DLF Business Model

DLF's primary business is development of residential, commercial and retail properties. The
company has a unique business model with earnings arising from development and rentals. Its
exposure across businesses, segments and geographies. DLF has also forayed into
infrastructure, SEZ and hotel businesses. The DLF real estate management has got a business
model which enables seamless integration of real estate business model owing to its business
operation spanning across land, design, construction, facilities and marketing.
These bouquet of services are managed by a team of professionals with expertise spanning
across these functions.
DLFs Business model mainly consist of two models:

Development Business

Annuity Business

Operations

Development Business: DLFs development business

primarily focuses on the

development and sale of residential real estate which include plotted developments,
houses, villas and apartments of varying sizes and integrated townships, with a focus
on the high end, luxury residential developments. The development business also
consists of certain commercial and shopping complexes, including those that are
integral to the residential developments they are attached to.
DLF further splits the development business into three geographical segments
Gurgaon, Super Metros and Rest of India. Each of these three geographical segments
are independently responsible and accountable for all activities across the product value
chain from acquisition of land, obtaining approvals, project planning and execution, to
launch, sales & marketing and final delivery of the developed property to the customers.

Lease Business: The Companys lease business involves leasing of its developed
commercial and retail properties. One of the key objectives of its lease business is to
achieve returns from investments in its portfolio properties within a targeted timeframe.
Another key objective is to achieve high occupancy rates for the leased portfolio
properties. DLFs lease business comprised completed commercial and retail properties
with Leasable Area of 23.8 msf, which yielded incomes of approximately 1,635 crores.

Hotels: DLF in the recent times is trying to exit non-core assets and non-strategic
businesses, hence it has divested a significant portion of its interests in the hospitality
business including its shareholding in Adone Hotels and Hospitality Limited which
held various hospitality related land parcels. DLF entered into a share purchase
agreement to sell its entire 100% shareholding in Silverlink which operates various
properties under the Aman Resorts brand. However, The Lodhi, which is a hotel
property located in New Delhi, was not included in this sale and continued to be owned
and operated by DLF.

Insurance: DLF currently holds 74% equity stake in the joint venture company with
U.S. Based Prudential International Insurance Holdings to develop, promote, market
and sell life insurance products in India. The joint venture has completed about four
and half years of operations and had 55 branches in India and a team of 5,487 individual
agents.

Wind Assets: DLFs wholly- owned subsidiary DLF Home Developers Ltd. (DHDL)
and Violet Green Power Private Limited (Violet) entered into a business transfer
agreement for transferring of DHDLs undertaking comprising of 33 MW capacity
wind turbines situated at Rajasthan. DHDL has transferred its undertaking comprising
of 34.5 MW capacity wind turbines situated at Tamil Nadu to Tulip Renewable
Powertech Private Limited (Tulip).

Modes of Revenue generation

DLF generates revenue mainly from the following modes:

Revenue from constructed properties (Rental income)

Sale of land and plots

Construction contracts

Power supply

Hospitality services and Recreational facility

Organizational Structure

Sales & Marketing efforts

Three sales & marketing departments are maintained for residential, commercial & retail
business lines by DLF. The company encourage participation of former buyers or tenants in
the new product launches and it sells its properties to customers both directly and through
brokers. Marketing approach includes launch events, corporate presentation, web marketing.,
direct & indirect marketing, as well as newspaper & outdoor advertising. In commercial &
retail business lines, marketing is done through property consultants & relationships with
existing tenants. Approximately 120 brokerage firms market its properties. Most of the sale
bookings are at project sites, although sales are also made at the corporate offices. Sales teams
have positive & negative compensation incentives tied to their sales performance. A client
servicing team serves the customer from the booking process, through to the transfer of
property to the new owner. Relationships with various banks & housing finance companies
facilitate and provide convenient finance to customers and also share some advertising costs.

The major marketing approaches adapted by the company are as follows:

Social Media Marketing

Mobile Marketing

Search Engine Optimization

Email Marketing

Display Advertisement

DLF Management Team

DLF has a strong management team running independent businesses, though complementing
each other in cases of opportunities of mixed land use. DLF's mission is to build a world-class
real estate development company with the highest standards of professionalism, ethics and
customer service and to thereby contribute to and benefit from the growth of the Indian
economy.
DLF is a family-centric firm, wherein the entire family of Mr. K.P. Singh is involved in the
business and they provide the necessary training to their family members. Also, when it comes
to recruitment of the management team, they recruit highly qualified and experienced people.
We can see that DLF plans to be debt-free and the team has strategically planned a route to
carry forward the same. We can also see that during the GFC period, DLF was one of the only
few companies that were able to cope up with its effects. All this is attributed to the
competitiveness and the qualification of their management team.

Corporate Governance:
Structure of Board of Directors

Financial & Informational Transparency

DLF has several committees to overlook the financial & informational transparency of the firm
and to ensure that all the standards are being followed by various departments. The committee
also overlooks the sharing of relevant information with the concerned parties.

Stakeholders Rights
As per the CRISIL GVC Value 4, DLF has scored fairly well when it comes to stakeholder
rights. In terms of shareholder rights, company has scored high signifying its commitment
towards its shareholders. The company has a very strict policy in place to prevent insider
trading in accordance with SEBI regulation. In terms of debt-holders and customers, company
has score Above Average signifying that its doing fair but it needs to further improve. In terms
of suppliers, company has scored high signifying that it believes in cordial relation with
suppliers. Company is also involved in various CSR activities and has completed all its projects
at time, ascertaining high in terms of society. However, the company will have to improve in
terms of employee rights as it has scored Below Average there.

Corporate Culture
DLF believes that the culture of an organisation is the DNA that plays a significant role for its
sustained growth and success and that the people of the organisation play the most critical role
in building this DNA.
Their foundation is embedded in their vision and values. This strong commitment to their value
system drives employee actions and decision making. DLF strive hard to attain the highest
levels of performance by providing a work environment that is informal and safe. The company
encourages open and transparent communication that helps their employees in understanding
business priorities and enables them to contribute in building a successful organisation.
The company look for lateral thinkers who can add value to their business and processes; have
an excellent teamwork ethic. and are driven to take the organization and their own careers to
new heights. They consider all three elements to be equally important for the mutual growth
and success of the company and the individual. DLF create this mutuality of interest, not just
with salary compensations that match the best in the industry, but also with rigorous training,
counselling, and creation of opportunities to sharpen and polish skills.
DLF provide a working environment that encourages excellence. In this age of new
technologies, company hope that sharing of information, finding better ways to work and
support each other, sets standards of personal and professional conduct all the while
delivering products and services that exceed customer expectations.

References
DLF. (n.d.). DLF. Retrieved from http://www.dlf.in/
DLF. (n.d.). DLF. Retrieved from Stakeholders|DLF: http://www.dlf.in/press-releasesdetails.aspx?id=80
DLF. (n.d.). DLF. Retrieved from Corporate Governance|DLF: http://www.dlf.in/corporategovernance-report.aspx
Line, T. H. (n.d.). DLF Limited Board of Directors, CEO & Management Board
Information|The Hindu Business Line. Retrieved from The Hindu Business Line:
http://www.thehindubusinessline.com/companies/data/D-L-F-Limited/board-ofdirectors/55234/