DLF
Strategic Management Group 01
About DLF
• Estd. In Sep 18, 1946
• Real Estate Developer – Commercial, Residential and Retail
Properties.
• DLF funtions:
– Identification
– Acquisition
– Planning, Executing and Marketing of Projects
– Maintenance and Management of Developed Projects.
DLF : The Phoenix
• Started with Real Estate business.
• Premeditated the Post Partition advantage.
• Constructed Greater Kailash, South Extension and Hauz Khas.
• Developed 21 Colonies in Delhi .
• Later were taken over by DDA.
• Diversified to Car Batteries - Joint Venture with UE, USA.
• Venture was a failure.
• Targeted the available 30 acres land and started acquiring
more lands on credit basis.
Turning Point…
• Chaudhary Radhvendra Singh’s chat with Rajiv Gandhi.
• Liberalization of laws on the real estate sector.
• Lead to the ease of obtaining licenses and permissions to
transform agricultural holdings to non-agricultural holdings.
• Soon restrictions were imposed.
• Changing the law rather than breaking it.
• Expansion towards south of Delhi.
• First Project : Qutab Enclave.
• Asia’s largest township of 3000acres in Gurgaon.
• Land value increased. Profit margin of 20%.
Business Development
• Residential Development
– Houses, Duplexes and Apartments.
– Creation of new suburbs: Luxury and Super Luxury Residences.
– Developed around 8,800 acres of colonies.
– Over 20 million [Link]. of residential space.
– Focus on THEME based PROJECTS.
• The Magnolias Development in DLF City.
– Average Value per [Link] was not less than 600.
Business Development
• Commercial Development
– Focus on properties attractive to Multinational tenants.
– Extensive portfolio of commercial properties built on International
Standards.
– DLF Center : 1992.
– Provided leased commercial space of MNCs.
– As of 2006, DLF leased out 4.89 million [Link] of commercial real estate.
– Occupancy rate of around 98%.
– 15.9 million lettable [Link] commercial space.
– Relation with Fortune 500 IT Company : 48,[Link]. of leased area.
Business Development
• Retail Development:
– Estd in 1940s.
– Developing, managing and leasing of shopping malls and theatres.
– Developed Air conditioned mega malls and retail spaces.
– 2006, DLF the leader in retail space.
– 6 retail estate development formats.
• Standalone stores
• Shopping centers
• Prime downtown shopping districts
• Neighborhood malls
• Destination malls
• Super Luxury Malls.
– Expansion Strategy of tenants.
Project Implementation
• A systematic process.
• Land Identification and Acquisition
• Project Execution
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Business Strategy
• Building SEZ .
• Development of World Class Real Estate Development
Company.
• Key Elements:
– Increasing land reserves in strategic location
– Expand core business lines nationally
– Diversify into SEZ Development
– Undertake infrastructure development
– Diversify into hotel development
– Move to a sales revenue based business model
– Enhance execution capabilities
The World Around
• Real Estate : Organized(30%) and Unorganized(70%).
• Major Player: Hudco.
• Industry was highly fragmented.
• Funds raised from Promoters and Intra Group Loans.
• Residential property value was w.r.t to its location.
• Relaxation of FDI led to the entry of Foreign competitors.
• Trend of Joint Venture and Mergers started off.
• Urbanization to go upto 41% by 2021.
• Fall in Housing loans rates lead to fast urbanization.
• Demand for IT companies for offices.
SWOT
• STRENGTHS:
– Well established company.
– Huge turnover.
– Large area acquired.
– Diversified into many segments.
• WEAKNESSES:
– Endemic to Delhi and Gurgaon.
– Less market share in other regions across India.
SWOT
• OPPORTUNITIES
– Fast Urbanization in India.
– Increase for demand in Apartments, Malls and IT Offices.
– Demand for Multiplexes.
– Demand for Hotels/Resorts.
• THREATS
– Entry of Foreign Players.
– Others targeting other parts of India.
The Road Ahead…
• Tinge of change in Business Strategy.
– Develop and Sell rather than Develop and Lease.
– City Center Malls (2,00,000sqft to 1 million sqft.)
• Planned Residential Real Estate Projects
– Public-Private Relationship
– Joint Venture between DDA
• Planned Commercial Real Estate Projects
– IT Parks.
• Planned Retail Real Estate Projects
– Mall of India – Largest Mall in India.
New Businesses
• SEZ
– Encourage Foreign Investment
– Develop Integrated SEZ min. 2,500acres.
• Integrated Township
– with Schools, Hospitals, Hotels and Captive Power Generation
Facilities.
• IT-specific SEZs.
New Businesses
• HOTELS
– 3 Star, 4 Star, 5 Star and Deluxe hotels.
– 16 storey Hilton Hotel.
• New Ventures:
– Trinity Towers
– DLF Exclusive Floors
– Infinity Towers
– DLF Cyber Green
– DLF City Center
– DLF Mega Mall
– The Aralias
– The Magnolias
– Westend Heights
– DLF IT Park
– Jasola
– DLF Place
DLF Subsidiaries
• DLF Services Limited
– Maintenance, Management services for power generation, back up
power.
– ISO 9001:2000 certified.
– Most of the operations outsourced.
• DLF Power
– Founded in 1988.
– Setting up Captive Power Plant.
– Aggregate Capacity is 55MW.
– Supply to CIL, ASEB.
THANK YOU…
