Chennai, January 4, 2011: MARG Limited, India’s leading diversified infrastructure development organization has committed itself to support the budding sportsmen to achieve their dreams and bring pride to the country. As part of its social objectives, MARG has supported A. Srinivasan, a body builder from Arakonam, Tamil Nadu. This support from MARG has helped Srinivasan to win the Junior Mr. Tamil Nadu title in the 65 kgs category in the state level competition organized by the Tamil Nadu Amateur Body Building association at Tirupathur (Vellore district).
Srinivasan has qualified for the Junior Mr. India competition organized by Indian Body Building Federation (IBBF) on January 29 - 30, 2011 at Kalyan (Maharashtra). MARG has taken complete financial responsibility of Srinivasan so that he is able to train well and gain access to basic amenities to allow his talent to be showcased in both the national as well as international arenas.
Cognizant to invest $ 500 mn in real estate in next four years
CHENNAI: IT major Cognizant today announced its intention to pump in more than $500 million in the next four years in real estate develpment as part of its expansion programme.
The company will invest the amount through the end of 2014 to expand its owned campus footprint with the addition of over 8 million square feet, which will have the capacity to house more than 55,000 employees, a statement said today.
“This current real estate expansion program is part of our ongoing strategy of investing in our people, processes, systems, and infrastructure to support our long-term growth,” said Gordon Coburn, Chief Financial and Operating Officer of Cognizant.
Mumbai Commercial Market Showing Signs of Recovery
The commercial real estate market in Mumbai is finally bouncing back after a prolonged recession-induced slump. According to a recent report by property consultants Knight Frank, the commercial market in Mumbai is showing signs of revival and enquiries are on the rise. The first three quarters of financial year 2010-11 witnessed more transaction of office space at 6.83 million sq ft than the entire last fiscal, which saw only 6.68 million sq ft uptake of commercial realty space.
Country’s leading newspapers, The Hindu, Times of India and others were all praise about Marg brindavan sponsored Naada Vaibhavam held this sunday. With over 5700 artists on stage, it was one of the mega events city has seen and was highly successful.
Below is an extract from THE HINDU’s report…
On a pleasant Sunday evening, several thousand people were witness to a heavy downpour of divine rhythm and mellifluous music. ‘Naadha Vaibhavam’ presented by The Art of Living and MARG Brindavan lived upto its name.
It was announced that a total of 5,700 artists were on stage.
It included 347 instrumentalists playing the mridangam, violin, ghatam, flute and veena. Among those on stage, nearly 3,000 were from Chennai and the rest from other parts of Tamil Nadu and also from Puducherry, Andhra Pradesh, Karnataka, Kerala and even Maharashtra, according to volunteers.
The evening began with prayer songs ‘Vinayaka Vishwadhara’ and ‘Jaya Jaya Durge Ma’ that were sung by volunteers and also by the audience. Compositions by eminent musicians in Sanksrit, Telugu and Tamil were rendered on stage. Each of the songs was led by senior artists such as T.K. Govinda Rao, P.S. Narayanaswami, Suguna Varadachari, G.S. Mani, Suguna Purushothaman, Allepey Venkatesan, O.S. Thyagarajan and Trichur Ramachandran.
The thani aavardhanam by mridangists Tiruchi Sankaran and K.V. Prasad received tremendous applause.
In 2009 – 2010, MARG registered a 61 percent increase in net sales which stood at Rs. 7.45bn as compared to Rs. 4.62bn in 2008 -2009.
MARG StandaloneFinancials: Rs. in crores
Income from Operation
MARG Ltd., India’s leading diversified infrastructure development company, today announced its audited financial results for the quarter ended September 30, 2010.
Commenting on the company’s performance in the quarter ended September 30, 2010, GRK Reddy, Chairman & Managing Director, MARG Limited said, “Our results for the second quarter of 2010 – 2011 are very encouraging. The income has increased by a healthy 32 percent. We earlier invested extensively in land banks and with our projects now taking shape, we are expecting good returns in this fiscal. Our unique business model enables us to offer enhanced value addition in all our business verticals. Identifying opportunities ahead of time has always helped MARG to build realty and infrastructure solutions, which fuel the progress of the nation. This Spirit of Visioneering has inspired us at MARG to venture into infrastructure development of ports, airports, malls, SEZs, IT Parks, townships, residential and commercial projects. Our vision is to continue to improve on our position as the country’s fastest growing diversified infrastructure development company.”
In 2009 – 2010, MARG registered a 61 percent increase in net sales which stood at Rs. 7.45bn as compared to Rs. 4.62bn in 2008 -2009. The net profit for the year ended March 31, 2010 stood at Rs. 80.37-cr, a 96.5 percent increase from Rs. 40.9-cr for the year ended March 31, 2009.
PERFORMANCE OF BUSINESS UNITS
MARG Karaikal Port has proved its capabilities as an efficient multi-cargo handling port and would become one of the finest ports on the East Coast of India. The Port is in the regional development of the industrially backward region of Karaikal which has witnessed considerable growth and prosperity since the Port commenced its operations.
The Port handled 1.34 million MT of various cargoes during Q2 of the current financial year – a growth rate of over 15% vis-à-vis Q1 traffic of 1.17 million metric tonnes. The Port dispatched 220 rakes of coal (80%) and fertilizer cargo (20%) by rail in Q2 – a growth of over 90% vis-à-vis the last quarter.
Coal continued to dominate the cargo portfolio but the major highlight of the quarter was the increase in the share of fertilizer cargo. With Karaikal port having received the notification from the government for handling Urea, the fertilizer cargo traffic is expected to grow significantly. Karaikal port has achieved necessary drafts to receive Panamax vessels and has successfully handled several panamax vessels.
During the current financial year Karaikal Port entered into a MoU with power majors to set up a new power plant for handling 7.5 MTPA of coal through the Port. The Port also signed a MoU with a leading coal trading company to set up a 1.5 MTPA coal blending unit at the Port.
The Port augmented its infrastructure facility by adding a 3rd Mobile Harbor Crane. Karaikal Port also commissioned Berth No. 9, a multi-cargo berth for smaller vessels (up to 25000 MT).
Phase 2 development is at progress. Over 50,000 sq. meters of covered warehouses for storage of fertilizer, cement, sugar, project cargo & other cargo is operational and more storage area is being added in line with market requirements.
Higher discharge rates, no pre-berthing delays, faster turnaround times and savings in the integrated logistics costs vis-à-vis the competing ports has helped Karaikal Port in attracting almost all major customers in the Central Tamil Nadu / Pondicherry region.
The company has obtained the ISO 9001: 2008 Quality Certifications and the renewal of investible Credit rating from CARE.
In recognition of CSR activities, Mr. G R K Reddy, Chairman & Managing Director, was honored with the ‘Corporate Social Responsibility Award’ at South East CEO Conclave & Awards 2010.
Work commenced for Phase 2A expansion – contractors for 2 new berths identified; mechanization order worth ~Rs. 280 crores placed
Second tranche of CCP of Rs. 40 crores received from IDFC (Total Received till date – Rs. 110 crores)
With a stream of investments expected from various port based industries, Karaikal is poised to become an industrial hub in the near future, which will have spun of benefits to the port.
Karaikal Port Private Ltd(Rs. in crores)
Income from Operation
Industrial & Urban Infrastructure
Two Units – M/s. Vanspall & M/s. Grundfos have commenced their operations in H1. The first half of 2010 has seen the start of construction for M/s. Virgo & M/s. Polyhose set on land parcel of 10 & 11.5 Acres respectively. Signed a MOU with BPPL, a subsidiary of Vemspa, Italy, for manufacture of Engineering Products.
Multi Services SEZ:
MOU Signed with M/s. Exemplarr Worldwide for 56,000 sq ft and DC approval obtained to start operations by them in Q3 of 2010. Build up pipeline for high potential client such as Color Amalgamation – 20,000 sq ft and Fairmacs – 5000 sq ft
Swarnabhoomi Academy of Music:
Swarnabhoomi Academy of Music campus was inaugurated in September 2010; Six months’ long courses have commenced and a new short, instrument focused program has also been added.
Indian Green Building Council (IGBC) Pilot Project
MARG Swarnabhoomi has been shortlisted by IGBC as a pilot project for “Platinum” rated city in India
· New Sign up with Strand Genomics concluded for 40,000 sq ft, and a healthy pipeline of prospects being developed. Science Park Phase 1 construction activity, comprising an area of 175,000 sq ft wet labs, was initiated in the august presence of Dr. Rajendra Pachouri, Director General of TERI, in September, 2010.
· Social infrastructure readied with Convenio Store, Laundry and ironing, fruits and vegetable vendor, newspaper, ATM and milk vendors etc. are all at progress in MARG Swarnaboomi. NCTPL (MARGSwarnabhoomi) (Rs.in crores)
Income from Operation*
Steady order book Rs. 2822 crores (external orders of Rs. 636 crores) at end of Q2 (Q1 – 2800 crores)
In Northern region the EPC division is executing orders for Rs. 367 crores for majors like MES, NBCC, LDA, BHEL, IOCL, HPCL, HUDA, HSC, and Northern Railways. It will be executing two prestigious projects for UPHDB, LDA for Rs. 200 crores with latest technology of Aluminum Shutters and casting the Building in a Single-go.MARG EPC has been prequalified/listed with NBCC for executing orders to the tune of Rs. 100 crores to Rs. 200 crores.
It has entered into a joint venture agreement with M/s Valecha Engineering & M/s SREI Infrastructures Limited for quoting National High ways projects to the tune of Rs. 3600 Crores.
It has tied up with International Infrastructure Consultants (IIC) for Management, strategy, structure and Processes within EPC division in Oct, 2010. The IIC is intended to strengthen MARG’s EPC competence and position it strongly against the competitors.
Signed MOU with PYCSA INFRAESTRUCTURAS, SL of Spain for taking up works in infrastructures works like Roads, Bridges, Highways, Flyovers and hydraulic resources & water quality.
Continued strengthening of human capital resulting in 26% increase in workforce vs. Q1 (number of employees in standalone entity at 643 at Q2 end as against 509 in Q1 end)
Real Estate (Residential)
MARG ProperTies Private Limited, an outfit of MARG is poised to become a leader in residential vertical by offering homes in different segments viz. Affordable homes, Urban smart homes, Integrated town ships and Ultra luxury homes.
It has sold residential space of around 2 million square feet as on 30th Sep 2010 and has drawn plans to sell around 7.5 million square feet of space in next 36 months.
In terms of units, it has so far sold 2000 homes till 30th Sep 2010 and has plans to sell another 10000 homes in next 36 months. The projects like Pushpadruma, Vishwashakthi, Tapovan, Lakshna, Savithanjali, Navaratna, Utsav are doing extremely well in terms of sales and revenue.
This company has soft launched Sky meadows, Maha Utsav and drawn plans to launch new projects viz. Brindavan, Globa Residentia in Q3 of this year. Another 3 projects near OMR are planned to be launched before the year end.
In an overall demand of 24.71 mn homes across the country, Tamilnadu accounts for 2.82 mn homes. However CMDA estimates shows that there is a projected demand for 4 lac homes in Chennai, out of which 80% is in affordable category – be it Brindavan, Utsav & Maha Utsav (4000 affordable smart homes) for middle class, Integrated townships in Tier 2 cities like Vishwashakti at Tirupati (500 value homes for high & middle class), Sky Meadows & Savitanjali (1000 Urban smart homes) catering to urban class, Tapovan (exclusive 124 villa homes) for elite classs. By offering value homes for all segments, MARG ProperTies is well poised to garner huge market share across products range (from Rs. 10 lacs to Rs. 100 lacs) by leveraging its scale and size coupled with strong people, process and use of innovative technologies.
MARG ProperTies, the brand assures right product with right value to different class of customers, delivering value with technology and innovations, besides ensuring long term capital appreciation for the customers. The brand establishes measure & pay, upgrade, zero defect space and reaffirms its trust and commitment to its customers. Launching unique retail brand shop at Pondicherry and Chennai, strategizes in creating brand building and seamless communication to deliver the customers, their requirements through customers meet called CONNEXIONS.
Real Estate (Commercial)
MARG Junction which is into Malls, multiplex, hotel and commercial complexes signed up over 212,000 square feet of Anchor space for lease with PVR Cinemas – Multiplex (7 Screen, 1700 seats multiplex by PVR with Latest Technology), Shoppers Stop and Hyper City – Hyper Market .
The Mall will house Chennai’s largest atrium space – over 26,000 sq ft.
EOIs from mini-anchors in all important categories like Books ‘n music – Odyssey, Reliance Time-out ,Fashion mini-departmental – Marks & Spencers, Max value Electronics – Vivek & Co., E-zone, Reliance Digital ,Gaming/Family Entertainment – Blu-O, Fun City and retail brands like Adidas, Reebok, Wrangler, Lee, Levi’s, Louis Philippe, Van Heusen, Allen Solly, Bata, Lilliput, Lacoste, DLF Brands will add further edge to the Mall.
Project funding to the tune of Rs. 217 crores is complete. The Mall is expected to go into fully operational by April/May 2012.
In line with our commitment towards inclusive development, MARG has bid for 2 PURA (Provision for Urban Amenities in Rural Areas) pilot projects. This is a landmark initiative of Ministry of Rural Development aiming to provide urban amenities and skill development in rural areas as PPP scheme.
Urban India Relying Less on Bank Finance for Housing Needs
Only 25% of urban Indians have used bank finance to invest in a house, government data released on Monday showed. Instead, over 61% of the cost of houses built by families across urban India was financed by themselves. This means India is quite removed from the build-up of sub-prime lending bubble as of now. The figures from the National Sample Survey Organization’s report on Housing Conditions and Amenities in India for the 2008-09 are startling. They confirm the anecdotal evidence of the boom in construction of residential properties in Indian towns unaffected by the changes in the rates of interest for housing loans from banks and housing finance companies.
Developers Worried Over Higher Construction Costs and Low Margins
While higher land prices and raw material costs could put profitability of companies under pressure, a steep rise in borrowing costs is likely to hurt demand. The BSE Realty index fell 11 per cent over the last month and eight per cent over the week as real estate companies reported margin pressures in the September quarter. To add to the problems, the Reserve Bank of India (RBI) toughened stance on rising asset prices. Also, doubts are being expressed about a pick-up in volume due to high prices. “A drop in volumes due to high prices could lead to working capital issues for some players”, said an analyst. The RBI’s measures – lowering the loan to value ratio and higher provisioning for luxury home and teaser loans –are likely to have a minor impact, say analysts. The sector also faces spiraling costs, which have dented the profitability of India’s largest listed players.
Mumbai 4th Most Expensive Office Space Rental Market in World
Mumbai, India’s business capital, has been ranked as the fourth most expensive market in terms of office space rentals in the world by global real estate consultant CB Richard Ellis. New Delhi is placed at the 11th spot in the list, which is topped by London (West End), according to CBRE’s semi-annual Global Office Rents survey.