PESTEL ANALYSIS OF L&T REALTY

ABOUT COMPANY

• Started in 2012• Anil Naik’s youngest baby • With in 3 years L&T has

launched multiple projects and competes with top players like DLF ,LODHA

CURRENT PROJECTS• Cresent bay – parel ,Mumbai (Sale price of 16000/sqft vs 22-28k of other developers ) (Construction Cost of 7000)• Emrald isle – powai ,Mumbai • Eden park – OMR ,Chennai • Raintree Boulyard –Bengaluru • Seawoods grand central – Navi Mumbai • L& T Business park –Powai ,Mumbai .

24 Lo

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Mid

24 High

Finish

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Mid

35 High

50 Mid

50 High

60 - 7

0 Bare

Shell

60 - 7

0 Finis

hing

02000400060008000

Cost/sqft of cons. Area

COST

USP’S OF L&T REALTY • Brand value of L&T and trust that

comes with that name • company is converting their on land

parcels ,not buying land parcels • Not venturing to be a PAN india

player • No prelaunch sales before getting all

approvals• Targeting NRI customers

Source : business standard

PESTEL ANALYSIS

WHAT WORKS?• ‘Make in india’ campaign and

extra foreign investements comes along with that • ‘Housing for all 2022’ and its

effect on Real estate developments • Support of government in

rehabilitation (SRA) projects

WHAT IS AGAINIST?• Revised draft DCR 2034 – Mumbai

and revised applications on TDR ,Fungible FSI • RERA BILL 2016

(Developer majorly concentrates on mumbai as majority of its land parcel is in or around MMR)

POLITICAL

PESTEL ANALYSISECONOMY

PESTEL ANALYSIS

WHAT WORKS?• The government has recently permitted

100% FDI in construction sector.• Indians (NRIs) are permitted to invest in

Housing and Real Estate sector. This includes persons of indian orgin • Development of townships and

infrastructure • REIT• Self financing potential (L&T FINANCE)

WHAT IS AGAINST?

• INDIA is a sales driven market .• Decline in real estate sector

right now.

ECONOMY

PESTEL ANALYSIS

WHAT WORKS?• Brand name of a builder or the

company plays an important role in convincing the buyer to buy the house and be sure of the quality of construction work done. This is one thing L&T realty has as a USP.• Green Building Projects.(All projects developed by L&T are green certified)

WHAT IS AGAINIST?

• Resistive attitude of society towards the modern construction materials. This is due to the fear of safety and security • The concerns regarding powai

region projects .

SOCIAL

PESTEL ANALYSIS

WHAT WORKS?• Emergence of new construction

technologies in India • Use of high end formworks in

projects (mivan ,kumgkang ,self

climbing type formworks)• Skills L&T construction possess

over this much years of experience

WHAT IS AGAINIST?• Indian construction industry is

atleast 10 years behind global standards .• Due to lack of technology,

construction can suffer in terms of quality and design.

TECHNOLOGICAL

PESTEL ANALYSIS

• Various environmental factors affect the cost of construction like • Availability of labor force • Transportation cost • Quality and cost of land and

demand • Uncerain environmental

hazards • Political unstabilities Uncertain environment

hazards

environmental

PESTEL ANALYSIS

• Most complex system of taxes and approvals • Ranked 184 in ease

of getting construction approvals

Legal factors

• No pre sales before approval strategy

What works?

•What is against?

Political • No new launch is declared till establishment of RERA

• Very high support to SRA projects & MHADA projects

Economical • Self standing stratergy • Very careful with joint ventures • Converting their own land parcels

Social • Knows peoples pulse • Attracts NRI customers a lot and is

a part of strategy also

Technological • Best we get in india .• Very specialised team of L&T

backing upEnvironmental • Should be very careful with moef

guidelines • All launched buildings have green

aspects in design Legal • No pre sales before approval

strategy

THANKS FOR THIS OPPORTUNITY