Ahmedabad

Group 1 Section D

AHMEDABAD
Ahmedabad is situated in the state of Gujarat in the western India. Largest city in Gujarat. Seventh largest city and eighth largest metropolitan area of India. Fastest growing city of India, and ranked third as the fastest growing city worldwide. City is well connected by road, rail and air to national capital, New Delhi and countrys financial capital, Mumbai and other major cities like Bangalore, Chennai, Hyderabad, Kolkata. GDP of Ahmedabad was 89 billion USD in 2010. Area is 205 sq Km. The Government has started vibrant Gujarat program to attract more foreign investment.

AHMEDABAD
Ahmedabad is the largest industrial centre in Gujarat and has been an important base of commerce, trade and industry. Ahmedabad has seen great prosperity because of its proximity to Surat and its access to the hinterland of Gujarat.

Though dusty roads and bungalows used to dot the city once, Ahmedabad is now witnessing a major construction boom and an increase in population. City has also seen a significant rise in information technology and scientific industries.
Ahmedabad ranks 92nd in the list of Top-100 cities of the world, as far as competitive spirit is concerned. EIUs report reveals that Ahmedabad has witnessed double-digit growth in GDP and has the potential to grow even faster.

Before 2009, GDP of India is growing at approximately 9%. In 2009-10, GDP growth of India reduced because of recession and after that it start growing at good pace.

This high growth of GDP and high proportion of middle class people made India Top 3rd favoured destination for FDI.
Since India is most attractive place for foreign investors, now among all states, which state is attractive?

WHY GUJRAT
3rd fastest growing city in world (2010 by Forbes magazines) Top contributor of Indian economy (22% of Indian export contributed by Gujrat)

STRATEGIC LOCATION

Connected to major ports of UK, Australia, Middle East and East Asian economies Gateway to land locked states in India. Good attraction for exports (connectivity)

Population growth of Gujrat is 22.31% as compared to 17% of India. So it would be a great attraction for retailers as it is and will be a city with large number of consumers. Density of Ahmedabad has increased from 727 to 890. Retailers can have more consumers per sq km, so he can cater to larger consumer base with less no. of stores (saves cost , time)

Clothing and shoes (5.10%) and markets 37.9%) - retail Approximately 43% of expenses of consumers is in retail sector. 2 Delhi Great attraction for retailer.
3 1 Mumbai

Population 18,414,288 16,314,838 8,499,399 7,749,334 6,352,254

Purchasing power 53.18 63.15 75.98 65.88 58.54

Bangalore

Ahmedabad is among top 5 cities in terms of 4 Hyderabad Purchasing power. 5 Ahmedabad

GDP of Gujrat

% growth

GDP of India

% growth

2004-05
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

203,373
233,776 253,393 281,273 300,341 330,671 365,295 390,421

14.95 8.39 11.00 6.78 10.10 10.47 6.78

2,971,464
3,253,073 3,564,364 3,896,636 4,158,676 4,507,637 4,885,954 5,222,027

9.48 9.57 9.32 6.72 8.39 8.39 6.88

Gujarat is Indias most industrialized and urbanized economy. Manufacturing sector contributes 28% of GDP. Government policies encourage enterprenual spirit, infrastructure growth and has prime location. FDI in retail is against national interests because it will not only dislocate the small and unorganized retailers but also result in their unemployment 550 mn people under age of 5 years

Central Business Districts

CG ROAD & SG ROAD Although Manekchawk, Ashram Road and CG Road have not completely lost their charm and are still part and parcel of trading activities, SG Road has emerged as the new central business district of Ahmadabad SG ROAD: Came up in 2000 CG ROAD: Came in late 80s

Secondary Business Districts

Relief Road, Gandhi Road, Ashram Road Gandhi Road is more of wholesale whereas Relief Road which is in old Ahmadabad is for Retail.

Neighbourhood Business Districts

ManiNagar, Krishna Nagar, Bapu Nagar, Kuber Nagar, Sardar Nagar, Drive In Road and Gurukul

Circle : Primary Triangle: Neighbourhood Square : Secondary

Big Bazar in Ahmedabad

2 in mall and 1 outside malls

1. Near Iskcon Temple, S G Highway, Rudra Point, Ahmedabad, Gujarat 380015 2. Himalaya Mall,Near Indraprast Tower,Drive-in Road,Gurukul,Ahmedabad,Gujarat 380052 3. Big Bazaar, 10 Acres Mall, Raipur, Ahmedabad

Croma in Ahmedabad
3 in Malls and 1 outside mall Ahmedabad Himalaya Ahmadabad CROMA, Basement of Himalaya Mall, Indraprasth Tower, Drive in Rod, Memnagar, Ahmadabad, 380052, Gujarat.
Satellite mall Devarc Ahmadabad CROMA, Dev Arc Mall, Junction of Sg Road and Satellite Road, Next to Fun Republic, Ahmadabad, 380053, Gujarat. Star Bazar Ahmedabad CROMA,1st, Floor, Star Bazar, Iscon Mall, Jodhpur Char Rasta, Opp Bidiwala Park, Satellite Road, Ahmedabad-380015. Croma Store in Sarkhej Gandhinagar Highway Himalaya mall is the only mall to have BigBazzar and Croma in it

B B C
SS

C B

Location B C
SS

Big Bazaar Chroma Shopper Stop

List Of Shopping Malls in Ahmedabad

Total 14 malls Himalaya Mall Shopping Mall Drive In Road,Ahmedabad Iscon Mega Mall Shopping Mall Bodakdev,Ahmedabad R3 Mall Shopping Mall Memnagar,Ahmedabad Covered, Honest Gallops Mall Shopping Mall Sarkhej Gandhinagar Highway,Ahmedabad 10 Acres Mall Shopping Mall Raipur,Ahmedabad Super Mall Shopping Mall C G Road,Ahmedabad Satyam Mall Shopping Mall Satellite,Ahmedabad Freeway Mall Shopping Mall Bodakdev,Ahmedabad Sarvopari Mall Shopping Mall Bhuyangdev,Ahmedabad Ahmedabad Central Shopping Mall Ambawadi,Ahmedabad Sardar Patel Mall Shopping Mall Bapunagar,Ahmedabad Grand Monarch Mall Shopping Mall Satellite,Ahmedabad Sunrise Shopping Mall Shopping Mall Vastrapur,Ahmedabad Amrapali Shopping Mall Shopping Mall Ambli,Ahmedabad

Location of all Malls

RENTAL RATES
RENTAL RATES Sep-12 INR PER SF/MTH Y-O-Y Q-O-Q CHANGE CHANGE INR PER SF/MTH Jun-12 Y-O-Y Q-O-Q CHANGE CHANGE MAIN STREETS C.G. Road Law Garden Satellite Road S.G Highway MALLS INR PER SF/MTH Vastrapur S.G Highway Drive-in Road Kankaria Lake 100 75 70 60

150 120 140

15.40% 0.00% 7.70%

15.40% 0.00% 12.00%

130 120 130

0.00% 0.00% 0.00%

-7.10% 20.00% 23.80%

90
Sep-12

0.00%

5.90%

90
Jun-12 INR PER SF/MTH 100 80 75 65

0.00%

5.90%

Y-O-Y Q-O-Q CHANGE CHANGE 0.00% -6.30% -6.70% -7.70% 33.30% 7.10% 7.70% 9.10%

Y-O-Y Q-O-Q CHANGE CHANGE 0.00% 0.00% 0.00% 0.00% 28.20% 23.10% 7.10% 44.40%

Cushman and wakefield

ANALYSIS
Declining rentals in malls is due to high vacancies across most malls Lack of new supply and preference for high street has led to an increase in growth in rental.

Low Mall rentals could attract retailers providing them with a good option