Brigade,GIC to develop HUL property in Whitefield

Brigade Group and Government of Singapore Investment Corporation (GIC),through its affiliate Reco Begonia,have entered into a 51:49 joint venture through a special purpose vehicle (SPV) for the development of a residential project on Whitefield Main Road.The project would see an investment of Rs 100 crore.
The 9.5-acre property was acquired from Hindustan Unilever for Rs 130 crore through a bidding process.The project will be targeted at the high-income group.M R Jaishankar,CMD of Brigade Group,said the project was expected to generate revenues of Rs 700 crore over the next three to four years.
As part of its strategy to unlock business value from real estate assets,Hindustan Unilever had put its prime land parcel in Whitefield on the block.Global real estate consultancy firm Cushman & Wakefield had won the mandate to conduct the bid,which saw more than 40 companies evince interest in the property.Cushman & Wakefield declined to comment on the bidding details.

World's third-biggest data centre in Bangalore

It's a fortress. The whisper in the company is that the security personnel are paid more than most employees. They certainly look like they are well looked after . Some are even armed. If you are a visitor , you will only be allowed to enter the gate if you are expected.

You have to be escorted by a security official till the point where a company executive takes over. X-ray scanners scan you as you enter. There are access-controlled turnstiles. Elevator cards take you only to the floor you are supposed to go.

It's Lt Col Hardeep Singh Bedi's newest and perhaps his boldest venture—an absolutely world-class data centre. It's in Bangalore and it's the third-biggest in the world, with a floor space of 9 lakh sq ft. That's roughly equal to 10 international match sized football fields.

The biggest in the world is the Lakeside Technology Centre in Chicago (1.1 million sq ft, or 11 million sq ft) and the next biggest is the QTS Metro Data Centre in Atlanta (9.7 lakh sq ft).

A data centre holds the servers, storage and networking gear that companies use to store, process and transmit the enormous amounts of data that they deal with today. Many companies have their own internal data centres but, increasingly , they are handing over the data centre responsibilities to third parties. And that's where Bedi's Tulip Telecom saw an opportunity.

Since the data is priceless to companies, Bedi could not afford to make any compromises on security, which explains the amount he has spent on securing the facility . "Even if there is a bomb blast immediately outside our building, the data centre facilities will not be affected because there's a second wall that separates the main building wall from the data centre," Bedi, who turns 60 this year, says.

Security has been integral to Bedi right through his life. Early on, he decided to follow his family's three-generation old tradition of serving the Indian Army. He graduated from the National Defence Academy to join the Army in 1972. He was initially in the armoured corps.

"But the Army lets you do other things, so I did some computer courses in the early 1980s in the Army's Faculty of Computer Technology in Mhow. I was then posted as an instructor in the faculty for four years, after which I was posted to Delhi to plan the automation of the Army." He was awarded the Vishisht Seva Medal for his role in the computerization of the Indian Army.

In 1994, he took premature retirement from the Army and started a company called Tulip Software. "I had no idea about business. I started by selling software products. Then we got into hardware, then networking."

An inflection point came in 2004, when Bedi won a project to connect the complete district of Malappuram in Kerala. With that success, he tried to see if he could provide data connectivity to corporates and customers in general. That too succeeded. Today, he has 2,000 cities covered on wireless and 300 cities on fibre (wires).

"I quickly became the biggest player in wireless, and today, even on fibre, I'm bigger than Tata, Bharti and Reliance," says Hardeep Singh Bedi.

Many of the telecom service providers lease lines from Tulip, which had revenues of Rs 2,600 crore in the last fiscal year.

The Bangalore data centre, which was launched in February and on which he has already spent Rs 415 crore, is Bedi's latest bet. A data centre cannot have the slightest bit of downtime. So everything in the data centre, including the power sources, is duplicated or triplicated .

He used IBM as a consultant for the project. A data centre is measured by its power efficiency, and Bedi says his centre is at least 30% more efficient than the global average.

"I chose Bangalore because it is in seismic zone 1 (least prone to earthquakes). It is well connected, midway between Mumbai and Chennai, which are the landing stations for international fibre. And it has a lot of IT and hardware skills, so I can get support quickly if something were to go wrong," says Bedi.
HP, IBM and NTT are already customers for the data centre.

Rajesh Janey, president of storage major EMC India, says Tulip has evolved very well as a company. "They started as a systems integrator, went on to become the largest provider of virtual private networks in India. The Bangalore data centre is now truly trend setting ," he says.

AppliedMicro Expands Global Design Operations in India

Applied Micro Circuits Corporation, or AppliedMicro™ (NASDAQ: AMCC), an industry leading provider of energy conscious silicon solutions for next generation data centers and internet infrastructure, announced the opening of its new Bangalore design center. The operation will drive advanced design and development of AppliedMicro's computing and connectivity solutions and provide significant value to its technology capabilities. This is the company's second design center in India after Pune.
AppliedMicro's newest design center will enable the company to meet the explosive demand for "Just-Right" compute and connectivity products for enterprise and cloud data centers through the development of new products. These new products will dramatically reduce energy and the total cost of ownership (TCO) of data center infrastructure by striking the optimal blend of performance, density and power consumption. AppliedMicro is the only company to offer a complete suite of compute and connectivity silicon specifically designed for next-generation data centers.
"With the launch of the X-Gene™ platform at the end of 2011, AppliedMicro demonstrated its innovative capabilities in the cloud computing space. We are building on this by assembling teams that can satisfy our complex and demanding engineering objectives and fuel our growth. Bangalore's world-class, highly proficient and mature talent pool complements this strategy very well, and together with our Pune center, will contribute to India being our fastest growing design location," said Dr. Paramesh Gopi, President and CEO of AppliedMicro.
"By having our new design operations in Bangalore, we will engage the industry's best talent and work closely with our partners and customers to shape next-generation solutions in data center computing and connectivity. The learning and ownership opportunities our company will offer to senior engineering talent here will be significant and unique, allowing them to be pioneers of energy conscious cloud computing silicon and software," said Anil Gupta, Managing Director, AppliedMicro India.
The Bangalore design center will reflect AppliedMicro's strong heritage in innovation and a clear commitment to energy efficiency. It will complement the company's strategy in the development of its flagship product, "X-Gene", the world's first 64-bit ARM® architecture compliant processor for next-generation cloud computing, wireless infrastructure, enterprise networking, storage and security applications. The center will also contribute significantly to the development of AppliedMicro's next generation Optical Transport Network (OTN) and physical layer (PHY) products.
Besides Bangalore and Pune in India, AppliedMicro has design centers in North America, Denmark, and Vietnam.

Intersil Expands Global Footprint With Bangalore Design Center

Intersil Corporation (NASDAQ: ISIL), a world leader in the design and manufacture of high-performance analog and mixed signal semiconductors, today announced it has opened a new design center in Bangalore, India. The center will help develop new integrated circuits and reference designs plus provide system-level application support for customers.
Intersil's new state-of-the-art design center is the result of consolidating two Indian design centers into a spacious, new 18,000 square foot facility that is optimized for developing high-performance analog and mixed signal ICs. Conveniently, the new site is closer to the local IT corridor and shortens the commute for most of Intersil's employees.
"Having a centralized design center in India will not only enhance collaboration amongst employees, but also boost overall productivity within the various teams," said Roger Levinson, Vice President & General Manager for Intersil's Signal Path Products group. "The Bangalore team will continue to provide key support for Intersil's business in the region's growing market."

Bangalore - India's leading realty market

Good range of properties, stable prices, makes the city perform better than peers

With a good range of properties, stable prices and a vibrant workforce, the city’s real estate sector has performed far better than peers like Mumbai and Delhi

Real estate markets around India have been getting a hammering since last year and home sales across the board have suffered.

In the last quarter of the financial year 2012, the Mumbai Metropolitan Region (MMR) saw a drop of 58 per cent in unit home sales, while the National Capital Region (NCR) experienced a similar 57 per cent plunge, compared to the same quarter a year ago, according to realty research firm PropEquity.
However, the one star performer amid this gloom was Bangalore, which saw a drop of just 18 per cent in the quarter, when the numbers were down significantly elsewhere. Moreover, the city has already beaten other property markets in home sales last calendar year, when it absorbed 49 million square feet (sq ft) of residential properties — more than any Indian city — according to Kotak Institutional Equities. Bangalore was followed by NCR, with 46.88 million sq ft of offtake, and MMR, with 35 million sq ft.

"Home sales have been much, much stronger in Bangalore than other cities," says Anuj Puri, chairman and country head, Jones Lang LaSalle, a global property consultant.

So, it's not surprising that Bangalore ranks tenth this year in the list of top global investment destinations, brought out by Urban Land Institute and PricewaterhouseCoopers. Meanwhile, Mumbai and New Delhi fell from third and fifth place in 2011 to 15th and 12th in 2012.

It's not just in the residential market that Bangalore is on top. The city has also experienced the highest absorption in office space among major cities. In the fourth quarter of financial year 2012, Bangalore sold 3.4 million sq ft of office space, which is 89 per cent higher than in the corresponding quarter of the previous year. By comparison, NCR's office absorption has come down from 1.3 million sq ft in Q4 of 2011 to 0.9 million sq ft in Q4 of 2012, according to data culled by Knight Frank, a global realty consultant. In Mumbai, it has risen from 0.9 million sq ft in Q4 of 2011 to just 1.3 million sq ft in Q4 of 2012.

Why is Bangalore performing better than other Indian markets?

A good range of products, seems to be one reason. "There are good products available at various price points," says S Bhaskaran, chief financial officer at Sobha Developers, one of the largest property developers based in Bangalore. "You can buy a house at any price between Rs 20 lakh and Rs 1 crore or more," he adds.

The absence of big price spikes seems to be another reason. "Prices increase in Bangalore by 10-15 per cent in a year, unlike Mumbai or NCR, where prices go up like crazy. Besides, execution of properties is also much better here," says Sameer Jasuja, chief executive of realty research firm PropEquity.

According to data culled by PropEquity, Bangalore has seen a rise of 18 per cent in home prices since the first quarter of 2009. In comparison, other markets such as Chennai, NCR and Mumbai have seen increase of 22 per cent, 48 per cent and 26 per cent, respectively.

Even the recent data released by National Housing Bank Residex, an index that signals property prices across key cities in India, indicate this. Bangalore saw a rise of 4.5 per cent in residential properties in January to March 2012, compared to the same period last year. Mumbai saw a nine per cent and Delhi a 33 per cent increase during the last quarter of financial year 2012.

Many argue that robust hiring by IT companies and stable tech incomes have also fuelled home sales in Bangalore.

"Many IT companies such as HP, IBM and Texas Instruments have large bases in Bangalore. Whenever they win global contracts, the local markets in which they are located benefit, as the firms shift work here," says Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield, an international property consultant.

Adds K Madhusudan, co-chief investment officer, Azure Capital, a Bangalore-based realty fund manager : "Both global IT majors such as IBM, Oracle and Cisco and domestic companies are hiring aggressively. That is driving the growth of residential and office markets in the city,"

For instance, TCS, the country's largest software exporter, has a hiring target of 50,000 for 2012-13. It has already made job offers to 37,800 students. Another IT major, Infosys, recently announced that it would hire 35,000 in 2012-13. It had made 26,000 campus offers the previous year.

Akshit Shah of SBICAP Securities, however, reminds people that the numbers are looking good, possibly because of low absorption in 2009-10, when both supply and demand were low in Bangalore.

How long will the garden city be able to sustain its good run?

"I believe Bangalore will be able to maintain a good sales momentum. I expect land costs to remain stable and we will be able to offer good products at reasonable rates," says Irfan Razack, chairman and managing director of Prestige Estates, a Bangalore-based developer that has done a sales of Rs 2,200 crore in 2011-12 and is expecting similar numbers in 2012-13.

Adds Jasuja of PropEquity: "I think the trend (Bangalore leading the markets) is likely to continue for the next three-six months. Beyond that, we have to see how the markets pan out."

If the economy improves, rates climb down and developers come out with aggressive prices, things could look up for Mumbai and NCR, adds Jasuja.

SBICAP’s Shah says, given the high inventories, absorption in Bangalore may not continue to keep pace with supply going ahead. He believes Mumbai will overtake Bangalore in absorption of properties in the coming quarters. "At 3.5 million sq ft to four million sq ft a month, the absorption is stable. I do not see further growth from here," he adds.

One big factor distorting the picture so far is that there have been no major approvals given out by Brihanmumbai Muncipal Corporation (BMC). That has changed now, with BMC’s green light to as many as 78 skyscrapers, positioning Mumbai for a construction boom.

If that happens, Bangalore's reign on top of the real estate charts may end.

NRN-backed start-up Hector Beverages to set up second manufacturing facility in Hosur

Hector Beverages, a two and a half year old start-up company, which operates in the functional beverages market with its brand Tzinga, is setting up its second manufacturing plant in Hosur, located between Karnataka and Tamil Nadu.
According to Neeraj Kakkar, CEO of Hector Beverages, "Our second plant will have a manufacturing capacity that is 300 times that of our existing plant in Manesar. The investment required will be around Rs 7 to Rs 8 crore, which we would raise as part of a third round of funding from our existing investors."

Hector Beverages was among few start-ups in the food and beverage space to receive early stage funding from N R Narayana Murthy-promoted Catamaran Ventures and Bangalore-based venture capital firm, Footprint Ventures, besides funding from four angel-investors.

In 2010, Hector Beverages raised Rs 6 crore as part of its first round of funding to set-up its manufacturing plant in Manesar. In 2011, the company raised Rs 8 crore in a second round of funding from its investors. "The third round of funding will happen before our new manufacturing facility becomes operational," added Kakkar. The Hosur plant is expected to be operational in March next year.

Kakkar refused to divulge any details on the company's current production numbers or revenues but said, "we our either in the number one or two position in volume terms in the markets that we operate in."
Tzinga, the company's energy drink operates in the functional drinks category, which comprises of sports drinks, energy drinks and enhanced water and juices, a sector that has been clocking growth rates of 40% to 50% in the last five years and has a market value of Rs 600 crore. However, the sector is still miniscule in comparison to the aerated beverages market in India, which has a market value of Rs 15,000 crore.

Tzinga is pitched up against bigwigs such as Red Bull, which is priced at Rs 85 for a 250 ml can. On the other hand Tzinga retails for Rs20 for a 200ml pack. The other major brands operating in the functional beverage segment include Gatorade, Burn (from Coca-Cola), SoBe, and Cloud 9.

"Our goal was to create an affordable product, which we have been able to achieve after 14 months of research, six months of which was done in Europe," said Neeraj.

Speculation fizzles out of Bangalore property mart

From speculative investor-led buying for a good part of the last decade, the city's real estate sector has come to be an end-user market. A reason why residential prices in Bangalore have not skyrocketed like in Mumbai and the National Capital Region (NCR) in recent years.

Chandrashekar Hariharan, CMD of property developer Biodiversity Conservation India, says the average per sqft price in Bangalore is roughly 60% of the going rates in Mumbai and NCR. While premium properties in Bangalore can be bought for Rs 4,000 to Rs 5,000 a sqft, a two bedroom apartment in certain Mumbai locations starts at Rs 12,000 per sqft.

Muninder Seeru, executive director in real estate company G:Corp points out that every city has a price threshold level and Bangalore cannot take it property prices beyond Rs 4,750 per sft. "Pricing beyond this may not be attractive." He says the city might have an oversupply of units but not an oversupply of 'quality residential units', as end users are lapping up quality inventory that comes in to the market.

Data available with developers shows that Bangalore is clocking a healthy monthly absorption of 3,000 units by end users, which has resulted in good loan off-take. "The housing finance companies are disbursing loans worth Rs 1,500 crore every month. Many of these are for homes with a ticket size of Rs 60 lakh," said Hariharan.

M Murali, MD of Shriram Properties, said the company has sold 1,650 apartments in Bangalore of which 99.5% of the buyers were end users. A reason why Bangalore is not seeing speculative price appreciation.

"By and large the investor community has vanished from Bangalore," said Balakrishna Hegde, MD of Chartered Housing. Bangalore, he said, has a population of 80 lakh and there are only 14 to 15 lakh dwelling units in the city. "Hence there is enough scope for more residential units," he said.

Ravindra Pai, MD of Century Real Estate, said the absorption rate was flat in the last quarter because of weak sentiments about the economy.

The developers were speaking at a discussion organized on Wednesday by magicbricks.com, one of India's leading property portals. The event, MB RE+ Dialogues, is a movement to empower the real state sector with knowledge about consumer behaviour as well as prevailing market trends. The event also saw the participation of Bangalore Development Authority (BDA) commissioner Pradeep Singh Kharola, who said that he would try to get all approvals for builders done in 30 to 60 days. Builders say it currently takes two to three years

Realty booms in north Bangalore

Nearly four years after the Bangalore International Airport started its operations, Bangalore’s northern corridor has now witnessed a boom in realty. The realty in the area, including residential, commercial and hospitality have all picked up dramatically.

“The northern corridor is becoming one of the fast emerging commercial and residential hubs. The Hebbal-Devanahalli stretch has attracted many projects due to the availability of land and improving infrastructure. The improved connectivity to the international airport has further triggered the rush to the northern corridor,” suggests Knight Frank India’s latest residential traction report.

As per the report, North Bangalore stands second after South, in the micro-market split of launched units in FY 2012. While West Bangalore scores the lowest on this scale, with 2 percent, East at 19 per cent, North at 33 per cent and South leads the pack with 46 per cent.

Also, the announcement of KIADB Park, Aerotropolis, ITIR Region, Devanahalli Business Park, proposed malls and hospitality projects have further added to the popularity. “The scope for capital value appreciation on this stretch is also attracting a lot of attention from buyers,” the report states.

Many realtors opined that the next growth direction for Bangalore would be the North East (NE) quadrant- Old Madras Road and Bangalore North (Hennur Road, Thanisandra Road and Bellary Road).

“The long term potential of this micro-market is very high. Interestingly, while earlier North Bangalore comprised 10 per cent market share, it now holds 30 per cent. The capital value also has increased from Rs 2,300-2,400 per sq ft to Rs 6,000 per sq ft,” explained Shrinivas Rao, CEO-Asia Pacific, Vestian Global. “In the commercial segment, although many projects have been announced, nothing has taken off. In terms of infrastructure development, North Bangalore scores high,” he added.

German companies eye Karnataka for more investments

German companies are looking to increase their investments in Karnataka. According to Dr Ingo Karsten, Consul General of the Federal Republic of Germany, companies such as Siemens, Bosch, Bayer, Airbus, Metro and SAP are looking to invest in the State across sectors like IT, manufacturing, aerospace, automotive components and electrical engineering .

In 2011, Bangalore attracted investments to the tune of $8.6 million and a share of 4.3 per cent, as per Department of Industrial Policy and Promotion, Government of India.

Apart from these investments, German companies plan to invest in sectors like solar energy and urban city planning and development projects. “Since there is large migration into urban cities, German companies are looking to invest in new technologies like pollution control, energy management and related areas to make life in cities liveable,” said Dr Karsten.

The German companies will showcase their wares during the Indo-German Urban Mela, which will be held from June 22 to July 1 in Bangalore.

This, according to industry watchers also provides a boost to the bilateral trade targets set between India and Germany. Commerce and Industry Minister, Mr Anand Sharma, during his visit to Germany last month, had expressed confidence that bilateral trade target between India and Germany would surpass the $26 billion target by the end of this year.

Bilateral trade between the countries has more than doubled over the last 5 years and has reached bout $23.64 billion at the end of 2011. There are 150 German companies active in India and employing 6,000 people in R&D.

Dr Karsten said, with these additional investments, more jobs will be created

CAPA, Vittal Innovation City to promote Aerospace City in Bangalore

Centre for Asia Pacific Aviation (CAPA) India and Vittal Innovation City (VIC) have entered into a Memorandum of Understanding (MoU) to co-promote CAPA-VIC Aerospace City, a high-technology aviation manufacturing, research and knowledge park in Bangalore.

Spread over an area of 750-acre, the aerospace park will form one of the industry clusters at VIC which is located around 50 minutes from Bangalore International Airport. The site has been acquired by Global Emerging Markets, a $3.4 billion alternative investment group. VIC, promoted by EMPI Innovation Parks is focusing on aerospace, defence and electronics, and integrating industry, design, research and education, according to a company release.

``India's ability to deliver high quality research and manufacturing in various industries at relatively lower cost is a unique and valuable proposition. By transferring these strengths to the aerospace sector, there exists the potential to position India as a global centre for excellence. We are very excited to be supporting this landmark initiative,’’ Peter Harbison, executive chairman, CAPA-Centre for Aviation stated.

Technical pre-feasibility studies for the development of a 3.2km runway, which would facilitate test flights for aerospace manufacturers, enable aircraft to be flown in for maintenance, repair and overhaul and allow for the development of a world-class flying school, have been already done. The initiative is led by N. Vittal, chairman, VIC, and former Secretary, Ministry of Telecommunications and Information Technology. The advisory board is headed by Narayana Murthy, chairman Emeritus, Infosys Technologies, and includes Nandan Nilekani, chairman, Unique Identification Authority; and Ajai Chowdhry, founder and chairman, HCL Infosystems.

Kreata Global opens new office at World Trade Centre, Bangalore

Kreata Global opened its Corporate HQ and International Marketing Office at World Trade Centre, Bangalore, on 14th June 2012. The new office was inaugurated by Mr. Stanley Joseph, Managing Director, Kreata Global.

World Trade Center, Bangalore, is located in Brigade Gateway, one of the world’s most integrated lifestyle enclaves. It puts together all the services associated with global commerce under one roof.

With the opening of the new office, the company has set its eyes on embarking upon new markets through partnerships. Reaching advertising agencies in the US, Europe and Asia Pacific markets is also on its agenda. An experienced client support team will work towards this goal.

“The opening of the new office has paved way for bigger and better business opportunities and I am sure our team will make the most of it.”, said Mr. Stanley Joseph, after the inauguration.

On the decision of choosing Bangalore for the new office, Executive Director, Mr. Deepan Parameswar, commented, “It was only natural, the city operates across different time zones, there are various MNCs, and the business prospects are huge. It is the Silicon Valley of India, after all

Gokaldas Images land in Devanahalli up for grabs

Gokaldas Images Infrastructure’s land parcel in Devanahalli is up for grabs. Canara Bank has taken possession of 26 acres belonging to the Bangalore-based company under the Securitisation and Reconstruction Financial Assets and Enforcement of Security Interest Act (Sarfaesi) 2002.

The property belonged to SIIC Package, a 100% subsidary of Gokaldas Images Infrasturucture. The infra division has state of the art garment manufacturing units for different products. Gokaldas Images is an integrated apparel manufacturer with a turnover of over $120 million.

It has 15 factories and employs over 11,000 people. The company’s land in Kasaba hobli in Devanahalli is available for outright sale and the same will be sold through a public auction next month. The Sarfaesi Act empowers banks and financial institutions to recover their dues without the intervention of the court.

The firm has a liability of Rs 59 crore as of June 11, the bank said in its auction notice. The bank will recover the outstanding amount along with interest and other incidental charges. It has fixed a reserve price of Rs 81.61 crore for the bid with an earnest money deposit of 10% of the reserve price.

When  contacted Jagdish Hinduja, managing director of Gokaldas Images, he declined to comment on the company’s liabilities and the land auction.

Real estate consultants said that the 26-acre land parcel has been available for purchase for quite some time. But the company couldn’t close the deal as the asking price was steep, sources said. Growing demand for residential projects has pushed up land prices in Devanahalli by 30% in the last two years.

“Land in and around the airport is quoted between Rs 6-7 crore an acre. In fact, the government has given Rs 1,147 per sft as compensation for those who surrendered a portion of their land for road widening,” said Ram Chandnani, deputy MD-South India at real estate consultancy CB Richard Ellis.

Unilever to shift tech jobs to Bangalore

The Anglo-Dutch personal care major Unilever is planning to move some jobs to Bangalore as part of a restructuring exercise that would involve relocating some 400 high capability roles from Unilever's IT site in Ewloe in Wales.
The company's R&D centre in Bangalore contributes to brands including Lifebuoy,Pureit,Ponds,Fair and Lovely,Radiant,Omo,Brooke Bond,Lipton,Walls and Knorr.
Around 300 employees work at the site including 75 scientists,150 research associates and 50 support staff specializing in microbiology,virology and microstructure creation.
Unilever is changing some elements of the UK business to sustain its competitiveness.The overhaul could result in a net reduction of around 500 Unilever roles in the UK.There would also be potentially the loss of around 300 associated contractor and third party roles,the company said in a statement.
Amanda Sourry,chairman Unilever UK and Ireland,said,Like many companies today,Unilever faces the challenge of creating growth opportunities against a backdrop of very tough economic conditions in Europe.While Unilever is growing well in the UK and globally,it will always be necessary to make changes,which raise our game and ensure our continued success.We believe these proposals would substantially strengthen our platform for long-term growth and competitiveness.
The company is also focusing on improving how it is organized to fuel growth -- including making the most of its global scale through the creation of fewer,bigger,better hubs for manufacturing and business services.The FMCG major has over 171,000 employees,and generated annual sales of 46.5 billion euros in 2011.

Bangalore realty draws investors from Russia

 

Russian investors comprising property developers, industrialists, and high net worth individuals expressed interest in investing in the city's realty market, at the recently-held World Congress Meet of FIABCI at St Petersburg. At the meet, attended by over 800 delegates comprising developers and investors, the city's potential in the infrastructure, hospitality, retail and integrated township segments drew interest.

"A group of investors from a few European countries are visiting Bangalore later this month to evaluate properties here. They are keenly interested in investments in commercial spaces, integrated developments and in the hospitality sector", said Farook Mahmood, Vice President - World Council, FIABCI, who addressed the meet.

The investors are looking at entering the domestic market through the FDI route, with a special purpose vehicle (SPV) set up to bring in the investments with a strategic partner here. "India has a tax treaty with Cyprus and the Russian investors don't need to pay tax twice if they use this route. Many Russian developers and investors have invested large amounts of money in Cyprus. These companies are also registered in Cyprus and get a tax holiday. This is a huge advantage for the Russian real estate companies that works well for us too", explains Farook.

Later, at a meeting held at the Russian parliament house, Duma, Ivan Grachev, Minister of Energy, evinced interest in the city's IT and real estate sectors. "The minister enquired about the housing situation in Bangalore and how joint development projects in the residential segment work. He also evinced interest in the public-private partnership model in the development of social housing", said Farook.

The FIABCI meet was aimed at promoting investment opportunities in member countries. It brought together developers and investors to explore new vistas. "Russian investors have been pumping in millions of dollars in the property markets of Dubai, Paris and New York. This meet helped push the city's realty market. They were happy to note that property in India, especially Bangalore, yields over nine percent in rentals, and grows by over 20 percent annually", said Farook.

Investments from Russia will work well for the construction industry in the city. Also, realtors here can leverage the referral model to expand their business activity to foreign markets. Property investors across the country will have more options to park funds in too.

Integrated projects hold potential with more emerging localities around the city opening up for development. Large format commercial and residential projects hold potential with more business houses planning to set shop in the city. The city's skyline is expanding on all sides and there is scope for more realty development, especially with the planned commercial belts around the city.

The connectivity with the extensions of the Metro Rail lines, and planned development of arterial roads and highways, will mean large land parcels opening up for industrial belts. This will open up a market for the hospitality, retail and infrastructure sectors in a large way. With the city drawing more entrepreneurs and a growing realty market, this is the right time for investors from abroad to plough funds in.

Bangalore property market remains stable

The Bangalore office market witnessed healthy transaction activity in May, while vacancy rate declined nominally due to stable demand amidst limited fresh supply, mentioned Jones Lang LaSalle (JLL) India, in a recent report.

Some of the big transaction in the office space market were Axis Aerospace & Technologies leasing space in Vaswani Centropolis, KPMG leasing space in Salarpuria Hallmark 1 and Ericsson leasing in Umiya Business Bay.

However, the city saw marginal increase in demand for residential apartments in May. Most of the new residential projects launched were on and along Hosur and Bellary Roads. The capital values also appreciated marginally across various sub-markets due to increases in sales volumes and new projects launches at prices above the market average.

Demand for residential units has been more evident in the mid-end category. During FY 2012, Bangalore witnessed the launch of approximately 9700 units which are scheduled to be completed in the next 2-3 years.

“Property in the range priced at Rs 3000-4000 per sq ft is moving faster in the market now. Sales have been steady since the beginning of the fiscal year,” says Irshad Ahmed President Irshad Property Matter, one of the large brokerage houses in Bangalore

As of March 2012, nearly 119000 residential units are under various stages of construction in the Bangalore market. Bangalore has met with encouraging absorption, with all the regions witnessing more than 60% of their units having been sold.

On the retail front there were no major retailers leasing space during the period due to unavailability of new malls coming on stream. “Vacancy rates, rents and capital values in the existing malls remained stable over the past two years,” said the JLL report.

Abbott opens nutrition R&D center in India with Biocon subsidiary

Drug firm Abbott today opened its first nutrition research and development center in the country in collaboration with Biocon's subsidiary Syngene.

The R&D center aims to focus on development of affordable nutrition products and enable the expansion of Abbott's nutrition product portfolio in India.

The center was inaugurated in Bangalore by Advisor to the Prime Minister on Public Information Infrastructure & Innovations and Chairman of the National Innovation Council Sam Pitroda.

Abbott selected Syngene to provide a science-based research and innovation team to work closely with Abbott researchers, the company said.

More than 50 researchers and scientists will be based at the Abbott Nutrition R&D center at Biocon Park in Bangalore.

The R&D center will focus on the developing nutrition products for maternal and child nutrition and diabetes care by using local expertise to focus on product design, development and delivery specifically for the Indian consumers, it added.

Commenting on the development Abbott Global Nutrition Executive Vice President John Landgraf said: "This new R&D center in Bangalore will play a pivotal role in getting us even closer to the Indian market and addressing the nutritional requirements of the Indian consumer."

Among the products being developed for the Indian market are meal complements for diabetics and pre-diabetics, Abbott said.

"The combined market insights and nutrition science expertise of our two organisations will enable us to address the healthcare and nutritional challenges of an emerging economy like India across a diverse range of diseases that straddle both infectious and chronic maladies," Biocon CMD Kiran Mazumdar Shaw said on the development.

The center will address local taste and texture preferences with new flavors and formulations, it added.

Bangalore residential mart resilient

Bangalore, home to about 60% of US-based MNCs, has been driving residential property demand in all price ranges. As of March this year, nearly 119,000 residential units are under various stages of construction. About 35% of the upcoming supply will be ready for possession by the end of the year with the spill over effects of some of the projects launched as early as in 2007 and 2008.

According to a survey by Knight Frank India, most of the residential projects are focused towards northern and southern part of the city. On the northern front, the Hebbal-Devanahalli stretch is considered to be one of the fastest emerging commercial and residential hubs. In the eastern part, Whitefield is one of the most preferred residential locations, primarily for IT employees. The western part of the city has not been able to compete with the newer locations.

Demand for residential units has been more evident in the mid-end category, where most of the affordable housing projects are located. During the FY2012 the city has witnessed the launch of approximately 9700 units which are scheduled to be completed in the next 2-3 years.

On the pricing front, nearly 39% of the total number of residential units launched in FY 2012 fall under the Rs 25 lakh - Rs 50 lakh ticket size category, implying that the mid-end segment is the prime demand drivers of residential market. Residential units in the price range of Rs 25 lakh - Rs 75 lakh were altogether responsible for around 70% of the total number of units launched during FY2012.

Although the threat of global economic turmoil looms large over residential property segment, Bangalore residential market has been relatively resilient and has a somewhat healthy sales level. South Bangalore has the highest number of residential units up for sale, has a vacancy level of approximately 32% as of March 2012, while East and West Bangalore has vacancy levels of 34% and 35% respectively. The northern part has a lower vacancy level of 29%, which reflects the saleability of the residential projects in the region.

It has been observed that nearly 34% of the absorption in FY 2012 has been in the ticket size range of Rs 25 lakh - Rs 50 lakh, followed by Rs 50 lakh - Rs 75 lakh at 31%.

This illustrates that mid-end segment has been responsible for the absorption of around 65% of the residential units booked or sold, while only 5% of the absorption has taken place in the Rs 2 crore - Rs 4 crore ticket size.

Over a period of time property developers have realised that demand exists for those properties which offer quality, value for money and transparency in deals. A majority of the upcoming supply will be concentrated in the suburban and peripheral locations towards north and south Bangalore, with gated communities offering various amenities. On the price front, capital values of properties are not expected to increase considerably due to slowing down of the economy, though marginal appreciation is projected in a few micro markets like Hebbal and Sarjapur road.

You want Shiba Inu puppies from Japan They will get them for you

The luxury residential market in India is scaling new heights as developers redefine luxury.Concierge services that offer high-net worth home buyers a bespoke lifestyle experience is the latest trend in this market segment.

Quintessentially Lifestyle,a global concierge service company,which has tied up with developers such as Nitesh Estates,Embassy,DLF and Lodha ,provides bespoke services that ensure your every wish is their command.

A member of Quintessentially India wanted a specific cricket bat for his sons birthday from the United Kingdom.The concierge service delivered the bat within 40 hours.

Another member from India wanted Japanese puppies of the breed 'S hiba Inu,similar to the one in the Richard Gere film Hachiko.The puppies were bought in Japan and flown in to India.

A family in Delhi fancied Amritsari puri-aloo for brunch on a Sunday,for which the concierge service organized cooks from Amritsar to come to Delhi and cook up a brunch for four.

One member requested for a DVD of an international award-winning documentary that was not on sale in the market.The concierge service contacted the filmmaker,got the filmmaker to convert the film into DVD and delivered it to the member.

From finding schools to seeking admissions,to shopping for you as well as arranging health checkups and doctor appointments,concierge services offer a host of benefits to home buyers,which is why the concept has become an important element in the luxury real estate market, says Nitesh Shetty,CMD,Nitesh Estates.The Bangalore-based developer offers concierge services at four of its luxury residential properties coming up in Goa and Bangalore.

In the highly competitive environment of luxury housing,developers have to employ all means available to them to differentiate their projects.Apart from superior project specifications they also have to offer lifestyle-enhancing amenities, says Om Ahuja,CEO of residential services in real estate consultancy Jones Lang LaSalle India.

The annual membership fee that concierge services charge in India varies from Rs 80,000toRs20lakhdepending on the kind of lifestyle services individuals desire.Services rendered like the ones mentioned earlier attract additional charges that can run into lakhs of rupees.Membership is not restricted to corporate tie-up slike in the case with developers.Anyone who has the money and desires a bespoke lifestyle can become a member.

Mishti Bose,Group CEO,Quintessentially Lifestyle India,says developers buy the membership in bulk for a period of one year,but the renewal structure varies from developer to developer.While some developers renew the membership for a fixed period,in other cases home buyers themselves have to do the renewal after a year.Launched in India in 2010,Quintessentially Lifestyle has a member base of 2,000.

Jitendra Virwani,CMD,Embassy Group,which has launched three luxury residential projects in Bangalore all of which have a concierge service facility,says they buy a one-year membership,which they offer complimentary to their home buyers.The renewal of the membership is left to the discretion of the home buyer, he says.With the help of a concierge service,Virwani has managed to bag tickets to the finals of some of the events at the upcoming London Olympics.

Nitesh Estates is working out a model where by home buyers would be entitled to a free lifetime membership at a concierge service company.We hope to launch it at one of our super premium luxury developments in Bangalore, says Shetty.

CONCIERGE SERVICES HAVE

Arranged for a private dinner for a member with the Dalai Lama Arranged for two people to climb the Sydney Opera House and watch the fireworks from the top of the sails at midnight on New Years Eve Closed the Sydney Harbour Bridge for a private climb so a member could propose to his partner Delivered a metal detector up the French Alps,for a member who had lost his house keys in the snow Arranged a full mock Vogue shoot for a members daughters 15th birthday,which included a full professional team of make-up artists,hair-dressers and photographers and mock ups of the photos as if they were the cover of Vogue magazine Arranged a party for 300 people at the Pyramids in Egypt Sourced a pet jelly fish for a members home Organised an epic,action-packed Indiana Jones-style adventure in Jordan which involved training by ex-MI 6 agents with missions including uncovering hidden treasures in the desert,rescuing hostages in densely populated market places,off-road desert driving,as well as private access to the ruins of Petra and camping in the Wadi Rum Source: Quintessentially

Financially weak BBMP now hitting the GIM

The civic body plans to woo investors at the Global Investors Meet with 12 projects, worth Rs 1,000 crore, under public private partnership model

Come June 7 and 8, it won't be just the state government which will be wooing investors at the Global Investors’ Meet (GIM).  BBMP plans to pledge Utility Bldg to raise Rs 1,000-crore loan

The cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) will also set upshop at GIM venue to attract investors for 12 projects like managing the city's garbage and building skywalks. The civic body proposes to execute the projects, worth Rs 1,000 crore, under the public private partnership (PPP) model.

 

Media recently reported that the BBMP had pledged the Public Utility Building and the Jayanagar Shopping Complex to raise a loan (BBMP plans to pledge Utility Bldg to raise Rs 1,000-crore loan, May 23, BM).

 

BBMP commissioner M K Shankarlingegowda has written a letter about the civic body's initiative to the state government. He writes that pre-feasibility studies for the projects have been initiated and would be made available to all prospective bidders.

 

Here are the 12 projects proposed by the BBMP:

 

1. A garbage collection and management project, worth Rs 50 crore. The civic body is yet to identify the location to implement the project.

 

2. Another waste management project covering Moore Market, Johnson Market and Mahalakshmi Layout Market, worth Rs 15 crore.

 

3. A Rs 250 crore project to develop sky walks across the city.

 

4. Development of additional facilities on the second floor of KR Market, worth Rs 4 crore

 

5. Operation and maintenance of various components at Freedom Park.

 

6. Integrated waste management plant with energy generation in South Bangalore, worth Rs 200 crore. BBMP will provide land for the project.

 

7. A Rs 250 crore project to convert waste to energy through large scale water-based segregation followed by anaerobic digestion at Kanahalli,near Magadi Road.

 

8. A Rs 50 crore project to convert municipal solid waste into grade 2 low sulphur diesel (aviation fuel, jet fuel and diesel for automotive usage).The BBMP will provide 1 acre land.

 

9. A Rs 30 crore project to convert methane into grade 2 diesel, for which 1 acre land will be provided by the BBMP.

 

10. Construction of abattoirs in North Bangalore at a cost of Rs 150 crore. The BBMP will provide 40 acres land.

 

11. Construction of 500 public toilets in city at a cost of Rs 50 crore.

 

12. Construction of 200 bus shelters, worth Rs 8 crore

 

BBMP's PPP cell coordinator and executive engineer Basavaraj Kabade told media, “The skywalks project envisages building 120 skywalks across three zones in the city to improve pedestrian mobility and safety. At Freedom Park, it is planned to create a green cover and lung space without diluting the historical significance of the location. Another important project is the construction of hygienic abattoirs, with the capacity to handle 2000 small and 500 big animals. Interested parties can submit their registration of interest to the special commissioner (projects), who is the head of PPP projects.”

Asia's largest aerospace hub near Bangalore soon

Leading infrastructure developer Sun Forest City Ventures Ltd. will build one of Asia's largest hubs for the aerospace industry near Bangalore with an upfront investment of Rs.10,000 crore ($1.8 billion), a senior official said Monday.

"The state government has approved the Rs.10,000-crore investment proposal of Sun Forest City to set up the mega project with a complete eco-system for aerospace industries in three phases near the Bangalore international airport," state Industry Secretary M.N. Vidyashankar told reporters here.

To be built in about 1,000 acres - around 14 km from the airport and 44 km from the city - cluster project 'Vayu' is expected to provide direct jobs to 242,000 people and house domestic and overseas aerospace firms in an integrated space with world-class infrastructure facilities.

"We have identified the land and issued preliminary notification to farmers for acquisition of their lands at the prevalent market rate. The aerospace hub will complement the aerospace special economic zone (SEZ) being set up near the airport for the private sector," Vidyashankar said.

"The centre will take advantage of the defence offset policy to manufacture and supply components and sub-assemblies," he added.

The company will sign an agreement with the state government at the two-day Global Investors' Meet (GIM 20-12) June 7-8 for formally launching the project.

Sun Forest City is a joint venture between the entrepreneurial venture capital and industrial group (Sun) and Forest City, a leading real estate enterprise in the US.

The joint venture partners with governments, corporations and institutions to plan, build and operate mega infrastructure facilities for industrial development and employment creation.

Commercial realty market faces a tough time; office space in seven largest cities drops 12% q-o-q

The commercial real estate market is facing a tough time, with office space absorption across India’s seven largest cities dropping 12% quarter-on-quarter in the January-March period due to uncertain economic conditions coupled with the eurozone crisis.

The trend is likely to continue for the next few quarters, with the absorption rate expected to drop by 10-15% in 2012 due to lower demand from the information technology sector. Demand from IT/ITeS sector dropped from the peak of 68% in 2005 to 35% at present due to increasing cost pressures faced by these firms.

Growth expectations of India’s IT sector have been lukewarm so far, with software services exporters complaining of clients’ delay in deciding on the technology spend. Compared to around 16% growth in year to March 2012, trade body Nasscom has forecast an 11-14% growth rate for the year to March 2013.

“Things are not as rosy as they were in 2010. Most corporates are adopting a ‘wait-andwatch’ policy. The majority of demand in the first half of 2012 was spillover of work-in-progress deals from 2011. The demand thereafter will be influenced by the Indian economic performance and outlook of global markets,” says Rohit Kumar, head of research, DTZ India, a real estate consultancy firm.

Total commercial office space absorption for Q1 of this year was 7.4 million sqft, representing a decrease of 12% quarter-on-quarter and 15% year-on-year. Vacancies across cities are expected to rise in 2013, except Bangalore, said a recent report by DTZ India.

Currently, demand for Grade-A office space is driven by foreign companies from the US and European Union, which contribute a lion’s share of lease transactions across major cities in the country. Demand for office space from the US-based companies has been stagnant. These companies have been contributing 48% of the total office space demand in the country, followed by Indian and European countries.

Larger IT firms such as Infosys and Wipro have projected negative to flattish growth in June-ending quarter, and analysts expect at least another 1-2 quarters before the sector hits the growth track, depending on the recovery in the US and Europe.

“There has been no escalation in realty budget as companies look to reduce operating costs. The IT/ITeS firms have reduced their real estate budget by 5-8% this year as they wait for renewal of contract from clients before they can take additional floor space,” says Sridhar Raghavendra, founder of FM Zone India, a real estate and facility management firm representing IT/ITeS firms.

Some of the companies, which are looking to occupy large space but yet to sign deals, are Juniper Networks ( 5,00,000 – 7,00,000 sqft), Intel (1,20,000 sqft), Cyprus (2,00,000 sqft), Volvo (7,00,000 sqft) and Eurospace (3,00,000 – 5,00,000 sqft).

“There are some larger commercial space requirements floating in the market, but no deals have concluded so far. Decision making by corporates has slowed down since fourth quarter of the last year. Companies are also staggering occupancy timeline and do not want to occupy large space at one go,” said Naveen Nandwani, director of property consultancy Cushman & Wakefield, Bangalore.

A Runaway Success - A conservative approach helps BIAL earn profits and expand while remaining cheaper than rivals

That most airlines in India are losing money hand over fist is well known. The Centre for Asia Pacific Aviation (Capa) estimates that the airline industry in India has notched up losses of more than $2 billion in FY12.

What is more surprising is that private airports — which make money all over the world — have also been losing money for the last few years in India. The Delhi International Airport (DIAL), which runs the operations of New Delhi’s airport, made a loss of Rs 1,085 crore FY12. It handled a little over 35 million passengers. The Hyderabad airport, which too has the GMR group as the private partner like in the case of Delhi airport, has also been making losses since inception. It had accumulated losses of Rs 770 crore by the end of 2010.

The only private airport that seems to be doing rather well is the Bangalore International Airport (BIAL), which was initially considered the ugly duckling among private airports.

When the two new airports in Hyderabad and Bangalore opened their doors, the one in Bangalore with its “box-like” structure and lack of “curves” was considered far less glamorous than its Hyderabad counterpart. Later, when the Delhi airport was built, its sheer size made the Bangalore airport look even smaller and cramped.

But even as both the Delhi and the Hyderabad airports try hard to break even, the Bangalore airport is enjoying profits. BIAL broke even in its second year of operations. It is now using its internal accruals to part-fund the next phase of expansion. Last year, BIAL registered net profits of Rs 170 crore, and this year’s after-tax profit is expected to be around Rs 156 crore.

BIAL’s success has been helped by the fact that air traffic at Bangalore is growing despite the dramatic scaling down of Kingfisher Airlines’ operations. In its heyday, Kingfisher Airlines, which is headquartered in Bangalore, accounted for almost 30 per cent of Bangalore airport’s revenues. That has come down to single digits as Kingfisher has cancelled flights and trimmed its operations. “We have lost 22 per cent of business due to the troubles that Kingfisher is witnessing,” says BIAL president Hari Marar. Kingfisher flights are down from over 45 a day to less than 20 a day. And even flight loads have declined sharply.

Despite this, BIAL expects at least an increase of 10 per cent in its revenues this year. “Bangalore is growing both in terms of the state of the economy and the disposable income with residents. This reflects in both increased business and leisure travel,” says Marar.

This year, BIAL has handled around 13 million passengers. Delhi handles two and a half times more. For the next five years, the compounded annual traffic growth through Bangalore airport is expected to be 8 per cent.

As things stand, BIAL’s capacity is just enough to meet current traffic demands, a fact many critics find quite unusual for a greenfield facility, since one would expect it to be built to cater to future demand. But BIAL officials say that, in 2005, when traffic projections were made, it was expected that traffic would grow at 17 per cent every year for the next five years and that when the new facility opened, it would handle around 6.5 million passengers a year.

But Bangalore’s traffic actually grew at a jaw-dropping 40 per cent per annum between 2005 and 2008. Much of that came from the low-cost airlines that started from Bangalore. Net result: when the facility opened, it had a traffic volume of 10.2 million instead of the projected 6.5 million. “That was what caused the problem. We were already at peak in a sense,” says Marar. “It was a good problem to have because it increased revenues and helped us break even early.”

The second thing that helped BIAL was its very “plain Jane” status. The facility was relatively simple and the operations focused on efficiency to keep costs low. At the time of its construction, the authorities did not want to “overbuild” capacity. “When you overbuild for the future, users of the airport have to start paying for infrastructure that will be used later. It is unfair on users, especially in the Indian context where you need to make the cost of air travel as low as possible,” says Marar. He adds that the airport recognised that what India was missing was efficiency. “We focused less on building a glitzy building and kept costs low.”

BIAL, built primarily by a foreign consortium, with former CEO Albert Brunner, remained conservative and sober in both its spending and its projections whereas some of the Indian-led consortia, some feel, went “overboard in a bid to impress”.

This conservative approach has helped BIAL in the long run since many of the other private airports — Delhi and Hyderabad included — are asking passengers to pay today for what will only be used in the future. The Airports Authority of India (AAI) chairman V.K. Aggarwal told BW that he was of the view that “Hyderabad was a bit premature” and that the traffic at the time the airport was built did not justify the kind of investment made by the GMR-led consortium. Delhi airport too has come in for similar criticism.

Also, unlike the other two private airports (Delhi and Mumbai), BIAL gives only 4 per cent of its topline to AAI whereas Mumbai and Delhi give a substantial part of their revenues. This is due to the Bangalore airport being a greenfield facility where all the initial investment was done by the promoters. At Delhi and Mumbai, the assets have been given on lease to private developers.

There are other reasons why facilities such as Hyderabad have lagged behind. The Telangana issue has taken a toll on business and business travel to Andhra Pradesh, harming the airport’s interests. Then again, Hyderabad sees a much larger volume of one-time fliers whereas Bangalore, being an information technolgy hub, has many more frequent fliers.

The traffic profile at the two cities also varies with the average flier in Bangalore willing to spend a lot more at the airport than the one at Hyderabad. The passenger volume in the two cities is also quite at variance with that at Bangalore at around 13 million last year while Hyderabad’s traffic stood at somewhere between 7.5-8 million.

Marar says that the attitude of passengers has seen a sea change. Travellers have become far more demanding and what was luxury some years ago is now par for the course. Also, passengers today have both the capacity and the willingness to spend. “It is not just that Indian airports have grown. So has the economy. And this reflects in passenger behaviour and their spending patterns”.

Marar also feels that BIAL has done well because it was born in the middle of a crisis. “Even before we learned to stand on our feet, we were dealing with the 2008 financial crisis. Things could only get better from there,” he says.

Passenger volumes crashed from 10.2 million to 8.7 million as soon as the airport opened its doors. The government took many months to approve an ad hoc user development fee (UDF) (the airport opened on 24 May 2008 but the UDF kicked in only in 2009). “We tightened our belts at that point in time which made our financial system very strong. Things were tough and we learnt to live with that,” adds Marar.

It also taught the airport administration to operate like one of the low-cost airlines that they were serving. Bhaskar Bodapati, director of finance at BIAL, says the airport spends money “if and only if” one of four objectives is furthered: better customer experience, higher efficiency, increased safety or a long-term reduction in the cost structure. “If one of these four objectives is not met, we simply don’t spend on whatever proposal comes up.” It is something similar to the approach followed by low-cost airline IndiGo. “Just like IndiGo is low on cost, but by no means low on experience, the same holds for Bangalore airport,” adds Marar.

Now, the Bangalore airport is entering its next phase of growth. The expansion — which is already under way — will take the handling capacity up to 17 million passengers, which will suffice till 2016-17. The increase in terminal capacity will cost the airport around Rs 1,500 crore, 30 per cent of which will come from accruals. The existing terminal will also be given a new look and feel.

The airport is also constructing a second runway which will be ready by the end of 2014. In addition to a second terminal — advertisements for designing the second terminal have recently been issued. “The idea is that every 3-4 years, we add capacity and at no point do we overbuild capacity”, says Marar

Eventually, the Hyderabad airport is expected see its handling capacity go up to 50 million passengers — all in good time.