Articles

where is the money going…

In bangalore, bannerghatta road, spar on October 11, 2007 by rajeev kumar

first came liberalisation then IT boom which saw young people of india earning lot better than previous generations. It was followed by real estate boom which saw the money being earned by present generation being diverted to builders. Early buyers had the advantage of reasonable prices but gradually for most of other people major part of salary started goes to paying home loan EMIs which levelled the advantage present generation had. Builders are the beneffiting most from this. It partly explains the valuation of companies like DLF whose owner came into the list of richest person in india list.

another area is retail which is seeing most of the action. Every one is entering in some way or another. The early entrant in this field Kishore Biyani writes in his book that he has purposefully created the chaos in his Big Baazar stores so that it resembles chaotic indian market and everyone feels comfortable from CEO to peon, and so his model is best for india. But proving it wrong are hypermarkets like SPAR which opened its first store in bannerghatta road. It is clean, organised , ACs are at its best, and huge in its category. Still it is so crowded and people are buying. It shows there is still space for many such places. It is just demand and supply skew which is biggest driving factor. And stores like foodworld are opening in new places like gottigere which few months before was ages away from city.

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