It was an extremely difficult year for DLF Ltd. And things really started looking up only towards the end of the year. however, Debt remains a worrying issue for the company, as does the uncertainty of Realty Demand in the Current Inflationary Scenario. by Praveen Kumar
In the year 1981, the driver of a four-wheeled SUV with an overheated engine stopped to request for some water to lower the temperature of his vehicle’s engine. The location was an area adjoining empty fields at the periphery of Delhi border, in Haryana, a state of India. While the vehicle was cooling off, a conversation ensued between the two gentlemen, which later became the urban-development policy of the country, followed till the present-times. The supplicator was none other than Rajiv Gandhi, who later became the prime minister of the country. And the benefactor was no other than KP Singh, DLF’s chief.
Singh recalls, “We arrived at a same wave length and it took me no time to persuade him off the archaic urban development rules prevalent in those days.” Impressed by Singh’s knowledge about the area and his vision on the urban development, Gandhi spent more than two hours with him in that locality. Later on, while repaying Singh’s gesture, Gandhi did his best in trying to sway the Haryana state government to amend commercial-development restrictions on farmland.
And in the next two decades, DLF, which acquired over 4000 acres of land in Gurgaon, Haryana, changed the entire landscape of the area to develop it into a world-class city. The company is today building houses, apartments, office towers, hotels, cinemas and shopping malls across the country. DLF Ltd, as a company, got listed on the Bombay and National Stock Exchanges on July 5, 2007, making Singh and his family – who together hold more than 80% stake, nearly $30 billion – one of the richest families of the world.
In 2008, Forbes declared him richest real estate baron in the world having a net worth of $30 billion. However, due the global meltdown, his wealth saw a sharp decline and the Forbes 2009 list of the world’s billionaires estimated his net worth to be just $5 billion.
The real estate sector isn’t out of the storm yet and neither is DLF Limited. The company’s revenues dropped further by 15% to `24 billion and profits declined by 50% yoy to `7.7 billion yoy for FY 2009-10. The developer missed its stated target by 16%, and achieved 12.6 million sq. ft. (msf) with an average realisation of `5700 per sq. ft. The company’s Group Executive Director Rajeev Talwar commented to B&E, “We were certain that there is bound to be a tight leash on targets of sales and revenues in downturn. But expenditure targets have to be exceeded, since that is the time when you have to concentrate and focus on execution and delivery.”
In the year 1981, the driver of a four-wheeled SUV with an overheated engine stopped to request for some water to lower the temperature of his vehicle’s engine. The location was an area adjoining empty fields at the periphery of Delhi border, in Haryana, a state of India. While the vehicle was cooling off, a conversation ensued between the two gentlemen, which later became the urban-development policy of the country, followed till the present-times. The supplicator was none other than Rajiv Gandhi, who later became the prime minister of the country. And the benefactor was no other than KP Singh, DLF’s chief.
Singh recalls, “We arrived at a same wave length and it took me no time to persuade him off the archaic urban development rules prevalent in those days.” Impressed by Singh’s knowledge about the area and his vision on the urban development, Gandhi spent more than two hours with him in that locality. Later on, while repaying Singh’s gesture, Gandhi did his best in trying to sway the Haryana state government to amend commercial-development restrictions on farmland.
And in the next two decades, DLF, which acquired over 4000 acres of land in Gurgaon, Haryana, changed the entire landscape of the area to develop it into a world-class city. The company is today building houses, apartments, office towers, hotels, cinemas and shopping malls across the country. DLF Ltd, as a company, got listed on the Bombay and National Stock Exchanges on July 5, 2007, making Singh and his family – who together hold more than 80% stake, nearly $30 billion – one of the richest families of the world.
In 2008, Forbes declared him richest real estate baron in the world having a net worth of $30 billion. However, due the global meltdown, his wealth saw a sharp decline and the Forbes 2009 list of the world’s billionaires estimated his net worth to be just $5 billion.
The real estate sector isn’t out of the storm yet and neither is DLF Limited. The company’s revenues dropped further by 15% to `24 billion and profits declined by 50% yoy to `7.7 billion yoy for FY 2009-10. The developer missed its stated target by 16%, and achieved 12.6 million sq. ft. (msf) with an average realisation of `5700 per sq. ft. The company’s Group Executive Director Rajeev Talwar commented to B&E, “We were certain that there is bound to be a tight leash on targets of sales and revenues in downturn. But expenditure targets have to be exceeded, since that is the time when you have to concentrate and focus on execution and delivery.”
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
