MANAGEMENT DISCUSSION AND ANALYSIS REALTY DIVISION The Stock Market is not only showing the Investors Confidence Index going up but also indicating the way forward for Indian Real Estate Sector. It may be too early to conclude whether the boom in Stock Market is here to stay or it is a temporary phase. The realty market gets funds from the rising Stock Market. In fact realty sector is going through tough times at brsent and hopes for cheer from Stock Market Boom. Whenever investors in Stock Market get sufficient funds, the Investment in Realty gets there funds as re-investment, thus the impact of Stock market boom is reflected in Real Estate investments. The Investors from International Market investing money in stock exchange transfer their profits in purchasing Houses in India. The economic slowdown diversifies hits both Stock Market and Realty Market. The Real Estate Sector has been facing a slowdown since the end of 2009 and on the same pattern; the BSE Realty Index has fallen over 57% from 2009-2014. Now with the prospect of economic recovery and change in sentiments of Investors the Investment in stock Market as well as Realty market is gaining ground again. It is a good sign for Market waiting for any upward movement for long. In a bid to promote affordable housing in the State of Maharashtra, the Government has proposed a reduction in stamp Duties and Registration fee charged on residential properties, for all houses measuring below 750 Sq. Ft in size. This will bring demand back into the market. At brsent, for any property purchase the buyer needs to Shell out around 5% as Stamp Duty charges. The State Government has planned to calculate the Stamp duty as per market rates soon. As per new proposal, the Stamp Duty rates will be reduced to our brsent levy for houses for economically weaker section (EWS), 2 % for Lower Income Group (LIG) 3% for Middle Income Group (MIG) houses for property above 750 Sq. Ft. High Income individuals continue to pay Stamp Duty at the brvailing rate of 5 % Home buyers today are a lot more aware of different projects and the services they offer. People do not mind paying for desirable amenities in good housing projects where there is Club House, Swimming Pool, Gym, Sauna and Steam,Play area. etc. Previously same customer was very price conscious about buying homes with amenities. People who purchase Real Estate are now aware of best deals available not only in terms of pricing but in terms of how the deal is structured. Customers now are belting on brands that have delivered or atleast have better ability to deliver the project on time. People, who wish to enjoy a good life, want to buy homes that offer more than brick & mortar like play area for kids, life style amenities, access to good social infrastructure like School, Hospital. The earlier mindset that one family will stay in small house for generations is a thing of past. They want different amenities from their homes. Hence they are ready to pay brmium prices. There is a sea change in the requirements of Customer, Banks, Financial Institutions help customers to realize their dream homes by bridging the funding gap. FERTILISER DIVISION SSP is an important Source of Phosphate besides Sulphur, Calcium and a few micro nutrients in small proportions. Phosphate production and consumption originated in India with SSP as the primary source of mineral fertilizer .A large SSP capacity over 10 million tonnes per annum has been created in the country over the years. Total number of SSP plants touched 99 at the end of the year 2014-15. Out of 99 SSP plants, 60 plants have the capacity to produce granular SSP. All India capacity utilisation of SSP reduced from 48.5 % during 2013-14 to 45.2% during 2014-15 For and on behalf of the Board Registered Office: Bharat Fertiliser House, 12, Nanabhai Lane, Fort, Mumbai-400023. Sd/- (YOGENDRA D. PATEL) CHAIRMAN & MG. DIRECTOR DIN: 00106864 Date: 28th May,2015 Place: Mumbai. |