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Enterprises

COSTING AND PRICING OF BUILDING


Presented To Mr. Pankaj Goel Presented By Navjot Singh BBA 5th Semester Roll No. 1105987

ACKNOWLEDGEMENT

First and foremost my heartfelt thanks to God Almighty for helping me in all my ways. I express my deep gratitude to Dr. (Col.) H.S. Singha & Dr. Sandhya Mehta who has provided me the necessary information and also for the support extended in the completion of this report. I owe my gratitude to my guide Mr. Pankaj Goel, Assistant Professor, for his valuable suggestions and support from the start to the completion of this study. Navjot Singh

COMPANY PROFILE BEDI ENTERPRISES


Bedi Enterprises is one of the leading Infrastructure Company in Ludhiana now. This Company has been established on 13th Jan. 2007. It is consisting of Real Estate Business. Understanding the need of fast changing world Bedi Enterprises has come up with customized residential and commercial complexes and agricultural land, keeping in mind stringent quality policy and international standard infrastructure practices.

To establish a benchmark for developing the new India and to remain at the commanding height in Real Estate Business. To provide people with the world class Real Estate concepts with Professionalism, Ethics, Quality and Customer Service.

OBJECTIVES OF BEDI ENTERPRISES

Meeting ever growing challenging requirements in todays competitive world through strong quality systems. Creating dedicated and confident work force through continual development process. Adding value to the investors.

COMPANY'S ACHIEVEMENTS

Retail Market & E-commerce Wellness Industry Infrastructure Real Estates "Flats & Duplexes" Resorts Property & Investment

COMPETITOR PROFILE

Ambuja Realty Group Sun City Projects Merlin Groups Magicbricks Ghar4u NK Realtors

COST OF THE FLAT

DOWN PAYMENT

EMI STRUCTURE (Installments)

100%

PARTIAL

Spread Over a Long Period (Max.20Years)

Shorter Span

May Result in a Discount Being Offered. Reduction in Incidence of Interest

Attract higher Principal Lower Interest

FINANCING FACILITIES ON OFFER


The various financing facilities that Bedi Enterprises. could take advantage of are: Offering loan against property Tie up with Recognized HDFC Bank Tie up with Commercial Banks Financial Institutions offering such Finances. Mortgaging Financing by self /Relatives

OBJECTIVES OF THE STUDY


To find out the out put Margin to the Cost of Finance. To find out the Profitability. To find out the how Bedi Enterprises sells their products.

SIGNIFICANCE OF THE STUDY


The project is of extreme significance to me as the whole cost of constructing a flat has been found out as well as the details regarding the profit margin has been calculated. It has helped me significantly as I am entering into the business of construction so have a blue print of the same with me.

RESEARCH METHODOLOGY

The primary source of data is questionnaires as part of the survey. This data forms the backbone of the analysis of the respondents requirements. The secondary sources of the data is the companys websites and manuals. This mainly provided information about companys profile. This helped in gaining knowledge about the industry. The sample size for the survey related to customer. The sampling technique to be used is convenience sampling. TOOLS TO BE USED : Graphs & - Pie- Charts

LIMITATIONS

Time constraint. The sample size was not sufficient. Respondents did not provide the accurate information due to hesitation.

WHAT KIND OF PROPERTY INVESTMENT YOU ARE LOOKING FOR?


KIND OF PROPERTY

21% Resedential Commercial 79%

Out of the total sample of 100 respondents 79 % of the respondents are interested in investing in Residential complex while only 21 % are interested for commercial complex. This represent that there exists a requirement of residential complex more than the commercial complex.

WHAT TYPE OF PROPERTY YOU ARE INTERESTED IN?


TYPE OF PROPERTY PEOPLE ARE INTERESTED IN
8% 24% Resedential Commercial plot Resedential flat 53% 15% Commercial shop

Out of the total sample of 100, more than half of the respondents are interested in residential flats . Also 24% of them are interested in residential plot. Whereas only 23% of the total respondents are interested in commercial plot or commercial shop. Thus reinforcing the above stated point that the demand for residential flats exceeds the commercial flats .

WOULD YOU PREFER A PLOT ADMEASURING AREA 100 Sq. Yrds. IF MADE AVAILABLE AND DEVELOPED
OWN A FLAT IN RESEDENTIAL COMPLEX
20%

Yes No

80%

As per the diagram above it can be seen that 80 % of the total respondents are interested in owning a flat in residential complex whereas only 20 % of the respondents says that they have no interest in owning the flat in residential complex

IF YES WHAT PRICE WOULD YOU WILLING TO PAY FOR THE PLOT IN LAKHS?
PRICE WILLING TO PAY FOR THE PLOT Size 100 sq mts 10% 15% 50% 25% 5 to 10 10 to 20 21 to 40 >1 Crore

This represents as to what percentage of employees are willing to pay for the plot within the range specified .As per the above diagram half of the total respondents are willing to pay between 5 to 10 Lakhs Per acre of land offered to them whereas 25 % of the respondents can even pay between the price range of 10 to 20 Lakhs. While only 15 % are ready to pay a price that can lie between 21 to 40 Lakhs. 10 % of the respondents are even willing to pay even a price ranging between 40 Lakhs to 1 crore.

DO YOU WANT ADD ONS LIKE UTILITY SHOPPING COMPLEX INCLUDING A MOTHER DAIRY OUTLET, PROVISION STORE, CHEMIST SHOP, CLUB, GYM, SWIMMING POOL,SPA,ETC.,
UTILITIES ADDONS NEAR THE FLAT

30%

70%

Yes

No

According to the diagram above, 70% of the total respondents want to add ons like utility shopping complex including a mother dairy outlet, provision store, chemist shop, club, gym, swimming pool, spa, etc.

WHY DO YOU PREFER A FLAT?


PREFER A FLAT

20%

25%

20% 35%

ECONOMY/AFFORDABLE

SECURITY

COMMON FACILITY

COMMUNITY LIVING

According to the diagram above, 35% of the total respondents prefer flat for security purpose , 20% of respondents prefer flat for economy / affordable

FINDINGS

People are interested for more of residential flats rather than commercial plots or shops While constructing the flats certain factors need to be kept in mind as these are the major reason for preferring flats in comparison to residential plots. There is a high requirement for the various addons that shall be provided to the people along with the flats People are also ready to pay between 25 to 35 lakhs for a two bedroom flat, if addons are provided whereas for a three bedroom flat they are willing to pay within the price range of 51 to 60 lakhs . Now since we have found out the requirement for the residential flats, the next step is to find out the cost of the flat.

SUGGESTIONS

The promoter Bedi Enterprises has borrowed money from the market for the purchase of land and this was at very high rate of interest. The development charges and infrastructure has to be made upfront where as the recovery will come only at the time of allotment of flats. Even the borrowing amount charges from the prospective buyers would not be sufficient to meet development charges and material purchase charge such as Bricks, Steel, Cement, etc. Since all the revenue will be a different income more than the actual cost incurred the interest charges to be borne become critical.

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