PUNE -THE NEXT METRO of INDIA. Review on Pune

HELLO FRIENDS INDIA IS Growing with a GDP growth rate of 9.4% so is growing its tier -2cities n villages. Based on the  extensive market reseach on pune infrastructural growth  and the requirement for the glass in pune city for the next two years  here are the results of the research done by me by spending over 20k INR, 1000kms+ of travelling, 35km+walking, 100+web surfing.hope it will benefit you somewhere

A recent market survey report named “World Flat Glass to 2008” states the following

“Global demand for flat glass will grow 4.8 percent per year through 2008. Gains will be driven by accelerating construction expenditures and greater use of value-added glazing products in both new structures and major renovations. Developing countries will register the strongest advances, especially in China and India.”

The above statement reveals the importance of Asian countries like India and China for their rapid advancement than others and at same time shows a great potential for the demand of glass basically high quality glass.

Now after conducting a survey for Pune city regarding its market potential for the glass for the year 2007-2009, we come up with surprising results. Like the demand of glass in India is not uniform, it’s different from state to state, even within state. As per the above statement of market survey when the global demand of glass is growing with around 5%, demand for the Clear float glass as per our study in the sub-metro city like Pune is more than 25%.

The main observations from the survey are:

Ø The no. of residential projects coming in next two years is more in comparison with other projects but the size of the residential cum commercial projects in terms of built up area is 24.49% higher.

Ø IT projects also shows a great potential for the future demand of real estate industry.

Ø As far as the demand of the glass is concerned residential cum commercial projects wins the race(7233676 sq fts), followed by residential(3867882 sq fts) and IT projects(3762500 sq fts) respectively.

Ø Surprisingly, when estimated glass used in respective type of projects calculated on% basis it’s the IT projects which came out to be as a leader(41.43%), followed by commercial(29.62%) and industrial projects(26%) respectively.

Ø IT projects in Pune almost use 40% of the total built up area as glass and commercial projects uses almost 30% of the total built up area used as glass

Ø Clear float glass is much higher in demand than the tinted and reflective glass. It is 27.76% higher than reflective glass and 897.44% higher than tinted glass.

Ø There seems to be a shift of builders &/promoters &/ developers from using tinted glass to reflective glass.

Ø Modiguard is the most preferred brand by the Pune’s builders &/developers &/ promoters(38.27%), followed by the Saint-Gobain(32.098%) and Asahi glass(9.87%) respectively.

Ø Almost 20% of the respondent were not sure regarding which glass they prefer or would like to choose a brand other than the mentioned ones.

Ø  Year 2008 shows a 21.32% growth over Year 2007 and Year 2009 shows a growth of 30.38% over 2007 & 7.47% over 2008 in terms of projects completed in their respective years(purely based on data collected for jun2007-mid2010)

Ø Current demand of clear float glass is around 1780 tones per month. In 2008, with a growth rate of 31.72% it will touch 2346 tones per month. In 2009, with a growth rate of 25.1% it will touch 2936.6 tones per month

          Demand of reflective glass is also shows the similar trend.

Ø Quality & safety are the two factors which a builder thinks while choosing his material for the construction even if it’s the glass.

Ø Since glass being the most fragile material question arises what builders expects from a glass from the point of safety. The answer is he wants to be safe from the investment side and quality side of the material. In nutshell, no complains

Ø Since main competitor’s product is also meets with the quality needed its now dealers, contractors, architects, interior designers and availabity & price factor company should focus on to gain the market share.

Ø Dec 2008 will be a Turning Point for the Pune’s Infrastructural Growth.

By Dec 2010 Pune seems to be most preferred location after Mumbai and

Bangalore for Stay, Trade, Fun & Career Opportunities. Or we can say

Dec 2008=> PUNE >= BANGLORE

DEC 2010=> PUNE >= MUMBAI