An internship report

On
REAL ESTATE BUSINESS: LAND SALES & MARKETING OF
S K S LAND DEVOLOPERS

Submitted To
Prof. Dr. Anupama Ghoshal
Department of Master in Business Administration
School of Commerce and Management Studies
Dayananda Sagar University. Bangalore

Submitted By
Chethan T R
USN: CMS16MBA006
Department of Master in Business administration
School of Commerce and Management Studies
Dayananda Sagar University. Bangalore
 LETTER OF TRANSMITTAL

Dr. Anupama Ghoshal

Professor. Department of MBA
School of Commerce and Management Studies
Dayananda Sagar University. Bangalore

Subject: Application for submitting the internship report

Dear mam

I would like to submit my internship report on Real Estate Business: Land Sales and
Marketing under S K S LAND DEVOLOPERS for partial fulfillment of Master of
Business Administration with specialization in Marketing. The report is prepared on
the basis of theoretical and practical learning of my 6 weeks experience in S K S
LAND DEVOLOPERS

I hope you would be kind enough to consider for any mistake in preparing this
internship report.

Specially thanks to you. I could not be preparing this report without your cooperation
Thank you for your sincere cooperation

Sincerely
Thank you
 STUDENT DECLARATION

I declare that the internship report on Title: Real Estate Business: Land Sales
and Marketing embodies the result of my own research works, pursued under the
arrangement of SKS LAND DEVELOPERS, BANGLORE

I further affirm that the work reported in this thesis is original and no part or whole of
the report has been submitted to, any other University or institution for any degree or
award or any other purpose (besides referred materials).

Thanking You.

Sincerely Yours,
Chethan T R
Department of Master in Business administration
School of Commerce and Management Studies
Dayananda Sagar University. Bangalore
 CONTENTS

Chapter-1 Introduction

Chapter-2 Company Profile

Chapter-3 Research Methodology

Chapter-4 Data Analysis and Interpretation of Data

Chapter-5 Findings

Chapter-6 Conclusions and Recommendations

Bibliography
Annexure
 CHAPTER -1
INTRODUCTION
The real estate sector is one of the most globally recognised sectors. In India, real
estate is the second largest employer after agriculture and is slated to grow at 30 per
cent over the next decade. The real estate sector comprises four sub sectors -
housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth of the corporate environment and the demand for office
space as well as urban and semi-urban accommodations. The construction industry
ranks third among the 14 major sectors in terms of direct, indirect and induced effects
in all sectors of the economy.

It is also expected that this sector will incur more non-resident Indian (NRI)
investments in both the short term and the long term. Bengaluru is expected to be the
most favoured property investment destination for NRIs, followed by Ahmedabad,
Pune, Chennai, Goa, Delhi and Dehradun.

Market Size

The Indian real estate market is expected to touch US$ 180 billion by 2020. The
housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product
(GDP).

In the period FY2008-2020, the market size of this sector is expected to increase at a
Compound Annual Growth Rate (CAGR) of 11.2 per cent. Retail, hospitality and
commercial real estate are also growing significantly, providing the much-needed
infrastructure for India's growing needs.

The private equity investments in real estate increased 26 per cent to a nine-year high
of nearly Rs 40,000 crore (US$ 6.01 billion) in 2016.

Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high
demand for office space in recent times. The office space absorption in 2016 across
the top eight cities amounted to 34 million square feet (msf) with Bengaluru recording
the highest net absorption during the year. Information Technology and Business
Process Management sector led the total leasing table with 52 per cent of total space
uptake in 2016. Mumbai is the best city in India for commercial real estate investment,
with returns of 12-19 per cent likely in the next five years, followed by Bengaluru and
Delhi-National Capital Region (NCR).

Investments

The Indian real estate sector has witnessed high growth in recent times with the rise
in demand for office as well as residential spaces. The real estate sector in India is
expected to attract investments worth US$ 7 billion in 2017, which will rise further to
US$ 10 billion by 2020. India has been ranked fourth in developing Asia for FDI inflows
as per the World Investment Report 2016 by the United Nations Conference for Trade
and Development. According to data released by Department of Industrial Policy and
Promotion (DIPP), the construction development sector in India has received Foreign
Direct Investment (FDI) equity inflows to the tune of US$ 24.29 billion in the period
April 2000-March 2017.
Some of the major investments in this sector are as follows:
 International Finance Corporation (IFC) will invest US$ 200 million in
Housing Development Finance Corporation Ltd (HDFC) via five-year
non-convertible debentures (NCDs) or masala bonds which will be used
by HDFC to provide loans for affordable housing projects across India.

Ascendas-Singbridge Group, a property development company based

in Singapore, has purchased six warehouses from Arshiya Limited for a
consideration of Rs 534 crore (US$ 83 million), of which Rs 434 crore
(US$ 67 million) would be paid on signing the definitive agreement, and
the balance over four years on the attainment of certain targets.

Godrej Properties Ltd has tied up with Taj Palaces Resorts Safaris for
developing its mixed-use project called 'The Trees', spread across 9.2
acres, that will include a 150-room Taj Hotel, a luxury residential property
called 'Godrej Origins' as well as a high-street retail court.

Motilal Oswal Real Estate, a real estate-focused investment subsidiary

of Motilal Oswal Private Equity Advisors Pvt Ltd, is planning to invest Rs
800 crore (US$ 124 million) in FY 2017-18 in mid-income residential
projects as well as commercial office projects.

Xander, a Private Equity Group, has signed two major property deals,
which includes a special economic zone worth Rs 2,290 crore (US$
354.95 million) in Chennai and a 2 million sq ft mall in Chandigarh for Rs
700 crore (US$ 108.5 million).

Canada Pension Plan Investment Board (CPPIB), the Canadian pension

asset manager, has entered into a non-binding agreement with Island
Star Mall Developers (ISML), a subsidiary of Phoenix Mills, to acquire up
to 49 per cent in ISML in the next three years.

Altico Capital, a non-banking finance company (NBFC), has teamed up

with American private equity firm KKR & Co LP to invest Rs 435 crore
(US$ 65.25 million) in a 66-acre residential township, being developed
by SARE Homes in Gurgaon.

Gurgaon-based property search aggregator Square Yards Consulting

Pvt Ltd has raised US$ 12 million from the private equity arm of Reliance
Group for strengthening its team and expanding its presence to more
than 25 countries.

Rising Straits Capital plans to raise US$ 100 million to capitalise its real
estate-focused non-banking financial company (NBFC), Rising Straits
Finance Co. Pvt. Ltd.
 A joint venture between Dutch asset manager APG Asset Management
and real estate asset platform Virtuous Retail, has acquired a portfolio
of three shopping malls for US$ 300 million, and has committed an
additional US$ 150 million as equity capital to expand the portfolio.

Macquarie Infrastructure and Real Assets (MIRA) and Tata Housing

Development Co. Ltd have entered into a 70:30 partnership to invest Rs
1,400 crore (US$ 210 million) and Rs 600 crore (US$ 90 million)
respectively in high-end residential property projects, starting with four
major cities of Mumbai, NCR, Bengaluru and Pune.

Qatar Holdings LLC, a subsidiary of Qatar Investment Authority, has

committed to invest US$ 250 million in the affordable housing fund of
Arthveda Fund Management Pvt Ltd.

Piramal Realty, the real estate division of Piramal Group, plans to invest
Rs 1,800 crore (US$ 270.14 million) in an eight-acre project named
Piramal Revanta in Mulund, Mumbai.

Ivanhoe Cambridge, the real estate arm of Canadas second largest

pension fund manager Caisse de dpt et placement du Qubec
(CDPQ), plans to enter into a Joint Venture (JV) agreement with Piramal
Fund Management to set up a US$ 250 million venture, which will
provide equity capital to developers of residential projects in the country.

Government Initiatives
The Government of India along with the governments of the respective states has
taken several initiatives to encourage the development in the sector. The Smart City
Project, where there is a plan to build 100 smart cities, is a prime opportunity for the
real estate companies. Below are some of the other major Government Initiatives:

The Delhi Government has declared 89 out of 95 villages in Delhi as urban

areas which will ease the operationalising of the land pooling policy, thereby
giving a boost to affordable housing in Delhi.

The Reserve Bank of India (RBI) has proposed to allow banks to invest in real
estate investment trusts (REITs) and infrastructure investment trusts (InvITs)
which is expected to benefit both real estate and banking sector in diversifying
investor base and investment avenues respectively.

The Ministry of Housing and Urban Poverty Alleviation has sanctioned the
construction of 84,460 more affordable houses for urban poor in five states,
namely West Bengal, Jharkhand, Punjab, Kerala and Manipur under the
 Pradhan Mantri Awas Yojana (Urban) scheme with a total investment of Rs
3,073 crore (US$ 460 million).

Road Ahead

The Securities and Exchange Board of India (SEBI) has given its approval for the Real
Estate Investment Trust (REIT) platform which will help in allowing all kinds of
investors to invest in the Indian real estate market. It would create an opportunity worth
Rs 1.25 trillion (US$ ) in the Indian market over the years. Responding to an
increasingly well-informed consumer base and, bearing in mind the aspect of
globalisation, Indian real estate developers have shifted gears and accepted fresh
challenges. The most marked change has been the shift from family owned
businesses to that of professionally managed ones. Real estate developers, in
meeting the growing need for managing multiple projects across cities, are also
investing in centralised processes to source material and organise manpower and
hiring qualified professionals in areas like project management, architecture and
engineering.

The growing flow of FDI into Indian real estate is encouraging increased transparency.
Developers, in order to attract funding, have revamped their accounting and
management systems to meet due diligence standards.

Industry analysis

4th largest sector in terms of FDI inflows. FDI in the sector stood at US$ 24.54
billion from April 2000 to June 2017.

FDI in the sector is estimated to grow to US$ 25 billion by FY22

Rapid urbanisation bodes well for the sector

The number of Indians living in urban areas will increase from 434 million in
2015 to about 600 million by 2031

By 2028, Indias real estate market size is expected to increase by 7 times

By 2028, Indias real estate market size is expected to reach US$ 853 billion,
increasing from US$ 126 billion in 201

Recent Trends

These trends will shape - or reshape - the Indian real estate sector in 2017 and
beyond:
Global capital flow into Indian real estate will increase further
India is ranked fourth in developing Asia for FDI inflows as per the World Investment
Report 2016 by the United Nations Conference for Trade and Development. That is
endorsement at the highest levels - and real estate saw equity investment on a very
visible return journey to India last year. Indian real estate in 2016 stood at $5.7 billion.

Though the historic high of 2007 (in terms of total PE inflows) was not breached, last
year proved to be the second-best year so far. Despite Brexit and uncertainty around
the new US President's outsourcing and visa-related policies, private equity activity
also looks healthy in 2017 - thanks to a strengthening and modernising economy, and
the growing reputation of India as an attractive investment destination.

India's Tier-I cities moved up to the 36th rank in JLL's 2016 bi-annual Global Real
Estate Transparency Index. The catalysing factors for this were improvements in
structural reforms and the more liberalised foreign direct investment (FDI) regime.
Increased transparency brings higher investments into such real estate markets.

Thanks to changes in its regulatory framework, India is now way more attractive to
both global and Indian investors. Increased consolidation and transparency - and the
launch of REITs (Real Estate Investment Trusts) this year - will further whet their
appetites for getting a piece of the Indian real estate pie.
Developers will revamp their business model
Throughout 2016, the number of new residential project launches was lower than units
sold. With all states staring at the approaching deadline to implement their versions of
the Real Estate Regulation & Development Act (RERA), most of them will definitely
fall in line. This landmark law will enforce hitherto unprecedented transparency and
accountability requirements for developers into the system, and do a lot to increase
consumer confidence. Consumer activism, which has already been making news in
recent times, will increase in distressed ongoing projects.
And it's not only RERA that the Indian real estate sector anticipates with bated breath.

The Goods and Services Tax (GST) and the Benami Property Act will also have a
major impact on how many developers run their businesses. Demonetisation shook
up the older ways of working, but did not affect self-governing developers with the right
products targeted at the working masses. The rest have realised it is time now to
revamp their existing business models if they want to remain in business at all. Market
watchers who had despaired of the Indian real estate market ever shedding its tainted
image have every reason to perk up now.
Currently, the residential property market is dominated by end-users - speculative
investors are making a beeline out of real estate as an investment category.
Residential demand is expected to pick up only towards the end of 2017 - but the
recovery will be sustainable and based on much sounder market fundamemtal
sentiment
The commercial office space sector will get a strong shot in the arm with REITs. Real
Estate Investment Trusts will have an important and long-term impact on developers
and present them with the choice of either 'corporatising' or risking take-over by their
bigger and better-organised counterparts. The pressure from funding agencies will
simply be too strong to ignore.
Corporate developers like Tata, Godrej, L&T, Bharti, Mahindra, etc., will acquire more
projects, and corporate houses like Birla are gearing up for their maiden innings in real
estate development. Institutional funding will increase.
Co-working: More of India Inc. will move into 'hybrid' spaces
Co-working spaces are popping up across Indian metros as well as Tier-II cities,
providing start-ups with flexible working options at affordable rents. At last count, there
were more than 100 operators in this space across India, though there is still very
limited supply of co-working spaces available. However, this segment is slowly but
surely moving into boom mode across India
Certain co-working operators will prefer leasing out parts of or the entire areas of their
co-working office spaces 'anchor tenant' corporates. In other words, co-working
operators and corporates will move into a 'hybrid' sort of space and increasingly rely
on each other.
The sun rises on affordable housing
Affordable housing in India is finally set to get the much-coveted infrastructure status.
One crore houses are to be built in rural India by 2019, and this vital segment will now
see cheaper sources of finance - including external commercial borrowings (ECBs).
Re-financing of housing loans by National Housing Banks (NHBs) can give a further
boost to the sector. new Credit Linked Subsidy Scheme (CLSS) for the mid-income
group with a provision of Rs 1,000 crore in 2017-18 was announced even before
Budget 2017-18. Extension of tenure of loans under the CLSS of Pradhan Mantri Awas
Yojana (PMAY) was increased from 15 to 20 years, and the Budget also increased
allocation to PMAY from Rs 15,000 crore to Rs 23,000 crore in the rural areas. The
qualifying criteria for affordable housing were also revised to 30 sq. m. and 60 sq. m.
on carpet rather than saleable area in the four main metros and non-metros
respectively. This effectively increases the size of affordable housing market across
India. Moreover, the demonetization of high-value currency notes will cause land
prices to ease in the next few years - especially in far-flung areas around Indian metros
and the Tier-II and Tier-III cities. The government's dream of Housing for All by 2022
appears a lot more attainable now.
Office sector transformation: From REIT to complete
The first REIT listing is expected within the next few months, and prominent private
equity funds such as Blackstone will likely be the first movers. REITs will attract
institutional and smaller investors alike because of their inherent nature to provide
regular dividends at relatively low risk.
Smaller investors are especially excited at this new and easier investment opportunity
because:
a. Indian REITs will prefer to invest in commercial space developments - specifically
the highest quality or Grade-A properties -because of the higher rental yields.
b. Only 20% of an Indian REIT's monies can be invested in development, which is the
riskiest aspect. The remaining 80% of a REIT's assets must be invested in income-
producing property.
The REIT potential in India is huge, with around 229 million sq. ft. of office space
currently being REIT-compliant. Even if 50% of this space is listed in the next few
years, we are looking at a total REIT listing worth $18.5 billion. Moreover, India's stock
of Grade A commercial assets is increasing, with REITs acting as a sure-fire growth
catalyst.
More industry consolidation on the cards

Slowing sales and lack of financial prudence among several developers is leading to
a fairly obvious conclusion - consolidation. The overcrowded real estate sector is going
to become a lot leaner and meaner, with consolidation happening by ways of joint
developments and joint ventures between landowners and/or small developers with
bigger, better-organised players, smaller developers being bought out by larger
players, and struggling developers cashing in their land banks by selling them to
players with stronger balance sheets and appetite for growth. The pace at which this
happens will depend on how much equity gets infused into the sector by the larger PE
investors, and the strategy that foreign and domestic developers adopt. Some foreign
developers have already entered the country, setting up base and obviously playing
for keeps. Some investors and developers will take plunge into the market now, while
others will prefer to ride the fence for a while; but one way or the other, consolidation
will be the name of the game for the Indian real estate industry over the next five years.
Larger players will peak in strength by around 2021, and smaller players will be
eroded. Equity investment - or the lack of it - will play a deciding role.
 CHAPTER 2
COMPANY PROFILE

Company address:
No #323
1st floor, service road
7th block, 2nd stage
Near vasan eye care hospital
Nagarbhavi, Bangalore 560072.
SKS Land Developers is committed to offering gated communities with state-of-the-
art amenities in an eco-friendly environment that would satisfy & exceed all of its
client's needs. Our mission is to serve the society by quality and service. Having vision
of elevating the Company to compete with its International counterparts. SKS has a
well-trained team in each sphere of its business operations, be it engineering,
architecture, layout development, construction, marketing, sales, accounts, front office
and back office operations. In the process of growth and change, the company has
created a brand name that stands for reliability, high professional standards and long-
lasting customer relationships. We at SKS intently believe that living in SKS gives our
customers the complete satisfaction of living life king size and to its fullest. SKS is the
other name for ultimate comfort, luxury, lifestyle and true value for money and we are
proud of this unique identity we have carved for ourselves.

Mission: To serve the society by quality and service.

Vision: Elevating the company to compete with international counterparts.
Founder: Sri Kumar.
Managing Director: sri Kumar
Main projects: standard paradise, Kengeri.
SK farms, Doddaballapur
SKS Residency, Bangalore
Standard residential flats, Bangalore
Nature of Business; service provider.
Land developers
Construction service
Architecture consulting

The Quest for a home, the dream treasured in ones mind is in all respect mans
Ultimate goal. A space of his very own, to share his joys as well as sorrows, build his
dreams and rejoice in his achievements. Spaces for his children to grow and nurture
their dreams and in the process, cherish that special feeling of bonding. Lending a
helping hand in transforming this dream to reality is SKS LAND DEVOLOPERS
SKS Land developers (formerly known as United Constructions in the
field of construction for the past two decades) a Company registered under
Companies Act,1956 The company is incorporated with the main objects of property
development, construction of apartments, commercial complexes & residential
housing projects in response to the growing need for quality housing and commercial
space in the metropolitan city of Bangalore.
Since then the Group has grown to be one of the leading Real Estate Developers of
the country, serving the needs of the discerning clientele.
Karnataka. It is one of the fastest growing metropolitan cities in India today. The
population of the city at 4.8 million in 1991 is expected to exceed 7 million by the
year 2011. With less
than 0.5% area of the state, it is home to nearly 10.5% of its population. Bangalore is
Indias fifth largest and its population has almost doubled over past 10 years. The
growth is attributable to economic reforms in India. The citys growing popularity as a
software destination and its ability to attract individuals to live and work has been
commendable
Historically the Government of India has taken the initiative to establish institution
like MAC, HMT, ITC and ISRO etc., in Bangalore. This thrust has helped the city
develop to a hub of information technology, electronics, precision engineering,
aerospace readymade textiles and electrical machinery. In fact, 33 of the top 200
software companies in the country are headquartered in Bangalore. It remains the IT
hub of India, with over 70% of the revenues of the software industry being generated
here.
Today the Indian and Multinational companies, who are in IT related business
occupy close to a million square feet of space and have paved the way for a lot more
peer groups to absorb several million square feet of space. On the whole, the
upswing in commercial (office and retail) and residential space transaction continues.
As predicted by many international real estate consultants like Brooke International,
CB Richard, Jones Lang LaSalle,
Cushman Wakefield, most facilities which are ready/nearing completion have been
leased by end-users.
Bangalore has emerged as one of Asias fastest growing cities, with a growth rate of
76% between 1981 to 1991. During 1995-96 the market values had risen by more
than100% in all segments. With increased urban development activity, the city had
achieved the distinction of the highest growth rate in the county at more than 40%.

Objectives of the Company

The main objective of the study is to find out the consumer attitudes towards SKS Land
Developers Especially the objectives of the study are as follows:

To reach the goals of organization in individual aspects & the company as a

whole
Efficiency of the work force by employing their skills & abilities.
Providing employees with proper standards of job satisfaction.
Providing the organization with well trained & well motivated employees.
Communicate the policies to all employees of Human Resource Management
issue.
The objective is to have a clear knowledge of planning, organization, leading
& Controlling aspects of SKS Land Developers
Departments of the Company

SKS Land Developers Corporate Branch contains 7 major departments. The name of
those departments & activities are given below:

A. Reception Desk

B. Marketing & Sales Department

C. Administration & Business Department

D. Documentation & Recovery

E. Finance & Accounts Department

F. Procurement Department

G. Human Resources Management (HRM)

A. Reception Desk:

The main task at the reception desk is maintaining the inward & outward register, office
management, & telephone receiving. They also maintain a daily recall file which is
known as the Central Recall System.

B. Marketing & Sales Department:

SKS Land Developers has a very big marketing department. A strong sales team &
aggressive marketing campaign have bought tremendous sales growth along with a
handsome market share. SKS Land Developers becomes a market leader in the real
estate industry.

C. Administration & Business Department:

The administrative department of SKS Land Developers always looks after the whole
organization. They always run the organization smoothly. If any employee does any
fault then the department takes action against the employee. The company reward is
given to the employee who has done well.

D. Finance & Accounts Department

a) Using SKS Land Developers software.

b) Final checking of Bank reconciliation.

c) Checking of Bank Debtor order voucher.

d) Checking the company financial accounts.

e) Give clearance for surrender.

f) Give clearance for registration.

E. Procurement Department

a) Buying Land.

b) Registration of the sold land.

F. Documentation

a) If any customer fails to pay the due in schedule time then this department arranges
time extension latter & gives the time extension approval.

b) For business the client is not able to take deed in this case the officers of this
department communicate with the client to take the dead by this time officers make a
rough copy of the deed.

c) If any change his/her payment schedule or change the plot then this department
arranges all procedure.

d) This department also makes note sheet for registration when a client pay all the
dues with registration fees.

Advertising

Advertising is defined as any form of paid communication or promotion for product,

service and idea. The advertisement is not only used by companies but in many cases
by museum, government and charitable organizations. However, the treatment meted
out to advertisement defers from an organization to an organization.

Advertising development involves a decision across five Ms Mission, Money,

Message, Media and Measurement.

Mission looks at setting objectives for advertising. The objectives could be to inform,
persuade, remind or reinforce. The objective has to follow the marketing strategy set
by the company.

Money or budget decision for advertising should look at stages of product life cycle,
market share and consumer base, competition, advertising frequency and product
substitutability.
A messages development further is divided into four steps, message generation,
message evaluation and selection, message execution, and social responsibility
review.

Once the message is decided the next step is finalizing the media for delivering the
message. The choice of depends on reach of media, frequency of transmission and
the potential impact on the customer. Based on this choice of media types are made
from newspaper, television, direct mail, radio, magazine and the internet. After which
timing of broadcast of the message is essential as to grab attention of the target
audience (Chopra:2003 and Kotler: 2011).

Checking on the effectiveness of communication is essential to the companys

strategy. There are two types of research communication effect research and sales
effect research.

Public Relations

Companies cannot survive in isolation they need to have a constant interaction with
customers, employees and different stakeholders. This servicing of relation is done by
the public relations office. The major function of the public relations office is to handle
press releases, support product publicity, create and maintain the corporate image,
handle matters with lawmakers, guide management with respect to public issues.

Companies are looking at ways to converge with functions of marketing and public
relation in marketing public relation. The direct responsibility of marketing public
relation (MPR) is to support corporate and product branding activities.MPR is an
efficient tool in building awareness by generating stories in the media. Once the story
is in circulation MPR can establish.

Credibility and create a sense of enigma among sales people as well as dealers to
boost enthusiasm. MPR is much more cost-effective tool than other promotional
activities (Kotler: 2013).

Direct Marketing

The communication establishes through a direct channel without using any

intermediaries is referred to as direct marketing. Direct marketing can be used to
deliver message or service. Direct marketing has shown tremendous growth in recent
years. The internet has played a major part in this growth story. Direct marketing saves
time, makes an experience personal and pleasant. Direct marketing reduces cost for
companies. Face to face selling, direct mail, catalog marketing, telemarketing, TV and
kiosks are media for direct marketing.

Advertisement, Promotional activity, Public relation and direct marketing play an

essential role in helping companies reach their marketing goals (Kotler: 2013).