DELHI LAND AND FINANCE
- STRATEGY OR SERENDIPITY
ABOUT THE CO.
• Delhi Land and Finance Co. (DLF) was incorporated in 1946
• India's largest real estate company in terms of revenues, earnings, market
capitalization and developable area.
• It has a 62-year track record of sustained growth, customer satisfaction,
and innovation.
• The group has over 28.6 msf of completed development and 117 msf of
planned projects (PRESENT: The company has approximately 238 msf of
completed development and 423 msf of planned projects, and has pan
India presence across 30 cities)
• DLF's primary business is development of residential, commercial and
retail properties
• Acquired lands on “buy now, pay later strategy”.
HISTORY
• Started by Chaudhary Raghavendra Singh and continued by son-in-law Kushal Pal
Singh(world’s richest property developer- world’s 98th richest man according to Forbes)
• Developed some of the first residential colonies in Delhi such as Krishna Nagar in East
Delhi, which was completed in 1949.
• Delhi Development Act in 1957, the state assumed control of real estate development
activities in Delhi, which resulted in restrictions on private real estate colony
development. We therefore commenced acquiring land at relatively low cost outside
the area controlled by the Delhi Development Authority, particularly in the district of
Gurgaon in the adjacent state of Haryana.
• This led to our first landmark real estate development project – DLF Qutab Enclave,
which has now evolved into DLF City
(DLF City is spread over 3,000 acres in Gurgaon and is an integrated township, which
includes residential, commercial and retail properties in a modern city infrastructure
with schools, hospitals, hotels and shopping malls. It also boasts of the prestigious DLF
Golf and Country Club with night golfing facilities.)
VISION, MISSION AND VALUES
DLF Vision
To contribute significantly to building the new India and become the
world’s most valuable real estate company.
DLF Mission
To build world-class real-estate concepts across six business lines with the
highest standards of professionalism, ethics, quality and customer service
DLF Values
• Sustained efforts to enhance customer value and quality
• Ethical and professional service
• Compliance and respect for all community, environmental and legal
requirements.
BUSINESS LINE
[Link] DEVELOPMENT
2. COMMERCIAL
DEVELOPMENT
3. RETAIL DEVELOPMENT
[Link] DEVELOPMENT
• Build and sold Houses, Duplexes, apartments
• Focus: higher end market
• Introduced luxury and super luxury category for homes
• Business model allows pre-sale of property prior to breaking
ground, leading to positive cash flows.
• 8800 acres of colonies and townships developed over 20msf of
residential space
• Innovation in development and marketing
• Early developers of theme based projects (Mangolias development
in DLF city)
• Innovation brought in through customers enabled to customise their
new homes.
2. COMMERCIAL DEVELOPMENT
• Built, leased and sold commercial office space
• Focus: International standards attracting multi national
tenants
• Continuously endeavored to strengthen and expand
relationships with commercial clients.
• Process of acquiring land of appx. 15.9 m lettable [Link] of
commercial space.
• Existing client base of 70 fortune 500 clients out of a total 110
corporate client relationships.
• Leased area grew 10 times with expansion of client’s business
in India.
3. RETAIL DEVELOPMENT
• Actively pursued modern retailing development by building some of India’s
earliest malls
• Business model: included both the sale and ownership and leasing of retail
developments.
• 2006, India’s leading developers of retail space in terms of development of malls,
shopping centers and markets.
• Six retail real estate development formats catering entire spectrum of retail
market to serve different customers
• Esthetic designs, high quality infrastructure, leisure and entertainment options
• MOU with:
- Trent (Tata Group)
- Metro Cash & Carry
• They sold all units in retail development, before completion construction.
• Payments made in installments after payment of initial deposit.
PLACE
SALES AND MARKETING
POSSESSION
FORMULATION AND POST
PROJECT PROJECT
OF MARKETING COLLECTION POSSESSION
LIAISON SALES
STRATEGY SERVICE
•Comprehensive •Comprehensive •Booking at •Special team for •Completion of
survey of survey of nearby project sites/ client service possession
nearby projects projects Headoffice focusing on formalities
•Positioning of the •Marketing team collection •Provide
•Positioning of •Preference for
project vis-vis for each project possession
the project vis- other projects supported by collecting 100% manual
vis other •Determination of loan processing upfront and providing
projects differential officer incentives for details of post
•Determination pricing strategy •Execution of down payments possession legal
of differential and detailed agreement of •Handing over process
pricing strategy price list deed possession •Community
and detailed guide with
detailed
price list ameneties
•Quarterly news
letter to other
property
residents.
STRATEGY
KEY ELEMENTS OF ITS EXISTING BUSINESS STRATEGY
DIVERSIFY INTO HOTEL DEVELOPMENT
MOVE TO SALES REVENUE BASED BUSINESS MODEL
EXTERNAL ENVIRONMENT
• Highly competitive
• Divided into organised and unorganised
segments
• Highly fragmented
• BARGAINING POWER OF BUYERS
