sejal architectural glass limited - Securities and Exchange Board of ...

In the commercial space, the business opportunity is led by the unprecedented outsourcing
activity happening in India, particularly in IT and ITES sectors. As the IT sector expands to
Tier III cities across India, the retail phenomenon will spread to smaller cities.
Within IT and ITES sectors, the Indian off shoring operations of multinational companies are
expected to increase demand for commercial space. Growth in commercial office space
requirement is led by the burgeoning outsourcing and information technology (IT) industry.
IT and BPO business alone contributes to around 120 lac square feet of real estate
development in 2004 and by 2010, the IT sector alone is expected to require 150 million
square feet of space across major cities.
Of the total real estate developed 20% is commercial area comprising of Offices, Shopping
malls, hotels and hospitals. Bangalore, Hyderabad, Chennai and Gurgaon are the growing
markets for such commercial space development. (Source: IBEF)
(c) Retail and Malls
India has emerged as the most attractive destination for retailers in 2007. With the retail
sector experiencing a boom, the country is witnessing a spurt in extremely large retail
spaces. According to the latest study, for the third year in a row, India leads the annual
list of most attractive emerging markets for retail investment followed by Russia and
China.
Organised retail, which currently accounts for only 4.6 per cent of the US$ 270 billion
Indian retail sector, is expected to grow at 37 per cent in 2007 and 42 per cent in 2008,
according to India Retail Report 2007. The report adds that organised retail in India has the
potential to add over US$ 45 billion business by the year 2010.
This is expected to create a demand for around 220 million square feet of retail space by
2010. According to industry estimates, 27 million square feet of organised retail space is
currently available. Another 90 million square feet is expected to be added by 2008 from
263 mall projects.
As the competition in the market intensifies, builders are going out of their way to be
different. Specialised malls, designer brands and multi-movie options are marking the
shopper's day out. Shopping malls with over 1 million sq ft of space have become the order
of the day.
Driven by changing lifestyles, strong income growth and favourable demographic patterns,
Indian retail is expanding at a rapid pace. The country may have 600 new shopping centres
by 2010. Mall space, from a meagre one million square feet in 2002, is expected to touch
40 million square feet by end-2007 and an estimated 60 million square feet by end-2008.
The new age malls give shopping a whole new experience.
(d) Hospitality Industry
With the increase of disposable of income in the hands of upwardly mobile Indian middle
class, the propensity of spending a larger portion of their income on tours and travels are
going up. This factor, coupled with the changing lifestyle of Indian population and an
increase in business travel due to a growing economy, has created demand for quality
hotels/resorts across this country. In addition, India is also emerging as a major destination
for global tourism which in turn pushing up the demand for hotels/resorts across India. This
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