“Mall Management” – The “New Success Mantra” for Malls In India | Realty Plus

The Indian #RetailMarket, has gone through a prolonged (and sometimes painful) process of transformation…With rapid development across the country, India has witnessed the emergence of a well-entrenched mall culture over the past decade….However, there are several malls in the country which are faring less than well…

Failing Malls – A Growing Problem :

The not insignificant number of under-performing malls in the country definitely gives rise to concern…There is no dearth of instances where #MallDevelopers, have scrapped the entire blueprint and business model and converted their malls into office spaces. The reasons for the lack of success of these malls vary..

Some of the challenges that the developers of these malls have not been able to address are providing for adequate parking and scientific people movement within the malls, coming up with a dynamic plan for upgrading facilities, attracting a suitable tenant mix and proper positioning..

Success Ingredients : 

There is now a distinct need for mall developers to introspect on the factors that contribute to either the success or failure of a mall. For instance, there is an increasing awareness among mall developers that leasing mall spaces as opposed to selling them is the way to go. Malls in which spaces are individually sold (or ‘strata sold’) tend to suffer from the absence of proper mall management – which is now the acknowledged fulcrum for success, regardless of how large or well-conceived the mall is.

There are basic parameters that mall developers must keep in mind at the very conception and design stage of their malls. Location is, of course, a vital ingredient for the success of any mall. Approach and accessibility, especially in terms of proximity to the key centres and ingress and egress of the mall, are equally important..

The mall must have adequate facilities and provide retailers with good accessibility to their stores, space for storage and staff utilities. Very importantly, it must get the parking equation right…

Untangling the Parking Knot :

A mall that does not provide sufficient and properly planned parking in India is headed for disaster. In India, the issue of parking is a challenge to both mall owners and customers. Creating parking facilities when the cost of land is high is a very capital-intensive decision for a mall developer. This is especially true if such measures are attempted to be enhanced in retrospect. As a general guideline, developer must provide parking while keeping the size of the mall in mind. The decision on how much is needed and how much is sufficient is a critical one.

Rotation of parking slots is another important function, as malls experience more footfalls on weekends, during which customers spend more time in malls. Parking must not become an issue in high traffic periods. If a mall cannot provide enough conventional parking, it must have innovative parking facilities such as multi-level and/or automated parking systems.

Since convenience is of prime importance in a mall, the access and exits to car parking is yet another factor besides the parking area itself. The more successful malls even provide valet service to attract more patrons by providing them with more ease of access.

While the future may bring malls that have public transport connectivity, we are not quite there yet. Metros and buses connecting directly to malls can bring down the usage of personal cars, and play a major role in be dealing with challenges such as parking and increased traffic. Until then, mall developers are constrained upon to make the most of existing infrastructure.

The Mall Management Solution :

The baseline philosophy behind the creation of any mall is that it must be a place that continually attracts people into its premises, keeping them engaged and tempting them to stay for longer periods. This cannot be done just by providing a massive number of shops. Today, Indian mall visitors expect various entertainment options and engagement mechanisms, as well. Malls cannot be just shopping complexes – they must be one-stop family destinations. If they fail at this, they invariably fail completely..

With these and other reasons why malls can potentially become under-productive and sub-optimal, mall developers are now discovering that professional mall management can be a catch-all solution. In fact, one of the most common causes for the failure of malls is that they were are not professionally managed and promoted. High-grade mall management is the single-most reason why some malls have managed to perform well even during the worst periods of economic distress..

Professional mall management is about a lot more than just keeping up the facilities in a #ShoppingCentre…It is about strategizing and implementing success formulae that have been specifically tailored to the mall. Often, a professional mall management firm can undo a significant amount of ‘done damage’ by reinventing the mall’s positioning, facilities and operations almost from the ground up..

Significantly, a mall management agency can result in operating costs reducing by between 5-7% in an up-and-running mall, and by up to 10% if it is engaged at the very inception stage. However, the cost-saving element is just one side of the story. With the implementation of professional mall management, even a languishing mall can be realigned into a destination that provides the needed success ingredients – and an overall ‘experience’ for customer..

A #MallManagement Agency can Re-engineer the shopping complex’ parking arrangements, tenant mix and internal customer traffic, and also assume the responsibility of promotional activities. Simultaneously, such an agency will ensure optimal staffing solutions and keep all facilities within the mall running flawlessly..

Not surprisingly, more and more Indian mall developers are now adopting the mall management mantra as a one-stop solution to ensure that their investments reap the best possible returns for them…!!

“South India’s Real-Estate Hotspots” for Investments | by: Juggy Marwaha | Realty Plus

Until only recently, the South Indian Real-Estate Market was known as highly price-sensitive, with buyers primarily focused on the Affordability quotient…!!

Developers had to adopt a strategy to entice potential end-users and investors by offering their products in the right price band. However, with more and more foreign companies establishing their back offices in prime locations of South Indian cities and offering power jobs to the local populations, the South Indian economy has witnessed rapid growth over the last few years. This has visibly reflected on their real estate markets, as well..

Of late, the most important South Indian real estate markets – Bangalore, Chennai, Hyderabad and Kochi, have been faring very well. This dynamic was evident even when the nation was going through a phase of low sentiments. While the burgeoning IT sector in these cities is the main reason behind the real estate boom in these cities, some of them also have a rapidly strengthening industrial base which is further augmenting real estate demand..

Bangalore :

The commercial office leasing trends in Bangalore clearly reflect that the city is topping all others in terms of space and job creation. IT, ITeS and retail are driving employment creation in the city. Bangalore is expanding in all directions, and with most phases of the Metro on track in terms of deployment, Bangalore has emerged as one of the best investment destinations for affordable, affordable luxury and luxury segment housing.

North Bangalore has seen residential prices doubling in the last 4-6 years, and many other pockets have witnessed good appreciation as well. Brigade Gateway, one of the best integrated townships in Bangalore featuring the World Trade Centre, a mall and a 5 Star hotel, was launched at a price of Rs.5,000/sq. ft. about 4-5 years back and is now transacting at above Rs. 10,000/ sq.ft.

There are numerous such examples wherein reputed developers and landmark developments have been instrumental in prices doubling and going even higher in the last 4-6 years. The finest developments in Whitefield by Sobha, Brigade, Prestige, Total Environment and Chaitanaya have practically doubled in terms of capital values in the last 5 years.

Chennai:

Residential property prices in Chennai have escalated the fastest among the cities in India, witnessing an appreciation of almost three times of what they were in 2007. However, Chennai still faces supply constraints in its prime locations in terms of new and organised development..

Traditionally, buyers in Chennai were hesitant to move to the suburbs, as the options available in the key pockets were highly priced. Very similar to the cities like South Mumbai, Delhi and Kolkata, buyers in Chennai are very particular about address and pin code value. As the city is in expansion mode with the rapid development in Chennai’s social and physical infrastructure, the suburbs and extended suburbs such as Velacherry, Peringudi and OMR belt are witnessing an upsurge in its property prices with corresponding demand.

Areas like Ayanavaram, Virugambakkam, Nungambakkam and Ashok Nagar have recorded the maximum appreciation. With limited supply and few organized developers in Annanagar and Kilpauk, end-users and investors are finding prices attractive in these neighbouring areas. With noted developers such as Chaitanaya, Vijayshanti and Arihant-Unitech active in these areas, there is a steady increase in demand.

The Central business district of Chennai, Nungambakkam, has managed to maintain the highest appreciation values with only few organized developers active in the area. However, with the Metro rail route passing through Ashok Nagar and with host of reputed and local developers’ active along the belt, a considerable amount of demand has shifted to this micro-market.

This is because of the presence of large commercial and entertainment-shopping establishments such as Phoenix and Forum and the availability of adequate social and physical infrastructure such as quality educational institutions and hospitals have proven beneficial in garnering demand from end-users and investors.

The three key growth drivers of IT / ITES, automobile manufacturing and education sector are instrumental in driving the job creation in Chennai. The price appreciation in specific pockets forecasts to be extremely good over the next 12-18 months. Some of the projects which are garnering attention from end-users and investors are Falling Waters in Peringudi, Oceanique on ECR Road, Embassy Residency and Pristine Acres in OMR.

Hyderabad:

Taking in consideration the current prevailing prices, developers have very little room for profit. Properties here are value buys in all respects, and one cannot go wrong with buying into quality projects at the current price levels with an investment horizon of 3-5 year. The Telangana agitation was the primary reason for the stagnation of prices in Hyderabad.

While Hyderabad’s average prices may reflect stagnation, there are multiple exemptions to this rule. A few such instances are Jayabheri’s Orange County, which has seen 33% absolute appreciation within a horizon span of 3-4 years and Jayabheri’s Silicon County, which has almost doubled in the last four years. Aparna’s Sarovar Grande has seen about 43% absolute appreciations in the last 12-15 months.

Good projects by reputed developers have shown very robust capital appreciation in the city. Though Bangalore and Chennai has clocked better appreciation values, Hyderabad by no means has lacked appreciation growth – it has merely been selective.

The socio-political and economic scenario is now far more favourable for the real estate sector. Hyderabad’s real estate market is likely to grow at a relatively faster pace to give renewed competition to cities like Bangalore, Chennai and Kochi. In the mid-to-long term, investor confidence in Hyderabad real estate will emerge in force once more. Companies like Facebook, Google and Apple have long-standing plans to expand their bases in Hyderabad – a factor which will work in favour of faster appreciation.

One of the hottest emerging locations is Vijaywada, where land prices have increased by almost 300% because of speculation. This renders Vijaywada unviable for residential projects over the short term, but a price correction from the speculative levels in anticipated over the next one-and-a-half years. After that, many more corporates will move into Vijaywada, thereby boosting residential demand as well.

Kochi:

Kochi is an emerging metropolis where modern urban lifestyles are merging with the city’s traditional framework. During its initial realty boom, Kochi grew exponentially, with more people migrating to the city and consuming even the outlying catchments of Kakkanad, Palarivattom, Vytilla, Edappally and Kadavanthra.

Development of IT/ITES projects such as the Kochi Smart City and initiatives to channelize traffic and improve connectivity – such as the Mobility Hub at Vytilla – have fuelled the current real estate boom, with more and more developers cashing in.

The days when builders in Kochi focused only on affluent buyers are over. The Kochi residential real estate market is now replete with affordable housing projects, which account for about 60% of the total housing development in the city. The soaring land prices have made it difficult to own or build independent houses, which were once the most popular configuration in Kochi. There is an increased demand from the emerging mid-income segment that wants homes packed with amenities at affordable prices.

The demand for budget housing is so strong that supply has penetrated even the poshest areas. The prime localities that offer luxury multi-storey apartments, such as Marine Drive, are seeing the arrival of affordable and mid-income housing projects in the vicinity to the more expensive waterfront apartments and villas.

While the global recession in 2009-’10 impacted all markets across the country, there was no decrease in Kochi residential real estate between 2012-13. Kochi is an investor market with many investments coming in from the Gulf via NRIs. In most cases, flats in new projects are sold out to the tune of 80% very quickly, but less than 20% would be actually occupied.

Luxury apartments on Marine Drive were quoted at Rs. 3800-4000/sq.ft in 2008-’09. Now, the rates for premium apartments in this area have almost doubled. Mid-range apartments by local developers are usually sold out by upto 90% of the inventory over a period of 1.5-2 years. The apartments in non-prime areas need to sell at price tags of upto Rs. 70 lakh….!!

Overall “Mall vacancy in India”,maintains status-quo at 14.5% | Realty Plus

According to Cushman & Wakefield’s latest Retail reports, the overall #MallVacancy, levels across the top eight India cities remained stagnant at 14.47% in Q2 2014, which was recorded around 0.4 percentage points lower compared to Q1 2014…Amongst the top eight cities, Pune witnessed sharpest decline of 2.5 percentage points due to healthy leasing activity and no new mall supply. Ahmedabad, Chennai and Bengaluru also recorded drops of 0.4 percentage point each due to moderate demand for quality mall spaces from apparels and food and beverages (#F&B) retailers…Hyderabad witnessed a rise of 1.1%, in mall vacancy in the same period.

Q2 2014 saw the addition of 370,000 sq ft of new mall space, which was similar to that received in the previous quarter. The supply comprised of 250,000 sq ft in one mall in NCR and the residual 120,000 sq ft in an operational mall in Kolkata. As many as six new malls planned for Q2 2014 witnessed the deferment to the second half of the year, which together accounted for 2.33 million square feet (msf)…

While three malls measuring 700,000 sf in total were delayed in Bengaluru due to approval delays, slower construction pace in tandem with low leasing led to deferment of one mall each in NCR, Pune and Hyderabad, measuring 700,000 sf, 430,000 sf and 500,000 sf respectively.

Sanjay Dutt, Executive Managing Director, South Asia Cushman & Wakefield, said, “The retail and retail real estate markets are still going through a period of uncertainty. Currently, we are witnessing stagnation in the demand-supply dynamics as mall supply is being deferred and existing vacancies remain more or less stable. Whilst everyone is aware of the huge potential that exists for organised retail in India and domestic and international retailers are keen to expand their presence in the country, they are awaiting the conducive conditions to do so. The real estate sector has been maturing to provide better quality spaces and adopting best practices to cater to retailers needs. However, macroeconomic conditions and not just the sentiments need to improve further to encourage consumer spending and the government needs to address the uncertainty that exists with respect to its policy stand on FDI in retail. The RIET’s for commercial properties post successful listings, would potentially open up for shopping center portfolio listings, giving much needed exit route to the developers & investors. This would encourage shopping centre developers to create much needed quality organized retail space at locations that matter. The overall infrastructure to support retail trade such as transportation and logistics too need to improve substantially for the sector to kick in to its next phase of growth.”

According to C&W, mall rentals remained stable across most cities except Bengaluru, Chennai, Mumbai and Pune where a few micro markets depicted rental variations. In Bengaluru, the sharpest rental decline of 13% was noticed in Mysore Road where lower trade densities impacted rentals adversely. Similarly, Cunningham Road in Bengaluru also witnessed lower demand leading to a 10% dip in rentals. On the other hand, Goregaon in Mumbai witnessed a 10% increase in mall rentals due to healthy demand from retailers. In Pune, Hadapsar also witnessed a positive trend in leasing leading to a 9% uptick in mall rentals. In Chennai, almost all mall micro markets witnessed a rental decline from the last quarter due to weakening demand. The sharpest rental dip of 9% came in Chennai-Western where lack of new mall supply hampered retailer demand for this location. Mall rentals in Hyderabad, Ahmedabad and Kolkata remained stable.

In Pune, JM Road witnessed the highest rental appreciation of 9% due to high demand from fashion and lifestyle retailers. Vashi in Mumbai also witnessed similar rental appreciation due to high interest from apparels and F&B retailers. In Chennai, lack of optimum sized retail spaces led to a 7% decline in main street rentals. Anna Nagar 2nd Avenue in Chennai also witnessed a 7% dip in rentals from last quarter as ongoing infrastructure projects curtailed footfalls. All main streets in NCR, Ahmedabad, Hyderabad and Kolkata recorded stable rentals during this quarter. Vittal Mallaya Road in Bengaluru witnessed a 4% rental drop in wake of dearth of optimum-sized retail spaces and already high rentals commanded by this established main street.

During H1 2014, Bengaluru witnessed no new mall supply; this was primarily owing to the delay in approvals, which led to the deferment of upcoming supply. Meanwhile, the city mall vacancy level registered a dip of 0.4 percentage point and was noted at 7.1% towards the end of Q2 2014 due to the absence of new mall supply and moderate demand from apparels, F&B, footwear and electronics retailers. Although most locations in main streets and mall micro markets recorded stable rental trend this quarter, select main streets and mall micro-markets registered a drop in rentals. Whilst Cunningham Road and Mysore Road mall micro markets witnessed a decline of 10-13% in rentals in the wake of weak trading activity; Bannerghatta Road mall micro market recorded a drop of 3% in order to keep rentals competitive and attract newer brands. Main streets of Brigade Road and Vittal Mallya Road observed a drop of 3-4% in rentals due to limited availability of options with optimum sized floor plates. Going forward, Cunningham Road and Mysore Road mall micro markets may experience further downward pressure on rentals. On the other hand, established main streets such as Indiranagar 100 Feet Road, New BEL Road, Kamanahalli Road and Koramangala 80 Feet Road may witness an upward rental bias owing to healthy enquiries from apparels, F&B, electronics and jewelry brands.

In H1 2014, Chennai did not witness any new shopping malls becoming operational and this led to a marginal decline of 0.4 percentage points in vacancy, which was recorded at 5.9% at the end of this quarter. Cautious sentiments and limited transactions led to a dip in mall rentals across all micro markets. Chennai-Western saw the sharpest decline with a 9% drop owing to the ongoing infrastructure projects, which curtailed footfalls and demand. Amongst main streets, strong demand from jewelry retailers for Usman Road- North and Usman Road- South led to a 4% rental appreciation for these locations. However, no availability of optimum sized floor plates in Cathedral Road-R.K. Salai led to a 7% rental dip for this micro market. Enquiries from jewelry retailers for select main streets near CBD remain high but Anna Nagar-2nd Avenue may witness a negative rental bias due to lack of demand caused by the ongoing metro work. Paucity of quality mall space and low demand may lead to stagnant vacancy levels and rental decline across most micro markets.

The mall stock in Hyderabad remained stable in Q2 2014, with 500,000 sf mall space deferred to the next quarter. Q2 2014 witnessed a rise in vacancy by 1.1 percentage points and was noted at 8.22%. Established main streets such as Himayathnagar, Banjara Hills, Jubilee Hills and Kukatpally witnessed an increase in demand from retailers, belonging to apparels, footwear and F&B categories. In the interim, enquiry level for electronic and apparels brands increased in peripheral locations such as Attapur and Kothapet. Whilst mall and main street rentals remained stable, next quarter the city is likely to witness infusion of 500,000 sf of mall space in Kukatpally micro market, which will put a downward pressure on the rentals.

Kolkata witnessed 120,000 sf of mall supply during the first half of 2014 and the overall city mall vacancy increased marginally by 0.07 percentage points. Limited transactions and moderate demand for retail space was recorded. Owing to lack of availability of quality retail space on main streets, malls witnessed more demand compared to main streets. Central and East locations continued to see majority of the leasing activity in both malls and main streets owing to churn and ready catchment. The first half of 2014 witnessed leasing activity predominantly from the apparels segment but rentals remained stable in both main streets and malls.

The first half of 2014 did not witness the opening of any new malls in Mumbai. Despite no new supply, churn in malls led to overall mall vacancies increasing marginally by 0.06 percentage points to 15.4%. During Q2, healthy demand led to mall rentals at Goregaon and Vashi appreciating 10% and 5% respectively while high vacancy levels in malls in Bhandup resulted in developers reducing rentals by 5% to attract retailers. Limited churn kept mall rentals stable in all other locations of the city. Main streets in Mumbai witnessed vibrant leasing activity with domestic and foreign retailers in the apparels and F&B segments actively expanding their presence at locations like Vashi, Lower Parel, Andheri and Linking Road. Owing to high footfall and thriving retail demand in Vashi, strong interest of retailers led to rentals appreciating by 9%. Mall rentals at select locations such as Lower Parel and Malad could appreciate due to higher demand for quality space. Main streets are also expected to witness improved leasing activity in the coming months. Increasing demand for space in main street locations such as Linking Road, Borivali and Thane could lead to increase in rental values.

Delhi-NCR witnessed one new shopping mall measuring 250,000 sf become operational with 60% occupancy levels in H1 2014. Amidst moderate interest among retailers to foray into new and emerging locations, developers continued with slow pace of construction deferring completion of malls. During Q2 2014, overall mall vacancy was recorded at 13.5%, which is 0.06 percentage points higher due to the influx of new mall space. With balanced demand supply conditions, rentals remained stable across all mall locations.

 

“Hotel Brands” : the “Devil Is in the Delivery” | BCG

Two Big Trends in the Hotel / Lodging industry are colliding…Whether Hotel-Companies get caught in the Pile-up or Steer-clear of the wreckage will have a big impact on their profitability…?

One trend is the industry’s increasing use of #Franchising, as a means of achieving more “Asset Light” #BusinessModels…For the past decade or longer, #HotelCompanies, have been divesting physical properties and becoming Pure #BrandOwners, and orchestrators because this model receives higher share-price multiples from public equity markets. One key consequence is that hotel companies increasingly must rely on individual franchisees to deliver the customer service experience that they have spent millions of dollars developing and educating consumers to expect—and that substantially defines their brands..

The other trend which is, the rise of information transparency and perpetual connectivity in the digital, and increasingly mobile, age…Online opinions affect more and more #Consumers, travel decisions…Our research shows that the two most trusted channels are personal recommendations (not surprisingly, 90 percent of people rely on these) and the opinions of other consumers they find online (70 percent trust those)…Our research also indicates that the average consumer spends 42 hours online—the equivalent of a full workweek—dreaming about, researching, planning, and making reservations for a four-day leisure trip, and then sharing the experience. Dreaming and researching take up 75 percent of the 42 hours—ample time to be influenced by what others have to say. This time is having an increasing impact on how people book and where they choose to stay, and this impact is showing up in hotel companies’ average daily rates (ADRs)…

Recent research by BCG involving more than a Dozen #HotelBrands, in several-categories shows a strong correlation between companies’ ratings on travel sites and their ADRs. Perhaps even more significant, we found a strong correlation between the consistency of those ratings and hotels’ ADRs…Companies that deliver Higher #CustomerSatisfaction, have the opportunity to charge more; conversely, consumers recognize those brands with inconsistent delivery—from both their own experiences and those of others—and discount the amount they are willing to pay...Within a network of multiple #PropertyOwners, the worst offenders can drag down the best performers and undercut brand ADRs across the board…In today’s #DigitallyDriven World…generating higher ADRs means delivering on the brand promise—and delivering consistently.

Many, if not most, hotel companies have come to grips with this #Operating-Disconnect, they understand that they are giving up direct control of brand delivery at precisely the time when consistency of that delivery has never been more important. They have taken steps to develop New #Strategies, Systems, and Processes for ensuring that their #FranchisePartners, deliver the #BrandExperience, that customers expect. (See Exhibit 2.) Those that successfully master the clear articulation of their brands and consistently execute the #BrandPromise, are rewarded—with Higher Revenues, a Bigger Pool of Potential Owner-Franchisees, and a product that achieves a premium in the marketplace...Those that do not increasingly pay the price…!!

Standards and Sticks:

With hotel networks today often spanning multiple brands, hundreds of owners, and thousands of properties, ensuring consistency of execution is a complex task. Companies undertaking brand renovation efforts face an even more daunting challenge as they must rely on owner-operators to deliver a new, different, enhanced experience, and to do so within the tight economic constraints of a highly competitive industry. Inconsistent execution can kill a brand renewal before it has a chance to prove itself.

The default approach on brand delivery for many hotel companies has been to develop a system of “brand standards” that they require franchisees and other operators to follow. These typically involve lengthy, highly detailed brand-standards manuals, providing instruction for everything from the number and content of information cards displayed in each guest room to rules for employee computer access. We regularly see manuals that run hundreds of pages and refer users to other manuals in the company’s collection for more detailed instruction on particular issues. Most make no attempt to prioritize or differentiate among standards or the impact they have on customer satisfaction. Very often, standards that directly affect what customers see and feel—cleanliness, for example—are given the same weight as specifications for things that are completely invisible to them…

This type of approach often ends up in companies resorting to sticks over carrots, punishing transgressions rather than offering incentives for good behavior. It adds stress to the relationship between franchiser and franchisee, and it can lead to corners being cut and inconsistent experiences for the customer from one property to the next. It also encourages owner-operators to put their efforts into avoiding transgressions rather than seeking to deliver the customer experience that the brand has promised. Most important, it does little to encourage better service, especially the kind of individualized service that customers tend to remember and post online about..

It Pays to Take a Better Approach:

Our experience, and that of many hotel companies, show that taking a more comprehensive approach to working with franchise partners on brand delivery can achieve a better result for travelers—and higher ADRs as a result. There are seven levers to pull; companies looking for the best execution will combine all of them..

Optimize the owner base. Each hotel company or brand has its own mix of property owners composed of large institutional franchisees with hundreds of properties or small, often family-run, operators—or a mix of both. Each requires a different style of engagement, and companies should think through how their mix of franchisees affects their brand delivery. They may want to favor one type of owner over the other, and gear the other components of brand delivery accordingly..

Define the franchisee relationship. Contracts define the relationship between franchiser and franchisee, of course, including the obligations of each party with respect to brand delivery—often in extensive detail. Companies need to approach these negotiations looking through a brand delivery lens. Smart negotiators seek to place an appropriate level of burden on the property owner to comply with brand-related requirements while leaving the company room to act as the ultimate brand steward when it needs to. Contracts today typically define undesired behavior on the part of the franchisee but much more rarely include incentives for providing better service or meeting customer satisfaction metrics. These agreements should be reviewed from the perspective of how they shape the customer experience as well as the business relationship between the franchiser and the franchisee…

Encourage owner engagement. Brand delivery is a tango: it takes two parties to do it effectively. Problems occur when companies do not appreciate the economic (or operational) impact of what they are asking their owners to do. Smart companies find the right balance between consultation and evaluation in their relationships with operators. For example, they can establish or update quality control processes that are based on customer expectations (see below) and establish clear rewards (and penalties) for operator performance…They can also build a business case that reinforces the value proposition for owners of meeting system wide service and #Customer-ExpectationMetrics…The interests of hotel companies and property owners may conflict at times, but both can find common ground over actions that lead to more satisfied guests who are willing to pay higher rates…

Build and motivate the team…Delivering on the brand promise is a function of countless day-to-day behaviors and habits within operators’ organizations. The very best strategy can fail if it is not appropriately distilled into necessary actions and capabilities. Few endeavors can have a bigger impact than working with owner-operators to help them recruit and train staff capable of delivering on the brand promise and building a team-focused organization. Many brand teams take an evaluative, rather than consultative, approach. They perform audits of compliance with the established standards, rather than helping the operator’s team provide a better product and service by, for example, defining the measures of success and putting in place processes, such as training and incentive programs, to help achieve them.

By instituting a more consultative approach, hotel companies can help their franchisees do the following :

  • Select employees on the basis of fit with the customer service culture.
  • Structure training programs to support excellent performance.
  • Encourage staff to put themselves in the customer’s shoes.
  • Pay according to performance.
  • Provide non-monetary incentives when pay is not directly linked to behavior.
  • Communicate effectively, providing employees with the information they need to do their jobs better.
  • Give employees autonomy and the authority to solve problems within certain standards.
  • Enforce standards and metrics.
  • Monitor feedback to drive continuous improvement.

Update quality control processes. Ensuring consistency across multiple properties with many owners requires updating existing processes and establishing new ones to replicate best practices and maintain focus on the critical factors that affect the customer experience. Most operators do lots of things well. The key for others is to identify best-in-class performers, analyze what makes their approach successful, and leverage this expertise by documenting processes to provide step-by-step guidelines for others. We have worked with multiple hotel chains to create a “process blueprint” that provides detailed information on best-in-class practices by department, standardizes opportunities across properties to provide similar customer experiences, reduces gaps and loopholes, serves as training material, and creates a framework for continuous improvement..

Prioritize standards. Standards do have an important place, of course. The focus should be on applying and enforcing standards when they have an impact on service and customer experience rather than developing an exhaustive, all-encompassing system that is doomed by its own weight and complexity. Again, incentives and rewards, as well as an appropriate means of correcting transgressions, are essential. Priorities are important. Research shows, for example, that customers care more about the quality of the bedding than the size of the TV. The goal should be a simple set of standards that are easy to comply with. They should give franchisees the ability to improve the experience but prevent them from cutting corners or taking shortcuts that could harm the brand…

Enforce the standards and metrics. Finally, hotel companies need to hold owner-managers accountable to documented standards and metrics that reflect the brand promise and customer experience. They need to establish a clear set of evaluation criteria to assess performance and understand where changes are needed, as well as a well-understood—and enforced—set of rewards and consequences for performance. Time limits should be set for implementing improvements or corrections. Carrots almost always work better than sticks, but both are necessary in most franchiser-franchisee relationships…

The global lodging industry is expected to approach $500 billion in revenues by 2015…Competition in established markets is intensifying, and #CustomerExpectations, are rising as companies seek to gain share and increase RevPAR (revenue per available room) through more amenities and better service…The devil, however, is in the delivery…Those companies that can work most effectively with their owner-manager partners to provide a high-quality—and consistent—brand experience will win the battle for more customers and higher rates…!!

“Large Mixed-use Retail Schemes” are the Most-Desired Style of Projects in Indian Real-estate space | ET Retail

Malls in India and elsewhere are increasingly becoming #LifestyleDestinations, posing challenges for #MallDesigners, as they need to create retail properties that engage, are cost efficient and sustainable…From mixed-use developments to family entertainment centres (#FEC) to streets and squares–such as those in Dubai–mall designers are constantly trying to innovate with #RetailFormats…Head and director of UK-based mall design firm, spoke on the latest trends in mall design…The company has designed #ShoppingCentres, in India such as DLF Place in Saket, Delhi, Phoenix Mills in Mumbai and Pacific Mall, also in the National Capital Region(#NCR)..!! 

Going by your experience of designing malls in India and abroad, what are the latest trends internationally that define shopping complex properties today?

The latest trends which we are seeing reflect the changing Global #RetailLandscape…#Consumer Demands are shifting because of the growth of #e-commerce, and designers must now create retail developments which entice shoppers beyond shopping. Creating a retail environment that is as much about leisure, as it is about retail, is essential..

Retail environments need to be in tune with and fully embrace developing lifestyle choices. Visitors should be able to enjoy a much broader experience, rather than be limited to simply shopping alone. Benoy is seeing many more mixed-use developments, which incorporate retail alongside other elements such as residential and commercial offices. These can become iconic structures that also encourage a variety of activities in the shape of leisure offers, entertainment and dining, and which ultimately create a destination. Any great mall design should also be flexible and adaptable so that it can compete with future competition, which employ the most advanced technology.

What kind of retail format has the highest demand in India, according to you– kiosks, speciality retail formats, large size formats etc.

The larger mixed-use retail schemes are the most desired style of projects in India at the present, but there is not a prevalent style or format for retail. Our schemes illustrate a mix of unit types, creating a balanced retail offer. Moreover, because India is so large and diverse, it is hard to define one style of retail design which will be successful and attractive to all areas of the country.

Always approaches India as a continent rather than a country due to the sheer magnitude of the market…The firm understands that what works well in one city may not necessarily translate to another in terms of look, feel and scale. As a country with a wide range of people, finance and consumerism, it is imperative to understand who the regional client is. As designers, Benoy is also very mindful of the natural surroundings and the history of the city.

When it comes to controlling costs of mall construction and design, how can a mall developer cut down on the expense of designing a mall yet make it more consumer friendly?

In other parts of the world, there is a defined trend towards retail developments that are either enclosed malls with natural ventilation strategies or which are open to the environment. Both allow the developer to reduce initial capital expenditure and ongoing running costs, particularly where mechanical conditioning is concerned. Of course, these strategies are not applicable in all parts of the world, yet even in Dubai, a part of the world with an aggressive environment during its summer months, there is a new wave of ground breaking open street developments – streets and squares, if you like – that are setting new benchmarks in sustainable developments. So in parts of India with a benign climate, such strategies should have a role to play.

Also seeing an emphasis of simplification of development so that the nature of the construction is cost efficient. That is not to say that developments should be visually bland or banal, rather that the architectural solution hides an efficiency of construction.

What is the contribution of the mall developer when it comes to facilitating a mall design and construction? Do you think Indian mall developers are up to the mark in that respect ?

Is seeing a wide variety of retail developments across all parts of the Indian retail scene. Of course, like elsewhere in the world, not all projects are world class, but there is a fast developing industry which is devouring new ideas and strategies.

In this, the developer is key. Despite the importance of the statutory authorities, the developer controls the funding, design and construction streams like the conductor of an orchestra. Their role is crucial in setting the tone and direction for any project.

Which international trends that have been extremely popular can be adopted in India according to you?

India is becoming an extremely popular market for foreign companies because of the opportunities on offer…This has led to a highly competitive environment, which is fantastic for driving growth but does highlight the need to have an established brand that sets you apart from your competitors. The recent global downturn has led to developers spending more wisely and they are becoming more selective about the partners they identify as bringing the most value to developments. As designers, it is essential that we offer beautiful schemes that are commercially viable.

Internationally, the rise in dining as an important component of any development has been well documented and it is an important trend that will define the nature of Indian retail developments over the coming years. Out will go standard, run-of-the-mill food courts to be replaced by higher-quality food villages and individual restaurants – dining will be an important anchor..

What are some of the top observations on Indian shoppers according to your psychographic studies?

As an #EmergingMarket, India has the advantage of being able to look to other countries and evaluate what works well. India, therefore, has become a platform for some of the most ambitious designs currently being actioned and offers one of the most exciting retail environments…

Shopping in India is therefore no longer a requirement, rather a choice – a leisure activity – has observed that Indian shoppers take great pleasure in the social aspects of “#RetailTherapy”…Whether Indian shoppers are couples, groups of young people or families, the social aspect of shopping is important and will continue to become more important over the coming years…!!

“India Retail-Property Market” Overview | by: Vivek Kaul | ET Retail

The Retail #RealEstateMarket, in India has developed steadily over the past decade as the quality of stock improves and local developers realize the importance of Modern #ShoppingCenter Management, such as zoning, branding, marketing and promotions, as well as the all-important strategy of following a pure lease model instead of the earlier practice of divesting units to individual investors… This evolution has led to the creation of a number of high quality shopping mall developments in the major cities of Delhi, Mumbai and Bangalore which have set the benchmark for future retail schemes..

The adoption of rental models (such as revenue-sharing) has provided support to retailers in India seeking to establish themselves in the market, and has also enabled shopping mall developers to attract international and domestic retailers to set up flagship stores…!! 

Retail Real Estate Supply: 20072014 (P) : CBRE Research

In the run-up to the global financial crisis of 2008, around 300 new shopping centers were scheduled to be completed in key cities across India. This pipeline was decimated by the credit crunch, however, leading to a shortage of modern retail estate stock. In 2011, the development pipeline sprung back to life as construction work resumed on a number of projects. At the end of 2013, the supply of modern retail space across the country’s seven largest cities stood at about 54 million sq. ft. Around 70% of this space was in New Delhi, Mumbai and Bangalore…

Leading cities including New Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad and Kolkata have all seen a steady rise in retailer enquiries in recent years. Shopping mall rents in prime sub-markets of New Delhi have witnessed growth, while values in high streets have increased in Mumbai, Bangalore and Pune. Transaction activity as well as sizes are expected to increase on the back of an increase in consumer spending and expanding mid-income purchasing power. In Mumbai, premium international brands continue to focus on affluent southern parts of the city; but the lack of quality retail space remains a major challenge to growth. Despite the scarcity of quality supply, most retail chains continue to launch their first Indian store in Mumbai and New Delhi usually in a street shop or mall before expanding elsewhere. Even as domestic big box retailers gradually expand to tier II locations, the major foreign brands remain primarily focused on tier I cities.

New supply is steadily coming on stream in the NCR, and will provide opportunities for retailers to operate in an organized retail environment. High street formats continue to dominate the retail landscape, while most luxury retailers prefer to operate from five star hotels and premium malls. Bangalore has a large quantum of organized retail supply in the pipeline which will provide retailers with further opportunities for expansion..

Amongst #RetailCategories, international #F&B outlets have continued to expand in 2013 both at the fast food and fine dining ends of the market. Luxury retailers remain focused on tier I locations but continue to refine their strategy and product offering for the Indian market, which in selected cases has seen them consolidate and reduce the size of some stores. Fashion and apparel remains a high growth sector and major apparel brands from the US and Europe continue to seek opportunities to enter or expand in major markets across the country, including certain tier II locations…

Lack of Quality Retail Real Estate Impedes Market Entry by Global Retail Giants:

There is approximately 54 million sq. ft. of retail stock in India spread across leading metropolitan cities and their surrounding regions. Even after the steady growth in supply of organized retail space over the past ten years, however, retailers of the size of Ikea often find it challenging to secure space in a prime mall in any of these cities. This is essentially because the majority of retail space developed in India to date lags behind global standards, and does not provide the quality, ambience, design, services or post-construction maintenance that global retailers are accustomed to. This is one reason why out of the more than 300 malls in the country, only a handful can be described as successful retail projects. These include Select CityWalk, DLF Emporio and DLF Promenade in South Delhi, Ambience Mall in Gurgaon, Inorbit and High Street Phoenix in Mumbai, and Forum in Bangalore. The total size of these successful malls is just 45 million sq. ft. About 31% of the upcoming supply addition is expected to be centered in smaller cities such as Pune, Chennai, Hyderabad and Kolkata over 2014, with approximately 1011 million sq. ft. of organized retail supply lined up across leading cities..

According to research estimates, India will require an annual supply of about 20 million sq. ft. of organized retail space in order to sustain growth in the sector. This will necessitate a concerted effort from developers to construct successful shopping centers to global standards. However, domestic developers are still in the middle of a steep learning curve with respect to undertaking shopping center development. Many developers view shopping centers simply as another asset class, no different from building offices or housing units. In fact, shopping centers have an organic and perpetually changing quality that needs to be planned, developed, owned and managed as a single property..

It is in this context that the role of global #RetailChains, such as Tesco and Ikea will be crucial….These retailers possess extensive experience of running successful retail stores and properties in markets like the US, China, Europe, Middle East and South East Asia, with local partners to create successful shopping formats..

By utilizing this knowledge they will be able to help usher in a revolution in the development of organized retail real estate in India..

SEBI fine-tunes “Draft-Regulations” for “Infrastructure Investment Trusts” in India | VCCircle

Leasing of land on which a Hospital or Hotel is located shall not be considered as an “ Infrastructure Project for the purposes of #InvITs”…!!

Securities market regulator #SEBI ( Securities and Exchange Board of India), has come out with more elaborate Draft Regulations for setting up “Infrastructure Investment Trusts (InvITs), which prescribe at least 80 per cent of the corpus to be invested in completed or income generating assets for InvITs issuing public units, strategic investors to bring at least 5 per cent of the amount, InvITs offer size to be at least Rs 250 crore (around $42 million) and that the proposed holding of an InvIT in the underlying assets shall be not less than Rs 500 crore ($83 million)..

This follows a previous consultation note circulated late last year and incorporates the provisions delineated in the Union Budget which provided tax pass-through status to such investment vehicles..SEBI has called for comments on its draft proposals by July 24…

Here are some key points:

InvITs are proposed to provide a suitable structure for financing/refinancing of infrastructure projects in the country..It shall invest in infrastructure projects, either directly or through SPV. In case of PPP projects, such investments shall only be through SPV…

InvITs which propose to invest at least 80 per cent of the value of the assets in the completed and revenue generating infrastructure assets, shall raise funds only through public issue of units and minimum subscription size and trading lot for such InvIT shall be Rs 5 lakh. Rest 20 per cent may be invested in under construction infrastructure projects (subject to maximum of 10 per cent) and other permissible investments. The minimum public float in such issues would be 25 per cent, which is at par with equity issues on the bourses.

These other permissible investments include listed or unlisted debt of companies or body corporate in infrastructure sector (provided that this shall not include any investment made in debt of the SPV); shares of companies listed on a recognised stock exchange in India which derives over 80 per cent of operating income from infrastructure sector; government securities besides money market instruments, liquid mutual funds or cash equivalents..

An InvIT which proposes to invest more than 10 per cent of the value of its assets in under construction infrastructure projects shall necessarily raise funds through private placement from Qualified Institutional Buyers and body corporate and the minimum investment and trading lot for such InvITs shall be of Rs 1 crore. Such InvITs shall mandatorily invest in at least one completed and revenue generating project and not less than one pre- commercial operation date (COD) project. In such InvITs there should be at least five QIBs and a maximum of 1,000 institutional investors holding units.

Listing shall be mandatory for both publicly offered and privately placed InvITs…!!

The InvIT shall refund money to the applicants if it collects subscription of amount less than 75 per cent of the issue size as specified in the final offer document or in the case of public issues less than 20 subscribers buy the units of the InvIT. SEBI has also said the maximum oversubscription amount which can be retained by the InvIT would be capped at 25 per cent over and above the target.,

An InvIT prior to making an offer of units, either through public issue or private placement, may have strategic investors such as banks, international multilateral financial institutions, foreign portfolio investors including sovereign wealth funds, etc., which together invest at least 5 per cent of the size of the InvIT or such amount  as may be specified by SEBI.

An InvIT shall be a trust with parties such as sponsor(s), investment manager, trustee and project manager(s). A trustee can either be a debenture trustee registered with SEBI and not an associate of the sponsor(s)/investment manager; or an associate of the sponsor/investment manager having not less than 50 per cent of its directors as independent and not related parties to the InvIT. However, a trustee of InvIT cannot be trustee to another InvIT or an Alternative Investment Fund engaged in infrastructure sector.

The proposed holding of an InvIT in the underlying assets shall be not less than Rs 500 crore and the offer size of the InvIT shall not be less then Rs 250 crore at the time of initial offer of units.

The aggregate consolidated borrowing of the InvIT and the underlying SPVs shall be capped at 49 per cent of the value of InvIT assets. However, this may exclude any debt infused by the InvIT in the underlying SPV. Further, for any borrowing exceeding 25 per cent of the value of InvIT assets, requirement of credit rating and unit holders approval has been made mandatory.

SEBI has said leasing of land or building on which a hospital or hotel is located shall not be considered as an infrastructure project for the purposes of InvITs but if revenues are generated from operation and management of a hospital or hotel, then the same shall be considered as infrastructure project under these regulations.

If the sponsor of the InvIT is a developer it needs to have at least two projects which have achieved financial closure…

It calls for the investment manager to have net worth of at least Rs 5 crore if it is a body corporate or a company or net tangible assets of value not less than Rs 5 crore in case the it is a Limited Liability Partnership..

It should have at least five years experience in #FundManagement/#AdvisoryServices/development in the #InfrastructureSector and have at least two employees with five years or more experience each, in fund management/advisory services/development in the infrastructure sector; at least one employee who has five years of experience in the relevant sub-sector(s) in which the InvIT has invested or proposes to invest; an office in India from where the operations pertaining to the InvIT is proposed to be conducted…!!

“Closure of Bad-Assets”, “shelving of Mall-Projects” pose “challenges for Domestic & Global Retailers” to expand business in India | ET Retail

International Retailers are finding it difficult to get Quality Retail-Spaces, in Top-Indian cities even as several Malls across major-markets are lying mostly vacant because of Poor Standards..!!

” Demand for Quality #MallSpace, is soaring with #InternationalBrands, posting a healthy jump in their year-on-year revenues. However, we are seeing many bad malls shutting down and mall projects in early stage of planning are being shelved,” said Limaye, head of research and real-estate intelligence service at JLL India..

According to a recent CBRE report, out of the more than 300 malls in the country, only a handful can be described as successful retail projects as 40% of the total available malls are bad assets and have over 50% vacancy. Most malls lag behind global standards with some of them spread across just 4-5 million sq ft, it said..

” Over 60% of global retailers already have a presence in India but the lack of quality retail space and legislative issues have been an impediment to the spread of organised retail in the country,” said Magazine, managing director of property consultant CBRE South Asia. This has posed challenges for global brands like Abercrombie & Fitch, Topman Top Shop, Ralph Lauren Polo and Uniqlo that have lined up to enter the country…!!

While some brands are planning a greater presence in high streets and co-location, others are penetrating into tier II and III towns to keep their expansion intact till March 2015 when real estate analysts foresee a void in mall expansions…

” We still make good of shortage of quality malls through standalone high-street stores,” said Vasanth, Executive Director at Max Fashions….He said the retailer, which has seen 15%-18% growth in like to like sales this year, plans to open 30 stores annually..

A senior executive from an international brand that is yet to launch operation in India said besides malls there is lack of quality space on high streets as well. Some developers are expected to revamp existing malls to accommodate retailers looking for global ambiance, this person added..

According to JLL India, Average Absorption of #MallSpace, has halved from the peak of 10.7 million sq ft in 2011…The Total #MallSupply, also “dropped to 5.7 million sq ft in 2013 from 13.8 million sq ft in 2011..”

Industry experts say many brands are focusing on tier II and III towns. “In the next few years, modern retail is expected to grow 50% to 60% per annually in tier II and tier III cities, compared to only around 30% in the metros,” said Joshi, AVP marketing at Pioneer Property Zone. Marks & Spencer has entered secondary cities such as Kochi, Kanpur and Surat..

” With new retail sites opening, we plan to enter new cities like Guwahati and Mohali, even as we expand in the cities where we are already present,” said Nair, managing director at Marks & Spencer Reliance Retail India….The firm has introduced Marks & Spencer Lingerie & Beauty store format that trade from a smaller footprint…Nair said the retailer, which reported 42% jump in sales last year, targets a total of 100 stores by 2016 including M&S Lingerie & Beauty stores…!!

“Legislative issues, Lack of Quality Retail space are impediments”, to spread of Organised Retail in India | CBRE

“High Rentals  and “poor Mall-Management” are deterrents to Entry & Expansion of #InternationalRetailers in the country”, says a study by the real estate services firm..!!

Almost 60% of global retailers have a presence in India, but legislative issues and lack of quality space continue to impede the growth of organised retail in the country, CBRE Research has said in a study titled ‘Expanding Horizons of Global Retailers in India’.

The multinational #RealEstateServices firm analysed more than 300 prominent global retailers in the study to identify Operating-trends, #ExpansionStrategies and extent of #MarketPenetration across Leading cities in the country..

The firm undertook this project in an effort to map and analyse the spread of international retailers in India, where the expansion of global retailers has been a major driver of real estate demand..The study analysed Brands across Luxury, Premium & High-end Categories, and judged their presence in the country on the basis of #StandaloneStores within Malls as well as Traditional Marketplaces / #HighStreets…

Although India has emerged as a prominent destination for #RetailSegments, such as Food and Beverages (F&B), #FashionApparel and BigBox / #HypermarketChains, almost FOUR out of TEN #GlobalRetailers, are yet to set up shop in the country…the study found..

Nearly 80% of the retailers that have entered India are present in New Delhi while the figure is 70% for Mumbai and nearly 50% for Bangalore. This signifies the significance of the metropolitan cities as the preferred entry points for international retail chains..

The retailers chose tier II cities such as Pune, Hyderabad, Kolkata, Ahmedabad, Chandigarh and Jaipur next, the study shows….” India is still a largely untapped and #unorganisedRetail Market as a large number of prominent #GlobalRetailers are yet to commence operations here…The country holds a considerable advantage over other #EmergingRetailDestinations due to its strong Domestic-consumption and Low-rate of #MarketPenetration by #InternationalRetailers…

India’s new middle class is increasingly becoming brand conscious and willing to spend on quality goods, a trend which is creating numerous business opportunities for mid-range international brands. With political and economic sentiments already showing signs of improvement, we believe this is the right time for international retailers to look at India for expansion into the region,” said chairman and managing director of CBRE, South Asia..

American brands account for the bulk of retailers covered in the CBRE study, comprising 30% of the total…Most US retailers are present in the mass market F&B category while retailers from Italy and the UK account for about 19% and 16%, respectively, and are largely concentrated in the luxury segment..

The study also points to the lack of Quality #RetailRealEstate supply, coupled with prohibitive-legislation that has acted as an impediment to the spread of organised retail in India..

Compounding the problem of limited investment-grade supply of #RetailSpace are high-rentals and lack of professional #Mall-management, all of which make for a challenging operating environment for Global Retailers, the study says…!!

“Department of Industrial Policy & Promotion (DIPP)” for “simplification of Land Acquisition Act”, in India | ET Retail

The Department of Industrial Policy and Promotion (#DIPP) will pitch for simplification of the #LandAcquisitionAct to facilitate investment and manufacturing in the economy by doing away with the cumbersome rules and procedures in the legislation..

Commerce and industry minister Nirmala Sitharaman, will likely take the matter up with her rural development counterpart Gopinath Munde…DIPP will likely propose ” doing away with the social impact assessment process in the Act, which is a pre-requisite for public-private partnership (PPP) and private entities to acquire land”.

” Land Act in the present form has stalled industrial activity and suitable amendments are urgently needed to spur manufacturing in the economy…. There is no land acquisition taking place. We have taken up the matter with the minister,” said an official…

 

 

Act stipulates establishment of a state social impact assessment unit, the office of a commissioner, rehabilitation and resettlement, and a state-level monitoring committee by each state government. The Act has nearly brought acquiring land to a halt, impacting large projects hitting manufacturing growth, which contracted by 0.7% in 2013-14.

Besides, the commerce and industry ministry may also recommend empowering of district collectors of each state to authorise providing of up to 500 acres for small-scale industrial projects. Investment and infrastructure reforms are one of the 10 point agenda of Prime Minister Narendra Modi unveiled on Thursday… Rural development minister Gopinath Munde ruled out scrapping of the land acquisition act, however, called for a need to amend it….

Ms. Sitharaman has emphasised on bolstering manufacturing in the economy. Munde was recently reported as saying that the rules of the Act have made the implementation difficult. “There is no question of repealing the Act, as we supported it in Parliament; it is a good law. I have taken up the Act as my first issue with officials in this ministry… I must say I agree with the rates of compensation in the Act,” he said.

Any amendment the Act will need to go through the Parliament. The Act has made it mandatory to get the consent of at least 70% of the affected people for acquiring land for PPP projects and 80% for acquiring land for private companies.

DIPP secretary Amitabh Kant had said in his interview to ET last month that the law had to be redrafted and simplified keeping in mind that a fair price is paid to the farmer.

“We need to un-shackle controls. It provides for too many committees and too many approvals. It will be too time-consuming a process,” he had said..

The ” New Law provides compensation FOUR Times the Market-price for Rural-Land and up-to TWICE the value of Urban-land for acquiring for public works or industrial activities”…!!