Even though the Reserve Bank of India (RBI) has reduced the risk weightage on loans to commercial developers and cut general provisioning for commercial real estate, commercial banks may not start lending to the sector immediately.
Many companies and their executives are seeking solace from new-age motivational gurus.
With store rentals dropping as much as 35 per cent in the last one year, retailers say opening stores in certain locations has become profitable. As a result, some retailers plan to roll out their bigger format stores and others are booking retail spaces that will come up in two years at a much lower cost.
The steel plant will be closed down in 25 days unless an investor takes it over, operative executive director of the Bulgarian metallurgic enterprise Plamen Stoyanov told the Bulgarian media. Bulgaria's biggest steel plant has already shut down some of its production facilities, including two of its blast furnaces, and plans to stop operations completely by the end of this month.
The move, which comes in the backdrop of a global slowdown, aims to improve profit margin amid falling demand for polyester products worldwide. "The company has shut down plants for manufacturing polyester filament yarn, polyester staple fibre, paraxylene, purified terephthalic acid and linear alkyl benzene. However, it is yet to close down the second units of PSF and PFY," sources said.
The promoter group companies controlled by Anil Ambani are expected to buy R-Infra shares from the open market. "The promoters want to control the majority stake in the company to ward off any hostile attack, when corporate rivalry heightens in the country. As the share price of R-Infra is cheaper around Rs 400, the promoters feel that the purchase of shares from the open market would be profitable, boosting the confidence of the shareholders in turn," said sources.
Within months of charging the moon, Indian real estate firms are now offering buy-back of properties, free cars and even free apartments to tide over the current slump which has seen sales halve from the beginning of the year.
At a time when most retail firms have either gone slow in opening new stores or closed down some to beat the ongoing slump, the Future Group has opened nearly 150 stores across all its formats over the past three months. This month alone, Biyani is opening 15 stores, mainly selling electronic and lifestyle goods.
The JV was expected to open 56 exclusive high-end stores for the four focus brands, Miss Sixty, Energie, Killah & Murphy&Nye, in the top 10 cities in the first three years. As per the original plans, Darshan Mehta president and chief executive of Reliance Brands, was to spearhead the JV with separate business heads for each of the four brands.
Last year, Trent had entered into a tie-up with The Xander Group wherein Xander was to invest in malls along with local developers and Trent was to be the anchor tenant. Currently, three-to-four such malls are being developed in cities such as Surat and Ahmedabad.
The land development arm of the railways has cut the reserve price for a 45,371 square metre plot at Bandra, a Mumbai suburb, by nearly 14.5 per cent, to Rs 39.60 billion and reduced the minimum networth requirement for bidders by a similar margin. It has also reduced the bid security amount by 20 per cent. This apart, the authority has more than doubled the payment period to five years.
Most realtors are already advertising cash discounts of 5-10 per cent on upfront payment and buyers can get up to 25 per cent discount if they book properties and are willing to wait for two to three years until possession. According to consultants, developers may even give 15-20 per cent discount on the price as they are eager to clear inventories.
Apart from the embarrassment, these "crazy blogs" - as companies term them - force India Inc to spend crores of rupees to repair the damage.
Despite a slowdown in property sales, realty developers across the country are launching new residential apartments during the ongoing Navratri festival in the hope that they will get higher sales from prospective home buyers, who have deferred their buys so far.
Brandhouse manages exclusive stores of four SKNL brands -- Reid & Taylor, Stephens Brothers, Belmonte, and Carmichael House -- and two foreign brands Dunhill and Escada. It has more than 600 stores now. The company plans to set up its first private label store early next year and the average size of the store will range from 8,000 to 10,000 sq ft, said Tarun Joshi, managing director of Brandhouse Retails, the retail unit of S Kumars Nationwide.
Analysts say prices may stagnate or decline in the next three months. Almost 70 per cent of the brokers who participated in the poll believe prices will be flat or negative in the period and even Diwali is unlikely to lift the mood in the property market.
Reliance's Jamnagar units, including the existing refinery and the second one that will begin work by mid-November, will be the world's largest single-location refining facility. The entire refinery complex will have a total processing capacity of 1.24 million barrels a day. The current production of the existing unit is 0.66 million barrels a day.
Real estate companies such as Unitech, Peninsula Land, HDIL and Future Capital, the financial services arm of Future Group, are in talks with investors including some leading private equity funds for raising investments for their projects, after the collapse of Lehman Brothers, whose third party fund had promised investments in these property companies' projects, according to industry sources.
The company has already received an approval to spend Rs 50,000 crore (Rs 500 billion) for commercialising two of its biggest gas discoveries in the D6 block located in the KG basin. "In a letter to oil regulator Directorate General of Hydrocarbons, the company has submitted one more development plan for Rs 10,000 crore as additional capex (capital expenditure) for the block.
Billionaire Anil Agarwal-controlled Vedanta Resources has decided not to pursue a proposal to build a Rs 20,000-crore (Rs 200 billion) five-million-tonne steel project in Orissa in view of its strategy to focus on non-ferrous and iron ore businesses, two highly-placed sources in the company said on Tuesday.
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