SALES slowdown, stagnating capital values and a need to manage resources better are pushing Indian realty firms to invest in technology that will help them achieve optimum productivity, information access and regulatory compliance.

End-to-end enterprise resource planning (ERP) solutions, that manage diverse projects across different locations, are slowly finding favour. ERP vendors are seeing increased enquiries pushing them to develop tailored solutions targeted at mid-market realty firms.

When Delhi realty firm RDS Projects’ standalone ERP deployment failed, it turned to a solution that provided efficient management of projects across locations and customers: Aurigo Brix. Similar was IDEB’s case, which used Aurigo’s product across realty projects in Southeast Asia and India.

Recently, global tech giant SAP said Maharashtra-based builder City Corporation has gone live on its ERP solutions to help accelerate business plans, such as building 50,000 houses across five townships in Pune including India’s first digital township, Amanora Park Town.

SAP has signed deals with Chennai-based True Value Homes and the Kolkata-headquartered Tantia Construction and also counts GMR Infra and HCC as its major clients.

From tech biggies to mid-market IT firms, everybody is gunning for a slice of this market. While Bangalore-based Sonata Software has launched SonnetCONSTRUCT, a specialised ERP solution for this vertical, Oracle India and HP have teamed up for a bundled offering — Oracle Accelerate Solution for HP ProLiant servers — that will help mid-size businesses across verticals sustain and grow operations.

While vertical-specific ERP figures are not available, the overall market is expected to top $250 million in 2009, growing at a CAGR of over 25.2% between 2004 and 2009.

The firm recently launched its fifth generation product, BRIX 2009, an industry add-on to Microsoft’s ERP solution suite, Dynamics AX and available through select partner channels in the US, Middle East and Africa.

With apartments priced under Rs 30 lakh, Bangalore-based Akruti says the project is targeted at young professionals who would benefit from investing in an asset and earn a regular income from it.

“The studio apartments, ranging from about 700-800 square feet are priced between Rs 22-30 lakh and will be fully-furnished. We think it can be turned into a source of parallel income when the owner rents-it-out to guests on a regular basis. Over the years, the owner also benefits from the appreciation of the property’s value,” Mr Jadhav said. Housekeeping and maintenance will be outsourced to a professional firm.

Owners who sign a rental agreement with the developer will be paid a fixed rent for three years. These owners will not be charged a maintenance fee. But those who wish to fix their rent and look for tenants themselves will have to pay a monthly maintenance fee. “Rental guarantee schemes are extremely popular abroad and developers continue to add new incentives to attract buyers, especially since sales have slumped,” Mr Jadhav said.

Afallon comprises 120 studio apartments and are being sold by invitation only. The project will include facilities like a business centre, car hire, daily housekeeping, gym, cook-on-request and a doctor on call. Akruti plans to sell only sixty units and retain the rest.

“This will help generate investor confidence; that we are committed to creating a quality product,” Mr Jadhav said. Construction will commence in February and the apartments will be ready for handover in two years. The company has eight completed projects in Bangalore and two in Goa.

According to a person with direct direct knowledge of the company’s plan, Unitech, which is desperately looking for a cash infusion to repay a debt of Rs 2,700 crore in three months, is holding negotiations with a host of global PE players, including TPG Axon, Carlyle, Och-Ziff, Sun Apollo and IL&FS funds.The realty firm is looking at issuing debt instruments that will be converted to equity in the next 18 months or so.

At the current market capitalization, $300-500 million would equate to 22-36% of the company’s equity stake. The promoters, Ramesh Chandra and family, own 74.5% stake in the company. According to an investment banking executive, the conversion price could be in the range of Rs 60 a share, but it couldn’t be independently verified.

Unitech is also looking at raising about $200 million from its various residential projects through special purpose vehicles. UBS is advising Unitech on its entire fund-raising effort. Unitech MD Sanjay Chandra said, “Multiple funds have shown interest in investing in the company as well as its projects. We are evaluating the proposals.”

Unitech’s board approved the proposal to raise Rs 5,000 crore through the issuance of securities. However, there are doubts about the Gurgaon-based company’s ability to find an investor at an attractive price. An analyst with a Mumbai-based domestic brokerage says it won’t be easy for Unitech to raise funds and no institutional investor will be willing to pay a huge premium for investing in the company.

Unitech shares declined by 7.5% on BSE to close at Rs 42 on Tuesday. Fitch Ratings on Tuesday downgraded Unitech’s long-term rating to ‘BBB(ind)’ from ‘A-(ind)’. The downgrade reflects the ongoing delay in the completion of asset sales, and its impact on Unitech’s ability to service its short-term debt obligation, according to Fitch.

On December 11, Singapore-based securities broking group Kim Eng came out with a report on Indian realty in which it mentioned that Unitech has to raise Rs 1,800 crore over the next three to four weeks to stay afloat.

Meanwhile, Unitech’s Gurgaon hotel deal may get delayed over the valuation. While Unitech has been expecting a valuation of Rs 270 crore, the potential buyers — four businessmen who separately run Dilbagh, Vimal, Pan Bahar and Rajshree gutkha companies — are not willing to pay more than Rs 210 crore, said a person who is leading the discussions. While hotel chains like ITC and Accor have also evinced interest, a source said Unitech will have to considerably lower its asking price for a deal to go through with the hotel companies. A Unitech executive said the deal may not go through as the gutkha players lack funds to back the deal.

The company, which is planing to invest the amount in the first phase of the plan that will see development of 102 townships, is looking at both debt and private equity investments to raise the fund. The move by the firm follows consolidation of real estate business of the Sahara Group under it as the holding company.

“We plan to develop 102 townships in the first phase. The average project cost for developing townships would be 150 million dollar,” Sahara Prime City Head (Strategic Finance) Sandeep Wadhwa said. Asked about source of funding for the project that will spread over 100-300 acre, he said it was being done through sales, debt and promoters contribution but there is a gap of Rs 100 crore in each project.

“We will raise Rs 2,000 crore by 2009-10 fiscal as debt and private equity,” Wadhwa said, adding the company was in talks with banks, financial institutions and private equity firms. The company is open to selling stakes at both company and project level, he added. It is also in talks with global developers to form joint venture for townships development.

On initial public offer, he said the company would unlock value when market condition improves. Sahara Group had announced its plan to develop townships in 217 cities in 2004-05. It has launched nine townships where construction is in full swing and is planning to launch 22 more townships by middle of 2009.

Sahara Prime City has 20,000 acre of land, including 10,600 acre in Aamby Valley City near Mumbai.

Euro 15 bn Luxottica group is a leading designer, manufacturer and distributor of prescription frames and sun-glasses in the premium and luxury segment. The group owns 10 premium eyeware brands, including Ray-Ban, Oakley, Vogue and Revo. Luxottica has licence agreements with 20 top brands, including Burberry, Prada, Tiffany and Salvatore Ferragamo.

DLF will open over 100 Sunglass Hut stores over five years, under the franchisee agreement, which is initially valid for seven years, according to a source. The first store is likely to be opened in New Delhi next month. Luxottica currently operates over 2,000 Sunglass Hut retail stores across the globe. In all, the company has over 6,000 optical and sun retail stores across Asia, China, South Africa, Europe and America.

Luxottica has been operating in India since 1999 when it purchased the ailing Ray-Ban from its then owner Baush & Lomb. The company has lately started distributing its other eye-ware brands through a wholly-owned subsidiary in India. The company also has a local manufacturing facility. But now, DLF will take over entire distribution and retail of Luxottica’s products.

The eyeware market has been rapidly growing in India. Besides several leading global brands, the domestic eyeware makers, too, have exploded on the scene trying to access different segments of the market.

For DLF, the tie-up with Luxxotica is significant as it will give the realty firm a toe-hold in accessory space and help it build a strong retail portfolio. The real estate giant has been looking at tying up with several high-end brands in each category to launch itself in the domestic market as a major retail player.

It has already tied up with premium fashion brands Armani, Dolce & Gabbana and Salvatore Ferragamo. The company is also eyeing multi-brand retail and has been in talks with some major foreign retailer for a partnership, although a deal has not been finalized yet.

“Parsvnath is proud to strengthen its association with DMRC through the construction of station box at Dhaula Kuan. The project reinforces the confidence of DMRC in our execution capabilities,” company Chairman, Mr Pradeep Jain said in a statement.

As per the contract, Parsvnath would construct a station box in the upcoming Dhaula Kuan station, which would be on the DMRC’s Connaught Place-International Airport route.

The company is already developing shopping malls in 13 metro stations across the city, Jain said. The project is scheduled to be completed within a period of 15 months, the company said.

The capital-based realty firm is currently developing 114 projects, spread over 211.32 million square feet across 51 cities.

The Parsvnath Nano City project would come up in Panchkula near Chandigarh. The realty firm would invest about Rs 400 crore in the form of equity and debt in the project, Parsvanath Developers (PDL) Chairman Pradeep Jain told reporters here.

“It is a public-private partnership project in which Haryana government will have 10% equity stake, Parsvnath developers will have 38 % and the remaining 52 % will be with Sabeer Bhatia promoted group,” he added.

The project, spread over 1,000 acres of land and modelled on Silicon Valley, would be completed in two phases over the next 10 years, where the company would develop 5,000 acres in the first phase and the remaining would be developed in the second phase.