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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Originally posted by ThodiSiZamin View Post
    There is little innovation in India. Just like we had the services boom because of delivery innovation, we need more innovative companies in India if ever we wish to grow in the global arena.

    IT services has mainly flattened out. The model is now outdated with almost everybody doing the same thing. Also law of large numbers is catching up; as in its easy to grow at 30% when you are a small company, but when you are a 8-9 billion dollar company...then growth at that rate is very difficult. Just look at the YoY growth of biggies like Accenture or Deloitte.

    There are a few innovative companies in India but none of them have the scale to thrust India into the 8-9% GDP growth range again.
    AFAIK, based on past bits and pieces of news I have read, a good number of such "red herring" companies that innovate have government backing overtly or covertly.

    There are companies (e.g. Oracle, and even Internet itself) that were formed as a result of funding by defense organizations.

    In a way, I think it is good vision, it propels the economy. And this is where we are short sighted. Of course, not every venture is a success. Utna to risk lena padta hai.

    Even among private funds and banks, there are some who look for such "groundbreaking" ideas. Angel investor funds, i think, is what they call them.
    Here, banks have to spend on NPAs backed by politicos, rather than invest in some company who is doing some exciting work.

    Yahaan to saaheb ko cut dene ke chakkar mein hee company bandh ho jayegi.
    Last edited by Sat234; April 16 2014, 09:51 PM.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Tata Consultancy ServicesBSE -2.51 % (TCS) today said it will hire 55,000 employees this fiscal, including 25,000 freshers.

      Its net addition of employees, after deducting the number of those who left the organisation, stood at 24,268 in FY 2014.

      At the end of the fourth quarter, the total employee strength crossed the 3-lakh mark at 300,464, he added.


      TCS to hire 55,000 employees this fiscal - The Economic Times

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        India's second-largest software services provider, will hire as many as 22,000 college graduates through campus hiring in the current fiscal year, higher than last year's fresher hiring level.

        Infosys plans to recruit 22,000 freshers in FY'15 - Economic Times

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          We keep hearing of recruitment programmes by TCS,Infosys etc.
          Do they really hire so many people?

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            "It is better if the country invests in value addition and innovation along with hoarding too much real estate, gold, diamonds and silver.

            Make something the world wants to buy and not just sell mangoes, tea, basmati rice, etc and iron ore. Even here, we might do better if we produce, package and sell better mango juice/jam and tea bags, and make better steel.

            Alas, the shortsightedness !! ""
            Sat234, Well said,

            While I am no economist,finance expert,I have been always telling that India must stop being a primary goods exporter.
            Exporting leather,raw ores and food items is no way to push us ahead in the world economic ranking.
            Iron ore must be converted into high end finished steel,special alloys and exported.
            export of leather products is at the cost of polluting our ground water by tanneries and depleting our cattle population.
            Some area in TN where tanneries used to work full time shows degradation of soil and water level by constant polluted waste of leather tanneries.
            Our industrial base needs up gradation.
            We keep importing arms,while country like Israel can export high end weapons and technology.
            If we can launch satellites and missiles our scientists are intelligent enough to make high end weapons also.It is a question of lack of will of leadership or a source of kickbacks and no one wants to stop import of weapons.
            Where is time for statesmanship and long term real planning.All our leaders are busy -still making vote banks,deciding candidates on community basis and trying to win by polarising votes or buying voters and distributing freebies.
            No leaders thinks of making the populace economically strong enough that they will not bother for a freebie-that too funded out of their own tax money.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by vaibav123 View Post
              We keep hearing of recruitment programmes by TCS,Infosys etc.
              Do they really hire so many people?

              Infosys and TCS are massive companies with billions of $$$ in revenue. Infosys has more than 1.6 lakh employees and TCS has more than 3 lakh employees.
              Attached Files

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by vaibav123 View Post
                We keep hearing of recruitment programmes by TCS,Infosys etc.
                Do they really hire so many people?
                Mostly yes. That does not mean real estate prices are sane though. Its all being done on speculation on future growth. And cartelization of supply.

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by vaibav123 View Post
                  We keep hearing of recruitment programmes by TCS,Infosys etc.
                  Do they really hire so many people?
                  unless google, facebook and amazon open up office in hinjewadi...i wouldnt put my money in the pune market at these rates.

                  10 years ago, infy used to pay 3 lakhs per annum for freshers. I am not sure about the current starting salary, but I am guessing its somewhere close to 3 lakhs. so with 8% YoY inflation, 3 lakhs today is worth nothing as compared to 3 lakh 10 years ago.

                  So i wont give much credence to these hordes of freshers buying 80 lakh apartments.

                  also, have you looked at the attrition rate at infosys? it doesnt help much if people drawing high salaries leave the city.
                  ...Thoda Aasman

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    paaap,

                    Was expecting this news from you.
                    Now tell me, has Infy hired 8,000 in Pune campus in last quarter ?? Man, these cos do such stuff to give their stocks a boost, while no one talks about attrition.

                    Most importantly, hardly any news seats are coming in Pune. See carefully & from their previous reports, the expansion will be in tier-2 cities where actual expansion is taking place. Now certainly more jobs in Nagpur or Hyderabad won't benefit Pune RE, will it ??

                    Sat234,
                    +1.
                    If you are happy, you are successful.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      look at the net employee addition chart at infosys:

                      http://capitalmind.in/wp-content/upl...age_thumb9.png

                      on an average the net addition is less than 2%

                      people who are stuck in infosys with 4+ years of experience start realizing that the only way to grow is to quit infosys. so such people leave infosys in hordes. infosys is hiring freshers not because business is doing good, but because they have to somehow replace the experienced chaps in a cost-effective manner.

                      the mass exodus of high-level executives at infosys should give you an idea of which direction the company is heading. these guys who have spent decades at infosys can clearly see what's in future for the company. even infy's age old companion LIC has more than halved its stake from 6.75% to 3.25%

                      people working in infosys who have bought at these rates in the RE market are in for trouble IMHO. infy is not going to grow fast or provide raises to catch up with inflation and the RE market which is heavily dependent on IT and infosys in particular is in for trouble. from a de-risking point of view, these two risks are intermingled so the upside is less and the downside is huge.
                      ...Thoda Aasman

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