About Popular Foundations Limited

Popular Foundations Limited, with over 25 years of experience, specializes in Engineering and Construction Activities, providing comprehensive end-to-end solutions in the construction sector. The company is dedicated to building practices catering to various verticals such as factories, educational institutions, commercial, and residential projects. However, it strategically directs its focus towards non-residential and non-governmental projects in the realm of civil construction in and around Chennai.

Equipped with expertise in Engineering, Architecture, and interior and exterior fit-outs, Popular Foundations has gained recognition among numerous educational institutions, industries, and commercial establishments in Tamilnadu. The company has successfully undertaken projects in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, Coimbatore besides Chennai. Its reputation is built on continued customer patronage, goodwill, and a commitment to delivering high-quality construction solutions.

Popular Foundations employs a meticulous approach to securing projects, primarily relying on tenders as a key sourcing method. Tenders are floated through Architects/PMC, prompting interested bidders to submit their proposals. Rigorous scrutiny follows, leading to the selection of the successful bidder. The company's brand image and extensive experience play pivotal roles in its success. Notably, Popular Foundations excels in obtaining contracts within the institutional and hospitality sectors, showcasing a robust track record of quality and reliability. The company's ability to secure repeat orders from institutional clients underscores its significant strength in client retention and project acquisition.

THE REAL ESTATE SECTOR
The real estate sector is one of the most globally recognized sectors. It comprises of four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. 

The country's real estate market was affected by the COVID-19 pandemic. In addition, the residential sector was the worst hit as strict lockdown measures across major cities in India impacted housing sales as home registrations were suspended and home loan disbursement was slow. However, the sector recovered due to an increase in house sales, new project launches, and increasing demand for new office and commercial spaces, etc. 

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru is expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.

By 2040, real estate market will grow to Rs. 65,000 crores (US$ 9.30 billion) from Rs. 12,000 crores (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs. 

India’s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%. 

In the first quarter of 2023 (January-March), net office absorption in the top six cities stood at 8.3 million sq. ft. 

According to Savills India, real estate demand for data centers is expected to increase by 15-18 million sq. ft. by 2025. 

The size of the Indian real estate sector is estimated to jump more than 12-fold to USD 5.8 trillion by 2047 from USD 477 billion last year and will contribute over 15 per cent to the total economic output of the country, according to Naredco-Knight Frank report. 

As per ICRA estimates, Indian firms were expected to raise >Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth US$ 29 billion to date. 

Fresh real estate launches across India’s top seven cities grabbed a 41% share in the first quarter of 2023 (January-March), marking an increase from the 26% recorded in the same period four years ago. Out of approximately 1.14 lakh units sold across the top seven cities in the first quarter of 2023, over 41% were fresh launches. 

In 2020, the manufacturing sector accounted for 24% of office space leasing at 5.7 million square feet. SMEs and electronic component manufacturers leased the most between Pune, Chennai and Delhi NCR, followed by auto sector leasing in Chennai, Ahmedabad and Pune. The 3PL, e-commerce and retail segments accounted for 34%, 26% and 9% of office space leases, respectively. Of the total PE investments in real estate in Q4 FY21, the office segment attracted 71% share, followed by retail at 15% and residential and warehousing with 7% each. 

In 2021-22, the commercial space was expected to record increasing investments. For instance, in October 2021, Chintels Group announced to invest Rs. 400 crore (US$ 53.47 million) to build a new commercial project in Gurugram, covering a 9.28 lakh square feet area. The transactions of commercial real estate doubled and reached 1.5 million sq. ft. in Q1 of 2023. 

India’s real estate sector saw over 1,700 acres of land deals in top eight cities in the first nine months of FY22. Foreign investments in the commercial real estate sector were at US$ 10.3 billion from 2017-2021. As of February 2022, Developers expected demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.

The Virtual Construction Market
The construction industry is increasingly adopting a variety of new technologies. Many of these technologies involve virtual design and visualization. And they range from Building Information Modeling (BIM) to Construction Management Software. Virtual design and construction (VDC) describe the growing use of virtual environments to engineer and visualize the construction of structures before they're actually built in the physical world. These virtual environments can be accessed via desktop, and mobile devices, along with augmented and virtual reality hardware. And there’s no wonder why this is catching on. It’s estimated that reworks of faulty or incorrect builds account for nearly 30% of construction industry costs. Virtual design helps cut down on this by allowing builders to first build structures in a virtual environment. Building Information Modeling (BIM) is probably the most popular VDC tool. It allows architects, engineers, or anyone else to generate a virtual model of a physical building or structure.

As of 2023, the BIM market is worth somewhere from $8.1 billion. The construction industry took somewhat of a hit during the pandemic. But it is expected to rebound over the next few years. North- America is expected to be the market leader over this time period, capturing over 30% of the market.

Construction Management Software
Construction Management Software (CMS) is also now an important tool for many major construction companies.

A construction project is a very fragmented procedure. There are typically a variety of parties involved. And there are a lot of tasks happening at once. CMS helps construction managers by allowing them to store and access data, blueprints, and documents all in one place. The global construction management software industry is estimated to be worth $9.3 billion. It is expected to grow to $23.9 billion by 2031 (a CAGR of 10.2%). Autodesk is the largest player in the architecture and construction software market. The company brought in over $3.2 billion in 2020 revenue. Its AutoCAD, BIM 360, and REVIT technology are basically the standard in virtual modeling. Its traditional AutoCAD software is used by 85% of the market. And it’s estimated that the company captures about 31% of the overall market. Autodesk’s software consistently ranks at the top of industry best lists. Prefabrication and Modular Construction Change How Structures Are Built Modular construction typically involves constructing at least 60-90% of a building or other structure before bringing it to the construction site.

Prefabrication, while technically part of modular construction, occurs when certain components of a structure are assembled or manufactured off-site. The prefabricated parts are then easily affixed to the building. The global modular construction market was worth about $91 billion as of 2022. And it is expected to grow to $120.4 billion by 2027.

Smart Cities Change the Way Construction Companies Operate
One of the biggest trends affecting the construction industry is the rise of smart cities. A smart city is a city that is basically fully integrated with the Internet of Things (IoT). The infrastructure and buildings all assist in collecting data to help everything run more efficiently.

It’s estimated that global smart city spending totaled $124 billion in 2020. That’s an increase of almost 20% over 2019. IDC predicts that investments in smart cities will grow to $203 billion in 2024. Some estimates also indicate that the market will double again to over $676 billion by 2028. As this concept matures, it will likely change the way most of the construction industry operates. More and more construction industry participants will have to start using tech advancements like IoT in their building materials.

India's real estate market is expected to undertake a growth rate (CAGR) of 9.2% during the five years from 2023 to 2028. Looking ahead, the future of the real estate market in India appears promising, with continued growth and evolution. 

- Continued Urbanization: India's urban population is projected to grow rapidly, driving demand for residential and commercial spaces in urban areas. Cities like Chennai, Hyderabad and Bengaluru, known for their vibrant job markets and educational institutions, IT hubs will remain key targets for real estate investments. 

- Boost in Rental Market: Future forecasts indicate that the rental market will expand significantly. Factors such as urbanization, increased job mobility, and a preference for renting over buying among millennials are expected to contribute to this trend. 

Steady Price Appreciation: Property prices are likely to continue experiencing steady appreciation. However, the growth rate may vary across different cities and regions, with metropolitan areas witnessing higher price increases than smaller cities.

POPULAR FOUNDATIONS LIMITED COMPETITIVE STRENGTHS
1. Experienced Management Team
2. Building Excellence - A Team Led by Seasoned Leadership and Expert Engineers
3. Their Supremacy in Quality Design
4. One Brand, One Standard, One Uniform Quality
5. Timely Delivery and Reputation Building
6. Robust Standard Operating Procedures
7. Professional Management and Ethical Practices
8. Expertise in civil construction - thriving in hospitality and educational institutional sectors
9. Robust business model driving excellence in construction
10. Established brand and reputation
11. Operation methodology
12. Quality Assurance and Standards

POPULAR FOUNDATIONS LIMITED STRATEGIES
1. Nurturing Skills for Future Success
2. Enhanced Operational Efficiencies and Timely Project Execution
3. Increase geographical presence
4. Attracting and retaining the highest quality professionals
5. Brand image
6. Commitment to Sustainable Practices
7. Scalable Business Model
8. Prioritizing Quality Assurance and Safety
9. Expanding Business Horizons: Securing First-Time Contracts

POPULAR FOUNDATIONS LIMITED RISK FACTORS & CONCERNS
1. If they fail to comply with employee-related or health and safety laws and regulations or any other local laws or regulations in the states in which they operate, their business and results of operations may be materially and adversely affected.
2. Currently, the company is involved in an indirect tax-related case.
3. Delays in the completion of current and future projects could materially and adversely impact their results of operations and financial condition.
4. The construction business may be affected by difficult work sites and environments, which could cause delays and result in additional costs.
5. The success depends on stable and reliable logistics and transportation infrastructure.
6. They are subject to various risks with respect to their engineering and construction business, including, without limitation, costs increase above estimates, changes in scope of work and cost overruns.