speech maccia 19sept14
DESCRIPTION
PPT for the Speech at MACCIA on "Real Business has suffered due to Real Estate"TRANSCRIPT
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Piyush Somani - MD & CEO
|ESDS SOFTWARE SOLUTION PVT. LTD.|
Real Business has suffered due to Real Estate
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• Last 10-15 years have been difficult to start business in India
• Only real estate or construction field prospered
• Manufacturing industries only opened by big groups
• Others had only 1 business buy or sell lands
• No one initiating to become an Industrialist / Entrepreneur
Real Business has suffered due to Real Estate
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Many who tried - failed miserably due to
• Lack of financial support • Poor payment terms, anyone can cheat
• Bank loans @ very high interest • Compulsion for Security of land or building
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What’s the reason for such vulnerable situation of MSME’s in India?
• Remarkable growth in real estate sector
• More than 1000% appreciation in last 10 years
• Preference to Degree in civil engineering
• Real estate business was better than anything else
• Inorganic growth in India in Realty
• Investment in real estate rather than share market or Equity
• Resulted in slow growth in share market during 2006 -2013
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What’s the reason for such vulnerable situation of MSME’s in India?
• Such growth in real estate, never happened anywhere else
• good growth in brazil, but nowhere close to India
• Flats in Mumbai & Delhi are expensive than London
• 1000% growth in India in last 10 years
• During same period, 30 % reduction in UK
• Though UK has great infrastructure
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Is there such huge demand for Land and Flats in India?
• Overtrading & over speculation of demand in India
• Low risk business, attracted capital
• Combo businesses started flourishing • Schools & colleges require a lot of real estate
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Secret behind success of American startups
• Investors are very innovative
• Opportunities to invest in max growth potential business
• Opposite to capitalists & investors in India
• Investments in companies like Google, Amazon & Facebook fetched unbelievable returns
• If India had such investors & capitalists - Our Young Entrepreneurs would have created something much better than Whatsapp, twitter & Facebook
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Secret behind success of American startups
• Economy cannot survive with only low risk investment
• 50% money in medium risk
• 20 % in high risk, to strengthen portfolio
• True pleasure of making money comes from risk investments
• Capitalists reserve some money for risk investments
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Suggestions• Group of capitalists & investors should form an
Investment committee
• Hire investment bankers with MBA finance or experience in Finance Management
• Look after shares portfolio
• Investment in new business ideas
• Min 5 % on high risk business concept
• 1 out of 10 investments may fetch 10 -100 times return
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Thank You