Piyush Somani - MD & CEO

|ESDS SOFTWARE SOLUTION PVT. LTD.|

Real Business has suffered due to Real Estate

• Last 10-15 years have been difficult to start business in India

• Only real estate or construction field prospered

• Manufacturing industries only opened by big groups

• Others had only 1 business buy or sell lands

• No one initiating to become an Industrialist / Entrepreneur

Real Business has suffered due to Real Estate

Many who tried - failed miserably due to

• Lack of financial support • Poor payment terms, anyone can cheat

• Bank loans @ very high interest • Compulsion for Security of land or building

What’s the reason for such vulnerable situation of MSME’s in India?

• Remarkable growth in real estate sector

• More than 1000% appreciation in last 10 years

• Preference to Degree in civil engineering

• Real estate business was better than anything else

• Inorganic growth in India in Realty

• Investment in real estate rather than share market or Equity

• Resulted in slow growth in share market during 2006 -2013

What’s the reason for such vulnerable situation of MSME’s in India?

• Such growth in real estate, never happened anywhere else

• good growth in brazil, but nowhere close to India

• Flats in Mumbai & Delhi are expensive than London

• 1000% growth in India in last 10 years

• During same period, 30 % reduction in UK

• Though UK has great infrastructure

Is there such huge demand for Land and Flats in India?

• Overtrading & over speculation of demand in India

• Low risk business, attracted capital

• Combo businesses started flourishing • Schools & colleges require a lot of real estate

Secret behind success of American startups

• Investors are very innovative

• Opportunities to invest in max growth potential business

• Opposite to capitalists & investors in India

• Investments in companies like Google, Amazon & Facebook fetched unbelievable returns

• If India had such investors & capitalists - Our Young Entrepreneurs would have created something much better than Whatsapp, twitter & Facebook

Secret behind success of American startups

• Economy cannot survive with only low risk investment

• 50% money in medium risk

• 20 % in high risk, to strengthen portfolio

• True pleasure of making money comes from risk investments

• Capitalists reserve some money for risk investments

Suggestions• Group of capitalists & investors should form an

Investment committee

• Hire investment bankers with MBA finance or experience in Finance Management

• Look after shares portfolio

• Investment in new business ideas

• Min 5 % on high risk business concept

• 1 out of 10 investments may fetch 10 -100 times return

Thank You