SYAR 7th National Negotiation Competition

Confidential Information for Responding Party (Ramesh Builders)

Alternative Dispute Resolution Society, NLU Nagpur

With the conclusion of MOVID-19, real estate, especially luxury, was one of the few sectors that
recovered. MOVID-19 gave impetus to consumers to understand the value of home ownership,
and with the influx of REITs (Real Estate Investment Trusts), there is an underlying
understanding that the real estate market shall soon be bullish, despite the current market
scenario. The same has been corroborated, especially in the case of luxury real estate, by the
Statistics and Data Analysis team of Ramesh Builders. Thus, considering these prospects,
Ramesh Builders intends to launch an IPO at the earliest, and its success entirely hinges on the
success of its new New Heights project.

With an Rs. 500 Cr construction loan and a 14% mounting per annum interest rate hampering
the coveted IPO, there is little to no room for error on Ramesh Builder’s part. They must ensure
that Mr Ranveer continues on board for the endorsement, although the offer made of Rs. 2 Cr
base payment along with sale incentives will risk the repayment of the loan. While preparing for
the negotiation rounds, the Statistics and Data Analysis team found that the offer of Rs. 1 Cr is
quite less as per market standards, and Ramesh Builders is willing to negotiate the same, but at
no given instance shall the base amount increase beyond Rs. 1.5 Cr.

In addition, Ramesh Builders, while dependent on a brand ambassador, fails to understand how
the sales incentive mechanism works, and how to evaluate the sales attributable to his
endorsement. Thus, they think that the sales incentive shall be detrimental to their financial
statement.

Ranveer, an up-and-coming star, has reached the ranks of the elite A-listers at a young age,
making him an elusive option. Thus, Ramesh Builders finds it pertinent to rope him in when he
is willing and interested. They believe that Ranveer would bolster their image considering his
sizable following and shall be favourable for the IPO if channelised correctly. Furthermore,
Ramesh Builders does not wish to sour relations as he believes that Ranveer is the ideal celebrity
to maintain cordial and continued business relations with.

Drafted by Shloka Sharma, Udwipt Verma and Ananya Srivastava