Description
This is a presentation is about company analysis of tata housing company.
Company Analysis of Tata Housing
A. Industry Analysis:
Industry trends: India has one of the fastest growing real-estate markets in the world. Hence, along with domestic real-estate developers, it is also attracting foreign investors. There have been a lot of investments by Non Residential Indians (NRI) in the housing industry. In spite of the global economic gloom, as a result of the sub-prime mortgage debacle and ensuing credit crunch, India’s housing industry remains on course for yet another year of double-digit growth. The main reasons for the significant growth of this sector are large population base of the country, rising income level, and rapid urbanization. While keeping in mind the tremendous growth in this sector and still being a lot of scope for development and growth, it can be expected that housing sector will overcome the other industry sectors in terms of contribution to the GDP growth during the next few years. Presently, affordable housing constitutes major part of the housing sector, both in terms of volume and value. It is targeting the low- income groups and economically weaker class. However, in the coming years, luxury housing is also expected to witness significant growth, as this sector is comparatively very small and has a huge potential for growth and development. Private equity funds are also venturing into various housing development projects. The fund houses are developing their own projects with an intention to achieve better returns for their investors. Moreover, foreign direct investment in the housing sector is also increasing rapidly. It increased as high as 80 times in just 5 years from 2005 to 2010. Housing firms are also targeting senior citizens for niche offerings. Factors including lack of safety, steadily increasing life expectancy, and security in urban areas and rising number of financially independent senior citizens are contributing to these offerings. Many people are investing in second homes to spend life after retirement.
PEST Analysis: Political Factors: ? ? Government policies and regulations are in favour of housing sector. Construction of a building cannot take place unless and until the builder or the company secures a commencement certificate from the authority. For instance, from BMC for construction in Mumbai. Heavy tax is imposed on construction industry.
?
Economic Factors: ? ? ? Foreign direct investment is increasing in the housing sector. Banks provide facilities for housing loans with EMI options. Due to fluctuations in the prices of raw materials, many builders tend to stop work and wait till the prices go down. But many times this delay in the work and cost of waiting is more than change in the prices of raw materials.
Social Factors: ? ? ? Due to rise in income levels of people and urbanization, demand for housing projects is increasing. Credibility and image of the builder and company is important while convincing the buyers to buy the house. Many housing projects offer features like swimming pool, gymnasium, tennis court, parks etc. to the buyers.
Technological Factors: ? ? Internet revolution and media are contributing to raise awareness about the housing projects. Many modern technologies like drilling machines, huge cranes etc. are used by developers to complete the work faster.
SWOT Analysis: Strengths: ? ? ? ? ? Housing sector is growing rapidly. Foreign investment in the sector is increasing. Low cost and skilled labour is available. Sufficient availability of raw materials and natural resources is supportive to the industry. Government policies and regulations are in favour.
Weaknesses: ? ? ? ? ? There are chances of natural disadvantages. Requires a huge amount of investment. Distance between construction projects results in reduction in business efficiency. Lack of clearly defined business processes and procedures. Changing skills requirement and an ageing workforce may accentuate the gap in the skills.
Opportunities: ? ? ? ? Huge opportunities in affordable housing. Public sector projects through public private partnerships are expected to bring further opportunities. Luxury housing is also growing and has many opportunities. Historical cultural heritages like Taj Mahal provide a creative platform to the industry.
Threats: ? ? ? ? ? Current economic situation may have adverse effect on the industry, as foreign investors are not willing to invest in India. Infrastructural safety is a challenging task. Lack of political willingness and support for promoting new strategies. Long term market instability and uncertainty may damage the opportunities in this sector. Natural unexpected calamities like earthquake and floods are threats.
B. Company Analysis:
Company description: Tata Housing is a closely held public limited company in the housing sector and a subsidiary of TATA Sons Limited. Although it is founded in 1984, its major revival occurred in late 2006 under the leadership of Brotin Banerjee, MD & CEO of Tata Housing Development Company Limited. Since then, Tata Housing has evolved into one of the fastest growing real estate development company in India. Primary business of Tata Housing is the development of properties in residential, commercial and retail sectors. The company's operations span across various aspects of real estate development, such as Land Identification and Acquisition, Project Planning, Designing, Marketing & Execution, Property Services and Estate Management. The mission of Tata Housing as a real estate development company is "To delight customers by providing quality life spaces through continuous innovations." The core objective for the company is to create a real estate development business that offers world-class property development skills while maximizing financial returns. The company is recognized for its ethical and transparent business practices, quality construction, and high standards of maintenance of properties. Tata Housing has pioneered the concept of property development by corporate in India. Tata Housing focuses on creating homes or offices based on an understanding of the stated and unstated consumer needs and preferences. Every property is developed only after a concentrated and focused market research which helps in determining the consumer needs
and after then the project is designed and implemented according to customer preferences. Today, Tata Housing has done partnership with internationally acclaimed design consultants and architects. Tata Housing’s projects are built to high quality specifications instantly making them landmarks. Today, Tata Housing enjoys the unique position of having large in-city real estate properties in major metros and mini metros. Further, the Company possesses huge land banks in Mumbai, Gurgaon, Ahmedabad, Bangalore, Chandigarh, Kolkata and Bangalore and is presently in process of acquiring large land parcels across the country. As a comprehensive real estate developer of choice, Tata Housing straddles across a variety of consumer segments from affordable housing to luxury housing. Company offers products ranging from Rs. 5 lakh to Rs. 14 Crore. The company has a diversified portfolio of more than 44 million square feet under various stages of development. Besides projects under execution, there is also a steady pipeline of projects of over 19 million square feet. Tata Housing pioneered the concept of low-cost housing under the banner of Smart Value Homes Limited, a 100% subsidiary launched in 2010, keeping in mind a vision of catering to low and medium income segments. It is developed to cater to low-cost and affordable housing in the price range of Rs. 5 Lakh to Rs. 35 Lakh. Since then Smart Value Homes is developing sustainable and landmark integrated township projects in various regions of the country. Tata Housing is being socially responsible by taking up the cause of environment by committing to develop certified green buildings and thus saving energy for the country. The first green development to be executed under this norm was Xylem which is Bangalore’s first LEED Gold Rated Green Building. Also, Prive at Lonavala is pre-certified platinum rated, and The Aquila Heights at Bengaluru and Raisina Residency are Gold Certified green developments by the Indian Green Building Council. Tata Housing has a presence in Mumbai, Lonavala, Pune, Talegaon, Ahmedabad, Gurgaon, Chandigarh, Goa, Bengaluru, Chennai and Kolkata. Now, the company is in the process of expanding its footprints to other parts of India across tier I and II cities. The company has also ventured into foreign markets such as Maldives and is actively considering markets such as Sri Lanka, and other South Asian countries. Tata Housing has also received various industry recognitions both in India and internationally, such as Developer of the Year from Construction Week Awards 2011, Best Residential Project of the Year for Shubh Griha from Construction Week Awards 2011, Top Ten Developers in India by CW Architects and Builders Award, 2011 etc.
General information about the company: Tata Housing was established in 1984. Tata Housing is a closely held public limited company and a subsidiary of TATA Sons Limited. TATA Sons Limited holds 99.78% of equity share capital of the company. The company has its head office at Lower Parel in Mumbai. Mr. Brotin Banerjee is the Managing Director & Chief Executive Officer of Tata Housing Development Company Limited and Mr. Krishna Kumar is the Chairman of the company. The company has over 500 employees. Following are the members of board of directors: ? ? ? ? ? ? ? Mr. Brotin Banerjee, MD and CEO Mr. Krishna Kumar, Non-Executive Chairman Mr. Arun Gandhi Mr. Santhanankrishnan S Mr. R. R. Shastri Mr. Borkar, Non-Executive Director Mr. Ubale, Non-Executive Director
Being a closely held public limited company, Tata Housing is guided by a Board of Director under the chairmanship of Mr. R. K. Krishna Kumar. The execution and management of the company is bestowed upon Mr. Brotin Banerjee, Managing Director and Chief Executive Officer, Tata Housing Development Co. Ltd. There is a management committee comprising the Heads under the chairmanship of our Managing Director and Chief Executive Officer, to plan Tata Housing’s long-term strategy and review performance and organize business as per the directions. It ensures achievement of strategic objectives. Managing Director and Chief Executive Officer along with Head of Finance, Information Technology and Corporate Governance with the help of Company Secretary ensure the Corporate Governance processes in the Company. There are three Committees
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Remuneration Committee - is responsible for managerial remuneration in accordance with Companies Act Audit Committee - is responsible for ensuring the compliances of Companies Act and oversees internal control and audit systems Committee of Directors - are responsible for approval of projects and other operational matters
?
?
Financial performance of the company:
Financial Highlights: Particulars Net Sales and Other Income Current Year 2011-2012 (In Crore Rs.) 560.66 Previous Year 2010-2011 (In Crore Rs.) 315.35
Profit Before Interest, Depreciation and Tax Interest Depreciation Profit before Tax Provision for Tax Net Profit after Tax Profit available for appropriation Balance of Profit for earlier years Proposed Dividend (including tax on dividend) Debenture Redemption Reserve Balance carried to Balance Sheet
126.96
54.93
15.39 2.04 109.53 34.75 74.78 113.93
10.11 1.20 43.62 3.90 39.71 49.08
39.15 13.42
9.36 9.93
18.75
-
81.76
39.15
Dividend: The Board of Directors has recommended a dividend at the rate of Rs. 1/- per share for every equity share of Rs.10 each resulting a dividend rate of 10% for the financial year 2010-11. Operations: During the year under review, the total income has increased to 560.66 Crores as against Rs. 315.35 Crores in the previous year registering a growth of 78%. Profit before tax is Rs. 109.53 Crores as against Rs. 43.61 Crores in the previous year registering an impressive growth of 151%. Further, Profit after tax is Rs. 74.78 Crores as against Rs. 39.71 Crores in the previous year witnessing an increase of 88%. The Company could achieve substantial improvement in its performance primarily due to the increase in sales turnover with increased number of projects and delivery of innovative products at the right prices to cater to the demands of various product segments ranging from value homes to ultra-premium luxury villas and apartments. The Company aims to be a provider of premium realty products by leveraging the strength of our brand, project execution skills and maintaining our competitive advantage through judicious choice of location and international quality of our projects. As on March 31, 2011, the Company was developing 14 projects with about 23 million square feet as against the 7 projects with about 11 million square feet last year. Towards creating a sustainable pipeline of projects, the Company has grown and marked its presence at 20 locations in 9 states and one international location wherein the Company is executing the PPP Project awarded by the Government of Republic of Maldives. Fixed Deposits: The Company has neither accepted nor renewed any Fixed Deposits. There are no unclaimed deposits to be credited into the Investor Education and Protection Fund. Subsidiary Companies: The Company has promoted a new subsidiary - Apex Realty Private Limited, in Maldives during the year under review i.e. in the month of February, 2011. Share Capital: During the year under review, the Company, at its Board Meeting held on September 13, 2010, has issued and allotted 1,995,000 Ordinary Shares of Rs. 10/- each at par on a preferential basis to its Holding Company Tata Sons Limited, in accordance with the special resolution passed at the Extra-Ordinary General Meeting held on August 20, 2010.
SWOT Analysis: Strengths, weakness, opportunities and threats faced by the company Strengths: ? ? ? ? ? ? Housing sector is currently booming. Being a subsidiary of Tata Sons, it has a strong financial support. Availability of raw materials and labour is supportive to the company. Successfully completed many projects. Achieved many awards and recognitions. Tata companies have credibility in the market.
Weaknesses: ? ? ? Experience in the industry is not very high. The company is in the process of getting established in the market. Company did not grow much from 1984 till 2006.
Opportunities: ? ? ? Huge opportunities in the value home schemes. Can also grow in the luxury home sector. Company is in the process of establishing in the market, hence huge opportunities for growth and development.
Threats: ? ? ? Strong competitors in the market. Natural calamities like earthquakes and floods. Current economic situation of the country is not very good.
Various strategies employed by the company in the course of conducting business: Tata Housing has employed many strategies to propel the growth of the company by leveraging their value systems and core capabilities. Their aim is to grow not only in India, but also beyond India. Some of the strategic initiatives are: Value Housing Initiative-‘Shubh Griha’: Tata Housing has pioneered the concept of ‘Low Cost Housing’ through Shubh Griha. It is an initiative to develop value homes for the common man near Mumbai. The initiative received phenomenal success. The Company is planning to expand this concept of Low Cost/ Affordable Housing over period of 1-2 years on a pan India basis. The company is also exploring opportunities with various Government Agencies on PPP Model. Major success of this initiative was that various developing countries have also evinced interest in this initiative and have enquired with the Company to carry out Low Cost/Affordable Residential Property projects in their country.
Tata Business Excellence Model (TBEM): The company Tata Housing has emphasized three pillars of importance to guide their business principles, namely:
? ? ?
Business Ethics Values Core Capabilities
Demonstration of ethical business practices, values our processes and practices, core capabilities in our delivery of products and services characterize the ‘TATA’ way of enhancing and conducting our business. The quality movement in the TATA Group is defined by a framework known as the Tata Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm Baldrige archetype. The TBEM methodology has been persuaded to deliver strategic direction and drive business improvement. It contains elements that enable us to capture the best of global business processes and practices as a benchmark. This enables into an ability to evolve and stay one step ahead with ever-changing business performance parameters. In fact it supports in making a front runner in respective industries. Tata Housing, as a part of Tata Group, have adopted TBEM, as an intricate part of their operation to reach the peaks of business eminence while, at the same time, adhering to the highest ethical standards. Sustainable "Green" development: The company has shown its social responsibility by starting this initiative. This initiative is taken to make all products green and eco-friendly to the extent possible. The first green development to be executed under this norm was Xylem which is Bangalore’s first LEED Gold Rated Green Building. Also, Prive at Lonavala is pre-certified platinum rated, and The Aquila Heights at Bengaluru and Raisina Residency are Gold Certified green developments by the Indian Green Building Council.
Apart from these initiatives, the company has also taken other initiatives within the organization. Some of them areCorporate Sustainability: This initiative is taken to spread awareness about being responsible towards stakeholders of the company. Leveraging our Heritage - "TATA": The initiative is to focus on living with TATA value systems.
Customer Centricity: This initiative is for making business processes of the company robust and customer centric during the life cycle of the product. Continuous Innovation: This initiative includes challenging status quo, thinking new business models, using new technology and application of meaningful thoughts. People Engagement and Satisfaction: This initiative is a part of Employee Engagement programs. The objective is to make the company a great place to work by continuous communication and collaboration. It helps to make the employees fully involved in, and enthusiastic about their work, and thus they will act in a way that furthers their organization's interests. Product Mix: The initiative is taken to focus on striving to deliver products suitable towards the need of the stakeholders.
doc_353572723.docx
This is a presentation is about company analysis of tata housing company.
Company Analysis of Tata Housing
A. Industry Analysis:
Industry trends: India has one of the fastest growing real-estate markets in the world. Hence, along with domestic real-estate developers, it is also attracting foreign investors. There have been a lot of investments by Non Residential Indians (NRI) in the housing industry. In spite of the global economic gloom, as a result of the sub-prime mortgage debacle and ensuing credit crunch, India’s housing industry remains on course for yet another year of double-digit growth. The main reasons for the significant growth of this sector are large population base of the country, rising income level, and rapid urbanization. While keeping in mind the tremendous growth in this sector and still being a lot of scope for development and growth, it can be expected that housing sector will overcome the other industry sectors in terms of contribution to the GDP growth during the next few years. Presently, affordable housing constitutes major part of the housing sector, both in terms of volume and value. It is targeting the low- income groups and economically weaker class. However, in the coming years, luxury housing is also expected to witness significant growth, as this sector is comparatively very small and has a huge potential for growth and development. Private equity funds are also venturing into various housing development projects. The fund houses are developing their own projects with an intention to achieve better returns for their investors. Moreover, foreign direct investment in the housing sector is also increasing rapidly. It increased as high as 80 times in just 5 years from 2005 to 2010. Housing firms are also targeting senior citizens for niche offerings. Factors including lack of safety, steadily increasing life expectancy, and security in urban areas and rising number of financially independent senior citizens are contributing to these offerings. Many people are investing in second homes to spend life after retirement.
PEST Analysis: Political Factors: ? ? Government policies and regulations are in favour of housing sector. Construction of a building cannot take place unless and until the builder or the company secures a commencement certificate from the authority. For instance, from BMC for construction in Mumbai. Heavy tax is imposed on construction industry.
?
Economic Factors: ? ? ? Foreign direct investment is increasing in the housing sector. Banks provide facilities for housing loans with EMI options. Due to fluctuations in the prices of raw materials, many builders tend to stop work and wait till the prices go down. But many times this delay in the work and cost of waiting is more than change in the prices of raw materials.
Social Factors: ? ? ? Due to rise in income levels of people and urbanization, demand for housing projects is increasing. Credibility and image of the builder and company is important while convincing the buyers to buy the house. Many housing projects offer features like swimming pool, gymnasium, tennis court, parks etc. to the buyers.
Technological Factors: ? ? Internet revolution and media are contributing to raise awareness about the housing projects. Many modern technologies like drilling machines, huge cranes etc. are used by developers to complete the work faster.
SWOT Analysis: Strengths: ? ? ? ? ? Housing sector is growing rapidly. Foreign investment in the sector is increasing. Low cost and skilled labour is available. Sufficient availability of raw materials and natural resources is supportive to the industry. Government policies and regulations are in favour.
Weaknesses: ? ? ? ? ? There are chances of natural disadvantages. Requires a huge amount of investment. Distance between construction projects results in reduction in business efficiency. Lack of clearly defined business processes and procedures. Changing skills requirement and an ageing workforce may accentuate the gap in the skills.
Opportunities: ? ? ? ? Huge opportunities in affordable housing. Public sector projects through public private partnerships are expected to bring further opportunities. Luxury housing is also growing and has many opportunities. Historical cultural heritages like Taj Mahal provide a creative platform to the industry.
Threats: ? ? ? ? ? Current economic situation may have adverse effect on the industry, as foreign investors are not willing to invest in India. Infrastructural safety is a challenging task. Lack of political willingness and support for promoting new strategies. Long term market instability and uncertainty may damage the opportunities in this sector. Natural unexpected calamities like earthquake and floods are threats.
B. Company Analysis:
Company description: Tata Housing is a closely held public limited company in the housing sector and a subsidiary of TATA Sons Limited. Although it is founded in 1984, its major revival occurred in late 2006 under the leadership of Brotin Banerjee, MD & CEO of Tata Housing Development Company Limited. Since then, Tata Housing has evolved into one of the fastest growing real estate development company in India. Primary business of Tata Housing is the development of properties in residential, commercial and retail sectors. The company's operations span across various aspects of real estate development, such as Land Identification and Acquisition, Project Planning, Designing, Marketing & Execution, Property Services and Estate Management. The mission of Tata Housing as a real estate development company is "To delight customers by providing quality life spaces through continuous innovations." The core objective for the company is to create a real estate development business that offers world-class property development skills while maximizing financial returns. The company is recognized for its ethical and transparent business practices, quality construction, and high standards of maintenance of properties. Tata Housing has pioneered the concept of property development by corporate in India. Tata Housing focuses on creating homes or offices based on an understanding of the stated and unstated consumer needs and preferences. Every property is developed only after a concentrated and focused market research which helps in determining the consumer needs
and after then the project is designed and implemented according to customer preferences. Today, Tata Housing has done partnership with internationally acclaimed design consultants and architects. Tata Housing’s projects are built to high quality specifications instantly making them landmarks. Today, Tata Housing enjoys the unique position of having large in-city real estate properties in major metros and mini metros. Further, the Company possesses huge land banks in Mumbai, Gurgaon, Ahmedabad, Bangalore, Chandigarh, Kolkata and Bangalore and is presently in process of acquiring large land parcels across the country. As a comprehensive real estate developer of choice, Tata Housing straddles across a variety of consumer segments from affordable housing to luxury housing. Company offers products ranging from Rs. 5 lakh to Rs. 14 Crore. The company has a diversified portfolio of more than 44 million square feet under various stages of development. Besides projects under execution, there is also a steady pipeline of projects of over 19 million square feet. Tata Housing pioneered the concept of low-cost housing under the banner of Smart Value Homes Limited, a 100% subsidiary launched in 2010, keeping in mind a vision of catering to low and medium income segments. It is developed to cater to low-cost and affordable housing in the price range of Rs. 5 Lakh to Rs. 35 Lakh. Since then Smart Value Homes is developing sustainable and landmark integrated township projects in various regions of the country. Tata Housing is being socially responsible by taking up the cause of environment by committing to develop certified green buildings and thus saving energy for the country. The first green development to be executed under this norm was Xylem which is Bangalore’s first LEED Gold Rated Green Building. Also, Prive at Lonavala is pre-certified platinum rated, and The Aquila Heights at Bengaluru and Raisina Residency are Gold Certified green developments by the Indian Green Building Council. Tata Housing has a presence in Mumbai, Lonavala, Pune, Talegaon, Ahmedabad, Gurgaon, Chandigarh, Goa, Bengaluru, Chennai and Kolkata. Now, the company is in the process of expanding its footprints to other parts of India across tier I and II cities. The company has also ventured into foreign markets such as Maldives and is actively considering markets such as Sri Lanka, and other South Asian countries. Tata Housing has also received various industry recognitions both in India and internationally, such as Developer of the Year from Construction Week Awards 2011, Best Residential Project of the Year for Shubh Griha from Construction Week Awards 2011, Top Ten Developers in India by CW Architects and Builders Award, 2011 etc.
General information about the company: Tata Housing was established in 1984. Tata Housing is a closely held public limited company and a subsidiary of TATA Sons Limited. TATA Sons Limited holds 99.78% of equity share capital of the company. The company has its head office at Lower Parel in Mumbai. Mr. Brotin Banerjee is the Managing Director & Chief Executive Officer of Tata Housing Development Company Limited and Mr. Krishna Kumar is the Chairman of the company. The company has over 500 employees. Following are the members of board of directors: ? ? ? ? ? ? ? Mr. Brotin Banerjee, MD and CEO Mr. Krishna Kumar, Non-Executive Chairman Mr. Arun Gandhi Mr. Santhanankrishnan S Mr. R. R. Shastri Mr. Borkar, Non-Executive Director Mr. Ubale, Non-Executive Director
Being a closely held public limited company, Tata Housing is guided by a Board of Director under the chairmanship of Mr. R. K. Krishna Kumar. The execution and management of the company is bestowed upon Mr. Brotin Banerjee, Managing Director and Chief Executive Officer, Tata Housing Development Co. Ltd. There is a management committee comprising the Heads under the chairmanship of our Managing Director and Chief Executive Officer, to plan Tata Housing’s long-term strategy and review performance and organize business as per the directions. It ensures achievement of strategic objectives. Managing Director and Chief Executive Officer along with Head of Finance, Information Technology and Corporate Governance with the help of Company Secretary ensure the Corporate Governance processes in the Company. There are three Committees
?
Remuneration Committee - is responsible for managerial remuneration in accordance with Companies Act Audit Committee - is responsible for ensuring the compliances of Companies Act and oversees internal control and audit systems Committee of Directors - are responsible for approval of projects and other operational matters
?
?
Financial performance of the company:
Financial Highlights: Particulars Net Sales and Other Income Current Year 2011-2012 (In Crore Rs.) 560.66 Previous Year 2010-2011 (In Crore Rs.) 315.35
Profit Before Interest, Depreciation and Tax Interest Depreciation Profit before Tax Provision for Tax Net Profit after Tax Profit available for appropriation Balance of Profit for earlier years Proposed Dividend (including tax on dividend) Debenture Redemption Reserve Balance carried to Balance Sheet
126.96
54.93
15.39 2.04 109.53 34.75 74.78 113.93
10.11 1.20 43.62 3.90 39.71 49.08
39.15 13.42
9.36 9.93
18.75
-
81.76
39.15
Dividend: The Board of Directors has recommended a dividend at the rate of Rs. 1/- per share for every equity share of Rs.10 each resulting a dividend rate of 10% for the financial year 2010-11. Operations: During the year under review, the total income has increased to 560.66 Crores as against Rs. 315.35 Crores in the previous year registering a growth of 78%. Profit before tax is Rs. 109.53 Crores as against Rs. 43.61 Crores in the previous year registering an impressive growth of 151%. Further, Profit after tax is Rs. 74.78 Crores as against Rs. 39.71 Crores in the previous year witnessing an increase of 88%. The Company could achieve substantial improvement in its performance primarily due to the increase in sales turnover with increased number of projects and delivery of innovative products at the right prices to cater to the demands of various product segments ranging from value homes to ultra-premium luxury villas and apartments. The Company aims to be a provider of premium realty products by leveraging the strength of our brand, project execution skills and maintaining our competitive advantage through judicious choice of location and international quality of our projects. As on March 31, 2011, the Company was developing 14 projects with about 23 million square feet as against the 7 projects with about 11 million square feet last year. Towards creating a sustainable pipeline of projects, the Company has grown and marked its presence at 20 locations in 9 states and one international location wherein the Company is executing the PPP Project awarded by the Government of Republic of Maldives. Fixed Deposits: The Company has neither accepted nor renewed any Fixed Deposits. There are no unclaimed deposits to be credited into the Investor Education and Protection Fund. Subsidiary Companies: The Company has promoted a new subsidiary - Apex Realty Private Limited, in Maldives during the year under review i.e. in the month of February, 2011. Share Capital: During the year under review, the Company, at its Board Meeting held on September 13, 2010, has issued and allotted 1,995,000 Ordinary Shares of Rs. 10/- each at par on a preferential basis to its Holding Company Tata Sons Limited, in accordance with the special resolution passed at the Extra-Ordinary General Meeting held on August 20, 2010.
SWOT Analysis: Strengths, weakness, opportunities and threats faced by the company Strengths: ? ? ? ? ? ? Housing sector is currently booming. Being a subsidiary of Tata Sons, it has a strong financial support. Availability of raw materials and labour is supportive to the company. Successfully completed many projects. Achieved many awards and recognitions. Tata companies have credibility in the market.
Weaknesses: ? ? ? Experience in the industry is not very high. The company is in the process of getting established in the market. Company did not grow much from 1984 till 2006.
Opportunities: ? ? ? Huge opportunities in the value home schemes. Can also grow in the luxury home sector. Company is in the process of establishing in the market, hence huge opportunities for growth and development.
Threats: ? ? ? Strong competitors in the market. Natural calamities like earthquakes and floods. Current economic situation of the country is not very good.
Various strategies employed by the company in the course of conducting business: Tata Housing has employed many strategies to propel the growth of the company by leveraging their value systems and core capabilities. Their aim is to grow not only in India, but also beyond India. Some of the strategic initiatives are: Value Housing Initiative-‘Shubh Griha’: Tata Housing has pioneered the concept of ‘Low Cost Housing’ through Shubh Griha. It is an initiative to develop value homes for the common man near Mumbai. The initiative received phenomenal success. The Company is planning to expand this concept of Low Cost/ Affordable Housing over period of 1-2 years on a pan India basis. The company is also exploring opportunities with various Government Agencies on PPP Model. Major success of this initiative was that various developing countries have also evinced interest in this initiative and have enquired with the Company to carry out Low Cost/Affordable Residential Property projects in their country.
Tata Business Excellence Model (TBEM): The company Tata Housing has emphasized three pillars of importance to guide their business principles, namely:
? ? ?
Business Ethics Values Core Capabilities
Demonstration of ethical business practices, values our processes and practices, core capabilities in our delivery of products and services characterize the ‘TATA’ way of enhancing and conducting our business. The quality movement in the TATA Group is defined by a framework known as the Tata Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm Baldrige archetype. The TBEM methodology has been persuaded to deliver strategic direction and drive business improvement. It contains elements that enable us to capture the best of global business processes and practices as a benchmark. This enables into an ability to evolve and stay one step ahead with ever-changing business performance parameters. In fact it supports in making a front runner in respective industries. Tata Housing, as a part of Tata Group, have adopted TBEM, as an intricate part of their operation to reach the peaks of business eminence while, at the same time, adhering to the highest ethical standards. Sustainable "Green" development: The company has shown its social responsibility by starting this initiative. This initiative is taken to make all products green and eco-friendly to the extent possible. The first green development to be executed under this norm was Xylem which is Bangalore’s first LEED Gold Rated Green Building. Also, Prive at Lonavala is pre-certified platinum rated, and The Aquila Heights at Bengaluru and Raisina Residency are Gold Certified green developments by the Indian Green Building Council.
Apart from these initiatives, the company has also taken other initiatives within the organization. Some of them areCorporate Sustainability: This initiative is taken to spread awareness about being responsible towards stakeholders of the company. Leveraging our Heritage - "TATA": The initiative is to focus on living with TATA value systems.
Customer Centricity: This initiative is for making business processes of the company robust and customer centric during the life cycle of the product. Continuous Innovation: This initiative includes challenging status quo, thinking new business models, using new technology and application of meaningful thoughts. People Engagement and Satisfaction: This initiative is a part of Employee Engagement programs. The objective is to make the company a great place to work by continuous communication and collaboration. It helps to make the employees fully involved in, and enthusiastic about their work, and thus they will act in a way that furthers their organization's interests. Product Mix: The initiative is taken to focus on striving to deliver products suitable towards the need of the stakeholders.
doc_353572723.docx