Bliss Homes Ltd. Business Plan

About the seller:

Bliss Homes Ltd., is the pioneer in building apartment complexes with its first project completed nearly 30 years ago.  Since then the company has successfully executed 75 projects across the county including a few in the gulf and far east.  The company mostly addresses the middle income group bracket while 3 of their projects, outside Bangalore, are for the elite.  All their properties have been sold out in record time and they boast of excellent image in the market.

They believe that their customers should experience true “family bliss” rather than considering their apartments as just a roof over the head.  In line with this vision the company provides all that is required to set up a home and guarantees satisfactory functioning of all equipment and accessories for 7 years through their expert staff in their maintenance division.  The company has an agreement with the top 3 companies in kitchen appliances, electrical, plumbing, construction, home furniture etc., for a range of products and services which are, in return, made available to their customers.  They offer a special 10% discount if you purchase all furniture, woodwork for all the rooms at the time of booking the flat.

Two years ago they completed an 85 villa and 225 apartment complex built around a sports theme.  They call it the Bliss Sports Village.  This complex is built within an 18-hole golf course and also boasts of other sports like tennis, badminton, swimming, and several other indoor sports.  It also includes a fancy clubhouse with a choice of multiple cuisines as well as a fully stacked bar. It is the only one of its kind in Bangalore and has been completely sold out.  The sports facilities are only for the residents and outsiders are not allowed entry ordinarily, except in times of tournaments and other sports events.

The apartment complex in question is called Bliss Meadows and is located about 6 kms from the Bliss Sports Village.  It is built on an 8-acre land about 12 kms from MG Road and 28 kms from the airport.  It is in a residential area with 8 other apartment complexes, together housing more than 1200 apartments. The market close by offers many restaurants, the biggest brands and 2 shopping malls - all accessible within 2 kms.  Bliss Meadows has 182 flats, including 48 2BHK and the remaining 3 BHK luxury apartments. It is currently in the final stages of completion and will be ready for occupation in the next 3-4 months.  All except 4 2BHK and 6 3BHK have been sold out.  The apartment complex has all that is really necessary like 24-hour security, water supply, generator back up, swimming pool, jogging track, toddler play area, parking – both covered and open, a convenience store, etc.  All approvals from the local government authorities have been received in all areas including water harvesting, waste management etc.  About 6 leading banks have approved the building for advancing loans to prospective buyers.

About the buyers:

George and Mini got married about two years ago when George was about 32 and had about 10 years of work experience.  Both of them are the outgoing sports types.  George captained India Schools in cricket and went on to play in the winning team in the 2007 Ranji Trophy.  Today he plays golf, but only rarely because of the prohibitive green fees (each game costs him about Rs.2500) costs involved.  Mini was an athlete and won many medals in the track events.  She loves swimming and playing badminton but hardly gets the opportunity to indulge in these activities for want of the facilities. About 4 years ago they met at the 10K run, dated and decided to get married. They both work in different IT MNC’s in Bangalore in mid management positions.  Both drive their own cars to work and they currently live in a rented accommodation with George’s parents.  They pay Rs.28K as rent and have decided to buy their own flat at Bliss Meadows because they want to continue with their respective sports.  George just completed 5 years in his company, is a high performer and has been offered an interest free loan of Rs. 5 lacs (repayable over a maximum of 5 years) for a down payment on an apartment / purchase of household items. He has been able to convince 5 of his colleagues to also consider buying an apartment each so that, collectively, they have a better bargaining power.  Incidentally, the COO of George’s company had bought a villa for about Rs.3 Cr, about a year ago in the Bliss Sports Village and says it is one of the best decisions he has ever taken.

Being the aggressive and analytical type, George was asked to lead.  After 2 visits to the Bliss Homes office and searches on the internet, George was able to collect the following information.

Note: A Grade refers to highest quality Indian made products.