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How modular construction supports advances in technology

How modular construction supports advances in technology

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Technology is central to the ability of the modular construction industry to deliver on numerous fronts when producing new residential and commercial buildings. In this latest article we discuss how modular construction and technological development go hand-in-hand.

When many of us consider modular construction, we focus on details such as speed, cost-effectiveness and sustainability. While all of these elements are relevant and important with regards to the development and greater use of modular construction techniques, they are only possible with the use of powerful technology.

This, of course, ties in well with the current year of construction technology, as recently announced by India’s Prime Mister Narendra Modi. It’s no secret the global construction industry has been slow to adopt and adapt to technology. However, modular construction techniques rely on technology and supports the use of and further advances of technology within the sector.

The technology behind prefabrication

Whilst the use of technology in the modular construction process is clearly portrayed, it may not be completely obvious just how central it is. The basis of volumetric modular systems, or prefabricated construction, is the initial digital 3D design and the ability to utilise Building Information Modelling (BIM) to ensure the building is suitable for the planned location and design requirements. It’s also behind the stackable modules used in several storey homes or larger industrial buildings, including hotels and office blocks.

But the use of technology within the industry goes much further than that.

Measurements and sizes are exact thanks to the software used to cut and move the different pieces of each module. Emerging construction technologies, including robotics, 3D imaging and even the use of drones are becoming increasingly leveraged to aid the design and development of modular construction. Those technological capabilities are enhanced, speeded up and become more cost-effective and sustainable, when utilised in a controlled, factory setting.

This is why together and powered by the right technology, modular construction projects can be completed some 30% more quickly than traditional builds. Indeed, recent news highlights that a new hotel in Folsom, California, opened a full five months early after the building – constructed with the use of modular techniques – was completed months sooner than it would have done, had traditional, on-site only methods, been employed.

Less waste by design

The technology used by modular building businesses also makes it possible to deliver projects while creating less waste. That’s due to the precision achieved through the software and in-factory construction process. Being able to effectively utilise set amounts of the different required materials across the different modules of a building, means waste is reduced to a minimum.

Not only does this support the lower-cost of prefabricated buildings, it’s also promotes less waste and a lower carbon footprint. Both of those details are attractive to:

  • Investors in the industry.
  • Construction tech designers.
  • End-buyers of the building, due to the quicker delivery and potentially lower comparative cost.
  • Governments working to end housing crises and provide homes for all.

It’s important to point out that, as yet, not all modular construction business make the best possible use of the available technology to produce projects that deliver on every element we’ve outlined, from the speed, to cost to the support of technology. One business that does, is Modulex.

Modulex has been created to help deliver the homes and buildings required right now across India. With input from a UK-based management team, Modulex delivers buildings with:

  • A short build time, with up to 90% of construction completed off-site.
  • Fixed cost and time guarantees.
  • Some 30% cheaper to maintain than traditionally built projects.
  • Earthquake proof.
  • Built to British standards.
  • Fully mortgageable.

Modulex has been created to deliver the eco-friendly, cost-effective, safe and long-lasting and quickly constructed homes and businesses that India still requires. We’re proud of our business and know it will produce, not only much-needed buildings, but a welcome profit for its investors.

 

 

Red Ribbon CEO, Suchit Punnose said:

Modular construction continues to develop and expand within India and on a global scale. The right technology is essential to the success of businesses like Modulex, which is why we’ve invested in the right software and systems that will power a successful modular construction business.

A lot is being asked on the construction industry right now and we created Modulex with that in mind. It delivers on every detail that’s important to India, the population, the government and investors.

Interest in blockchain technology across India grows despite lack of regulatory guidance

Interest in blockchain technology across India grows despite lack of regulatory guidance

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While India’s Supreme Court demands an answer on cryptocurrency regulation from the RBI, blockchain, the technology that supports digital currencies, continues to grow across the country. More and more businesses in India are helping further develop the use of the blockchain, highlighting the country’s appetite to remain at the forefront of technology, even when regulators struggle.

Earlier this month, India’s largest technology business, Tata Consultancy Services, (TCS) announced plans to further develop its blockchain technology abilities and create cross-industry solutions. TCS has already successfully created blockchain-based management systems. However, the intention to build five new blockchain platforms to support various activities between industries, highlights the firm’s commitment to the future of blockchain technology in India.

That news comes as US tech giant, IBM has created a cross-border blockchain payment platform, to help speed up transactions between financial institutions around the world, where the use of blockchain cryptocurrency transactions is regulated. Meanwhile, Facebook and Twitter’s CEO, Jack Dorsey are both investing in the blockchain and cryptocurrency industry.

This raft of blockchain and crypto news comes as Bitcoin, the original cryptocurrency has held above the $4,000 level last week, despite a downturn on Thursday.

Together, it all works to highlight that although Bitcoin and other digital currencies have had a tough 12 months or so, many savvy investors and business visionaries are convinced of the longevity of the system and are willing to back it financially.

But, while appetite for blockchain technology and cryptocurrency use remains strong, not everyone is completely ready to take that next step, including the Indian Government.

Cryptocurrency regulatory deadlock

In February, the Supreme Court of India gave the Government a 4-week deadline to release its crypto regulations. That regulation has been under consideration since April 2018, when the Reserve Bank of India stopped providing services to businesses and investors involved in cryptocurrencies in the country.

That led to a raft of legal cases, filed by crypto-related businesses and being heard by India’s Supreme Court, cases the court has said it will stop hearing, with or without formal RBI regulation on the currency. If the RBI fails to deliver, the court added that it will make its own judgement on the cases and adhere to that, going forward.

Fortunately, while this could represent a problem for businesses and investors interested in developing a cryptocurrency for India or working with them in the country, those who are more focused on the blockchain technology itself, can continue with their plans and investments.

Blockchain and India

Amid the crypto indecision in India, blockchain has gained support and new frameworks are being developed. Technologies have been created to help improve the security and management of data and messages, within single businesses and between multiple ones.

One of the reasons for this is the success of the country’s first Blockchain District of Telangana in southern India. In August 2018, The Telangana State Information Technology, Electronics and Communication Department (ITE&C) signed an agreement with IT services giant, Tech Mahindra. The resulting relationship has helped give India’s business and investor community an opportunity to incubate and develop domestic blockchain startups and companies.

Indeed, a recent report from Nasscom, the Indian IT and BPO industry’s trade association and Avasant, a global management consulting firm, shows that more than half of India’s states are working with blockchain-related initiatives. However, despite this activity, India currently accounts for just 2% of global blockchain startups.

Although blockchain isn’t solely related to cryptocurrencies, the lack of regulation on crypto in the country is undoubtedly holding some businesses back from developing their own blockchain systems and utilising the benefits of cryptocurrencies.

It’s likely the Supreme Court loss of patience with the RBI’s lack of workable regulation on cryptocurrencies isn’t solely due to the need for a formal judgement; its clear to many institutions across India, including the court, that the country needs some regulatory provision for crypto activity, however tentative.

At Red Ribbon we know that India has the potential to support the development of ground-breaking uses of blockchain technology. Our understanding of the economy, combined with our business experience, means we can help others share in that potential and opportunities as they arise.

Red Ribbon CEO, Suchit Punnose said:

India’s appetite to remain relevant in the continually developing industry of technology knows no bounds. The lack of regulation on one level hasn’t stopped the growth of blockchain, on another.

Spurred on by the success of one India state in the creation of new blockchain technology, more than half of the country’s regions are increasingly supportive of tech startups who can prove their ideas can benefit India on a domestic level and a global one, too.

Red Ribbon epitomises India’s attitude towards change and opportunity; we always assess every opportunity thoroughly and will take calculated risks on new and developing industries. Eco Hotels and Modulex are just two examples of how we’re willing to drive forward in industries we believe in, that will prove supportive of a sustainable future, for India and across the globe.

Affordable housing and slum redevelopment

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Slum dwellings across India’s urbanised areas have been around for as long as many can remember, growing up alongside wealthy parts of the city as the low paid workforce required to keep those cities working, struggled to find somewhere affordable to live. Indeed, in a country with a population of 1.37 billion, according to the latest UN figures, at least around a quarter of the urban population are living in slums, many of whom don’t have reliable access to sanitation, electricity or homes that are safe to live in.

Recent fires in neighbouring Bangladesh, in the capital city and a coastal slum area, highlight the problems of slum dwellings and the dangers they pose to those living in them and the surrounding areas, too.

In recent years, a number of ways to improve or even remove the slums of the Indian sub-continent, have been discussed. One previously popular way to modify India’s – and other countries’ – slums, was to remove them completely, bulldoze them out of existence. However, while this method does eradicate many of the issues that arise with slum developments, it also displaces everyone who lives in them.

After assessing different approaches to solving the problem of slum areas, which has gained in importance amid the increasingly rapid urbanisation of India, two answers have proven popular enough to take forward. They are:

  • Improve existing slum areas, without displacing those existing households and eradicating their investment.
  • Find ways to build affordable housing across India’s cities for lower income households to live in.

With those solutions now being formalised by the Government, the next step is to find a way to finance these methods, in order to achieve the target of creating affordable housing for the entire population by 2022.  

PPP and affordable housing

Among the ways in which India is seeking to provide enough affordable and safe housing for its growing urban populations, is through Public Private Partnerships (PPP). As the value of land is high in cities and nearby urban areas and can account for up to 60% of the total cost of housing developments, the Government has sought a way to lower the cost of urban real estate. They do this by allocating a proportion of publicly owned land to be developed by private companies and investors.

This vehicle has been created to encourage private real-estate investors, who previously have predominantly favoured higher income developments, to take an interest in India’s affordable housing sector. The potential rewards are three-fold:

  • Affordable and safe housing in the right areas, for India’s fast-developing urbanisation.
  • The beginning of the end of the growth of slum areas in urban regions.
  • Reliable and attractive returns for investors.

There are a number of ways in which this works financially for investors, all of which result in a notable increase in affordable housing across the areas of India in which it’s required.

Coupled with the improvements to investing and doing business in the country, the option of affordable housing and real-estate as an investment vehicle is one that is beginning to appeal to a growing proportion of investors. Both from overseas and within the country, too.

How to access India’s affordable real estate investment opportunities

Of course, knowing about and understanding the real-estate opportunities in a country whose population is undergoing a fast and significant change, is one thing. Accessing those opportunities in a secure and moderated fashion is quite another.

However, doing business in India has become easier, more transparent and accessible to all kinds of investors. Among the ways in which investors can benefit from the opportunities in India’s real estate sector, is through Funds specifically created for the purpose.

According to data from JLL, the value of investment grade, real estate projects under construction, has risen from $173.9 billion in the fourth quarter of 2012, to $242.6 billion in the second quarter of 2018. That number doesn’t take into account future options, plans or approved, shovel ready projects.

Red Ribbon will soon launch its own Indian Real-Estate Fund, to bring investment access into the sector to those investors interested in diversifying their portfolios with something that will benefit from Government support and help provide a solution to a real need from the existing and changing population.

As with all of Red Ribbon’s asset management options, sustainability, eco friendly and broadly beneficial outcomes form the basis of most of the assets that make up the Fund. Providing affordable and sustainable properties for the millions of people moving from rural to urban living is a challenge that can be met, provided every investor in Indian real estate takes it into consideration.

 

Red Ribbon CEO, Suchit Punnose said:

India’s Government has shown real willing to support the rapid urbanisation of the country and encourage a country in which investors can feel confident in doing business, both from a transparency and prospective returns, perspective. Red Ribbon is proud to be the forefront of supporting an economy that is of major importance on a global scale, while working to create a country with real prospects that future generations can enjoy and reap the benefits from.

Our Indian Real Estate Fund will help provide affordable and sustainable homes for the millions of people moving from one way of life to another. It also gives investors the chance to create a well-balanced investment portfolio, with exposure to a growing and developing economy.

Modular Construction

Saving Time, Money and the Environment through Modular Construction

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Saving Time, Money and the Environment through Modular Construction

Modular construction methods are often hailed as a more cost-effective option, but that’s far from the only benefit pre-fabricated buildings can have. We take you through how modular construction firms can save on time, the environment and money, while also delivering a return on investment many would be happy to receive.

It’s no secret that global real-estate related costs are rising. The value of property is broadly on the up. Meanwhile, the cost of materials is also climbing, while skilled construction professionals are becoming more scarce, pushing their value up, too. But there is a solution to this problem: modular construction.

Just like many other countries, across India, many people still have a dream of owning their own home. However, with more people moving into urban areas of the country from the rural regions, that’s not always an easy achievement, even for those with stable, well-paid jobs. Indeed, research suggests some 110 million additional housing units will be required by 2022. That’s a tall order and once that is simply unachievable through traditional construction methods alone.

However, major advances in modular construction techniques mean homes can be built quickly, in an environmentally friendly way, while also proving a more cost-effective option.

Saving you time and money

Much scepticism remains over how reliable and practical modular construction techniques are. Although, there are signs the opinion of the sector is improving as more businesses opt for it over traditional building methods.

One major factor that’s encouraging more businesses and home-buyers to choose a modular property is time. Once you gain permission, finalise plans and pay deposits, the fabrication of a modular building is much quicker than one constructed on site, in a more traditional manner.

That’s because templates and machinery in an established and regulated factory can create the specified shell of your building quickly and to approved safety standards.

Once those elements of the building, be it a home, a commercial office or even a hotel, are created, it’s then checked and verified through a reliable, tech-based system. This ensures all the required parts are there, of the right size and structure and are ready to be transported to the previously prepared building site.

This is where the costs savings come into play. Where a traditionally built property can require up to hundreds of on-site construction professionals to build up walls, ensure measurements are perfect and all the materials are as they should be, a pre-fabricated construction team is typically much smaller. That smaller team will also need much less time on site to construct the unit and ensure its safely in situ as planned, ready for the next step.

Again, with so much of the required works already done, the modular building requires only a little additional work on site, before the owner can get to work on the inside and make it habitable.

This means that while the cost of the materials used to construct a modular building aren’t particularly cheaper than for any other property, costs are saved through the shorter period of time skilled construction professionals are required on site. Meanwhile, the requirement of fewer construction professionals is also a financial benefit.

Environmental benefits

We then move onto the environmental benefits of the modular construction sector. First of all, the question of sustainability is one the massive global construction sector is increasingly being asked to answer:

  • Are the chosen materials sustainable, eco-friendly and long-lasting?
  • Can the pre-fab factories use sustainable energy sources?
  • Are the pre-fab factories sustainable and energy efficient?
  • Can they construct increasingly eco-friendly modular homes off-site?    

These are just a few details that require a positive answer from those modular construction companies who are beginning to gain support, momentum and business across India.

Modulex Modular Buildings PLC is one modular construction firm that can answer in the affirmative to the above questions and many more. It’s the world’s largest and India’s first, steel modular building factory.

Like all Red Ribbon investment projects, Modulex was created with three essential pillars of sustainability in mind:  Planet, People and Profit.

At a time when we need to find more economical ways of providing everything the huge population of India needs, in a way that protects their environment, while also delivering on profit to the investors who support those businesses, Modulex delivers on all three and is well-placed to do so for many years to come.

Red Ribbon CEO, Suchit Punnose said:

India’s Modular Construction market is expected to be worth close to $130 billion by 2023 and at Red Ribbon we think its imperative that as much of the growing industry as possible, is created with sustainability in mind, from the outset.

Providing the answers to India’s housing and construction needs is one thing, but doing it in a way that future generations can benefit from it on multiple levels, is something every investor in the industry should aspire to. That’s why we support Modulex and strive to ensure its green credentials can match its productivity and investor returns.

Indian Rupee

Broad-based planning supportive of India’s economic ambition

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It may be a New Year, but in many countries, old worries remain. Take the UK, for example. Brexit is as uncertain as ever and that’s unlikely to change any time soon. Not only have forecasts for economic growth in the country been tempered by the lack of a clear path for Brexit, the latest survey data from IHS Markit have served to underscore the worry felt by consumers and businesses, with the country’s dominant services sector close to stagnation during December.

However, the UK isn’t the only country experiencing uncertainty as to how 2019 will unfold.

India has an interesting 12 months ahead as incumbent Prime Minister Narendra Modi must work hard to maintain his position, after recent state election results make the likelihood of a new leader a real possibility. However, Modi has begun 2019 with ideas and a plan to show his support of the large farming industry, which is unhappy with the lack of fiscal support from the Government.

Speaking at the India Science Congress this week, the India PM urged scientists to find low-cost solutions for ‘social good’, including the creation of more affordable and balanced agriculture industry and using big data analytics to improve crop yields for farmers with smaller holdings. Introducing this element to the PM’s broader outlook for India’s economic development may always have been the plan.

Although, there will likely be many who will say its merely a move to encourage more votes in an election year. Regardless of the truth, this latest step is a further sign that Modi’s economic ambitions for the country remain front-and-centre.

Economic outlook

Even before this latest speech, the outlook for growth in the country was upbeat, particularly when compared with global competitors. Despite some GDP forecast downgrades from the likes of Fitch Ratings and the OECD – to a still healthy 7.2% and 7.3% respectively – India is assessed to have outpaced China during 2018 and to do so again in 2019. India’s finance ministry, meanwhile, forecasts economic expansion of 7.8% during 2019, which would likely be similar to the average pace of growth across 2018, despite the slowdown to 7.1% in the third quarter.

Indeed, it appears that the third quarter GDP number is partly behind most of the forecast reductions, although other details also weigh.

They include:

  • Generally weaker global GDP outlook.
  • Global trade worries.
  • Liquidity squeeze.

Modi and his Government, however, are upbeat and standing firm on their positive outlook. Many would say, with good reason.

Despite the difficult global scenario, some developments have been in India’s favour. The high price of crude oil has receded, despite the sanctions against Iran. Meanwhile, the country has moved up the World Bank’s ‘ease of doing business’ rankings. And while there has been some disagreement over the Government’s demands for the Reserve Bank of India to relax some restrictions on weaker banks, inflation has remained under control.

The decision to remain firm on many fiscal elements of governance while creating a more supportive backdrop for businesses and consumers, has been a core driver of the strong level of economic expansion across India. It appears that focus on moving forward with policies designed to encourage start-ups and innovation is very much still in place.

Modi told delegates at the Science Congress that following on from its success of improving its ‘ease of doing business’ score, it must now work to improve the ‘ease of living’ in India. That requires a broad-based plan; working to support businesses across every industry, supporting innovation and new ideas, job creation across every industry and providing a stronger and more reliable infrastructure for consumers.

At Red Ribbon we understand the importance of introducing innovative developments into an existing industry, which is why we believe the Eco Hotel industry is one that can help ensure India’s economic growth ambitions will succeed and even exceed expectations.

Red Ribbon CEO, Suchit Punnose said:

An economy the size of India’s will only flourish if a broad-based outlook is in place that also supports innovation and allows every industry to move in an agile fashion, particularly when it becomes clear that a new approach is required. India’s leisure and tourism industry is a case in point. It draws tourists from within and without the country to its variety of regions and attractions. Introducing a new type of accommodation, such as Eco Hotels, will work to add yet another string to India’s bow as the destination of choice for an even broader range of holiday-makers and business travellers, while supporting jobs growth and industry innovation at the same time. As long as business start-ups and industry innovations are supported and encouraged, they will only have a positive impact on India’s economy, the standard of living and the global environment.

India Cryptocurrency - Red Ribbon Asset Management Plc

India retains cautious Cryptocurrency stance

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India retains cautious cryptocurrency stance

A raft of recent news reports and blogs posts, suggest that those involved in the cryptocurrency markets are becoming a little impatient with the Indian Government and the Reserve Bank of India’s (RBI) caution relating to that specific financial sub-sector. The reports contain some conflicting views from different members of the two panels that are working to research cryptocurrencies and put a regulatory framework in place. However, despite a lack of real progress it appears the overall, official tone towards the crypto market is less negative than it previously was.

One of the Indian government’s panels currently researching the cryptocurrency markets is set to submit a report on its findings. That keenly awaited report has been delayed from July 2018 and right now, no time line is in place for it to be finalised and published. This detail is the cause of some of that unrest.

With that report being delayed, it’s no surprise that any details on possible virtual currency regulation in India is also taking time to be finalised. Without the approved findings of the official report, it simply doesn’t make any sense for a regulatory framework to be put in place.

Among the most likely reasons behind the slow progress of any official view and policy on cryptocurrencies across India, is the lack of a global steer. Also, and perhaps more importantly, is a lack of detailed knowledge and information on exactly what impact cryptocurrencies can have on the economy, particularly over the medium-to-long-term.

Some support for virtual currencies

While uncertainty over exactly how India will regulate and permit cryptocurrencies to be traded and taxed remains, it does appear that the Indian government is more positive on them becoming a permanent part of its financial landscape, than it was.

The Financial Stability Board (FSB), which India is a part of, has said that virtual currencies are not a threat.

“The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets. Its initial assessment is that crypto-assets do not pose risks to global financial stability currently,” the RBI report quoted the FSB as stating.

That’s a positive note and relevant to the discussions and research that are ongoing.

Getting it right

Despite that glimmer of support for crypto-currencies, global governments, central banks and other relevant bodies continue to move slowly with regards to implementing official regulation and plans to regulate Bitcoin, et al. But really, is it any wonder?

After surging in value during 2017, many virtual currencies then lost much of those gains during 2018. And now…? Well, the future for those currencies is very much unknown, particularly coming against a backdrop of so much broad-based uncertainty elsewhere.

Of course, the blockchain system that underpins cryptocurrencies is something that the Indian government and RBI are interested in, as are other countries and industries. But, having regulation and utilising one, is likely impossible without also having the other.

This is without doubt, another major reason why the panels formed to investigate cryptocurrencies are taking their time to collate all the details and submit a detailed and useful report. If blockchain is to become a part of India’s government, business industries and the economy, then it’s essential that any risks relating to supporting a regulated cryptocurrency network is clear, robust and performs the task it was created for.

India as a nation is one that welcomes change and new ways of doing things – provided it’s beneficial for the economy and its population. Even though it’s likely that virtual currencies and blockchain fall under that category, both the government and the RBI are right to be cautious over any policy and regulation that’s created, so they can be certain it’s right for India’s economy and its huge population, with its growing appetite for all things digital.

Nobody understands this market potential quite like Red Ribbon, which has placed India at the heart of its investment strategies since the company was founded more than a decade ago. Drawing on a pool of established expertise on Indian market conditions, Red Ribbon Asset Management offers a unique opportunity to share in that potential.

Red Ribbon CEO, Suchit Punnose said:

India’s appetite to be at the forefront of new technology is continuing to develop. However, even though some countries have begun a light touch regulatory oversight on cryptocurrencies, that doesn’t mean the government or RBI will rush into something that has the potential to impact India’s economy and financial landscape over the longer-term.

Indeed, a cautious outlook doesn’t mean digital currencies have no place, or an insignificant one for India’s economy. In fact, it’s more likely to suggest the opposite and that as a country, the government and central bank want to be sure they get their policy implementation on it, just right.

At Red Ribbon, we have the same attitude to new and developing opportunities. We’re willing to take some risk on new industries and investment opportunities, but only when we know exactly what those new industries have done and have the potential to achieve. With Eco Hotels and Modulex, we’ve worked hard to ensure we understand everything those businesses stand for and what they’re capable of, not only from an investment perspective, but on a global sustainability aspect, too.

Modular Construction Housing Needs - Red Ribbon Asset Management Plc

Modular Construction: The Answer to Housing Needs

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Modular construction is the answer to housing needs

Modular construction is an option for building homes that’s been available for over a century. Its popularity has ebbed and flowed with various significant events and global developments. However, one thing that remains clear about the system of preparing a property in a factory and then constructing that same building on site, in a matter of a few days or even just hours, is that it’s one that builders and policy makers return to whenever a new crisis or real need for homes arises.

Modular homes quickly gained in popularity in the US when they were developed and then sold by Sears at the end of the 19th century. That was fuelled by increasing wealth and an abundance of land to live and build on. The Great depression which began in 1929 soon put paid to the growth of buy and build your own home. And by 1932, Sears’ modular construction home sales were down by 40%. That was enough for them to put an end to that particular part of the business.

World War II ends

However, it wasn’t so very long from then, until the end of World War II in 1945 when soldiers and Governments could fully take in the sheer size of decimation across the UK and Europe, following years of fighting, destruction and bombing.
Add to that the returning soldiers needing homes to live in with their families and it was clear new homes needed to be built. Quickly. Pre-fabrication proved popular once again, with several areas in the UK benefitting from this fast and economical construction method.
However, once things began to settle, the workforce was back in balance and skilled builders were willing and able to work and modular construction, fell out of favour once more.

Confluence of developments

Fast forward to 2019 and there are a broad array of developments that have combined to once again push modular construction to the forefront of residential home building, but this time on a global scale:

  • The UK’s housing crisis where a lack of building during the credit crisis means there aren’t enough homes for the still growing population – the Government is supporting modular construction options to quickly build suitable housing for Britons across the country.
  • Geo-political unrest and refugees moving from place-to-place with nowhere to live – the RICS recently awarded a young home designer its top prize for his low-cost bamboo home that takes just 4 hours to build, to help with the slum crisis in the Philippines.
  • Economic prosperity and demand for homes and commercial properties in rural and city regions – India’s economy is among the fastest growing in the world and the changing needs of the country for less rural workers, to more city-based jobs, means more urban homes are required, quickly.
  • More and more people have developed an eco-conscience, either through their own nature or the growing number of ecological changes and concerns the global population is faced with – home-buyers and developers around the word are actively seeking green homes that are built with sustainable materials and are also powered that way, too.

Together, these separate crises and changes have led to greater demand for modular homes from a wide variety of consumers and policy makers. Meanwhile, that demand combined with a larger business desire to consider sustainability and green options, has encouraged further investment in the sector, too.

Modulex Construction is the World’s largest and India’s first Steel Modular Building Company, setting out to meet the challenges posed by India’s urban housing shortages in a practical and dynamic manner. The company is at the heart of a project established by Red Ribbon to harness the potential of India’s markets and delivering opportunities for investors. Because, when it comes to investing on the subcontinent, nobody knows India and its markets better than Red Ribbon.

Red Ribbon CEO, Suchit Punnose said:

When we think about how modular construction has time and time again proved the right answer to a crisis, problem or change, it becomes a much simpler decision as to whether or not it’s the right investment choice. Add to that the fast-growing knowledge about the importance of eco options and sustainability and modular construction becomes an even more compelling proposition.

Modular construction is already part of India – and the world’s – property development needs. And that’s something that is only going to increase as it becomes a major element of the construction landscape. Not only due to its speed of delivering the finished, habitable product, but also its cost-effectiveness, green credentials and sustainable factors it brings.  That’s why Red Ribbon was committed to Modulex Construction from the very beginning of the project and we remain committed to it today. I’m convinced it is not only a vital element in meeting market challenges but will also deliver on the unprecedented opportunities currently presented by the subcontinent’s burgeoning economy.

Modulex is the answer to many of India’s immediate needs and beyond. By creating sustainable, cost-effective homes and buildings across the country, Modulex is part of a growing industry that will remain relevant and profitable for many, years to come.

India Economic Ambition Planning - Red Ribbon Asset Management Plc

Broad-based planning supportive of India’s economic ambition

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Broad-based planning supportive of India’s economic ambition

It may be a New Year, but in many countries, old worries remain.

Take the UK, for example. Brexit is as uncertain as ever and that’s unlikely to change any time soon. Not only have forecasts for economic growth in the country been tempered by the lack of a clear path for Brexit, the latest survey data from IHS Markit have served to underscore the worry felt by consumers and businesses, with the country’s dominant services sector close to stagnation during December

However, the UK isn’t the only country experiencing uncertainty as to how 2019 will unfold.

India has an interesting 12 months ahead as incumbent Prime Minister Narendra Modi must work hard to maintain his position, after recent state election results make the likelihood of a new leader a real possibility. However, Modi has begun 2019 with ideas and a plan to show his support of the large farming industry, which is unhappy with the lack of fiscal support from the Government.

Speaking at the India Science Congress this week, the India PM urged scientists to find low-cost solutions for ‘social good’, including the creation of a more affordable and balanced agriculture industry and using big data analytics to improve crop yields for farmers with smaller holdings.

Introducing this element to the PM’s broader outlook for India’s economic development may always have been the plan. Although, there will likely be many who will say its merely a move to encourage more votes in an election year.

Regardless of the truth, this latest step is a further sign that Modi’s economic ambitions for the country remain front-and-centre.

Economic outlook

Even before this latest speech, the outlook for growth in the country was upbeat, particularly when compared with global competitors.

Despite some GDP forecast downgrades from the likes of Fitch Ratings and the OECD – to a still healthy 7.2% and 7.3% respectively – India is assessed to have outpaced China during 2018 and to do so again in 2019. India’s finance ministry, meanwhile, forecasts economic expansion of 7.8% during 2019, which would likely be similar to the average pace of growth across 2018, despite the slowdown to 7.1% in the third quarter.

Indeed, it appears that the third quarter GDP number is partly behind most of the forecast reductions, although other details also weigh. They include:

  • Generally weaker global GDP outlook.
  • Global trade worries.
  • Liquidity squeeze.

Modi and his Government, however, are upbeat and standing firm on their positive outlook. Many would say, with good reason.

Despite the difficult global scenario, some developments have been in India’s favour. The high price of crude oil has receded, despite the sanctions against Iran. Meanwhile, the country has moved up the World Bank’s ‘ease of doing business’ rankings. And while there has been some disagreement over the Government’s demands for the Reserve Bank of India to relax some restrictions on weaker banks, inflation has remained under control.

The decision to remain firm on many fiscal elements of governance while creating a more supportive backdrop for businesses and consumers, has been a core driver of the strong level of economic expansion across India. It appears that focus on moving forward with policies designed to encourage start-ups and innovation is very much still in place.

Modi told delegates at the Science Congress that following on from its success of improving its ‘ease of doing business’ score, it must now work to improve the ‘ease of living’ in India. That requires a broad-based plan; working to support businesses across every industry, supporting innovation and new ideas, job creation across every industry and providing a stronger and more reliable infrastructure for consumers.

At Red Ribbon we understand the importance of introducing innovative developments into an existing industry, which is why we believe the Eco Hotel industry is one that can help ensure India’s economic growth ambitions will succeed and even exceed expectations.

Red Ribbon CEO, Suchit Punnose said:

An economy the size of India’s will only flourish if a broad-based outlook is in place that also supports innovation and allows every industry to move in an agile fashion, particularly when it becomes clear that a new approach is required.

India’s leisure and tourism industry is a case in point. It draws tourists from within and without the country to its variety of regions and attractions. Introducing a new type of accommodation, such as Eco Hotels, will work to add yet another string to India’s bow as the destination of choice for an even broader range of holiday-makers and business travellers, while supporting jobs growth and industry innovation at the same time.

As long as business start-ups and industry innovations are supported and encouraged, they will only have a positive impact on India’s economy, the standard of living and the global environment.

India - The case of Investment - Red Ribbon Asset Management Plc

India: The case for Investment

By | Archive, India, News, United Kingdom | No Comments

United Kingdom is the gateway to many investment opportunities, of which India is one to take notice of. India’s economy and business landscape are changing, ushering in a period of growth, prosperity and investment opportunities.

Let’s look a little more closely at just a few of the more compelling reasons why investing in India is an opportunity you can’t afford to miss:

The Indian economy is the fastest growing major economy in the world. It surpassed China in 2015 and is forecast to expand by 7.7% in 2018, before accelerating to 8.3% in 2019. India’s population is also expected to increase from 1.34 billion and exceed that of China, within the next five years.

As 10 million countryside inhabitants move into India cities, per annum, urban society across the country is increasing. Those new and growing societies are increasingly wealthy, sophisticated and technologically literate, providing a platform for growth, fuelled by demand.

India also has an incredibly supportive government that’s working hard to facilitate economic growth and a fundamental change in the way the population lives and interacts. PM Narendra Modi has introduced a single tax base across India’s 29 states, while the regulatory environment has also radically transformed.

United Kingdom – gateway to India

United Kingdom is an economy that has a proven track record at identifying areas and regions that have a lot to offer. That’s why India is already among the countries where investments and partnerships can be easily accessed via United Kingdom.

As a UK-based business, Red Ribbon Asset Management Plc is an obvious partner to access those Indian investment opportunities.

Not only do we understand what is driving India’s economy and investment boom, at Red Ribbon we know how different areas of investment are performing. Our well-connected Indian-based team, provides hands-on support to our UK-based investment specialists. It’s a successful partnership, that ensures we identify the right investment for each and every investor we work with.

Red Ribbon has been involved in numerous major projects in India and the UK, that have proven successful in both execution and from an investment perspective.

But, that’s not all. At Red Ribbon we believe investments should offer benefits to everyone involved. Aligned with our philosophy and core values, all our investments are morally acceptable, provide measurable social and environment impacts and deliver strong financial returns.

As you can see, Red Ribbon Asset Management Plc has been quick to recognise the potential in India and through us you can access an array of investment opportunities.

Red Ribbon brings you a gateway into investing in India, offering bespoke services in wealth management, private equity and real estate. Our strong network of contacts means we know India from the inside and outside. That’s just one reason why we’re ideally placed to identify the best opportunities as they arise.

Red Ribbon CEO, Suchit Punnose said:

India is more than just an exciting investment opportunity, it’s also a driver to global economic growth and that’s why Red Ribbon has long held the view that no investment portfolio can be considered properly balanced unless at least 10% of its holdings are deployed in Growth Markets and, of course, for us that has always meant India in particular.

And of course this vindicates Red Ribbon’s decision in 2008 to place India and its fast growing markets at the heart of our investment strategies from the very start. Our expert advisers now have an insight into what makes the subcontinent’s markets tick, what makes them so profitable and where the best opportunities for above market rate returns are likely to be found.

The Best Exits: Innovations in India’s Private Equity Market

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How do you spot a Private Equity Investor at the Opera? He’s the one scouring the lobby for the best exit.

You’ve probably heard that one before. Its an old joke but still speaks to a fundamental truth about all private equity strategies: whilst looking resolutely to the long term (often more than ten years ahead), as soon as the initial investment is made Private Equity Investors will also be searching for the best exit strategy, and in today’s markets that usually means an IPO or a Merger. So next time you’re welling up with emotion at Turendot, keep an eye out for anyone scribbling one or other of those magic words in their programme: they’ll probably be managing a Private Equity Fund.

And given India is now the best performing Private Equity market in the world, it should come as no surprise to learn that the subcontinent is also at the cutting edge of the latest and most innovative of these long term exit strategies.

Take, for example, the Platform Acquisition model: not in itself a novelty, but now being given a fresh lease of life in India. In its new guise the strategy focuses on selected market quadrants and brings them together to create synergies for a targeted return as opposed to more traditional growth through capital infusions into the platform company itself. Think Indian IT and the subcontinent’s burgeoning consumer market, then think Flipkart and you’ll get the idea. Its an intelligent version of the old fashioned roll up strategy where multiple small companies in the same or complementary sectors are acquired or merged prior to being rolled up for exit, and in its new format it has made Private Equity a real force for consolidation and growth within the Indian economy.

Warburg, Pincus and KKR have all launched Platform Acquisition models for projects on the subcontinent, with chosen sectors including business services, media, hotels and hospitality all of which are, of course, already high growth areas. Mid market hospitality in particular is going through something of a renaissance at the moment with this year’s IPO of Lemon Tree Hotels being oversubscribed by a factor of 1.19 and Eco Hotels continuing to make strong inroads into the environmentally friendly segment. Everstone has a Food Services Platform following its acquisition of Modern Foods through which it has subsequently gobbled up Cookie Man; and Goldman Sachs, never slow to spot a trend, has a new Business Services Platform on the subcontinent, appropriately named First Meridian and focusing on HR and staffing companies for later roll up. Sutra HR had better be watching their backs…

Head of M&A at EY India, Ajay Aroa sums it all up nicely: “ The platform acquisitions and their roll ups have made private equity investors the main consolidation force in a number of India’s high growth sectors, standing to benefit equally from growth as well as multiple arbitrage”.

That last point is also interesting (and incontrovertibly right): smaller aggregated acquisitions, characteristic of those completed through a Platform Acquisition model, are very often delivered at a comparatively low exit multiple, giving the platform owner an enhanced arbitrage opportunity. Bearing in mind Blackstone’s private equity investments in India have delivered annualised returns of 30% since 2011, PE Platform Investors will usually lift the aggregate multiple by leverage or arbitrage (or both) in order to compete… and at the moment they’re competing very well indeed.

Red Ribbon Asset Management has placed India at the heart of its investment strategies since the company was founded more than a decade ago, and nobody understands the subcontinent’s potential for growth better than Red Ribbon. Benefiting from an unrivalled knowledge of local conditions and more than a hundred local advisers reporting from some of India’s fastest growing markets, the Red Ribbon Private Equity Fund offers a unique opportunity to share in that potential.

Red Ribbon CEO, Suchit Punnose said:

As any Private Equity investor will tell you, nothing is more important than having a clear and deliverable exit strategy, set out in detail at the earliest opportunity. Especially so as most funds will look to lock their investors in for an extended period, often for as long as ten years so that investors need to have a clear understanding from the outset of just how they will exit the fund to secure an optimal return on their investment. That used to be an issue in India where traditional family run companies were resistant to exit by private sale, but the subcontinent’s modern markets have now made the task a lot easier through the increased efficiency of IPO and M&A mechanisms: now, as the article points out, the two most favoured modes of exit for Indian companies.

I’m not surprised, either, to hear of the innovations currently taking place in the subcontinent’s private equity sector. After all India is the fastest growing Private Equity market in the world and it would be surprising if it should prove resistant to the innovative policies being rolled out elsewhere in the economy. You only need to look at the participants involved (KKR, Goldman Sachs and Blackstone) to get a feel for the underlying strength of the sector.

And of course I’m proud too that the Red Ribbon Private Equity Fund is part of this process. We will always be looking for the most exciting opportunities India’s markets have to offer, using the most innovative strategies available so as to deliver the best above market rate returns for our investors.

Red Ribbon

At Red Ribbon we understand that the transition towards a resilient global economy will be led by well-governed businesses in mainstream markets, striving to reduce the environmental impact of their production processes on society at large and on the environment as well.

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