Business

Between 2018 and 2022, Hyderabad expects to attract equity investment of US$ 2.24 billion in real estate, which is 7% of the cumulative Investment in India.

As many as 24 land deals were closed and 970 acres acquired in Hyderabad on Tuesday, which saw a total investment of $900 million, according to findings of ‘Indian Real Estate: Betting on a Capital’ Future’ published by CBRE South Asia Pvt Ltd. Inland/site acquisition during 2018-22.

The city also recorded the second-highest land acquisition activity in the country, accounting for over 14 percent of the total land acquired since 2018. As per the report, across India, the total Investment in the land sector ER between 2018 and 2022 was $43,300 million. Equity investment during this period stood at US$31.8 billion, while debt investment stood at US$11.5 billion.

The CBRE report said that since 2018, most of the capital deployment has been through the core and core-plus investment strategies. However, the city has seen an increasing number of bets made through opportunistic routes for greenfield development.

Institutional Investors Entering India ( IIEI):

As per the report, intra-regional investors (outside the APAC region) have contributed around 47% of the total investments in India since 2018. Domestic investors (mainly property developers) have invested over USD 13 billion, representing about 42% of investments. , Total Investment during this period.

Institutional investors have invested more than $17 billion over the past five years, and North American investors account for the largest portion of these investments.

Sector Bets ( SB):

The office sector received more than 56 percent of institutional inflows and pent-up demand, and improving employee occupancy levels in business parks fueled a strong rebound in office leasing.

Land/parcel acquisitions were another favorite bet, with total institutional inflows exceeding $2.5 billion, representing a share of nearly 15 percent.

Among cities in India, Hyderabad ranks among the top five for real estate investment. Worth noting that over $2 billion of capital inflows into the retail sector took place, which is over 11% of total institutional Investment. This indicates the growing importance of retail in the real estate sector and the potential of Hyderabad as a retail hub.

CBRE President and CEO for India, South East Asia, Middle East and Africa told Anshuman Patrika: “Over the next two years, we expect investment flows to remain stable with cumulative inflows of $16-17 billion.”

Gaurav Kumar and Nikhil Bhatia, managing directors of capital markets and residential business at CBRE India, attributed this growth to sustained demand across sectors and the spectacular returns witnessed by investors.

Rami Kaushal, Managing Director, Valuation and Advisory Services, India, Middle East and Africa, CBRE, said: “The REIT landscape will expecting to become more diverse this year, as we may soon see the listing of the first Indian retail REIT, which REITs in India can add more depth to the market.”

Investment in sites in the top 7 cities (2018-2022)

Urban land acquired (acres) Investment in land deals (US$ billion)

1. Delhi-NCR 1760 67 3.8
2. Mumbai 960 73 3.8
3. Bangalore 700 44 1.1
4. Hyderabad 970 24 0.9
5. Madras 500 47 0.9
6. Puno 450 27 0.6
7. Calcutta 110 4 0.1

According to CBRE India, this has led to an influx of new investors seeking to set up large investment platforms in the country. This is a clear indication of the positive impact of the Hyderabad property market on the overall economy of India.

With the increasing demand for residential and commercial properties, Hyderabad has emerged as one of the top five cities in India for real estate investment. This trend will expect to continue as the city continues to attract investors from around the world who see the potential for high returns on their investments.

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State Bank of India (SBI), one of India’s leading financial institutions, has announced its plan to raise $2 billion for the upcoming fiscal year, 2023-24, through the issuance of senior unsecured notes. The move is part of SBI’s long-term fundraising plan, aimed at strengthening its balance sheet and supporting future growth plans.

The senior unsecured notes issued by SBI will have a minimum maturity of three years and a maximum maturity of 10 years. The bonds will be issuing in one or more tranches depending on market conditions and SBI’s funding requirements. This move by SBI is a clear indication of the bank’s commitment to its customers and stakeholders, as well as its faith in the market and the economy.

With this long-term fundraising plan, SBI is well-positioned to continue its growth trajectory and provide innovative and reliable financial solutions to its clients. It also signifies the bank’s strong financial position and ability to raise funds from global markets to support its growth ambitions.

At the recent Central Board Executive Committee meeting on April 18, SBI announced that US dollars or other convertible foreign currencies would use for senior unsecured notes. This announcement indicates that the Board is preparing to offer new senior unsecured notes. Details of the offer remain uncertain as the Board also mentioned that the notes could be offering as a public offering or a private placement.

A public offering would involve the sale of notes to a wide range of investors, such as retail investors. By contrast, a private placement would involve the sale of notes to a select group of investors, such as institutional investors. The decision to make a public or private offering will depend on several factors, including the size of the offering, the level of interest of potential investors and current market conditions.

In addition, the use of US dollars or other convertible foreign currencies indicates that the Board is seeking to expand its international reach and attract a broader range of investors. It also shows that the Board has faith in the stability and strength of the US dollar and other foreign currencies.

State Bank of India (SBI) recently raised Rs 3,717 crore by issuing its third additional Basel III compliant Tier 1 bonds for FY23. This is complete at a coupon rate of 8.25 percent. , making it one of the most successful bond issues of the year. These bonds have a fixed term, which is good news for investors looking for long-term investments.

In addition, there is a call option after ten years and on each anniversary after that, giving investors the flexibility to sell or hold their investments as they see fit. The success of this bond issue reflects investors’ confidence in SBI, India’s leading bank.

The funds raised through this bond issue using to finance various business ventures and initiatives of the bank, which will ultimately benefit its customers and shareholders.

State Bank of India (SBI) has announced plans to strengthen its capital adequacy by increasing its Additional Tier 1 capital and its overall capital base, as well as in line with Reserve Bank of India (RBI) guidelines. To achieve this, the bank plans to use the proceeds from the bond issue.

The bonds will help the bank meet its regulatory and compliance obligations while ensuring long-term stability. Proceeds from the bond will go towards boosting the bank’s capital position so that it can continue to provide financial services to clients across India.

By strengthening its capital base, SBI will be better able to absorb any potential risk in the market and continue to grow its business while maintaining its strong reputation as one of India’s leading banks. With its dedication to maintaining its position as a strong and reliable financial institution, the State Bank of India continues to prove itself a pillar of the Indian economy.

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In an ironic move, the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as the Milma brand, is now opposing the entry of Karnataka Milk Federation (KMF) Nandini into the State.

Karnataka-based dairy brand Nandini has grown into Kerala by opening two platforms in the southern State. However, the move criticize by the local Milk Marketing Cooperative Union.

The move comes amid the ongoing controversy over the arrest of Amul in Karnataka, amid fears that the brand would affect KMF’s Nandini, a brand made by farmers.

Since certain state milk marketing unions tend to “aggressively enter markets outside their respective states,” the KCMMF has resisted the move.

The federation acknowledged that such a move would result in a complete departure from the cooperative principles upon which the country’s dairy sector is find and which have benefited thousands of dairy farmers.

Milma’s president calls the practice “immoral.”

In a statement, KS Mani, president of Kerala’s local brand Milma, called the practice “unethical”. The tendency to enter markets outside its domain by opening points of sale or attracting franchisees avoiding. Initially, they sold only value-added products but later expanded their operations to include liquid milk sales. Subsequently, they commenced delivering milk from shops to stores.

According to Mani, the attempt by the Gujarat Dairy Cooperative Federation (Amul) to promote its staple in Karnataka has elicited a strong reaction from stakeholders in the State. But the Karnataka Milk Marketing Federation recently launched its milk and other products and opened its outlets in some parts of Kerala to sell the Nandini brand.

How can this be justified? Whoever does this is an extremely unethical practice that undermines the entire goal of the Indian dairy movement and is detrimental to the interests of the farmers.

Mani said this trend would only fuel unhealthy competition among states, adding that the central and StateState governments should come together to reach a consensus.

“Some State Milk Marketing Federations have recently shown a growing propensity to offer their products outside of their geographic regions. The federal principles and cooperative spirit upon which the State Dairy Cooperative Societies of the nation find are gravely violated by this.

The operational movement is create and nurtured by pioneers like Tribhuvandas Patel and Dr. Verghese Kurien,” Mani said.

Cross-border Marketing of Milk

The Karnataka Milk Federation is criticize by Milma for expanding its stores into portions of Kerala, claiming that this was a flagrant violation of the cooperative principles upon which the nation’s dairy business was set up for the benefit of thousands of dairy farmers.

He also cited an agreement that establishes that the cross-border marketing of milk is a “serious encroachment on the territory of sale of the State in question.”

“According to the existing agreement and good business relations between dairy cooperatives, cross-border marketing of fluid milk avoiding, as it amounts to an open invasion of the sales territory of the State concerned.

In the spirit of cooperative principles, that they are base on mutual consent and goodwill was appreciate for a long time,” he said.

According to the Economic Times report, Mani has also written to KMF. “In the dairy sector, we all have to thrive by being ethical to one another,” Mani is quote as saying by ET.

Tejashwi Surya on Nandini vs. Milma

Tejashwi Surya on Karnataka BJP MP Tejashwi Surya made a hint to Congress leader Rahul Gandhi who recently visited Karnataka.

The Congress Leader, State Party Chief DK Shivakumar and General Secretary KC Venugopal visited Nandini Milk Parlor in Bangalore. He bought Nandini ice cream and the flagship brand of Karnataka Milk Federation (KMF), calling it the “pride of the state”.

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The World Bank said India’s growth remains resilient despite some signs of slowing growth. The World Bank, in its most delinquent India Development Update, has lowered India’s growth forecast for 2023-24 to 6.3% from 6.6% previously.

India’s growth is predicted to be denied by slower consumption growth and difficult external conditions, the World Bank said.

He stated in a report on Tuesday that “rising borrowing costs and slowing revenue growth will consider on private consumption increase, and government consumption is forecast to increase at a slower pace due to the removal of tax-related fiscal support measures during the Pandemic.”

However, he said India’s growth remains resilient despite some slowing growth. He points out that although significant challenges remain in the global environment, India is one of the fastest-growing economies in the world.

According to Auguste Tano Coume, the World Bank’s Country Director for India, “India’s economy continues to show strong resilience to external shocks.”

India’s service exports have increased despite external pressures, and the current account imbalance is decreasing, according to Koume.

On India’s inflation, he said that while headline inflation has risen, it is forecast to decline to an average of 5.2 percent in 2023-24 amid falling global commodity prices and some slack in inflation domestic demand.

“The Reserve Bank of India (RBI) has reversed accommodative steps to control inflation by increasing the policy interest rate. According to the statement, a substantial private sector credit expansion and better asset quality have helped India’s financial sector maintain its strength.

For the second straight month in February 2023, retail inflation in India decreased slightly but still exceeded the RBI’s upper tolerance band of 6%. The consumer price index ended the month at 6.44 percent. In January, the retail inflation figure was 6.52 percent.

In recent years, India’s retail inflation has been a significant concern for the Reserve Bank of India (RBI). The RBI’s target for retail inflation is 6%, but the inflation rate has exceeded this target for three consecutive quarters. This has caused great concern among the Government of India and the central bank. However, there are signs of progress as the retail inflation rate returns to the RBI comfort zone in November 2022.

The RBI decided to increase the repo rate, which it loans to banks, by 25 basis points to 6.5 percent in order to control inflation at its most recent Monetary Policy Committee (MPC) meeting in early February. The repurchase rate at which the RBI lends to banks has increased by 250 basis points since May 2022.

Furthermore, the World Bank said the Indian government would likely hit its fiscal deficit target of 5.9 percent of GDP in 2023-24.

The general government deficit is also expected to narrow. As a result, the debt/GDP ratio is expected to stabilize.

The current account deficit is an important economic indicator that reflects the difference between a country’s total imports and exports of goods, services, and investment income. A current account deficit generally means that a government is spending more than it is earning, which can lead to a weakening currency and higher borrowing costs.

However, according to a recent World Bank report, India’s current account shortage is projected to narrow to 2.1% of GDP in the recently concluded fiscal year 2022-23 from an estimate of 3%. This vital improvement is attributed to solid exports of services and a reduction in the merchandise trade deficit.

According to Dhruv Sharma, a senior economist at the World Bank and the report’s primary author, “recent developments in the US and European financial markets pose risks to near-term investment flows to emerging markets, including India.” However, Indian banks have adequate capital.

Scarlet Samson