Prime Urban Development India Ltd Management Discussions.

Indian Economy Introduction

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 accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term.

Market Size

By 2040, real estate market will grow to Rs 65,000 crore (US$ 9.30 billion) from Rs 12,000 crore (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 per cent to the countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs. Indian real estate increased by 19.5 per cent CAGR from 2017 to 2028.

South India: Real Estate

A robust establishment of skill-based manufacturing industries has led to fast paced urbanization in south India, housing around 102.8mn people in just urban areas (27.3% of Indias total urban population). Tamil Nadu, Andhra Pradesh, Karnataka and Kerala house close to 50% of the total number of SEZs in the country. Together with industrial growth, IT remains the dominant driver for the real estate market.

About Tamil Nadu - Our core market:

Coimbatore - Manchester of South India

Coimbatore is the second largest city in Tamil Nadu and is advantageously located between tourists attractions like Ooty, Kodaikanal and Kotagiri. Along with Textile, it also houses Engineering, Automobile parts manufacturing & IT/ITeS as the major industries.

It was one of the 20 cities who were named in the Smart cities mission initiative of the Government of India. Demand for second home and retirement communities continues unabated. Areas of the city such as R.S. Puram, Avinashi Road and Race Course, are considered as posh areas. Areas of Avinashi Road and Saravanampatti, Mettupalayam Road and Trichy Road are dominated by low-budget projects. Bus Rapid Transit System, Expansion of Airport are few factors that will provide growth opportunities. Around 3 special IT Economic Zones have been set up here, with the Government offering special schemes to promote real estate activity. Accordingly, at Prime Urban, we have explored two projects in and around Coimbatore which is elaborated below:

Project Wise Details

At Prime Urban we are currently engaged with the following projects:

Prime Crest - Prime Crest is our Joint Development Project. We have entered into Joint Development Agreement through our Partnership Firm, Messrs Prime Urban Developers with the owners of land situated at Coimbatore for undertaking construction of apartments in the said land.

Developed Land Project - A land development project is taken up at Hill Station, Kotagiri, near Ooty through our Partnership Firm, M/s. Prathan City Developers in which the land development project is taken up and to be sold in piece and parcels to prospective buyers.

Further we are actively exploring other opportunities for Residential and Commercial Projects in the State of Tamil Nadu.

Overall outlook:

The Global Covid-19 Pandemic started at the end of the financial year has shocked the entire world which has slowed down the business and has impacted the market in which real estate sector is not exempted. It will take some more time for recovery to bounce back which is difficult to predict at the given situation.

Disclaimers:

Certain statements in the "Management Discussion and Analysis" may not be based on historical information or facts and may be "forward looking statements" within the meaning of applicable securities laws and regulations, including but not limited to those relating to general business plans and strategy of the Company, its future outlook and growth prospects, future developments in its businesses, its competitive and regulatory environment and managements current views and assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, finished goods prices, stock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, competitors actions, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. Company assumes no responsibility to publicly amend, modify or revise any statement, on basis of any subsequent development, information or events, or otherwise. The "Managements Discussion and Analysis" does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Companys securities.