COST LEADERSHIP WORKSHOP

20TH JULY 2017

AGENDA
Time Agenda Contents
Present status of all projects with respect to time
10:00 - 10:30 Context setting
delay, COD and labour issues.
10:30 - 11:00 Stakeholders' views

11:00 – 11:30 Tea Break

11:30 - 12:00 Experts' talk Jignasu Mehta on Tunnel Formwork

12:00 - 1:00 Experts' talk Shashank Vaidya on Precast and other technologies

1:00 - 2:30 Lunch Break

2:30 - 3:30 Experts' talk Shashank Vaidya on Precast and other technologies

3:30 - 4:00 Avenues case study Comparison of different construction technologies.

4:00 - 4:15 HO Recommendation

4:15 – 4:30 Tea Break

4:30 - 6:00 Open Discussion

Discussions continue over cocktails and
6:30 onwards
dinner 2
THE NEED FOR MODERN CONSTRUCTION
TECHNOLOGY
OBJECTIVE

Aspiration of reaching 20% ROE from current 10%

One of the levers – “Faster Turnaround”

Completing projects earlier than today’s timelines

“GPL Brand” - Handing over ahead of commitment

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PROJECT PORTFOLIO

22 mn sqft under
construction
(32 projects)
32 mn sqft in PCP
(30 projects)
21 mn sqft in TDD
(16 projects)

With a launch every quarter, we are looking to add to the portfolio substantially
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 SCENARIO 2020 – UNDER CONSTRUCTION

FY20
• 55 mn sqft
FY19
• 39 mn sqft
FY18
• 24 mn sqft
Current
• 22 mn sft
CAGR – 39%

Assumption : Construction for projects in PCP shall start in FY19 and for those in TDD will start in FY20
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 OUR EXPERIENCE - HANDED OVER PROJECTS
Handover date as Delay
Project Phase PIL date
per agreement in months
Phase 1 Mar-14 Oct-14 7
Frontier
Phase 2 Mar-14 Mar-16 24
Phase 1 Dec-16 Jun-17 6
Summit
Phase 2 Mar-17 Jun-17 3
Phase 1 Jun-12 Dec-12 6
Prakriti Phase 2 (3 towers) Dec-13 Sep-15 21
Phase 2 (2 towers) Dec-13 Oct-15 22
Platinum – Kolkata Phase 1 Mar-16 Mar-16 0
Serenity Phase 1 Dec-16 Jan-17 1
Phase 1 Jun-15 Aug-15 2
Horizon Phase 2 Oct-15 Dec-15 2
Phase 3 A2 wing Dec-16 Apr-17 4
Anandam Phase 1 Mar-15 Sep-15 6
Phase 5A Jun-16 Oct-16 4
GGC
AHS 1 Sep-16 Feb-17 5
E-city Phase 2 Jul-16 Jan-17 6
Palm Grove Phase 1 Sep-15 Mar-16 6 7
TIME DELAY IN CURRENT PORTFOLIO
OC application date
Delay
Project
At time of award Currently projected (months)

Central (Rehab) Apr-17 Dec-17 9

Prime (Rehab) Jan-19 Jul-19 6
Sky Oct-21 Jul-22 9
Summit Oct-17 Dec-17 2
Sector 88A Mar-19 Sep-19 6
GGC Ph 5 & AHS Mar-17 Aug-17 5
Prana Aug-18 May-19 9
Infinity Jun-19 Sep-19 3
Prakriti Varies for different phases Average - 9
Azure Ph 1 Mar-18 Apr-18 1
Eternity Jan-19 Feb-19 1
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REASONS FOR PROJECT DELAY

“826 out of 2304 housing projects running behind schedule;

average delay 39 months”
- Associated Chambers of Commerce & Industry India (ASSOCHAM) study, April 2017

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TOP 10 REASONS FOR PROJECT DELAY

1 2 3 Deficient planning,
Difficulties in obtaining
Shortage of skilled activity, material, labour
licenses and permits
labourers and equipment
from authorities
management

4 5 Delays in preparation of
technical documentation
Low productivity by project designers
while construction is in
progress

Source – Mohmad Wahdan, Mostafa Abu Yousef, Ahmed Farid, “Study and Assessment of the Reasons for Project Delay or Stalled from Project Management View” 10
TOP 10 REASONS FOR PROJECT DELAY

6 7 8
Inadequate details and Frequent change orders Deficient coordination
inadequate design during construction among participants

9 10 Difficulty and delay in the

drafting and submitting of
Neglect of critical
requests for institutional
activities
opinions and
authorizations

Source – Mohmad Wahdan, Mostafa Abu Yousef, Ahmed Farid, “Study and Assessment of the Reasons for Project Delay or Stalled from Project Management View” 11
IMPACT OF DELAY

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 81 CR COST OF DELAY FOR ONGOING PROJECTS
OC application date Cost of delay
Delay COD
Project At time of Currently per day
(days) Rs Crs
award projected Rs crs / month
35.00 2.5% Central (Rehab) Apr-17 Dec-17 261 1.57 15.45
31.22
Prime (Rehab) Jan-19 Jul-19 185 1.76 10.88
30.00
2.0% 2.0% Sky Oct-21 Jul-22 284 0.52 4.90

25.00 Trees Dec-18 Dec-18 19 3.08 1.95

1.6% Summit Oct-17 Dec-17 62 2.96 6.11
1.5%
20.00 18.81
1.3% Sector 88A Mar-19 Sep-19 184 1.21 7.41

14.00
Aria Oct-18 Oct-18 1.76
15.00 13.52
1.0%
101 Sep-19 Sep-19 1.15
10.00 0.7% GGC Ph 5 & AHS Mar-17 Aug-17 160 0.92 4.90
0.5% Prana Aug-18 May-19 262 1.02 8.93
5.00
1.950.2% 0.3% Infinity Jun-19 Sep-19 95 1.57 4.97
1.04
0.00 0.0%
Prakriti Varies Varies 270 1.56 14.00
Mumbai Vikhroli NCR West East South
Azure Ph 1 Mar-18 Apr-18 31 0.22 0.23
COD Percentage of development budget
Eternity Jan-19 Feb-19 30 0.81 0.81
Total COD for live projects 80.54
~1.09% of the development cost 13
PRANA
TIMELINES COST OF DELAY
OC application date Cost per
Expense head
Building At time of Currently month
Delay
award projected Preliminaries 0.01
Building A 15-Oct-17 19-Jun-18 247 PMC 0.08
Building B 4-Dec-17 24-Aug-18 263 Overheads 0.47
Building C 4-Dec-17 31-Aug-18 270 Interest 0.39
Building D 28-Mar-18 15-Nov-18 232 Housekeeping and maintenance 0.01
Building E 28-Mar-18 28-Nov-18 245 Escalation 0.06
Building F 22-Aug-18 16-May-19 267 Customer compensation 0.00
Building G 27-Aug-18 6-Oct-18 40
Net Delay (days) 262 Total cost per month (Rs Crs) 1.02
Cost of delay per day (Rs Crs) 0.03

COD (Rs Crs) 8.93

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PRIME (REHAB)
TIMELINES COST OF DELAY
OC application date Cost per
Expense head
Building At time of Currently month
Delay
award projected Preliminaries 0.01
T1
Sales 10-Jan-19
15-Apr-20 29-Jun-19
3-Oct-20 247
170 PMC 0.07
T2
Rehab 8-Nov-18
10-Apr-19 9-Jul-19
14-Aug-19 263
243 Overheads 0.17
T3
Net Delay (days) 12-Apr-18 6-Jul-19 450
262 Rent 0.93
T4 7-Oct-18 14-Jul-19 280 Housekeeping and maintenance 0.00
T5 28-Jul-18 15-May-19 291 Escalation 0.08
T6 8-Jul-18 8-May-19 304 LUC 0.50
T7 19-Jul-18 10-Jan-19 175
T8 20-Mar-18 17-Jan-19 303 Total cost per month (Rs Crs) 1.76
Net Delay (days) 185 Cost of delay per day (Rs Crs) 0.06

COD (Rs Crs) 10.88

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GGC PH 5B & AHS 2
TIMELINES COST OF DELAY
OC application date Cost per
Expense head
Building At time of Currently month
Delay
award projected Preliminaries 0.14
Carmel G & I 16-Mar-17 7-Apr-17 22 PMC 0.00
Vrindavan I & J 7-Dec-16 23-Mar-17 106 Overheads 0.49
Vrindavan H 23-Nov-16 10-Jul-17 229 Interest 0.29
Vrindavan F & G 2-Feb-17 23-Aug-17 202 Housekeeping and maintenance 0.00
Net Delay (days) 160 Escalation 0.00
Customer compensation 0.00

Total cost per month (Rs Crs) 0.92

Cost of delay per day (Rs Crs) 0.03

COD (Rs Crs) 4.90

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SECTOR 88A
TIMELINES COST OF DELAY
OC application date Cost per
Expense head
Building At time of Currently month
Delay
award projected Preliminaries 0.00
Tower 1, 3B, 3C Jul-18 Jul-18 0 PMC 0.17
Tower 2, 3A Jul-18 Aug-18 31 Overheads 0.09
Tower 6,7 Dec-18 Mar-19 90 Interest 0.90
Tower 8,9 Dec-18 Mar-19 90 Escalation 0.04
Tower 10 Mar-19 Sep-19 183 Customer compensation 0.01
Net Delay (days) 183
Total cost per month (Rs Crs) 1.21
Cost of delay per day (Rs Crs) 0.04

COD (Rs Crs) 7.37

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AZURE PHASE 1
TIMELINES COST OF DELAY
OC application date Cost per
Expense head
Building At time of Currently month
Delay
award projected Preliminaries 0.00
Jade Mar-18 Apr-18 30 PMC 0.07
Emerald Mar-18 Apr-18 30 Overheads 0.10
Pearl Mar-18 Apr-18 30 Interest 0.00
Net Delay (days) 30 Housekeeping and maintenance 0.00
Escalation 0.04

Total cost per month (Rs Crs) 0.22

Cost of delay per day (Rs Crs) 0.01

COD (Rs Crs) 0.22

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MANPOWER

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CURRENT STATUS ACROSS ALL PROJECTS (FOR JUNE)
Available Labour Shortfall Shortfall
1400 100%

90% 90%
1200
80%

1000 71% 70%

570
61% 60%
800
419 55%
52%
49% 50%
46%
600 44%
161 40%
36%
85 32%
400 300 30%
3 25% 25% 401 25%
221 660
541 120 20%
17% 158 69 213 489
200 404 371 59
57 250 10%
202 165 204 163 210 131 175
120 136
0 1% 15 0%
Aria 101 Oasis Icon Trees Ph Trees Ph Prana Infinity Central Prime Badlapur Panvel Prakriti Azure Eternity
1 2

For June 17 – Shortage of labour is 42% , deficit in COC spends is 44% 20

PRANA – PLANNED VS AVAILABLE
Available Shortfall
900
800
700
600 219 364
156 289
500 203
129 173 238 279 312
400 219
300 243
200 450 467 405 418 426
387 357 332
317 321 289
100 211
0
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

SHORTFALL
Shortfall Average
Cumulative Deficit in COC spends is 21%
54% 52%
47% 46%
41% 41% 43%
39%
33% 32% 32%
25% 26%

A P R-1 6 MAY-1 6 JUN -1 6 JUL -1 6 A UG -1 6 S E P -1 6 O CT-1 6 NO V-1 6 DE C -1 6 JA N-1 7 FE B -1 7 MA R-1 7

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INFINITY – PLANNED VS AVAILABLE
Available Shortfall
1200
1000
800 278 159 336
269 318 100 336
600 79 54

400 845 750

718 611 615 704 639 651 624
541 561 584 554
200
6
0 125
-61 -13
-141 -239
-200
-400
May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

SHORTFALL
Shortfall Average Cumulative Deficit in COC spends is 19%

32% 35% 38% 35%

31%
18% 13%
12% 8% 10%
5%
-2%
-13%
-24%
-39%

MA Y- 1 6 JUN-16 JUL-16 AUG-16 SEP-16 OCT-16 NOV-16 DEC-16 JAN-17 FEB-17 MA R - 1 7 APR-17 MA Y- 1 7 JUN-17
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SUMMIT – PLANNED VS AVAILABLE
Available Shortfall
4500
4000
3500
3000 2006
2500 1244
2000
321 579 820 555
1500 482 341 372 619 676
1000 1933 127
1682 1860 1543
1406 1452 1434 1258 1282
500 1023 1068 1063
0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

SHORTFALL
Cumulative Deficit in COC spends is 34%
Shortfall Average

51% 49%
43% 40%
38%
28% 32%
24% 26% 23%
18%
7% 7%
JUL -1 6 A UG -1 6 S E P -1 6 OCT-1 6 NOV-1 6 DE C-1 6 JA N-1 7 FE B -1 7 MA R-1 7 A P R-1 7 MAY-1 7 JUN-1 7

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CUSTOMER CENTRICITY

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SNAGGING / QUALITY ISSUES
• 88% of defects are related to Civil Work

Categorical distribution of snags TOP 3 CIVIL DEFECTS

Tiling/skirting issues (34%)

5%
7%
POP/Plaster work issues (24%)

Door Shutter & frame related issues (19%)

POP / Plaster work – Major Observations

88%
Undulations in walls and ceiling

Finishing around electrical fixtures not proper

Civil Electrical Plumbing
Wall edges chipped/not perpendicular
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STAKEHOLDERS’ VIEWS

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LET’S HEAR THEM

DESIGN S&M CC

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TECHNOLOGIES CURRENTLY AVAILABLE

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LIST OF TECHNOLOGIES

 Conventional eg. Prana

 Shear Wall eg. Azure, Infinity, Avenues
 Hybrid (shear + internal partition walls) eg. Emerald
 Tunnel
 Precast eg. Golf Links
 Hybrid precast (shear + precast slabs)
 Steel structure / composite structure
 Rapid wall
 EPS Panels
 Reinforced block masonry
 Light gauge portal
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EXPERTS’ TALK

30
TUNNEL FORMWORK

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