and international awards and tie-ups with
international architects
Weaknesses
1.Limited national presence
2.Govt intervention in construction projects causes operational inefficiencies
3. Less fund availability and shortage of skilled professionals
Opportunities
1.Expansion in other parts of India
2.Tax incentives for real estate investment
3.Reduction in interest rates
Threats
1.Fluctuating interest rates
2.Economic downturn
3. Possibility of a property bubble in Mumbai
Competitor Analysis
The key competitors are KUMAR B, which together with Patanjali have about 64% of
India & domestic market. Patanjali has taken Baba Ramdev as brand ambassador for all
the products of Patanjali.
Competitiors
Name Sales Turnover Net Profit Total Assets
Godrej Prop 955.83 240.85 5,934.67
Oberoi Realty 974.19 417.16 5,336.78
Phoenix Mills 397.21 154.83 3,195.52
HUDCO 4,075.42 799.06 43,877.97
Prestige Estate 2,992.50 232 8,739.30
Delta Corp 375.80 104.56 1,672.81
Sunteck Realty 175.73 123.59 1,880.86
Sobha 2,629.70 193.9 4,853.07
Omaxe 1,267.94 63.5 2,649.88
PNC Infratech 1,856.58 251.04 1,935.26
Indiabulls Real 82.36 -19.75 9,351.46
Brigade Ent 1,265.12 180.51 3,884.83
Kolte-Patil 671.1 104.91 1,130.04
News (Last 12 month)
30 Jan 2019 Kolte-Patil Consolidated December 2018 Net Sales at Rs 72.25 crore,
down 74.94% Y-o-Y
30-Jan-19 Kolte-Patil Standalone December 2018 Net Sales at Rs 59.24 crore, down
60.24% Y-o-Y
15-Jan-19 Kolte- Patil Developers Q3 PAT seen up 76.3% YoY to Rs. 49 cr: HDFC
Securities
15-Jan-19 Net Sales are expected to increase by 31.2 percent Y-o-Y (up 66 percent
Q-o-Q) to Rs. 350 crore, according to HDFC Securities....
1-Jan-19 Kolte-Patil Developers climbs 13% after CRISIL revised long term outlook
to positive. The rating agency revised its outlook on debt instruments to
positive from stable earlier....
26-Oct-18 Kolte-Patil Consolidated September 2018 Net Sales at Rs 211.04 crore,
Down 45.74% Q-o-Q.
26-Oct-18 Kolte-Patil Standalone September 2018 Net Sales at Rs 145.48 crore,
down 0.72% Q-o-Q
19-Oct-18 See Nifty near 11,500 -11,900 by FY19-end; 5 stocks to bet on for 1-2 yrs:
Prashanth Tapse
17-Oct-18 Kolte- Patil Developers Q2 PAT may dip 10.6% YoY to Rs. 27 cr: HDFC
Securities
Achievements & Awards
WINNERS OF THE PRESTIGIOUS REALTY PLUS EXCELLENCE AWARDS 2013
1ST PRIZE IN THE IT INFRASTRUCTURE CATEGORY FOR GIGA SPACE BY THE GOVERNMENT OF
MAHARASHTRA ,2006
FINANCIAL DATA
A snapshot of the financial performance of the company during the last 10 years
(2007-17)
Net revenues: 1402 CR in march 2018 and 963 CR in march 2017
EBITDA : 317 Cr in march 2018 and 248 Cr in march 2017
EPS : 16 cr in march 2018 and 12 cr in march 2017
Cash from operations:118 cr in march 2018 and 80 cr in march 2017
The gross sales have grown at a CAGR of
The Operating profit margin is 21.56% in march 2018 and 24.70% in march 2017
Net profit margin growth from is 8.66% in march 2018 and 9.04% in march 2017
The average percentage of Return on Capital Employed (ROCE) is is 20.21% in
2018 and 19.51% in 2017
RESEARCH WORK
RESEARCH TITLE – CONSUMER BUYING BEHAVIOUR IN LIFE
REPUBLIC (KPDL)
RESEARCH DESIGN – DESCRIPTIVE
TARGET POPULATION – LIFE REPULIC CUSTOMERS
DATA COLLECTION – QUESTIONNAIRE
SAMPLE SIZE – 34 CUSTOMERS
DURATION – 45 DAYS
RESEARCH
25 25
NO OF CLIENTS
preffered
20
No. of clients
22 20 flats
21
15 15
10 10
9 10
5 5
0BUDGET(INR)
0 0 0
0 3 0 3
50 70 1c 1bh 2bh 3bh
No. of clients
15
10 11
5 9
7 7 0
0 Occupation
sel ser ret gov hom
As it was a township project customers were more concerned about the
amenities.
Flats preferred by clients are mostly 2bhk.
Clients were more attracted to price of 50 lakhs flat.
Customers decisions were highly dependent upon the highway and road
connectivity from the township
