Chanakya
Marg Constructions Ltd
Po l l u t i o n E a t i n g C e m e n t
All of India’s major cities suffer from high
amounts of pollution. Pollution is much
more noticeable in Indian cities than any
other US cities that are adding more
CO2 in a month than what we produce
in a year. Fortunately a team of Italian
inventors have found a solution for this
increasing problem, pollution-eating
cement. Now Real Estate Developers
have the opportunity to build green
buildings and absorb pollution from
sources outside of the structure.
Western Europe has already started to
use the new cement called TX Active in
building and streets. The town of Segrete
in Northern Italy has repaved a street
that sustains 1,000 cars per hour.
Volume I Issue VI
Italian department of environment says it
has measured 60 percent reduction in
nitric oxide on that particular street. The
cement substance cuts pollution levels by
between 20 and 70 percent, but only
Pollution Eating 1
within about three meters of a structure
Cement
coated in it.
Here’s how it works: The active Realty Developers 2
principle—basically a blend of titanium Vying for Hotel Pie
dioxide that acts as photocatalyzer—can
3
be incorporated in cement, mortar, paints, SEZ Snippets
and plaster.
Port Setting Sail for 4
In the presence of natural or artificial light Growth
(this applies also indoors) the
photocatalyzer significantly speeds up the Economic Indicators 4
natural oxidation processes that cause the
decomposition of pollutants, transforming
This is just what India’s major
them into less harmful compounds such as
cities need. A substance that
water, nitrates, or carbon dioxide.
helps absorb pollution and
The developers in India could quickly begin sound – two of the most
to incorporate this material in large annoying problems in India’s
commercial projects including highways. cities today.
The cement will not stop pollution but will
As we all know the Green
certainly help to reduce its negative effects
Building Code of India when
on the environment and people with
implemented by next year, the
allergies. Can you imagine highway barriers
greenness of the building will
that absorb pollution like a sponge?
also affect the valuation of the
In fact just such a design that incorporated buildings, as is been happening
the cement earned 2nd place in the 2007 in the developed countries like
Metropolis Next Generation Design UK, Denmark, Germany, and
Competition. The team is working on a France etc.
prototype now and should be ready for
Better get ready Indian
testing by early 2008.
Developers.
 R e a l t y D ev e l o p e r V y i n g t h e H o t e l P i e
Increasing tourism in India has made a dozen global
hotel chains bullish on to expand their horizons in the
country. Putting it altogether, they have plan to set up
over 350 five star hotels, four star and budget hotels
and 500 villas.
If plans turn green, they would translate 65,000
additional rooms. The total number of hotel rooms in
all categories has only grown by 10% in the past two
years, accounting for around 92,000 rooms.
India has been gaining high popularity on the global
tourism circuit for the past couple of years. It would
further be clear in light of the data which says the
foreign tourist arrivals in India have reached to 4.43
million in 2006 from 3.92 million in 2005. Foreign
business travelers make a high percentage of the total
inbound travel. The other criteria that will make
inbound travel to flourish in India are, India hosting the
2010 Asian Games, vying for 2012 Commonwealth
games and ultimately 2020 Olympic Games. These
games are likely to increase the inbound travel
manifold.
Besides, India sees around 300 million domestic
travelers each year and the number is likely to soar by
10-15% every year.
Coupled this with the low level of hotel rooms
presently available, the shortage is very high in Indian
Metros and other Tier II cities which are also likely to
see a boom with the IT/ITeS companies moving
downward to these cities.
The global hoteliers with plans to set hotels in India
are making joint ventures with prominent realty
Companies. The renowned Hilton Group has joined hands
with Indian real estate giant DLF to develop 25,000 hotel
rooms within the next five years.
DLF will invest a whopping Rs 12,000 crore in the project
to build a chain of hotels, including around 10-12 premier
five star hotels and 100 business hotels in tier-II cities.
Accor, a pioneering hotel group in Europe, will introduce
the Formule 1 budget hotels in India and set up hotels
with the capacity of 5,000 rooms over five years. The
company has also signed a deal with Mumbai based
Nirman Lifestyle to build 5 hotels with 1080 rooms. The
rooms will carry its different hotel brands.
Close home CeeBros has ventured into the hotel business
with the Ecotel group of Raintree brand, a budget hotel.
With its initial success CeeBros has further plans to
expand the hotel business in Chennai, Coimbatore and
Hyderabad.
However there are big gaps in terms of number of
announcements made in the past few months, and the
actual construction happening on the ground. The
increase in interest rates has cut the pace of the
construction, thereby affecting the overall supply of hotel
rooms in India.
This is a waiting opportunity for the real estate companies
to capitalize on. With their land banks, many at cheaper
rates, the developers are looking at capitalizing this
opportunity when it is ripe.
SEZ Snippets
Export growth from SEZs from 2005-06 to 2006-07
is 52.31%
Total investment in the 100 notified SEZs are
Rs.15000 crores and when completed these would
have received an investment of Rs.53,561 cores.
Number of direct employment generated in these
SEZs are 25000 which is likely to increase to
15,75,462 once all the investment is completed.
India would have 642 SEZs if all the proposals are
notified, Maharashtra to lead the pack with 120
SEZs, AP 104 and Tamil Nadu with 78
Po r t - S e t t i n g S a i l f o r G r ow t h
India occupies a strategic location on the global maritime
map. Along its extensive coastline of 7,517 km, there are
12 major ports. Eleven major ports are Port Trusts,
governed by the provisions of Major Port Trust Act,
1963 and the twelfth, Ennore Port, is the first major
corporate port. In addition, there are 185 minor and
intermediate ports spread across the nine costal states.
Indian ports handle 90 per cent of India’s total foreign
trade in terms of volume and 70 per cent in terms of
value.
US$5.5 billion in the next five years
The Government of India (GOI) is using privatization as
a tool to expand existing port infrastructure (augmenting
the existing capacities as well as developing green field
ports). With the law relating to privatization already in
place, the ports sector is emerging as one of the most
attractive opportunities for private sector investments.
Rampant Growth in Traffic
Following the liberalization and opening of the Indian
economy in the early 1990s, there has been a significant
increase in India’s maritime trade, with traffic increasing
from 165 MTPA in 1991 to over 500 MTPA in 2004-05.
With Indian foreign trade likely to grow to US$150
billion which is 1.5% of the total global trade the Ministry
of Shipping projects the port traffic to grow to a level of
650 MTPA by 2008. As opposed to the growth of 3.5-4
per cent in global trade, India has been registering a 10.4
per cent growth in containerized cargo and a 6 per cent
growth in bulk cargo. India’s 4.4 million TEUs (Twenty-
foot Equivalent Units) accounts for 5-6 per cent of cargo
in Asia.
Privatization abound
Deregulation in the ports sector (100 per cent FDI is
allowed) and attractive terms of BOT/BOOT/BOMT etc.
are drawing a large number of domestic and foreign
players to this sector.
The first corporate port in India was developed with the
assistance of Asian Development Bank and has
been operationalized recently, was developed through
joint venture formation between major and minor
ports.
Port privatization has picked up momentum. In the
recent past.18 private or captive projects worth US$
1.39 billion have been approved. Of these, 13 projects
worth US$ 577.78 million are operational. The private
participants include global players such as P&O, PSA,
Maersk, Gammon India, CWC and the Dubai Port
Authority.
US$13.33 billion opportunity in NMDP
Under this program, there are several projects to be
completed over the next 10 years. The program is
proposed to be implemented through public-private
partnership. The areas for which funds would be
required can be categorized under the following three
heads:
• Projects related to port development (construction
of jetties, berths etc.)
• Procurement, replacement or up gradation of port
equipment
• Deepening of channels for improvements in drafts
The estimated investment for above projects is US$
13.41 billion, out of which US$ 2.54 billion will be
raised through budgetary support, and an additional
US$ 1.13 billion will be funded through internal
resources. The rest of the investment of US$ 8.72
billion will be mobilized from the private sector
With these new developments the maritime sector in
India would wake up to the new opportunities from a
long period of slumber, to become the Asian Maritime
Hub.
 Economic Indicators
The forex reserve is been ticking high at a healthy
Indicator 13 Aug 2007 July 2007
US$225.40 billion. This is due to the increased
Bank Credit 23.7 24.6 dollar buying of the RBI. This move by the RBI
Deposits 24.9 24.5 may increase the inflation as the money supply is
remaining constant at 21.7 even after a tight
Money Supply 21.7 21.7
monetary policy and increase in the CRR in the
Forex 225.40 215.6 last monetary policy.
Reserves (US$
Billions)

Inflation 4.36% 4.03%

Home Loan 11.25 11.25

Rate
Te a m C h a n a k y a
IIP 10.8 9.7
Mr. Subramanyam Mutnuru
Forex Rate 40.955 40.13 Head Strategic Planning

Mr. D Joel K Pandian

DGM Strategic Planning
The Indian Economy is still on the strong footing. The fall in
the Sensex is rather because of the selling pressure Mr. Sheetal Shah
instigated by some FIIs rather than the fundamentals of the Asst. Manager Strategic Planning
economy as such.
Mr. Anup Choudhary
Asst. Manager Strategic Planning

Ms. Gayathri.N
Executive Secretary-Strategic Planning

The softening of interest rate in the recent months has not

helped an increase in the credit growth this may affect the
real estate off take. The Indian Rupee has devalued in the
recent months to quote at 40.96 and this will not help in
improving the IT/ITeS sector. The sector needs to move
from the currency arbitration mind set to value arbitration
one to capitalize on the increased global spend on the IT.