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Founder's Message

Founder
MR M.R. JAISHANKAR
CMD
jaishankar-cmd

Half of calendar year 2023 is over. Unfortunately, there isn’t much ‘feel good’ news in the world, except in India, Middle East & few countries in Southeast Asia.

The mindless war between Russia & Ukraine continues. Other than helping clear the stockpile of weapons in few western economies & securing billions of dollars of fresh orders for manufacture of weapons, it has only resulted in destroying large areas in Ukraine & displacing millions of its citizens. The war resulted in much of Europe to go into recession. From a unipolar world with United States ruling the roost since the disintegration of USSR during 1991-92, the world is getting back to a bipolar world with the 2nd largest economy of the world, the communist China supporting Russia.

While politically the world has become bipolar again, economically countries have become more interdependent than ever before due to globalisation & WTO policies. This is posing a huge challenge to different economies, particularly to the United States and to the countries in Europe.

The Indian Government has played its cards smartly. Our country is beginning to see the benefit of China+1 strategy of the developed economies, not only for sourcing their product requirements, but also because they see India as a good investment destination. This has greatly helped the Indian economy to become resilient and not be affected so far by the war in Ukraine. The best indicator is the stupendous increase in Sensex & Nifty indices and Indian foreign exchange reserves crossing US$ 600 billion again. Many senior bankers feel that for the 1st time after many many years, all sectors of business are doing well. One can only hope this good show sustains for a longer time thereby helping Indian GDP reach US$ 5 trillion, sooner than later. The spoil sport can be poor monsoon, interest rate increase and unexpected events like political turmoil.

The ruling party at the centre got the shock of its life by badly losing State Elections in Karnataka. The smart electorate of Karnataka has punished the unexpected poor performance of the previous Government, apart from succumbing to the lure of multiple freebies offered by the winning party. While this has invigorated the opposition parties against the ruling party at the centre, it has also made the 2024 parliamentary elections more unpredictable. Anything can happen. What India requires is political stability and retaining its position in the world order & the goodwill generated during the past few years. What all this means to the business is the question? Uncertainty to a great extent. One never knows when the current positive sentiments will start turning negative, though there is absolutely no indication at present.

The Residential Real Estate sector is continuing to grow in a healthy way. Financial year 2023 is the best so far for the sector. The WFH/ A (work from home/ anywhere) culture continuing in a big way in USA & Europe has created millions of square feet of vacant office space in those countries, which has resulted in cautious approach by Indian & MNC companies in the tech sector to sign up new office space. Most experts feel this could be a cyclical and temporary phenomena. The good news is many MNC companies are increasing the size of their GCCs (Global Capability Centres) in India as a way to cut costs by offshoring work thereby helping to retain/ improve their profitability. This is the saving grace for the Indian Office Real Estate sector. The data localisation policy of the Indian Government has also resulted in increased demand for Data Centres. So also, the growing organised retail business has increased the demand for Fulfilment Centres/ Warehouses.

In such a macro environment, Brigade is trying to play its cards well but carefully. We have made headway in increasing our presence in Chennai significantly. We are trying to do the same in the highly competitive real estate market of Hyderabad.

While a number of new launches are slated in this financial year, obtaining civic authorities approvals is becoming more challenging than ever before, for a variety of reasons. By adhering to the multiple rules, administrative procedures and after overcoming red tape, if one succeeds in real estate business in India, they deserve to receive accolades and a pat on their back.

Rightly, the new Congress Government in Karnataka is talking of ‘Brand Bengaluru’ – to improve the image of the city which has taken a beating due to severe traffic congestion, insufficient infrastructure planning & implementation. Bengaluru deserves much better treatment by the State Govt.

Bengaluru, which contributes more than 50% of the tax revenue of the State; should receive similar share in the expenditure budget of the State to improve its infrastructure. Bengaluru is not just a city of Karnataka, it is now a Global City, known for innovation and home to 100s of MNCs.

Hyderabad with its superior infrastructure is already breathing down Bengaluru‘s neck and sure to overtake Bengaluru as an attractive investment destination, if the Karnataka Government continues to be complacent.

The advent of ChatGPT & AI (Artificial Intelligence) into our lives, slowly but surely, will have a profound effect, not fathomed by us so far. It will become a necessary evil in the years ahead. While there would be demand for people with new skills, it may also lead to thousands of job losses. So, it is very important for people and businesses to gear up the skills to keep pace with the ever changing technological advancements.

The festival season is approaching. My warm season's greeting to all our readers.
JAI HIND.


—Jaishankar CMD, Brigade.

 

ARCHIVE INDEX
"A few thoughts…" is a column that our CMD Mr M.R. Jaishankar writes regularly for our house journal Brigade Insight. A few of his columns are reproduced here."
December 2022

Our world is in turmoil. The mindless war in Ukraine continues. The number of Covid cases across the world has gone up to 650 million with 1% mortality. In other words, about 6.5 million deaths. The numbers are going up in the United States and more particularly in China – thebirthplace of the Wuhan virus.

With inflation levels inchingtowards double digits in Europe and parts of America, talk of recession in the western world is gaining momentum. Our country, by and large, seems to be insulated. The question is for how long will we be insulated in this globalised world. Only time will tell. Despite what is going on around us, Indian stock indices have reached an all-time high! It is an enigma. There is money with the Indian public with few options to invest. Unfortunately, big investments in the industrial sector are not happening to the desired extent to match the government’s expectations. Probably, Indian businessmen feel the risk factors are high based on macro indicators with impending elections in many States during 2023, and the Parliamentary elections in 2024, which is not far away. To reduce inflationary effects, Central Banks across the world, led by the US Federal Reserve, have increased the base interest rates significantly. The Reserve Bank of India has followed suit. The full effect of increased interest rates is yet to be felt by the business community. However, it is bound to hit profit-ability across sectors and the risk factors of higher borrowing will only increase.

In such a scenario, the Indian real estate sector is holding the fort and has shown a lot of resilience. The residential sector continues to do well. Business in retail malls and multiplexes is at an all-time high. Hotel occupancies and ADRs have also bounced back and have exceeded pre-COVID levels in many cases. The only area of concern is office leasing business, where companies in the IT sector are showing cautious approach and postponing major decisions. Employment generation is a key factor for the health of real estate business. However, Indian companies in the software sector and GCCs (Global Capability Centres) expect higher offshoring over time to ensure companies profitability is maintained in their home countries.

Having received all approvals for our residential projects – Brigade Valencia on Hosur Road and Brigade Calista on Budigere Road, the team is geared up to launch both large sized projects in the new year. Response to our maiden large plotted development project – Brigade Oasis on Devanahalli to Doddaballapur Road is very encouraging, having sold the 1st phase in a short period.

Succession in leadership is a necessity at various levels in any organisation. The time has come for me to take a step back from day-to-day routine activities. Having crossed 67 years in age, our Board of Directors have decided to elevateExecutive Directors Pavitra and Nirupa to Managing Director and Joint Managing Director, respectively. They are both eminently qualified with MBA degrees from Ivy League colleges – Columbia Business School and Cornell Business School, and each with more than 15 years’ work experience. They are both young, energetic, full of ideas and ready to work hard. I will continue as Executive Chairman.

I am happy and proud that FKCCI (Federation of Karnataka Chambers of Commerce and Industry) conferred on me the ‘Bharat Ratna Sir M. Visvesvaraya Memorial Award 2022’ on his birth anniversary, September 15, which is also celebrated in his honour as ‘Engineers Day’, across the country. It is in recognition of my services and contribution in the construction and building sector, as well as in the fields of education, health, community development, social and philanthropic work. I dedicate this recognition to all in Brigade Group. Without the support of Brigadiers, it was impossible to achieve, whatever has been achieved.

Lastly, I wish all the Brigade stake-holders season’s greetings, and the very best during the New Year 2023. We need a Santa Claus for the business sector also.



July 2022

There is no shortage of challenges and excitement – be it in the world or in a country or in an organisation or in one’s personal life

Our world, hit by the dreaded Wuhan Virus for the last two years has seen 550 million people affected by the virus; 6.3 million people succumbing to it (including one million in the USA alone) and with 20 million active cases still troubling people and governments. We did encounter the 3rd wave, ‘Omicron’ variant. Thankfully, due to vaccinating a few billion people, the negative impact (except in China) was much less. Our own country has done quite well to contain the Covid Virus because of the sensible approach of our general population (unlike many developed countries) resulting in more than 1800 million vaccinations administered to people. Kudos to the sheer determination of our Central and State Governments, and to the efforts of our doctors and health workers. While this should not result in complacency in following health safety protocols, thankfully day-to-day life is moving towards normalcy.

As if the health emergency is not sufficient, an undesired and terrible war is going on in Ukraine for more than four months due to Russian aggression. There seems to be no end in sight.

One can only hope and pray that it won’t expand to other countries and regions. The bloody war has displaced more than 15 million Ukrainians and has erased establishments and towns; killed thousands of soldiers and civilians; and has resulted in the loss of more than 100 billion dollars to infrastructure and properties.

Most inhuman act by the aggressor. The beneficiaries, as always, are defence, ammunition and equipment manufacturers (it has helped clear their stockpile); petroleum oil producers and many basic metal producers – aluminium, copper, nickel, steel, etc. Most businesses are paying the price due to the disruption caused by the war, resulting in increase in production costs. The full impact of the war is yet to be felt by the general public. In our country, cost of petrol has breached INR 100 per litre of petrol, for the first time. Once petroleum product prices go up, it will have a cascading effect on every other product. GDP growth of India, which was expected to be 9% in FY23, is already forecasted downwards to 7% or even less.

Residential real estate which was cruising well after every virus variant and lockdown, is being hit by a huge jump in construction costs – to give just one example, the price of construction steel has shockingly gone up by 80-100% since February’22! Furthermore, cost of several other inputs that go into construction. This is bound to have an impact of at least 10% in increase in selling prices in Southern Indian markets. Added to this, the general inflation is going up and has breached 7% already, resulting in hardening of bank interest rates, which means home loan rates will start inching up.

Brigade has done fairly well in FY22 in all the four SBUs we operate in – Residential, Office, Retail and Hospitality – in spite of the challenges, and considering we could not launch many new projects. We are hoping and working towards a brighter FY23.

We had the privilege of installing and unveiling the statue of the great Bharat Ratna Sir M. Visvesvaraya, opposite the Brigade School in Brigade Gateway campus. Sir MV’s achievements should surely inspire the next-gen.

Brigade and its people have received a number of recognitions during the past few months. Special mention is that of our Exec. Director, Nirupa being recognised by the Economic Times Jury ‘40 Under 40’, nationally. Also, with some amount of pride, I can mention that Bangalore City University conferred on me ‘Honoris Causa Degree’ (Doctorate) for the work done in ‘Infrastructure Development and Philanthropic Approach for Social Cause’. Naturally, I dedicate this recognition to my entire team at Brigade.

Lastly, let me hope against hope that the Ukraine war will end soon; the Corona Virus will not become virulent again, and businesses and people will be able to carry on with their lives more peacefully



August 2021

This issue is coming after a gap of one year. The April issue could not be released due to the 2nd wave of the pandemic and the connected lockdown.

People’s perceptions and attitudes toward life and work have changed a lot over the last 17 months. People and businesses who were able to adapt to the fast changes encountered, have flourished. Those who could not, have unfortunately perished.The impact of the 2nd wave was quite severe on the personal lives of millions of Indians. More than 32 million people contracted the Wuhan Virus and unfortunately, 430 thousand people have died in our country. Worldwide figures: 207 million affected & nearly 4.4 million people have passed away.

The numbers are only growing by the day, even though multiple vaccines are available. For 7,800 million people to be vaccinated twice, it can take another year or two. Luckily, more than 500 million Indians have been administered at least one dose of the vaccine. As a result, if there is a third wave of the virus, the impact is likely to be less severe than the earlier 2 waves. Only time will tell. But, as individuals, one needs to strictly follow all precautions as recommended by the health authorities for their own good.

During these uncertain times, Brigade was able to sail through the troubled waters reasonably well. While our Hospitality and Retail segments were badly affected, the Residential real estate business performed remarkably well by posting the highest sales since the inception of the Group in October 1986. Office leasing sentiments are also affected quite a bit, although the Indian software sector has had exceptional times due to their sheer resilience and ability to keep up their commitments to clients.

The concept of life and work has also undergone tremendous change. Work From Home (WFH) in the financial and technology sectors is a shining example of success, wherever remote working is possible. E-commerce has made life convenient to the technologically savvy population. It has already revolutionised the retail shopping sector. It will have a big impact in the years ahead on the traditional ‘Kirana’ stores and even Shopping Malls.Lockdowns to contain COVID-19 have reinforced the importance of owning a ‘roof over one’s head’, that too a comfortable, spacious one. With reduced expenditure & increased personal savings due to lockdowns, and real estate developers coming up with attractive price & payment schemes, the affordability factor has increased at all levels, resulting in improved demand for housing. This has been the saving grace for developers.Even with all the challenges faced during the last 17 months, we have been able to complete 15 projects with an area of 12.40 million square feet, including our marquee project, World Trade Center (WTC) Chennai. During the same period, we launched 14 projects with an area of 11.30 million square feet including Brigade Citadel in Hyderabad, and Brigade Residences at WTC Chennai.

A feather in the cap is the recognition by the international body, Great Place to Work Institute in association with the Economic Times, for the 11th year in a row - placing Brigade amongst the Top 100 Best Places to Work in the Country - the only real estate developer in the country to receive such an honour. Despite inadequate support to business and industry by the Central & State Government, the Indian Corporate Sector has shown a lot of resilience, thereby presumably, helping wipe out the 7.5% negative GDP of 2020. Good monsoon across the country, in general, has played its part. But the concerns of MSME sectors and small businesses remain. This means by the end of March 2022, India’s financial position may get back to March 2020 status. With the loss of 2 valuable years of growth, it would be a miracle of sorts if our country can reach the targeted GDP of 5 trillion USD by 2024-25. Reaching the USD 5-7 trillion mark is essential for the country. This will ensure that per capita income goes up to USD 4-5k from the present USD 2k. Only when the per capita income goes beyond USD 4-5k, can the MIG population hope to have good disposable income, which in turn will give a boost for the next stage of growth. This would be very similar to what happened in China over the last 20 years. The Central Government has taken up several structural reforms during the past couple of years to help the Indian industry grow and at the same time supporting the farmers and the poorer sections of the society. One hopes these structural reforms will start yielding results soon. Stock indices of BSE & NSE have gone through the roof on this expectation. FII & SIP fund inflows have added fuel to the fire.

With this hope, as we enter the 75th year of Independence, we can expect ‘Tomorrow to be brighter than Today’.

Wishing our readers good health and safety.



September 2020

Much has happened since the last issue of Brigade Insight published in Nov 2019.

The Wuhan Virus that originated in China during December last year has created unprecedented havoc around the world, the likes of which none of us have witnessed in our lifetimes.

Life has turned upside down - a 180O change; people have become helpless, more philosophical, many businesses have been run to the ground. India is staring at its worst recession since independence and other countries are experiencing the worst since the 2nd World War or the Great Depression of 1929. Helpless governments across the world are taking various measures to control the virus. It is unimaginable that an invisible organism (COVID-19) can bring the world to its knees! Over 27 million people have been affected so far and the numbers are increasing by the day, deaths are nearing a million, and with no end in sight till an effective vaccine is invented. Even after a vaccine is released, after successful clinical trials, the number of years it will take to vaccinate the world’s 7,800 million population, is anyone’s guess. No one knows, if the vaccine will provide lifelong immunity, or it should be administered every year like the Flu Vaccine. With all these uncertainties, life must go on. We need to do what we have to do, leaving the rest to providence, our destiny, our karma.

At times like this, the country’s leaders are in an unenviable position. Tough situations call for tough decisions. Damned if you take, and damned if you don’t take. Our PM, Shri Narendra Modi, known for his decisive leadership, bit the bullet by locking-down the entire country for 40 full days - the only time since 1947. It did create panic and resulted in untold misery to millions of migrant labourers across the country. It did help save lives and halt the spread of the Wuhan Virus initially. But once the lockdown was lifted and people started moving around, including the gradual return of the migrant labourers, the COVID-19 +ve cases started increasing. India currently has the dubious distinction of having the 2nd highest number of cases, next only to the United States. Now, livelihoods have taken precedence over lives, as can be seen with the economy opening up more and more, month after month.

During this crisis, many developed countries have come up with attractive stimulus packages for their citizens and businesses. Despite India being a developing country, our Government came up with a very ambitious, INR 20 lakh crores stimulus package. While it did raise expectations of the industry and the business community, unfortunately, too much fine print did not allow the benefit to reach the different sectors as intended. Personally, I believe, doles must be restricted for the economically weaker sections. For businesses, what is needed, is to unshackle them from a multitude of regulations and offer simple, transparent rules. As a stimulus, reducing taxes like GST, Stamp Duty, etc., for at least a year or so, would boost the economy. Otherwise, to return to positive GDP growth over 2019 or the prior figures would take a very long time. Oxygen, should be administered timely.

I am happy to report that during this pandemic, Brigade Foundation has taken several positive initiatives and has done its part to help the society and the community - supporting 11,000 workers with a combination of food, ration and direct transfer of money to remit to their families during the lockdown phase, distribution of lakhs of food packets, rations, truckloads of rice packets across different slums for the needy, donation of a 5-bed ICU container to KC General Hospital, starting a permanent health centre in South Bengaluru, in association with St. John’s Medical College Hospital; apart from numerous donations to the Chief Minister’s Relief Fund in different states. I express my appreciation and deep gratitude to the doctors and health workers for their selfless service to the affected patients.

Brigade is present across all 4 verticals of real estate business - Residential, Office Leasing, Retail Malls & Hospitality and each of these verticals have supported one another during this phase. Currently, with international travel having taken a big hit and the lack of confidence felt by most, to undertake domestic travel, hotel occupancies have taken a huge hit.

Similarly, Mall operations and walk-ins are badly affected, with Multiplexes still not being allowed to operate and with the restriction on the serving of liquor in restaurants to date.

Thankfully, residential sales are improving month on month resulting in the hope that there is light at the end of the tunnel. So also the collection of office lease rentals are robust.

What next, is the question each one of us will be asking? I believe life must go on in this ‘new normal’ situation but only by complying with safety norms as advised by the health authorities - wearing masks, maintaining physical distance, increasing sanitation standards, and avoiding crowded places. Otherwise, the negative impact on livelihoods can take catastrophic proportions. The concept of Work From Home (WFH) has helped businesses, particularly in the services sector, to survive and keep up their commitments. We humans, are social animals, and most of us are longing to get back to our normal routine of returning to our workplaces and interacting with our colleagues and other people. Till normalcy returns, we all must exercise patience and perseverance in whatever we are supposed to do. At Brigade, we believe that our Core Values have helped the organisation, in both, good and difficult times, to have come this far since our inception. We will continue to strive to live by our Core Values.

More than anything, we all need to seek God’s mercy and pray for normalcy to return soon.



December 2019

Celebrating the 150th Birth Anniversary of Mahatma Gandhi - the Father of our Nation is a great way to recall the principles of this noble man, in this chaotic and materialistic world, especially to Millennials & Generations X - Z. I wonder what may have been the status of our country if the Mahatma had not succeeded in securing independence through his non-violence movement. India as a country did not exist before 1947. It was just a collection of hundreds of princely states within a geographical region. What a daunting task it must have been for Gandhi & his band of leaders to bring all the diverse, multicultural states under one umbrella. What is noteworthy is that our country is growing from strength to strength on its journey (to become the 3rd largest economy in the world) by trying to overcome the economic & political challenges one can expect with an over 1.2 billion population. We have a visionary leader in Prime Minister Narendra Modi and he needs all the good wishes to steer the country towards the right path, to eliminate poverty and to give the vast population of India a decent quality of life.

Diwali, the Festival of Lights, is indeed a festival to celebrate the victory of Good over Evil. This is aptly demonstrated by the elimination of the ISIS leader, thanks to the relentless American efforts. What a contrast between a violent leader and a leader who is an epitome of non-violence!

After Prime Minister Narendra Modi’s resounding election victory, one expected the growth of the Indian economy to go northwards at a faster rate. Unfortunately, that is not the case. It appears that the laws of economics are stronger than the wishes of the population. To me, it seems like a cyclical slowdown affecting the economy, and it appears like a 10-year business cycle. Our country did witness economic slowdown / recession, particularly for the real estate sector, during the years 1988-1991, 1998-2001, 2008-2011 and now. The current recessionary cycle for real estate started quite early in 2016-2017 due to DeMo, the introduction of RERA & GST. The slowdown has taken a huge toll with few large and most one-time, small-medium sized developers exiting the real estate sector. The complexity of doing business has vastly increased due to regulatory changes and challenges. It is seriously, not for the weak-hearted.

Thankfully Brigade, with its diverse portfolio, but more importantly due to following its core corporate values, is managing not only to survive but also to grow. Recessionary & slowdown times create a lot of opportunities for the wise and people with money. This is the time for smart people to make investments but after a proper study of the pros & cons. There are many good real estate projects worthy of investment in our portfolio. While preparing to launch new projects in Chennai & Hyderabad, our focus has been to complete many ongoing commercial & residential projects, apart from launching the next phase of large projects in Bengaluru.

I am delighted to mention that the Indian Music Experience was formally launched with an outstanding music event by Padma Bhushan Ustad Zakir Hussain on the 27th of July 2019. I am elated with the continued appreciation for the concept & content of IME by all those who have visited the museum. It has encouraged the team to work harder and innovate more.

I am also very happy to have signed an MoU with the reputed St. John’s Hospital to set up a ‘Not for Profit’ Health Centre to start with, and a Hospital subsequently for the benefit of the neighbourhood at our large residential project - Brigade Meadows, in Bengaluru South.

Season’s Greetings & Best Wishes for 2020.



May 2019

I am delighted and proud that the Indian Music Experience (IME) - conceived, supported & developed by Brigade - is complete and open to public. Though it took nearly 10 years, the end result is excellent and very satisfying. It has received and is continuing to receive appreciation from many critics, music experts & general public who visit the museum. See pages 28 to 31 for more information. I think it is one of Brigade Group’s profound contributions to the city of Bangalore and to enhance India’s cultural heritage. Due to the very nature of the project, IME received quick financial support from the Central & Karnataka Governments, many banks, corporates and philanthropists. I am grateful to each one of them. What is required is more & more people to earmark their time to visit the museum in this busy world.

Results of Indian Parliamentary elections, is bound to have far reaching impact on the future of the country for the next 5 years and probably many more years. Managing 900 million voters is a daunting task, which the Indian Election Commission has mastered like nobody else in this world. What is required is stability and a strong purposeful leadership to take this country of 1.2 billion people forward. Our country was the major economy of the world 4 centuries back but lost its position due to colonial rule and missing industrial revolution. While it is poised to become the 3rd largest economy of the world in the next decade, per capita income must cross US$ 5000 for poverty to be eliminated.

During the last 3 years, Real Estate Sector has been facing the brunt of the Government’s policies - DeMo, RERA & GST. Though some aspects of the policies are positive, it did unsettle the Sector for couple of years. While business was appearing to return to normalcy, the GST Council has made major changes in GST rates, methodology & treatment for residential real estate. One fails to understand the logic of these changes which goes against the very essence & principle of GST. While, in its wisdom, the intent may have been to reduce the impact of GST for housing, the changes effective from April are counterproductive except for premium housing (square foot rate of Rs 10,000 & more. See page 56 for more information. Unwittingly, it is a wrong step towards reaching ‘Housing for all’. It will be a challenge to make customers understand the real negative impact of recent changes in GST for residential sector. Hope the GST Council realises this anomaly and takes corrective steps soon. So also, the anomaly on GST rate of 28% on Cement, which is a major ingredient for civil construction industry. 28% rate is meant only for ‘luxury’ & ‘sin’ goods. Big question - Is using Cement in construction a ‘sin’? Good to get an opinion pool.

The last few months saw a flurry of new initiatives at Brigade. Starting with signing an MoU with the Government of Tamil Nadu to set up World Trade Center (WTC) Chennai and an MoU with Government of Kerala to set up WTC at Thiruvananthapuram. Also, the launch of Art Café at Brigade Gateway and most importantly our foray into Co-working business segment with the launch of BuzzWorks!

The last two quarters also witnessed the completion of 10 projects - Brigade Lakefront (2nd Phase), Brigade Tech Gardens (1st Phase), Plumeria @ Brigade Meadows, Brigade Panorama, Arcade, Cedar & Deodar @ Brigade Orchards, Brigade Atmosphere (1st Phase), Brigade Symphony (2nd Phase), Mysore and our 1st hotel in Kerala, Four Points by Sheraton, Kochi InfoPark.

Our new project Brigade Cornerstone Utopia, a 6 million Sq.ft. mixed-use development in 47 acre will be very unique and is bound to become a major landmark in Whitefield zone. Response to the pre-launch was very encouraging. Few other major launches in the next few months will be Brigade El Dorado, in Aerospace Park near Bangalore Airport, Premium Residences @ WTC Chennai and 2nd Phase of Brigade Xanadu, Chennai.

With sincere hope for a good monsoon, a good and stable Government at the centre for a better India, I convey my best wishes to all our associates, customers & staff, and seek their continued support.



August 2018

Much has happened since the publication of the last issue of Brigade Insight - Indian economy has become stronger with the positive impact of GST taking shape, slowly but surely; Stock indices have zoomed with Sensex touching 38,000; BJP was not able to form the government in Karnataka in spite of being the party to win the largest number of seats; Passing away of the doyen of Tamil Nadu politics Sri Karunanidhi; Brigade launching a flurry of projects et al.

Unfortunately, the international scene is quite uncertain with Oil prices going up and the unpredictable approach of the US President resulting in a trade war between the United States & China, the world's two largest economies. This has brought in a lot of uncertainty to the external macro environment though, the United States economy, which contributes more than 25% to the world's GDP, is doing well. The resultant impact on our currency is negative as the Indian Rupee has weakened by 7% and will affect the country's balance of payments.

Though the Indian manufacturing sector is showing good order books, companies are declaring better financial results and though the Monsoon is by & large good, there is a certain amount of anxiety amongst trade and industry due to interest rates beginning to go up, apart from the uncertainty of impending parliamentary elections in early 2019.

After three years of a recessionary trend in real estate, the sector seems to be on the recovery path. With not many new project launches during the last two years, unsold numbers have come down and prices have stabilised. With the implementation of RERA, much-needed customer confidence and positive sentiment are returning back. The Central government is doing its bit by increasing the thrust on infrastructure improvement. The spoilsport can be rising home loan interest rates.

In this background, Brigade has launched a number of new projects and is gearing up to launch several more in Bengaluru, Chennai, Hyderabad & Mysuru. With ‘Parkside' as the brand for ‘Independent Living for Seniors', we are offering well thought out residences in all four directions of Bangalore. We are back to offering Ownership Offices for investment, lease or for own use. In fact, the first three projects of Brigade in the late 80s & the early 90s were all commercial projects. We have also started the concept of ‘Managed Residences' in our villa projects in Devanahalli - Brigade Atmosphere & Brigade Orchards. With ‘Ease of Occupation' for the customer in mind, we have introduced ‘Brigade Plus' initiative offering a host of conveniences. With the launch of ‘One Brigade App', our customers can avail a number of benefits.

With the commencement of the festival season, business & investor sentiments will improve. I seek the continued goodwill and patronage of our customers.



December 2017

It may seem strange that while the Indian economy is subdued, the Indian stock market indices are breaking records every other month. While too much hot money is channeled into the stock market, one only hopes, that this reflects the underlying strength of the economy.

Our country is slowly but surely recovering from the shock of Demonetisation and GST. Unfortunately for the government, Demonetisation did not succeed as expected and it also did not give the government, the expected windfall. Despite this, Demonetisation was a bold initiative which helped in bringing idle black money into mainstream circulation, resulting in softer interest rates.

On the other hand, GST implementation is a mammoth effort. We must credit the State & the Central Government for all the proactive steps, they are taking to make this most complicated initiative a success. Over time, the benefit to the country will be immense and there will be a paradigm shift in the way, business is conducted across the country. While there are many critics, one should remember - Nothing ventured, Nothing gained.

GST is one major legislation to help integrate our subcontinent. It is generally felt that other initiatives like ‘Make in India’ are beginning to make the intended impact, as order books of several Indian manufacturing companies are believed to be full.

The much-awaited RERA has come into effect in most States during the last 6 months. It is bound to have its disruptive impact on the sector but will help separating the ‘grain from the chaff’. Realising that the Indian Real Estate is still reeling under the three-pronged attack (Demonetisation, GST & RERA), the Central government has liberalised the Pradhan Mantri Awas Yojana (PMAY) scheme by extending credit linked subsidy of about `2.30 lakhs to even good sized apartments of upto 150 sq.m. for people with income up to `18 lakhs. This should surely help in giving the required push, to improve demand for real estate.

With ‘profit booking’ expected in stocks & mutual fund investments, some amount of the profits are expected to flow into the Real Estate sector, which is also showing ‘green shoots’ in Q3 as compared to earlier quarters.

During the last few months of the year, we were able to complete a number of projects (Brigade AT No. 7 in Hyderabad; Brigade Mountain View & Pearl at Brigade Palmgrove in Mysore; Brigade Cosmopolis and Brigade Lakefront ‘A’; Brigade Omega and Wisteria @ Brigade Meadows; Cedar, Deodar and Parkside @ Brigade Orchards; Brigade NorthRidge; Brigade Bhuwalka Icon, all in Bangalore).

Our 274 keys CBD hotel, Holiday Inn Express Race Course Bengaluru became operational helping us cross the magical 1000 room mark, under our portfolio. And we are gearing up to launch several exciting, new Commercial & Residential projects, mostly in Bangalore and a few in Mysore.

With all the surprises and shocks of the last twelve months behind us, one hopes that the New Year will augur well for Brigade and for the Indian economy. With that hope, wishing everyone, Season’s Greetings and a Happy and Prosperous New Year.



April 2017

A lot has happened in the macro environment since the last issue of Brigade Insight in December – from successful demonetisation to introduction of GST proceeding in the right direction; commencement of RERA (Real Estate Regulatory Act); from BJP’s handsome win in the crucial assembly elections in Uttar Pradesh to BJP losing bye-elections in Karnataka (a wake-up call to Karnataka BJP); from a booming stock market to the monsoon predicted to be normal, et al

Full credit to our Honourable Prime Minister for successfully managing the demonetisation of INR 500 & 1,000 currency notes. This has resulted in crores of rupees getting deposited in the Banks, resulting in increased money in circulation due to reduction of black money; increase in tax collections & number of taxpayers; expected reduction in corruption; lower lending interest rates (good for business & industry) and increased use of digital currency, among other advantages. Our Honourable Prime Minister debunked the criticism by many reputed economists and showed that he means business by coming up with a slew of well thought out supporting measures. His vision backed-up by clear-cut strategies & implementation is sure to make him the Best Prime Minister our country has seen, apart from making him an enviable Statesman to reckon with in the world order. The result is the stupendous confidence shown in BJP by the electorate of Uttar Pradesh. Actions of our Honourable Prime Minister & that of Uttar Pradesh Chief Minister is a lesson for all leaders that good governance is bound to be appreciated by the citizens, and the impact it can have on electoral gains.

With the announcement of tax rates, the suspense surrounding the much-anticipated GST (Goods & Services Tax) seems to be over. Now, it is a question of ensuring that it is implemented both in letter & spirit. The exemptions given and rates announced by the committee of finance ministers seems to be very fair. By & large, GST should help business & industry in overall reduction of costs which is expected to be passed on to the ultimate customer/consumer. But, there would be a settling down period and confusion/misinterpretation galore during 2017-18 at the least.

Similarly, there is bound to be confusion in the implementation of RERA. There are no experts in the industry, in the consulting community or in the Government. Everyone will have an opinion, the correctness of which will be known over time, once the RERA Authority/Tribunal starts passing orders. There is bound to be a storm before calm can settle in. The developer community should tighten their belts and brace themselves for hard times from authorities & activist groups. While RERA will have long-term positive effects on the sector, with no entry barrier earlier resulting in all kinds of questionable characters entering the business. It is also bound to add cost due to delay in obtaining additional approvals from RERA authorities before a project is launched. The real estate sector already suffers from the problem of dealing with too many civic authorities, who have been conveniently let off by the Government from the regulations of RERA. Once the sector recovers from the impact & negative sentiments of demonetisation, the real estate costs/prices should go up at least by 10% due to the provisions of RERA and the recently revised National Building Code for new projects. For the real impact of RERA to be felt on unauthorised constructions, the all India developer body - CREDAI has requested the Government not to exempt apartment buildings of less than 8 apartments & properties of less than 500 square metres. Most of the large-scale deviations happen in this category by unorganised and one time developers.

Affordable housing will soon become the flavour of the season for developers and consumers alike. Rightly so, what with more than 20 million homes to be built in the next 5 years to meet Prime Minister Modi’s noble target of ‘Housing for All’ by 2022, to coincide with the 75th Anniversary of Indian independence. For the mission to succeed, the State Government and civic authorities should give incentives (if not subsidy) by way of allotment of Government/slum redevelopment land, reduction in stamp duty, reduced approval fees for building plans, water, sanitary & electrical utility connections for affordable housing projects.

Our first & much awaited 202-room hotel project in Chennai - Holiday Inn OMR IT Expressway opened for business on 21 April 2017. Its super location and great design has become the talk of the town in the Chennai hospitality market. Coupled with this, we were able to launch Brigade Xanadu - luxury residential apartments in a large 33-acre central located land parcel in West Mogappair - Nolambur, Chennai. It is bound to be a landmark project for Chennai & Brigade, offering superb quality of life. Brigade in partnership with the Government of Singapore Investment Corporation (GIC) is gearing up to commence work on World Trade Center Chennai in another landmark location on OMR, Perungudi. This is apart from commencing Brigade Tech Gardens, IT SEZ in Brookefields, Bangalore.

Two other residential projects of significance were also launched recently - Brigade Buena Vista on Budigere Road & Brigade 7 Gardens in Banashankari, Bangalore. Both received encouraging response in an otherwise subdued market.

With school holiday season coming to an end, with good monsoon round the corner, with NIFTY & Sensex having crossed 9,500 & 30,000 respectively (which should result in profit booking by investors), with business sentiments turning positive, central government taking continuous positive measures to improve the economy, RERA & GST in place, with incentives to affordable housing and home loan interest rates at the lowest in 10 years, there is no reason why the Indian real estate sector should not look up. It should happen sooner than later. So, it is time for fence sitters to jump to the right side of the fence and make their decision to acquire their dream home from Brigade!”



December 2016

Completion of 30 years in business is a significant milestone. One would have seen many highs & lows and weathered many a storm. It was no different for Brigade. What started as a single project venture has grown into what it is today. While I look back at the achievements, accolades, awards and landmarks created during the last 30 years, with a sense of pride & satisfaction, I realise that it is more important to look forward on what needs to be done, to continue to survive, grow & flourish to meet the aspirations of all stakeholders, for the next 30 years. It is a happy coincidence and a fitting tribute that during the 30th year of our operations, we completed 30 projects (across residential, office, retail & hospitality segments) adding up to 10 million sq.ft. in area.

Today, we are living in an interconnected, globalised world with very high customer awareness about what’s happening around us & in other parts of the world, resulting in increased expectation in the quality of products and services desired. While, we are working hard to meet the exacting expectations of customers and other stakeholders, at Brigade, we are also conscious of the fact that we need to give back to the society, that has supported us. Towards this end, Brigade has taken up three key initiatives - to plant 30,000 trees across our various projects, to build 30 toilets in schools which need them and to start a Skill Development Centre focussed in the areas of construction, hospitality and retail.

Disruptions Galore - the last few weeks the world and India has witnessed multiple disruptions and is going to witness even more, which will have a huge impact in the way companies do business. While the world was coming to terms with BREXIT, the unexpected election of Mr. Donald Trump as President of the world’s most powerful economy, United States, has come as a shock due to his unpredictable policies. If Mr. Trump sticks to his pre-election promise on Immigration, Make in America & Anti-outsourcing policies, many developing countries, including India will be affected, adversely.

As if this wasn’t enough, on 8th November 2016, our Prime Minister, Shri Narendra Modi announced the most disruptive policy - demonetisation of INR 500 & 1,000 currency. While the intention is noble (to eliminate fake currency, to curb black money in elections & business, to fight corruption and to move towards a cashless way of doing transactions), the immediate result is one of disruption in day-to-day activities. While I wholeheartedly support this bold initiative and pray for its success, the worrying factor is that, the business sentiment has turned negative. Hopefully, it is a temporary phenomenon and the positives of the policy initiative should outweigh the negatives. Only time will tell.

Two other forward looking Acts of the Central Government will have huge disruptive implications - RERA (Real Estate Regulatory Act) & GST (Goods & Services Tax). Both are likely to become a reality by April-May 2017. RERA should help streamline the real estate business and has many provisions to protect the interest of the customers.

Unfortunately, many draconian provisions are proposed against the developer which may lead to increased harassment & higher corruption. While the intention behind introduction of RERA is laudable, the implementation of the Act will be a cause for worry. It is likely to increase the overall cost for the developer & customer alike, due to compliance costs and added finance cost required, because of additional time for project approvals by RERA authority. Due to onerous provisions of RERA, hopefully the so called ‘fly by night’ developers will disappear from the scene and that should help organised developers to pursue business in a more professional environment.

Similarly, the GST Law should help streamline the tax administration in the country and it should help bring down the overall impact of duties & taxes on many products, thereby making Indian businesses more competitive. It should also help bring, larger number of business establishments under the tax net.

All the three initiatives of the Central Government - Demonetisation, RERA & GST are highly commendable, but will have a huge disruptive effect on the way companies have been doing business so far. Their impact on the country’s economy is expected to be very positive. The detractors must realise that there is ‘no gain without pain’.

As we enter the new year - 2017, one must realise that in this globalised world, one needs to be ready, to adapt to the constantly changing environment. Change seems to be the new certainty. Towards this end, Brigade has initiated the ‘Real Estate Accelerator Programme’ (Brigade REAP) to encourage, mentor & support ‘Start Ups’ in our area of operation.

Wishing all our readers & stakeholders Season’s Greetings and the very best during the New Year!



April 2016

2016 has been a challenging year so far for companies, the state, the country & the world. Most countries in the world are struggling with troubled economies. The silver lining seems to be, United States, whose GDP is growing at a healthy rate of 3%, plus considering it is the largest economy contributing to 25% of the world’s economy. Though China’s GDP is growing at 6.5% & India’s at 7.5%, both countries have the problem of excess manufacturing capacities which were built to meet the expected demand of higher growth rates. India’s growth rate is questionable after the government changed the base data for calculations. What is surprising & distressing is that the State of Karnataka, generally considered as a progressive state, had a growth rate of 6.5% last year, which is below the national average.

The Central Budget - 2016, in general, was a commendable exercise by the Finance Minister. He was able to deftly handle many difficult issues. Thanks to the benefit the country is deriving from low oil prices in the international market, we can only hope that industrial growth picks up the way it is expected by the Government. It is sad that most State Government’s are not keeping pace with the vision of the Prime Minister and the efforts of the Central Government, to give a bigger push to the Indian economy.

The Central Budget has done its bit to give a push to the Real Estate Sector, particularly to affordable housing. So also, the much talked about Real Estate Investment Trusts (REITS), which should help unlock a lot of capital for commercial property developers and help bring in foreign exchange to the country. However, the concept of Smart Cities requires more clarity and much more fund allocation for the initiative to succeed.

5 State Governments are in election mode. The results are important to the present Government at the Centre to implement many major policy initiatives – GST for example. One wonders why so much of governance time is lost due for conducting elections at the Centre, State & Civic bodies at different times? If elections are held together for all, huge saving of resources and time could be achieved. The Indian election commission has the capability & has already excelled in conducting National & State elections very efficiently.

With bank interest rates in the downward mode, if the ruling party in the Centre does well in the State elections & gains majority in the Rajya Sabha, and if the country receives good monsoon during the next few months, there is no reason why the consumer & investment sentiment should not change for the better very quickly.

With this hope, optimism for the future continues.



December 2015

The past few months have not been great for India, for that matter many parts of the world. Exception seems to be United States whose economy has seen substantial recovery in recent times. US being the largest economy in the world, brings a ray of hope to the rest of the countries, including India. There is a lot of turmoil in Europe due to the migrant crisis & terrorism, and they are busy grappling with the problem. While low oil prices have benefitted oil importing countries like India, it has created problems for several oil producing countries in the Middle East, South America and Russia. All this is bound to result in continued economic uncertainty witnessed across the world during the last few months.

While the Indian economy is in a relatively better shape with 7% plus GDP growth, it is likely to become a case of missed opportunities to reach double digit growth in spite of its huge potential. Other than creating the much needed positive sentiment, the single party majority government at the Centre hasn’t succeeded in kick starting major infra projects, in implementing majors policy changes and living up to the election promises made. It is rather sad that opposition parties have unfortunately blocked important initiatives like GST which could have had far reaching positive impact on the Indian economy and its GDP growth rate.

Even at the State & Civic authority levels, the progress in introducing policy improvements is painfully slow. Bangalore, which is internationally recognized, contributes more than 2/3rds of Karnataka State revenue. But, the State does not invest adequately to take care of the milch cow resulting in poor infrastructure, traffi c & garbage issues and inability to cope up with urban growth. Citizens can only hope that before it becomes too late (and allowing it to go down like Kolkata) the decision makers will wake up and act. It is too hurtful to witness the negative publicity our beautiful City gets in the national media.

Brigade Group is not a mute spectator and a critic. In recent times, we spent crores of rupees to make neighbourhood improvements - restored the 23 acre Sitharampalya Lake in Whitefi eld; developed a 3 acre citizens park & a 5 acre playground in Malleswaram; and installed a pedestrian bridge with escalators in Rajajinagar. It gave us immense satisfaction. These signifi cant eff orts were recognized recently by All India Real Estate Developers Association - CREDAI National - when they conferred the National Awards to BRIGADE in two categories - one for Environmental Impact and the other for Social Infrastructure.

Real Estate Management Bill, which was in the offi ng since 2013 should become a reality soon. It is bound to protect the customers by answering their concerns and regulate the way business is conducted by the Developers. It is pro long term players and anti ‘fl y-by-night’ operators. Even then, developers fear that it will add time & cost to launch projects and may become one more window to face harassment, as the Bill contains several draconian clauses for non-compliance.

With excess stock and a ‘status quo’ economy, real estate prices are depressed in general and stable in few cities like Bangalore. For a prudent investor, it is a good time to buy. With deposit rates coming down, Bank deposits are not attractive; with US Dollar gaining strength, Gold is losing its luster; with Stock market being very volatile, it has become too risky for a non- professional operator.

Whatever may be the external factors, hope is what keeps an optimist going. Let us hope 2016 will bring us cheer!

Wishing our readers the Very Best in the year ahead - 2016.



August 2015

It is a fantastic feeling to be adjudged as ‘The Best Place to Work’ among all the Real Estate Companies in the country. We sincerely thank the Economic Times & the internationally acclaimed The Great Place to Work Institute for this recognition. It will certainly motivate us to continue to adopt & innovate, when it comes to people friendly HR policies. It is heartening to note our Group received a number of Awards during the last few months; be it ‘Hotel Owner of the Year’ at the Hospitality Leaders Industry Choice Awards, or the Best Luxury Residential project for Brigade Caladium and even those awarded to individual Brigadiers.

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The Indian economy is just chugging along. Unfortunately, the new Government has not been able to meet the high expectations of the people & the industry. Probably they promised too much in a short span of time. All said & done, ours is a complicated economy with too many pulls & pressures from all directions, apart from multiple vested interests. One can only wish & pray that our dynamic Prime Minister will ultimately succeed in his efforts to improve the growth rate and put the Indian economy on the right track. For too long we have been a third world country.

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While the government understands the importance of Tourism, too little is done to improve the inflow of foreign tourists with high spending power. With a population in excess of 1200 million, we have tourist inflows of only 6 million. That hardly works out to 0.5% of the population. A not so prominent country like Croatia, has a tourist inflow of 12 million with a population of just 4 million. The impact of tourism on Croatia’s economy & job creation for ordinary citizens is huge.

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Bangalore Citizens will elect new representatives (Corporators) to the City Council in BBMP (Bruhat Bangalore Mahanagara Palike). Hopefully, the representatives who get elected will actively work towards improved Urban Infrastructure like better quality roads, traffic management, waste management & related issues.

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Recently, Sheraton Bangalore Hotel at Brigade Gateway was rebranded as Sheraton Grand at Brigade Gateway. It is one of the only 10 hotels in the world to be rebranded amongst all Sheraton Hotels, based on parameters such as superior product, service & customer satisfaction.

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We recently concluded Brigade Showcase, our annual property exhibition. The event witnessed robust support in an otherwise subdued market environment, thanks to a good choice of product offerings in different locations, apart from the Group’s brand strength.

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The Festival season is around the corner - Onam, Ganesh Chaturthi, Eid Ul-Adha, Dussehra, Diwali & Christmas - Seasons Greetings and best wishes to each and everyone.



May 2015

The first 4 months of the new year witnessed Awards galore to Brigade Group's projects & its people: Brigade Meadows was awarded the Best apartment project in its category by NDTV; Orion Mall was considered the Best Shopping Mall in South India; Nothing gives more satisfaction than being recognized by ones own fraternity - CARE Awards instituted by Credai Karnataka considered, in their categories, Brigade Rubix as the Best Commercial building; Brigade Sparkle as the Best dwelling; more importantly recognized Brigade Group's CSR efforts as the Best by a Developer. At a personal level I was recognized for my Outstanding Contribution to the Real Estate Sector in Karnataka. Our CFO Suresh & COO Manjunath Prasad also got recognized by different organisations. Certainly satisfying. This should motivate all in Brigade to continue to perform well & exceed expectations.

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Post Central Budget, there is a sense of disappointment by the business & industry. Much was expected but the budget pronouncements fell woefully short. While the new government proclaimed 'Housing for All' by 2022, the budget contained zero incentives or policies to encourage housing. Affordable Housing for the Middle Class & EWS Housing for the poor certainly deserves tax incentives apart from favourable regulations.

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With inflation under check, by & large, lower interest rate regime was expected, but that has not happened. While RBI knows best what it is doing, lower rates have the capability to give the push the Indian economy deserves. Increased activity in infrastructure & real estate has tremendous positive impact on the core sectors of industry and will help improve our GDP growth. Our neighbour China is the best example of what improved infrastructure can do to the economy.

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Number of our projects have reached the critical stage of completion. It is a challenge our team is ready to face & working hard to achieve before Diwali.

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IPL cricket is growing from strength to strength. It has helped spot talent and has given opportunity to many cricketers to show their mettle. I wish similar efforts in other sports also taste success. A nation of billion plus people is bound to have the talent. Right environment & encouragement will help deserving sports people blossom.

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Unseasonal rains have created havoc to agricultural sector in many states. We should hope & pray that the country receives good monsoons in the next few months, which should in turn have a favourable impact on the economy.



December 2014

I must say, our Prime Minister Sri Narendra Modi has managed to put India in the centre stage of global politics. Through his deft handling and statesmanship, he has enhanced both his own image and that of the country. His address to the NRI community at Madison Square Gardens in New York, and also in Australia, is nothing short of a rock star performance. The BJP’s performance in the Maharashtra assembly elections is another remarkable feat. It is no wonder that Time magazine has rated him amongst the world’s top personalities in 2014. We all need to wish him well. The hopes of a billion plus people for a better life and better country rests on Narendra Modi and his team..

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ON the economic front, while the mood of business and industry is positive, this positive effect is unfortunately not felt at the ground level. Our GDP growth rate, for instance, is yet to improve. It is believed that the many structural changes that are being effected will, in time, give results. Since it is only seven months since the new government took over, one should give the situation the benefit of doubt. But if the economy does not start showing signs of growth by the time the central budget is presented in February 2015, citizens are bound to express disappointment. The BJP government is lucky that our country is the beneficiary of a 40% drop in the international price of oil. It remains to be seen how the huge savings in our import bill will be utilised for the development of the country. It is to be hoped that it will not go towards importing unproductive gold!

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EVEN when the economic activity in a huge country like India is not strong, cement manufacturers have managed to cartelise and increase the price of cement by over 50% during the last few months. This is bound to adversely affect construction cost and will lead to increased real estate prices over a period of time. They will make hay while the sun shines (in other words, before the government's Competition Commission can act or react).

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THE timely completion of the 256-apartment Aspen block, in the Brigade Orchards integrated smart township in Devanahalli, by our in-house precast construction team, is a creditable achievement. Brigade Group may be the only developer in the country, so far, to have an in-house precast plant. We are pleased to say that construction work at various Brigade Group projects is progressing well (though there have been a few hiccups in some cases). The coming year should see the completion of quite a few of our residential, office, retail and hotel projects.

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SOME more breaking news from Brigade Group: We will be making our maiden entry into Gujarat State with residential and commercial projects in the well-conceived and planned GIFT City—probably the first Smart City to come up in the country, as per the vision of our Prime Minister. As part of our customer-friendly initiatives, we have launched a customer portal and an online booking Platform, complete with payment gateway.

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IT is highly creditable that Brigade Hospitality's HIGH Ultra Lounge, on the rooftop of WTC Bangalore, has won the Times Food Award as the Best Lounge Bar in Bangalore in its very first year of operations.

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IN a moving ceremony, family members of the legendary musician, Bharat Ratna Pandit Bismillah Khan, donated his priceless shehnai to the Centre for Indian Music Experience, which is supported by Brigade Group, among others.

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OUR CSR activity to rejuvenate Sitarampalya Lake in Whitefield is showing excellent results. But it is a major challenge to stop the inflow of sewage. Cooperation from the civic authorities and neighbourhood buildings is sadly lacking.

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THE time to exchange greetings, enjoy holidays and celebrate family togetherness is just around the corner. I end with warm wishes for a joyous Christmas and New Year to all; may 2015 bring cheer and peace to our lives.



September 2014

SINCE our previous issue, much has changed in India’s political scenario. Thankfully, a single political party, for the first time in 30 years, has secured majority in the world's largest parliamentary election. Sri Narendra Modi's win has surpassed the BJP's own expectations. The positive sentiment it has created can be judged by the way the stock market has reacted and from the poll results to Team Modi's 100 days in government. Our elected representatives have a long way to go in enabling the Indian economy to reach its potential and in converting expectations into reality. The challenge of making the 'elephant in slumber' run is huge; but it is possible, judging by Deng Xio Ping achievements in China in the 1980s. The Indian economy needs to be unshackled from bureaucratic controls and inconsistent policies. By implementing forward looking policies, the government should assume the role of a good facilitator, encouraging business and industry to flourish. One hopes the lack of a good monsoon will not adversely affect progress, given the historical fact that the share of the services sector in the Indian economy has been more than that of the agriculture sector.

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With a few exceptions, the effect of improved sentiment in the economy has not yet had a positive effect on the Indian real estate sector. In any case, due to its very nature, the real estate business is slow to react—unlike the stock market or gold, which are always regarded as alternative investments to real estate. But considering our Prime Minister's desire to provide 'housing for all' by 2022 (the 75th year of Indian independence), the potential seems to be immense. The task, however, is daunting. The government should also aim to provide clean air, clean water, good sanitation and electricity to the entire population. Why should Indians be deprived of the same quality of life that we see people enjoying on our travels to the Far East, Europe and America? Indian citizens certainly deserve better facilities.

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A significant development at Brigade Group is, of course, the understanding with GIC of Singapore to jointly invest up to INR 1500 crores in real estate projects. It is a show of confidence in a relationship that began with our joint acquisition and development of the Brigade Cosmopolis property. I hope and wish the association becomes stronger in the years ahead.

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The internationally recognised Great Place to Work Institute and Economic Times have, for the fourth consecutive year, rated Brigade Group as one of the best places to work. We have been ranked second amongst real estate companies and 87th amongst all companies rated in the country. It is a satisfying recognition of our efforts to create a good working atmosphere for our people.

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As part of our CSR, we have installed—for the first time in Bangalore—a pedestrian skywalk with escalators on Dr Rajkumar Road, in front of Orion Mall, for the convenience and safety of the general public. If we are to tackle the problem of indiscriminate pedestrian movement across our roads, the city should have more skywalks and subways, preferably with escalators.

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Responses to pre-launch bookings for Brigade Panorama, Mysore Road and Brigade Northridge, near Yelahanka, have been good. The same is the case at Brigade Mountain View, Mysore. We are happy to note that handing over of the first set of apartments to clients has started at Brigade Meadows, our large integrated project on Kanakapura Road.



April 2014

THE hot news, transformational in nature, which is on everyone’s mind, is the kind of electorate support the Aam Aadmi Party received in the Delhi Assembly elections. One could see the freshness of their approach, genuineness in their statements and a desire for change by the citizens of Delhi. I only hope and wish AAP succeeds in administration, if they agree to form the government.

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Very unfortunately, in the last few years, the Indian economy has lost direction and has slid in importance and stature in the world economy. The only possibility of regaining the lost credibility would be to have a strong leadership and a stable government which cares for the nation and its people. I hope the April-May 2014 elections will bring such a government in to the Parliament.

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In the last two to three months, the Central Government has taken some positive policy steps, though only after getting pushed against the wall. Investors, always eager for positive news, have lapped it up. The silver lining, of course, is the appointment of a very forward looking and intelligent RBI Governor—Mr Raghuram Rajan.

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Brigade Cosmopolis on Whitefield Main Road, our joint venture residential apartment project with GIC (Govt of Singapore Investment Corporation), was launched in October. It has been very well received by customers. Brigade Symphony on KRS Road in Mysore, a well planned residential project with plentiful amenities and large open spaces, has received a similarly satisfying response.

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The first phase of our large Affordable Value Homes project—Brigade Meadows, next to Art of Living in South Bangalore—is nearing completion. It is good to know that CNBC Awaaz has recognised the project as the 'Best' in its category. This should auger well for the launch of the second phase, to begin shortly.

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Brigade Group has recently introduced ESOPs (Employee Stock Options), to begin with, to its middle- and senior-level managers. It is probably the first initiative of its kind among Real Estate Developers in the country and one hopes it helps in motivating the staff to perform better.

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I am glad Mr Aroon Raman, Wharton educated industrialist and fiction writer, has joined the Board of Brigade Enterprises Ltd as an Independent Director, in place of the late Dr A. Ramakrishna. The Group will surely benefit from his guidance and support.

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Our corporate philanthropic support to the Centre for Indian Music Experience or IME (an interactive museum of music coming up in South Bangalore) is certainly helping to speed up project completion. The base building was unveiled by the Chief Minister Sri Siddaramaiah, in the presence of Sri S. M. Krishna, MP, and Sri Ananthkumar, MP.

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As 2014 approaches, I wish all readers a Merry Christmas and a Happy New Year.



December 2013

THE hot news, transformational in nature, which is on everyone’s mind, is the kind of electorate support the Aam Aadmi Party received in the Delhi Assembly elections. One could see the freshness of their approach, genuineness in their statements and a desire for change by the citizens of Delhi. I only hope and wish AAP succeeds in administration, if they agree to form the government.

****

Very unfortunately, in the last few years, the Indian economy has lost direction and has slid in importance and stature in the world economy. The only possibility of regaining the lost credibility would be to have a strong leadership and a stable government which cares for the nation and its people. I hope the April-May 2014 elections will bring such a government in to the Parliament.

****

In the last two to three months, the Central Government has taken some positive policy steps, though only after getting pushed against the wall. Investors, always eager for positive news, have lapped it up. The silver lining, of course, is the appointment of a very forward looking and intelligent RBI Governor—Mr Raghuram Rajan.

****

Brigade Cosmopolis on Whitefield Main Road, our joint venture residential apartment project with GIC (Govt of Singapore Investment Corporation), was launched in October. It has been very well received by customers. Brigade Symphony on KRS Road in Mysore, a well planned residential project with plentiful amenities and large open spaces, has received a similarly satisfying response.

****

The first phase of our large Affordable Value Homes project—Brigade Meadows, next to Art of Living in South Bangalore—is nearing completion. It is good to know that CNBC Awaaz has recognised the project as the 'Best' in its category. This should auger well for the launch of the second phase, to begin shortly.

****

Brigade Group has recently introduced ESOPs (Employee Stock Options), to begin with, to its middle- and senior-level managers. It is probably the first initiative of its kind among Real Estate Developers in the country and one hopes it helps in motivating the staff to perform better.

****

I am glad Mr Aroon Raman, Wharton educated industrialist and fiction writer, has joined the Board of Brigade Enterprises Ltd as an Independent Director, in place of the late Dr A. Ramakrishna. The Group will surely benefit from his guidance and support.

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Our corporate philanthropic support to the Centre for Indian Music Experience or IME (an interactive museum of music coming up in South Bangalore) is certainly helping to speed up project completion. The base building was unveiled by the Chief Minister Sri Siddaramaiah, in the presence of Sri S. M. Krishna, MP, and Sri Ananthkumar, MP.

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As 2014 approaches, I wish all readers a Merry Christmas and a Happy New Year.



August 2013

OUR country is experiencing a crisis of confidence. The sudden and sharp depreciation in the value of the rupee has caught the political establishment and the corporate world off guard. Why has this happened? To put it simply, it is because of complacency, deficiency in governance and a series of scams of very high proportion. When India was Shining with 9% GDP growth, the governing fraternity thought India was moving towards super power status and took the liberty of making a series of bad decisions and introducing socialistic schemes, which India could ill afford. With BRIC countries’ steady growth in the past few years, it was felt that the United States’ influence over the world had reduced. But the USA has once again proved that ‘if it sneezes, the world still catches a cold’ (this time by way of 'Quantitative Easing’). For India to get out of this mess, it is essential to focus on strengthening its economic fundamentals rather than trying to depend on FII hot money.

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However sound the intentions behind socialistic schemes like NREGA, RTE and the Food Security Bill may be, they are bound to adversely impact our country’s current account deficit—primarily because of our record of very poor delivery and execution, resulting in huge leakages. As a developing country, we are not in a position to fritter away lakhs of crores of rupees. If the same amount is spent, year after year, on employment generation projects rather than doles, it would help in self-sustenance of the poor. The old proverb of 'teaching a man to fish, rather than feeding him fish' is what needs to be done. The deadly combination of socialistic schemes of the central and state governments will have a huge negative effect on the availability and productivity of labour willing to work, in spite of our having a population of 1.23 billion.

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If the government continues to act on the basis of political expediency and the 2014 parliamentary elections, the only thing left for citizens is to pray for the economy to stabilise on its own and to also pray for a stable central government to be elected in 2014. Luckily, the people of Karnataka have got a stable government after many years of instability.

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In an otherwise precarious situation, a silver lining may be that Indian exports will become substantially more competitive and may result in exports exceeding imports, leading to current account surplus.

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Even at this stage, it is heartening to know that international investors still think the long term India story is good, due to its population and resultant demand, and the possibility of graduating from a developing country to a developed country.

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One needs to have hope. To quote Barack Obama, “Hope in the face of difficulty. Hope in the face of uncertainty …. A belief that there are better days ahead.” Based on this hope, we in Brigade Group will continue to plan to start more projects in the cities in which we operate. The two recent launches—Brigade Golden Triangle on Old Madras Road and Brigade LakeFront in Whitefield—were well received. More launches are planned in Bangalore and Mysore in the next few weeks, and in Chennai in the new year.

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It is a nice feeling to find ourselves, for the third year in a row, to be amongst the Best Employers in the country. Economic Times and Great Place to Work Institute has rated Brigade Group as number 2 in the real estate sector and number 52 amongst all industries surveyed. Our ranking has consistently improved year after year. I sincerely thank the entire staff of Brigade Group for this coveted honour.

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After redeveloping the 3-acre Sangolli Rayanna Park in Malleswaram, another of our major CSR initiatives was completed recently. This was the development of the city authority's 5-acre land in Malleswaram West into a well-planned playground for track & field and other sports. The playground is aptly named after the founder of Bangalore, Kempegowda.

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The year 2013 marks the 150th birth anniversary of the noble soul Swami Vivekananda. It is important to recollect his words of wisdom in this strife torn world. In my opinion, only good economic development can steer us away from political unrest of the kind Egypt, Pakistan and Syria are experiencing. This issue of Brigade Insight is dedicated to Swami Vivekananda.

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Lastly, as major festivals—Ganesh Chaturti, Dussera and Diwali—approach, it is time to celebrate and pray for a happier tomorrow.



April 2013

BY the time this issue reaches its readers, suspense over the Karnataka Assembly Elections will be over. I hope and pray we get a stable government which can give us good governance. The patient and hospitable citizens of Karnataka deserve a government that cares about the development of the State and the welfare of its people. Going by past experience, is this a case of wishful thinking and expecting too much?

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The political situation in the Centre is a cause for even greater concern. In another year, if not earlier, the nation will go to the polls to elect a new government. So we are sure to witness all kinds of permutations and combinations amongst the political parties, with the common purpose of unseating the current government. Narendra Modi gives us hope, but it remains to be seen whether internal NDA politics will trouble him more than his competitors. His performance at the India Today Conclave was brilliant.

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After allowing the steadily growing economy to slide, our government seems to have woken up from a deep slumber. They are making the right noises and pronouncements. Investors and businessmen would want the feel good factor to come back. Whether it is too little, too late, is the question. International money is fungible. International investors don't have patience or any special love for India. Although India, with its vast population, has tremendous potential, erratic policies of the government can lead to the flight of capital. Political uncertainty for the next one year will certainly not help our cause.

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The silver lining for Indian business may come from positive developments elsewhere. With the US economy showing signs of recovery and the worst being over in Europe and Japan, the world economy is more likely to bounce back than slide. The decrease in prices of gold and oil is a definite indicator of better times ahead. How much of a rub off effect it will have on India remains to be seen.

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I tend to feel that big brother China has taken undue advantage of our country's political instability. We are left with the impression of being surrounded on all sides by them. On the east, they have control over 
two strategic islands in the Bay of Bengal near the Andaman Islands, thanks to Burma. On the west, they plan to build a highway cutting across Pakistan to access the Arabian Sea. On the south, they have entered Sri Lanka. It is extremely important that our government protects the sovereignty of the nation.

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2013 should be a better year for Brigade Group; having launched a few projects already and with the imminent launch of several more projects in the Whitefield area. After much effort, we entered the Hyderabad market with the launch of premium apartments—Brigade at No. 7—in the prime Banjara Hills area.

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As part of our CSR and neighbourhood improvement initiative, we redeveloped the 3-acre BBMP Park, adjacent to the 17th Cross Malleswaram over-bridge. The newly greened and developed park has been well appreciated by its many users. The 5-acre open space on the other side of the bridge is being developed into a nice playground for multipurpose activities. This will be especially enjoyed by children. Incidentally, while on the subject of children, our Brigade Foundation is amongst the first to have embraced RTE students in all its three schools.

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What commitment, determination and innovation can do to urban living is aptly demonstrated by the city Medellin in Colombia, South America. Let us hope against hope that Bangalore will experience a similar reinvention, to make it “a greater city than any other city and a city of the future”, in the words of our first Prime Minister, Jawaharlal Nehru.



December 2012

IT'S a great feeling to know that our flagship project, Brigade Gateway, continues to be recognised with awards. The most recent one is from CNBC AWAAZ: for Orion Mall, the WTC office building and the residential buildings—allconsidered the Best in Class.

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With the launch of our much awaited Brigade Pinnacle luxury apartments, we have made our maiden entry to the city of Mangalore. Similarly, with the launch of Brigade Serenity, we have taken the Brigade presence to Chikmagalur, which happens to be the home town of Brigade Group’s promoters. In Bangalore, we recently launched Brigade Omega, on Kanakapura Road. Bangalore will witness a number of new launches from Brigade Group in the coming months.

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Our association with Sporting Edge—an initiative of the legendary Australian cricketer, Steve Waugh—should be a great boon to the residents of Brigade Orchards and those living in its neighbourhood. Apart from cricket, Sporting Edge will set up Academies for swimming, athletics, football and basketball.

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Brigade’s 'Experience Centre', set up on the ground floor of our headquarters at World Trade Center Bangalore, in the Brigade Gateway enclave, is a one-stop-shop for marketing properties promoted by Brigade Group, across cities. I hope this initiative will be appreciated by prospective customers.

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Barack Obama continuing as the President of the USA for a second term is expected to bring stability to their economy. This should help Indian software companies, who have become the prime employment generators for the Indian educated middle class. This should also auger well for the property scene across the country.

Unfortunately, the political scene in our country continues to be unstable. It is extremely sad that an economy which was zipping ahead a few years back, is now limping along slowly due to complacency, lack of good governance and political fights. This ‘one step forward; two steps back’ approach by our government has hurt our growth badly, resulting in a widening gap between China and India. We, as Indians, are rich in potential, but poor in the ability to deliver.

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While allowing FDI in retail is a step in the right direction, the number of onerous conditions imposed is unlikely to bring the desired results.

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Narendra Modi's re-election in Gujarat for the third time has shown real development and good governance will be appreciated by all classes, castes and religions. This should be a great lesson for other states to follow; particularly Karnataka, which is continuing to suffer due to the political chaos in the state during the last few years. The saving grace is the availability of educated manpower, the good nature of people and salubrious climate in many parts of the state, particularly in Bangalore. This draws investment, in spite of the poor macro-environment.

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The Reserve Bank of India, in its wisdom, is continuing to keep the interest rates high. This, of course, may be helping in containing inflation, but it is affecting GDP growth. Experts feel the high interest rate regime is likely to continue for the next few years. We should be grateful for the spirit of Indian entrepreneurs, who continue to remain positive and eager to perform, despite a plethora of not-so-friendly policies and an uncertain political climate.

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Continuing atrocities against women in our country, particularly in the nation’s capital, are a matter of great concern. Only severe punishment and quick delivery of justice can help overcome the shameful problem.

Continents away, a culture of wild lawlessness seems to be making an entry into the USA. Their love for guns has created enough and more problems by way of inhuman killings. Despite this, no lessons seem to have been learnt, with the majority seemingly disinclined to bring about a change in gun control policies.

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The expected 'End of the World' as per the Mayan calendar hasn’t happened … thankfully! Mankind has survived. We can relax and celebrate—and welcome the New Year. So here’s wishing all of you season’s greetings and a great 2013.



September 2012

THE last few months have been event-filled and eventful at Brigade Group. In June, we successfully bid for a prime property of Hindustan Unilever and have taken private equity, for the first time, from the very reputed and huge sovereign fund of Government of Singapore (GIC). July saw the successful launch of Value+ Homes at Brigade Orchards, Devanahalli. To name a few more of the many significant events that took place in this period: we opened a representative office in Silicon Valley, through a tie up with Legion Real Estate; Orion Mall went into top gear with events; and another round of successful property exhibitions—Brigade Showcases—were held across India and abroad.

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CREDAI, the industry body, recognising Brigade Gateway as the Best Integrated Township and WTC as The Best Commercial Office Space in the country is the icing on the cake. I thank the leading industry magazine,Construction World, for their editorial decision to bring out a special supplement on Brigade Gateway. When the editors visited Brigade Gateway, they were so impressed with the project that they took an instantaneous decision to feature it in a supplement!

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IT feels good to get the recognition of Great Place to Work Institute for the second year in a row. Our standing has improved. On the subject of Brigadiers, I am amazed at the wealth of cultural talent in Brigade Group, which was wonderfully evidenced in the Annual Culture Fest.

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PEOPLE in the know say that most western economies—the USA and Europe—are recovering. The gloom and doom of last couple of years should soon be over. But unfortunately, our country and state are continuing to witness political chaos and rudderless governance. With a billion-plus population and huge internal market, there was no need for India to be in this position after many years of 8%+ growth. It is a self-inflicted injury; the result of carelessness, complacency and lack of vision and thought for the future. I heard in a talk given by Singapore's Urban Development Minister last year at the CREDAI Annual Convention that after their Independence in 1965, the vision of the Singapore government was to make Singapore like our Calcutta! (Yes, one may feel it difficult to believe this!) Singapore’s current situation shows what one can achieve with proper vision and a desire to do good for the country.


As if adding insult to injury, many parts of Karnataka are facing drought. The weather pattern across the globe seems to have drastically changed, making meteorological predictions that much more difficult. Care for the environment should be the top agenda for any city, state or country.

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THE demand for housing continues to be healthy, but is becoming more segmented. Still, there is a crisis of confidence in the way the economy will shape up in the months ahead. Top level changes in the finance ministry at the centre are expected to bring some cheer, after all the policy damage created in the last one year.

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THE festival season has begun. It gives reason for people to forget the tough realities of life and celebrate with their near and dear ones. We wish you the very best for the festival season.



May 2012

APRIL 21, 2012 was a red letter day for Brigade Group—the day that Orion Mall was completed. What sets this day apart as an especially significant milestone in our history is that it marks not just the completion of the mall, but, more importantly, the completion of an iconic project: Brigade Gateway. Both the enclave as a whole, and the individual components within it—Orion Mall, World Trade Center, Sheraton Hotel, Galaxy Club, The Brigade School, Columbia Asia Hospital—have set new standards in development. Brigade Gateway has set benchmarks for others to follow. The Orion Mall launch event itself was considered by many to be the best product launch ever in Bangalore. This milestone, coupled with shifting of our Corporate Office to WTC @ Brigade Gateway, should be considered a new chapter in the life of the organisation..

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Sheraton Bangalore Hotel @ Brigade Gateway received a coveted recognition at the annual HICSA Conference of HVS: as Best New 5 Star Upscale Hotel in South Asia in 2011. What is significant and very satisfying is that our Mercure Homestead Serviced Residences (now Grand Mercure) won a similar award in the Apartment Hotel category in 2009, making both of our hotel properties the 'best in class'.

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As they do every year, the Central and State budgets, in the first quarter, bring new taxes and reliefs. While the Karnataka budget was thankfully mild, giving relief by way of reduced Stamp Duties, the same cannot be said about the Central budget. Excise Duties and Service Tax was increased substantially, adding to inflation when the government is talking of reducing it! While 50 basis points interest reduction by RBI is a positive step, it is insufficient to boost the industry and trade sentiment. It is to be hoped that a further reduction in interest rates will be announced soon.

Finance ministry’s flip-flop policies in taxation, particularly with retrospective effect, has sent a scare to foreign investors affecting fresh FDI into the country. Retrograde legislations like GAAR will only make matters worse. The country has to stop the 1-step-forward-and-2-steps-backward approach to development issues.

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The mood among industrialists and businessmen continues to be subdued, with not many positive signals or developments seen in the national and international scene. With all the efforts being made by the European leaders, one is not sure whether the debt crisis bothering Europe (and, in turn, the world) is over.

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The power crises in the mid-90s prompted both central and state governments to launch many power sector projects, which helped improve the situation over the past ten years. Then complacency set in and most states are back to a power-starved situation. Power sector policy paralysis has only worsened the outlook for relief in the near term, which is bound to have an adverse effect on GDP growth. The not-so-encouraging monsoon prediction will be a matter of concern to all.

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A study by the National Housing Bank, published in Times of India on 21 April, says that real estate prices in Namma Bengaluru have been one of the slowest to rise during the last five years, in comparison to other cities. For the most part, Bangalore rates have remained at what they were in 2007. This should make buyers act fast in making their investment decisions, which, in turn, will bring some cheer to the developers.



December 2011

Reflections on Brigade Group completing 25 years.

 

ON 10th October 1986, the foundation stone for Brigade Group's maiden project—Brigade Towers on Brigade Road, Bangalore—was laid in a simple Ground Breaking ceremony. I started the partnership firm Brigade Investments, which created Brigade Towers, with the support of my family and two family friends. The firm was a single-project venture and the result of an earlier missed opportunity by the family to invest in a prime real estate project in Bangalore. It was formed with no clear plan or vision for the business, at a time when I was planning to diversify from the chicory processing business I had started in 1980, because of a serious industrial relations problem in 1984. (In retrospect, I should warmly thank the labour leader who created the problem!)

Brigade Towers, the first 14-storied building in Bangalore (and, at that point of time, one of the very few projects to market ownership offices) was an instant success. This was one of the few real estate projects to be marketed in a planned manner; ours was the very first real estate advertisement released in India Today! What was a one-project venture became two projects, then four, then eight … growth continued slowly but steadily. Then a lack of consensus on growth strategy with a partner led to the partnership firm Brigade Investments being dissolved in 1997, to be restructured as Brigade Enterprises Pvt Ltd in 1998, at the height of the real estate recession.

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The new millennium brought cheer to the real estate sector and Brigade Millennium—Bangalore's first integrated enclave project, launched in 2002—brought cheer to Brigade Group. We have not looked back since then. Of the 20 million square feet promoted by the Group since inception, 90% (comprising a wide range of projects) was completed in the last ten years. We are proud of every project we have executed, confident we have given our best each time. Many of our projects belong to the ‘first-of-its-kind’ category in Bangalore and Mysore. Our best project yet is probably Brigade Gateway, undoubtedly the most integrated city-centric mixed-use project. Nowhere in the world does one come across residential apartments, club, offices, school, mall, hotel and hospital, all within one campus close to the centre of the city. A fine example of the concept of 'Live-Work-Play', it is the perfect answer to many traffic-related problems in urban centres.

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The real estate sector is full of challenges, the primary one being dealing with multiple civic authorities. If one were to have projects across Bangalore, we would have to deal with at least eight planning authorities (before 2007 it was 13!), each with a different set of building bye-laws—not to mention another nine authorities for NoCs and utilities. Also, the business is bombarded with multiple taxes and duties. Ours may be the only industry where the transaction of marketing a house / apartment by a developer is considered a 'sale' by the state revenue department; a 'works contract' by the state commercial tax department and a 'service' by the central service tax authorities—attracting stamp duty, vat and service tax along the way. This is doubly strange when you think this is a sector catering to one of the basic needs of mankind: shelter. It is shocking to know that 40% of the cost of an apartment goes towards direct and indirect taxes. If this be the case, how will the government policy of 'housing for all' succeed?

After the 2008-10 recession in the sector, the second major one in 15 years, the developer community was expecting a boom in 2011. But the financial turmoil in the western economies and rudderless governance in our own country (leading to inefficiency and very high interest rates) has subdued business prospects. One can only hope that quick corrective steps will be taken by the government to avoid further slippage. A silver lining for the real estate sector may come in the form of higher NRI investments and improved earnings for the software sector due to a weaker rupee.

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THE nice part of the real estate business is the tremendous satisfaction one derives from creating a long-lasting edifice and in the contribution one can make to satisfying the home-owning aspiration of so many people. While developers should act as 'trustees' of the life savings of clients, in many a case it has become a huge challenge to meet the ever-increasing expectation of today's informed customer. Increased construction activity during the last decade coupled with overall improvement in the economy has led to a tremendous shortage of manpower and managerial talent in the sector—for which there doesn’t seem to be a solution. Substantial mechanisation is yet to happen; when it does it will also lead to increased costs. With India's trillion dollar GDP expected to more than double in the next ten years, I shudder to think how solutions to the complex problems facing the sector would be resolved.

The governments at the centre and various states should invest time, money and effort to upgrade the quality of town planning for hundreds of towns and cities in the country, which will help improve the quality of living. Chandigarh and New Delhi—and Brigade Gateway at the project level—have shown what good planning is all about. Improved quality of life and opportunities in smaller towns will reduce urbanisation and the pressure on utilities. But this may end up remaining a pipe dream with the lack of attention shown by authorities to urban planning and the redevelopment of old congested areas in the cities.

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The immediate internal challenge for Brigade Group is to launch and complete 30 million sft of new projects across seven South Indian cities. The Group will continue to focus on real estate and hospitality in the immediate future. We intend taking the concept of integrated townships to the next higher level in our Brigade Orchards project, near the Bangalore International Airport.

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I am very glad our Not-for-Profit initiative in education—Brigade Foundation— has made a mark in imparting quality education through its three schools in J. P. Nagar, Malleswaram and Mahadevapura, all in Bangalore.

As part of Brigade Group’s Corporate Social Responsibility, we will be supporting a Museum of Music (a first of its kind in the country), promoted by the Indian Music Experience Trust. To give back to society in our own field, we will also soon be setting up a Not-for-Profit company to take Social Housing projects to the urban poor. At an appropriate time, the company will also initiate vocational training and management development programmes in the construction field. I hope these initiatives will receive the generosity of the general public and will also help motivate others to take up similar initiatives.

I would like to record my sincere thanks to team Brigade, directors, shareholders, to our family of associates (architects, consultants, contractors, bankers, suppliers, officials in the civic authorities and government), friends, well-wishers and, of course, all our customers, who have shown their confidence and support in me and the organisation during the last 25 years and helped in shaping Brigade Group.

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With 31st December 2011 fast approaching, many will be happy that a most forgettable year is coming to an end. As usual, one hopes the New Year will bring good cheer and happiness to our lives.

I wish all readers a great 2012.



August 2011

How things dramatically change in a very short time! The three very significant developments in the last few weeks are:

S&P downgrading Credit Rating of United States from AAA to AA+ and the resultant turmoil in world financial markets;

Central Government’s clueless and immature response to Anna Hazare's movement against corruption;

Dramatic collapse of performance of Indian Cricket Team—from World Champion status to school boys team level.

All were avoidable and self-inflicted; due to complacency, arrogance and politics. But all the developments have shaken the world / country / establishment. It would take quite a while for normalcy to set in.

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India was on the path of recovery from the recessionary conditions of 2008-2010, till inflation within the country and multiple scams involving thousands of crores were unearthed. Naturally, an anti-corruption movement is required to cleanse the system, at least to some extent. While corruption is a worldwide problem and existing probably from the time civilization started, it has reached mind boggling and dangerous proportions in our country, which is bound to destroy us if not tackled now. I hope and pray a positive outcome will emerge from the spontaneous, tremendous and voluntary support the Anna Hazare movement has received.

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From the beginning of 2011, the mood in the real estate sector was one of optimism, which was expected to turn to bullishness. Unfortunately, due to the macro economic factors plaguing the world, cautiousness has set in. High interest rates have not helped the mood at all. I hope and wish there will not be any worsening of global factors and ratings. Due to the inherent strength of the Indian economy and latent unsatisfied demand of the past 3-4 years, pessimism is unlikely to set in.

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Tourism is one industry which can have a far reaching positive impact on any economy and will help in generating employment in the unorganised sector for the uneducated class. Statistics of just Singapore and Hong Kong make startling revelations. Singapore, with its 5 million population (size less than Bangalore), attracts 12.5 million tourists (2.5 times its population). Hong Kong, with its 7 million population, attracts 36 million tourists (5 times its population). Whereas, India, with 1.2 billion population, gets only 5 million tourists, i.e., a dismal 0.05%. China gets 56 million tourists and earns USD 185 billion a year (about the same as the entire annual export earnings of India). India has the potential to earn at least USD 100 billion (if not more) in a year, provided proper strategic actions are taken by the Central and State Governments to improve infrastructure and tourist friendliness. India has many, many more tourist sites than China.

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I am delighted to mention that Brigade has received 3 important awards in the last 4 months:

‘Economic Times’, in association with ‘Great Places to Work Institute’, rated Brigade Group as the 2nd best company to work for in the Real Estate Sector, and also as 88 among all companies in the country.

‘CNBCAwaaz–CRISIL–CREDAI’ selected our Integrated Township Project, Brigade Metropolis on Whitefield Road, as the Best Residential Project 2010 in South India.

‘Construction World’ rated us amongst the Top 10 Builders in the country for the 5th consecutive time, in a perception survey in which developers, financial institutions, architects and vendors, across the country participated.

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The festival season has started. I hope it brings cheer to the Indian economy and joy to its citizens.



April 2011

Having entered our 25th year of operations, after a lot of internal deliberations, I am happy to release the organisation’s Shared Vision and Mission statements and Core Values. This should stand in good stead for the decade ahead and give Brigadiers a clear sense of direction, enabling them to work with a unified sense of purpose and to achieve set goals and objectives. Every Brigadier has to remember and constantly remind oneself of Brigade Group’s core values and ensure these shared values are not compromised in any way.

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Sheraton Bangalore Hotel at Brigade Gateway, which had its soft opening in mid-March, has received very encouraging feedback from guests and industry professionals. This well-appointed 230-room, 5-star deluxe hotel with six F&B outlets and a 1000-seater banquet hall, is bound to be amongst the best hotels in Bangalore, and will be the pre-eminent Sheraton Hotel in the country. General Manager Martin Wuethrich from Switzerland and Executive Chef Gustavo Maurelli from Italy will bring their international expertise to lead Sheraton Bangalore in the path of success.

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It is a fantastic achievement by the Indian Cricket Team to have won the ODI World Cup, after a gap of 28 years. It is very difficult to live up to expectations, having been the favourites to win the Cup. The credit undoubtedly goes to the players for their outstanding teamwork, superb leadership of Captain Dhoni and Coach Kirsten, and performing when it mattered most in the knock-out stage. Many analogies can be drawn to the corporate world from the strategies adopted in winning the Cup.

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India’s 2011 provisional census figures, indicating a population of 1.2 billion+, is certainly a cause for worry, and not celebration. Speedy urbanisation is a matter of great concern to city planners. Meeting the infrastructural needs of the growing population will be a huge, daunting task. Our planners have to work overtime to ensure that demand for space and services are met, if one has to stop proliferation of slums in urban centres. There is a great need to decentralise growth by ensuring development of each and every district and taluk centre.

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The Karnataka State and Central budgets for 2011 have been passed. Unfortunately, policies and tax rates are being tinkered with frequently, leading to confusion and a loss of direction to the business community. Real Estate hardly finds favour with the tax authorities. A few examples: in Karnataka, stamp duty rates on Joint Development Agreements have been increased by an unbelievable proportion and the VAT applicability principle in the construction industry has changed to compound the confusion. In the Centre, tax exemption to SEZ units is withdrawn by imposing MAT; Service Tax is imposed for hospitality business … the list goes on and on.

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Anna Hazare’s anti-corruption campaign was much needed and, hopefully, will serve as an eye opener to the government and corrupt people. The spontaneous response to Anna’s fast from all sections of society was most encouraging and heartwarming. High corruption in society is what is coming in the way of India’s planned and sustained growth, and stopping the country moving from good to great. If people’s simmering discontent about corruption in every sphere of life is to be avoided, fast and inclusive development across the country is the only answer. Otherwise, Egypt’s Tahrir Square kind of situation is not far off in our country. If one determined Narendra Modi and one determined Nitish Kumar can make so much of a difference in Gujarat and Bihar, imagine what a small battalion of such people could do to the growth of India. By showing honesty and progress, if Nitish Kumar can get 80%+ seats in the Assembly (highest ever by any party in any state in the country since elections came to be held), why don’t other politicians realise good development will ensure re-election and continuance in power?
Let us hope for the best!



December 2010

In the last few months, the country has been riddled with scams which have shaken the confidence of people. Whatever little hope we may have had of an improvement in the moral fabric of our society has gone with the wind. Cynics have won over optimists. We have also been bombarded with WikiLeaks and the Radia tapes expose—which has not helped in improving the mood of the public.

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The saving grace in an otherwise bleak scenario is Sachin Tendulkar's 50th test century in cricket. The master blaster has brought tremendous joy to millions of people, making him worthy of consideration for the Bharat Ratna—our nation's highest civilian honour. It is ridiculous to go on debating whether Sachin is better than Don Bradman. In my opinion, both are 'greats' in their era. We should leave it at that. We should now look forward to Sachin completing 100 centuries in International Cricket. Just four more to go and he should surely do it.

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It feels wonderful to know that our WTC building is the 'Best Commercial Project of the Year 2010' in the entire country. The vision of—and meticulous planning by—the entire team has contributed to making Brigade Gateway (of which WTC Bangalore is a part) a unique and one-of-its-kind project…not just in Bangalore, but in the country and most probably in the entire world. To the best of my knowledge, there is no project in an urban centre anywhere in the world with all the components of Brigade Gateway: club, hotel, hospital, mall, offices, residences and a school.

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In September, I was part of the State delegation, led by the Chief Minister, to the World Economic Forum (referred to as the Summer Davos) at Tianjin, China. It is mind boggling to see the fast pace of infrastructure development that China is going through. Their future plans are beyond the imagination of most countries and their determination to excel in anything they put their mind to, has to be seen to be believed. Apart from true appreciation, one can get jealous of their development; get depressed with the lack of similar progress in our country, though we have the opportunity and potential; and also get scared at the might of our big brother neighbour who is breathing down our neck.

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Brigade Group completed 24 years of existence on 10 October 2010! As we enter our 25th year, we are gearing up to launch 25 new projects-big, medium and a few small ones-apart from completing some of the ongoing projects in early 2011.

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As we look back, there is a certain amount of satisfaction … which gives us the determination to work hard for a brighter future and to create a 'better quality of life' for our customers, who are the bread and butter of our business..

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Wishing you Seasons Greetings and a very happy, peaceful and prosperous 2011.



August 2010

The most significant development of the last quarter is securing the license/franchise to rebrand our office building in Brigade Gateway as World Trade Center! With this, we join the elite group of 29 to own WTC buildings worldwide. WTC is the most recognised and sought-after business address anywhere in the world. WTC Bangalore is the tallest building in Bangalore (435 feet) with many unique features, including—for the first time in Bangalore—an observation deck. It should be operational in a few months. It is a proud and positive development for Brigade Group, the city of Bangalore and the State of Karnataka..

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It feels good to find a place among the Top Ten Builders in the country, in the perception survey conducted by Construction World, the most circulated construction industry magazine in the country. What is particularly nice is that we may be the only developer in the country to be nominated for the award for four consecutive years (2007-2010), from the time the awards were instituted five years ago.

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India’s GDP growth is right on track by achieving 8.8% growth, against the estimated 8.5%, in Q1 of 2010-11. While we have become a trillion dollar economy after 63 years of independence, due to our billion+ population, our per capita income is just over a thousand dollars—way behind the populous Indonesia and even our small neighbour, Sri Lanka, till recently a strife ridden country. While considerable progress is happening in the development of infrastructure in the country, it is always short of what is needed for the long-suffering population and India’s fast growing economy. The country has too many major problems to tackle—be it high corruption, whose tentacles are far reaching and growing by the day; terrorism in Kashmir; Maoist/Naxalite insurgency in Eastern India; increasing religious radicals even in Southern India; and, most importantly, the growing influence of China in Pak-occupied Kashmir and Sri Lanka. The answer lies in bringing prosperity to the population, thereby reducing the influence of extremist elements. From this angle, the motto of the WTCA (World Trade Centers Association, New York) is quite apt: to bring prosperity through trade; and peace through prosperity.

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The much-awaited direct taxes Code Bill, which promised to bring far reaching reforms in tax administration, turned out to be a damp squib. A mountain was promised; but a mole is given. The so-called simplified version is 405 pages long! Tax consultants and advocates will have a feast, for the next few years, from the confusion it creates and the clarifications to be given by the Tribunals and Courts. Businessmen and industrialists will end up spending even more time in non-productive work.

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KPL-2 (Karnataka Premier League) Cricket season will be held from September 16th to 30th. While the KSCA (Karnataka State Cricket Association) did well in pioneering the State Premier League concept in the country, it has fallen short in publicising, popularising and managing the event well. Their present efforts are not adding value to the franchisees. I hope the young bunch of Bangalore Brigadiers will better last year’s performance of reaching the semi-finals.

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The Galaxy Club at Brigade Gateway is ready and looking beautiful. It is a boon to the campus occupants and its members. The same goes for The Brigade School @ Malleswaram, in the Brigade Gateway enclave, started by our Not-for-Profit Brigade Foundation. The school has received a very enthusiastic response from the neighbourhood in its very first year.

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At last, our efforts to start projects in Hyderabad are on track. Our maiden project, Brigade Zenith, will soon be launched in the up-market Banjara Hills.

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I am happy and thankful to the Board of Directors for instituting a ‘Chair’ at the Indian Institute of Technology, Madras to do research in the field of Construction Technology and Project Management. It will be in memory of our late Independent Director, Dr T. N. Subba Rao, who was always forthcoming with ideas and advice in the interest of Brigade Group.

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The festival season is on with Ramzan, Ganesha Chaturthi, Dasara and Deepavali—all in the next ten weeks. I wish our readers happy celebration and a wonderful festival season ahead.



May 2010

The Completion of Brigade Gateway Residential Block is a major milestone achieved. While significant completion has happened, the snag rectification of individual apartments and overall fine tuning is a challenging process, requiring great care and patience. The Brigade Gateway campus is looking better and better as it moves towards total completion. The Brigade School will open in June 2010. The Galaxy Club should open in a couple of months. WTC Bangalore, Orion Mall and Sheraton Bangalore Hotel are also getting ready. As far as I know, Brigade Gateway is the most integrated enclave in an urban centre anywhere in the world! The total integration of residential with offices, retail, hotel, medical, educational and recreational facilities within the city, is unprecedented. The convenience of living in such an environment will truly be a great experience.

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While the Indian economy has shown stability, it is getting affected by the shaky European economy. Mounting debt in Greece, Portugal, Spain and even Italy has started creating a ripple effect. I hope the governments in EU countries won’t let another 2008 kind of situation happen.

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Central and State Budgets of 2010 have come and gone without giving any relief on applicability of multiple taxes to the same real estate transaction. India could be the only country with the dubious distinction of treating purchase of a property under construction from a developer as: firstly, ‘transfer of property’ attracting stamp duty; secondly, as Sale of Goods under VAT rules; and, to make matters worse, as a Service under the Central Government Service Tax Rules. The desire to get revenue has made the authorities/law makers blind, with the result, citizens have to live with this unfair tax treatment.

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Brigade Group is trying to launch a number of new projects in all segments and categories—residential, office, retail and hospitality. But the procedures and the need to meet more and more rules and get permissions is making the process very cumbersome and time consuming…resulting in an increase in overhead costs, which negatively impacts on the product price.

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Our Mercure Homestead Residences will soon be rebranded as ‘Grand Mercure’ (a higher rated brand of Accor Hotels worldwide). Our Mercure property recently received an award—from the globally recognised Hospitality Consultants, HVS—for Best New Hotel in South Asia in the Serviced Apartment category! To cap this, the Ministry of Tourism has also given a 5-star rating for Mercure Homestead Residences.

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It is heartening to get recognized again by the well-known Realty Plus magazine as the Best Regional Developer (Residential) in 2010 for the Southern Region. So also by Construction Source India as the Best Developer in Residential Infrastructure.

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In the next few months, Brigade will concentrate on total completion of its many projects which are in final stages and sale/lease of balance stock of residential, office and retail units—apart from making persistent efforts to create new stock quickly. I look forward to continued support and patronage from our clients for our new launches.



April 2009

The last 7-8 months have been the most challenging in this millennium. Economies the world over have been badly affected. Relatively speaking, India is less affected than the western economies and countries whose GDP is exportdependent. Indian exports comprise less than 20% of our GDP, as compared to 40% in the case of China and about 60% in the case of East Asian economies like Japan. Though, by and large, India is perceived as less dynamic and aggressive during the boom time, in the present circumstances, the country would be classified as conservative, wise and not greedy. Probably, the same rationale is applicable to Brigade Group also.

When will the economy recover to its previous glory? In my opinion, not in the immediate future, although one can say with reasonable confidence that the worst is behind us. There are several predictions that in 6–18 months, there will be a marked improvement in the world economy. A lot will depend on the US, which is the world’s largest economy, with its GDP 14 times bigger than India and with less than 30% of the population of our country.

The response by the developed countries to the global recession has been swift and substantial, which has helped in preventing the ‘recession’ from becoming a ‘depression’. Other than reduction of interest rates by 2-3%, the Indian government hasn’t taken many positive steps, as compared to say China, which is pumping in USD 250 billion+ to stimulate their economy. The biggest impetus to the Indian economy seems to come from unexpected quarters—parliamentary elections! An estimated Rs 10-15,000 crores is likely to be spent before 31 May. One shudders to think what kind of a fractured coalition of parties will come to govern us soon. We should all pray for a stable and progressive government at the centre.

As regards interest rates, since the inflation has been brought to under 1%, there seems to be tremendous scope and opportunity to bring it down further—at least by 2%. Interest rates should always be a function of inflation rate and GDP growth rate.

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The welcome news is that Swiss banks and banks in other tax havens are willing to announce the names of the account holders. If the billions of dollars stashed away by corrupt businessmen, officials and politicians comes back to our country, it will be the biggest stimulus package we would receive to revive the economy.

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Negative sentiments are on the downward mode, as can be gauged by the 50% jump in stock sensex in the last 2 months. But one can never be sure whether it is due to technical reasons and manipulations by the operators, or due to improved fundamentals of the companies. Even the real estate business has shown good signs of recovery from March onwards, though it is one of the last sectors to recover since the decision to acquire a property can always be postponed. But, a smart investor will treat the current situation as an opportunity to pickup good properties at reasonable rates. For those who missed the bus in 2002-04, this is the right time to buy.

As for NRIs, they cannot ask for more. It is a golden opportunity, what with the rupee depreciating by 25% in value against dollar (compared to January ‘08) and property prices having come down between 15-25%, depending on projects. Fence sitters are bound to regret it, if they don’t act now.

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Brigade Group achieved a major milestone on 4 April ’09, with the opening of its 4-star serviced residences, with the internationally reputed Accor Group managing the co-branded property: Mercure Homestead. The positive feedback on the quality of rooms, F & B, and facilities like gym, spa and swimming pool is heartwarming.

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June ‘09 will also see the opening of a second school—The Brigade International School—by Brigade Group’s not-for-profit trust, the Brigade Foundation. It is a boon for the residents of Whitefield and surrounding areas to get quality education with great infrastructure and convenience at a reasonable fee structure.

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Team Brigade is making all efforts to quickly complete our flagship projects—Brigade Metropolis, Whitefield Road and Brigade Gateway, Malleswaram-Rajajinagar—which are in an advanced stage of execution. So also Brigade Courtyard in HMT Township, Brigade Palmsprings in J.P. Nagar, and Brigade Solitaire and Brigade Citadel in Mysore. I thank all our customers for showing their confidence, patience and support. 



December 2008

The most significant happening in the last quarter is the manner in which Barack Obama was elected as the President of the world's biggest economy, on the plank of promise of CHANGE. For me it was a moving experience to watch the final stages of the US election process and to listen to the high quality speeches. If one reads Obama's Audacity of Hope, one can realise what a clear thinking person he is. It certainly brings hope of a better tomorrow for the world as his views are full of sense.

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By and large, the last quarter has seen the stock markets world over getting battered, India not being an exception. Once the December quarter results start pouring in, the mood is unlikely to become better. The spectre of falling rates, increasing unemployment and tougher visa conditions in the western economies is not the fodder stock markets like.

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Unlike the bold 'bail out' packages of the US and European economies, the stimulus package/s announced by the Indian Government are at best knee-jerk reactions which are unlikely to have a significant positive impact. What is required is an extraordinary response to an extraordinary situation. Also required is a major initiative to spend US $50 to $100 billion on infrastructural projects like building highways—completing the golden quadrilateral and networking other roads that will generate large employment and improve the core sectors. Why not a 'Great Wall of India' bordering our problematic neighbours, which will also help in reducing infiltration? The three most important sectors of the old economy are agriculture, automobiles and construction. In the new economy unquestionably it is the IT sector. All these sectors require great support if the government is even half serious about improving the state of the economy.

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The November terrorist attack in Mumbai is the most heinous and boldest ever, exposing all the chinks in our armour. It has made the citizens angry, dumbfounded and helpless. Many political leaders were behaving like Nero when Mumbai was under attack.

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If the government does not ACT now by taking measures similar to what United States took post 9/11, I do not know what will make them move. The time has come to stop barking and start biting when driven to do so.

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In an otherwise gloomy quarter, the highlight event for Brigade Group is the recognition from Forbes Asia as one of the 200 Best Under a Billioncompanies in the Asia Pacific region. It is a recognition of the hard and result-oriented work of the entire Brigade team for the past two decades. My sincere thanks to the valuable contribution by our Board Members, the entire staff of Brigade Group and our associates.

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As the curtain comes down on what can be called as the most forgettable year in the recent times (from the economic stand-point), let me sincerely wish all the readers a brighter, happier and peaceful 2009.



September 2008

There is no dearth of headline making news in the last few months—worsening US financial crisis; Nuclear agreement; Terrorist attacks; New BJP Govt. in Karnataka; High inflation; Volatility in crude price; natural calamities & impending Presidential Election in the United States.

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It is amazing & unbelievable to see century old institutions which are revered in the financial circles—Bears Sterns; Lehman Brothers; AIG; Merrill Lynch; Washington Mutual, Wachovia—drop like 9 pins. Who knows whether the worst is over or yet to come? Greed to make more and more money with casino like operations & throwing caution to the wind has resulted in this financial catastrophe of humungous proportions, affecting each of us in some degree or the other. The magnitude of the problem is difficult to comprehend.

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The uncertainty of life has increase with increased terrorist activities. This is extremely sad. Before it is too late, it is time for us as a nation, as corporates & as responsible family members to take all required security measures to avoid being victims of terrorist attacks. The whole meaning of safe neighbourhoods and safe cities has changed with the ease at which fundamentalists are able to operate. If the government desires to ensure the safety of its citizens and desires to maintain the secular nature of the country, then it needs to take tough measures without bothering about the political consequences of such decisions.

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Full kudos to our 'Sing is king' Prime Minister for finally taking bold steps to conclude the much delayed Nuclear deal to enable us to produce Nuclear Power to meet our energy needs, without which our industrialization & economic growth will be severely affected.

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High lending rates by financial institutions have curtailed the demand for residential units and other luxury items. This can lead to a negative chain reaction by reduced demand for services and core sector products like steel, cement etc. This is also likely to bring down the country's GDP growth from a very healthy 8%+ to a modest 5-6% growth. For the economy to bounce back, it will take quite sometime. Even then, it would be wise for genuine buyers to take their decision to buy properties (but on floating interest rates, if one desires to borrow). Otherwise, year on year inflation of 8-12% p.a. will only jack up the prices of real estate in the medium to long term.

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A silver lining for non-residential buyers, in an otherwise gloomy scenario is that the rupee has depreciated by 20%+ making it attractive to buy properties and to make investments in India. Better to strike gold when the opportunity exists.

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With single party rule (BJP) in Karnataka, expectations for improved infrastructures & governance were running high. But ground realities seem to be different. Action on many long pending people is yet to be taken. Citizens are still hopeful of positive steps by the government.

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Impending Presidential election in the United States in November '08, and parliamentary elections in India (March '09), will be interesting to discuss and watch. They will certainly keep the media busy.

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Let me hope the festival season of Dussera & Diwali will bring some sparkle to our lives.



April 2008

Though the year 2008 started off well for the economy, the 'subprime' crisis in the United States and the short-term liquidity crisis (due to the Reliance Power stock issue) knocked the bottom out of the Indian Stock Market. This resulted in the sudden drop of Sensex by 30 per cent, as if to confirm the reality of globalisation and inter-dependence of the economies. The old adage—'If America catches cold, the whole world sneezes'—appears to still be true.

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Unfortunately, realty stocks were one of the worst hit and Brigade Enterprises' stocks were no exception. Only sustained, good performance can change the perception of the industry.

Although the Indian economy is doing well by and large, and a growth rate of 7+ per cent may still be possible during 2008, its inherent strength is under question. 

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High economic growth results in higher inflation. Although some amount of inflation is acceptable, there is no consensus among economists on the acceptable percentage. In an election year, inflation is a touchy subject. Isn't moderate inflation better than stagflation?

In the law of averages, details get hidden. While the general inflation may be 7 per cent, in certain sectors like construction industry, it is much more. The recent unprecedented 50-60 per cent jump in steel prices was a shocker. So also the salary jumps in the sector, which has overtaken the rates of software industry (this might make more students opt for civil engineering field, instead of the fancied computer science). All this is making the developer community think of introducing an escalation clause in the agreements, with a formula linked to the wholesale price index of the RBI. Otherwise, it will be impossible to absorb the cost increases during a typical 18-36 months' project period, that too after giving hefty discounts for pre-launch and introductory bookings. 

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Election fever in Karnataka is on a high! Kannadigas certainly deserve a single-party government and a better deal. The negative effect of the coalition government is there for all to see. Bangalore is losing its pre-eminent status as the best city in the country. One should pray that a single party will come to power in assembly elections in May. (But God helps those who help themselves). It is important that citizens should exercise their franchise by voting for the right party/candidate.

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Brigade has posted fairly good results for the year ended 31 March 2008. We will be launching a few medium-sized projects in the months ahead, and are gearing up to launch a few large projects in Bangalore, Mysore and Mangalore. It is high time the master plan for the Inter-national Airport Planning Area is released by the government. Otherwise, it will lead to unplanned growth and unauthorised structures. No point in 'locking the stables after the horses have bolted'.



December 2007

They say the number 13 is lucky for some. It was for Brigade Group! Our maiden public issue of equity shares was over subscribed 13 times on 13 December, the closing date of our IPO. It's a satisfying oversubscription, especially since the final clearances and permissions were received only on 30 November. In just 13 days (!), the IPO was marketed, issue opened and closed.

It was an interesting, challenging and taxing process—involving interactions with the media, stock brokers and research analysts; road shows at Singapore, Hong Kong, London, New York, Boston, Mumbai, Ahmedabad, Baroda, Bangalore, Chennai, Chikmagalur, Mysore and Shimoga; and numerous one-to-one meetings with major national and international institutional investors and HNIs.

Overall, it was a great team effort involving investment bankers, legal counsels (national and international), registrars to the issue, bankers, ad agencies, friends, well-wishers and our Independent Directors, who helped in tough situations; and of course, the dedicated IPO core team at Brigade, supported by all Brigadiers. It was especially gratifying that the Staff Reservation Quota was oversubscribed, which is unusual. Three cheers to everyone!!!

Being a listed company will increase our responsibilities multifold. What we say and do is under public gaze and open to question. It will be a great challenge to achieve quarter on quarter growth, due to the very nature of the property development industry. It will be my personal endeavour—and that of all Brigadiers—to work diligently to meet the expectations of investors who have reposed confidence in us, and other stakeholders like customers, associates and staff.

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Have real estate prices peaked? While one cannot expect the 40%-50% jumps seen during 2005-06, an average appreciation of around 15% per annum appears quite feasible. The real estate market in the country in general, and Bangalore in particular, is overall healthy, with the forces of demand and supply finding a good equilibrium. As long as the Indian economy continues to maintain the current GDP growth rate of 8+%, the real estate sector will continue to grow. Just look towards China to know what effect sustained double digit growth rates over a 25-year period will have on the economy of a country and the prosperity of its citizens.

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Infrastructural deficiencies and bottlenecks are the biggest concern of international and national investors and corporates. This will impede our country's ability to sustain growth, and good growth rates, year on year. While Indian entrepreneurs are capable of dreaming big and realising their dreams, they face bureaucratic hurdles, lack of vision and more particularly, insufficient planning and co-ordinated efforts by different governmental agencies. But for the quid-pro-conditionalities for the release for JNNURM (Jawaharlal Nehru National Urban Renewal Mission) funds, many civic authorities would not have been able to make the few improvements currently seen in urban infrastructure.

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The coming year will be very important, nationally and internationally, as major political changes are expected in India and USA. One hopes 2008 will usher in good cheer for one and all. Here's wishing all readers Season's Greetings and the very best in the New Year!



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