Image Realty

Builders want mercy

On hoardings all across Mumbai

5 replies on “Builders want mercy”

I want that shiny new Rolls Royce badly as my current BMW one is now almost one year old.
My wife wants a world tour a 5 time but this time we want to fly in our very own cozy little jet plane.
My son wants a pad in Ibiza for partying occasionally.
My daughter wants me to launch her as a heroine in a mega budget movie.
YES, we want to live.
System are you listening…
Meanwhile ordinary man is living, eating roti or may be some daal with it !

I think it’s a very crude commentary of the building construction industry in India. I was told by somebody that the gross or net ( I am assuming even ‘net’) margin for a good builder is around 50%. This 50% is of course of sales value. Do you know that a builder actually requires minimum 3 to 4 years time to actually get permission, approvals and construct and hand over the building to its residents. This 50% net margin has to be spread over a period of 4 years which comes to 12.5% per year. Is that too high calling for clamor from all and sundry. Of course, every business men do business to earn money.
Similarly whenever cement industry in India increases their prices (which happens by the way, around 3 to 4 occasions every year), there is huge hue and cry by the builder lobby and every one. Does any body care when the prices also fall. Prices are increased because they have fallen in the intermittent period.
Otherwise, cement industry in India would have been making more than 100% profit year after year if they were able to raise prices like this.
Does any body that in any period of ten years, for almost 7 to 8 years, cement industry incurs losses (who come to their rescue at that time – no taxes are reduced by the way right form Excise to cess to royalty to State Sales Taxes). If they earn some reasonable to high profits in some 2 to 3 years period out of a decade, aren’t they entitled to. Do you know that if they don’t earn even this much of profits, the industry will go bankrupt and would have to BIFR leading to huge national losses.
We must understand the dynamics of every business before making any comment on that.
Does any body make any comment on the textile and apparel manufacturers when they increase their prices. Does any body make any comment when food industry (all processed food manufacturers right from Maggi to any biscuit manufacturer) increase their prices. Do you know one of the highest valuation commanded by any industry on stock exchanges is so called “inner wear” companies. Does any body make any comment on that.
Stop this crap. Let every business man make a reasonable profit over a period of time and let society get the benefits of the entrepreneurship of these persons.

What rot! How foolish! Victims of the system? or Greedy Criminals in the system? They do everything within them to loot the system and the public through their higher pricing and lower delivery and keeping everyone in the dark through their operations of black money. They deserve all the hard times they are facing – if they want any relief, they should first drop their prices, improve quality and clear their ‘high inventory’ debris.

This is in regard to a builders who committed sucide In thane district becz of harrsement from local cope rate bodies who were not granting permission for the project even when everything was clear

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