Tuesday 14 October 2014

Intricacies of property selection for industries

A mid sized industrial establishment with an annual turnover INR 10 billion and good profitability decided to invest in a new premise for expansion! After all they had clocked appreciable top & bottom line growth for five years in a row !; capacity expansion has become a necessity than a strategy , the true blue management advisory firm appointed by the Board concluded in its glittering presentation to the directors.The Board gave its nod in due course and the project began in right earnest.

They worked on the sales projections, ROI nos., decided the budget for investment for plant & machinery, manpower, logistics and other parameters; they then started looking for a premises to establish their dream second unit which was billed to be a cutting edge production house with green construction and green energy generation to boot !

The team tasked with the selection of new premises engaged an army of property dealers to give them various options!

They routinely inspected with gusto the various sites offered by the real estate dealers; elaborate comparative charts were made, flashy reports with latest management jargons thrown in for good measure were generated; differential weightages and scores were assigned for each property candidate and power point presentations were made; after almost six months the team zeroed in on a property which was found to be ideal from all angles!

Property valuation and topo survey of the land using latest equipment were carried out as part of the analysis.

Bingo! Here we go ! The management cooed and signed off the deal! About 20 acres of land changed hands for a not-so-small a sum of INR 400 million!....Continue Reading

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Engineering Project Consultancy & Property Advisory Services,
Residential-Commercial-Industrial-Infrastructure Designs
Due-diligence studies -Asset valuation services
Chennai -600 083
bv.consultingengrs@gmail.com
www.bveconsultingengineers.in
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