Bokaro Steel City – A retail study For The he Bokaro Mall Mall, City Centre, Bokaro Steel City An AMIT REALTY Project
Study Conducted in September 2011 – http://www.pillarsconsultancy.com
Quick Start Bokaro district is one of the twenty-four districts of Jharkhand state, India. It was established in 1991 by carving out one subdivision consisting of two blocks from Dhanbad District and six blocks from Giridih District. Bokaro Steel City is the district headquarters. The district has a population of 17, 75, 961 (2001 census and currently about 22, 00, 000). Bokaro District is one of the most industrialised zones in India. Bokaro Steel City is also the Police HQ of Chhotanagpur Division. The district is currently a part of the Red Corridor.
The Bokaro Micro -Economy â€“ A Glance Bokaro district has Asiaâ€™s largest steel plant, Bokaro Steel Plant (BSL), controlled by the Steel Authority of India Limited; and several other medium and small industries. The district has already emerged prominently on the industrial map of India. Apart from the existing Bokaro Steel Plant (BSL), the district has Electrosteel Castings Limited (EIL) in Chandankiyari(15 km from the City Centre) which is expected to commence production soon. Bokaro Power Supply Corporation Private Limited, a joint venture of Damodar Valley Corporation and BSL, will be coming up with a 450 MW power plant. The primary economy is supplemented by BIADA (Bokaro Industrial Area Development Authority) governing three districts, namely, Bokaro, Dhanbad, and Giridih - which is an industrial area supplying most of the industrial supplies for the for large, medium and small companies, and there are some small mills making finished products out of steel as well as cement from the slag. Apart from these units Bokaro also has large Thermal Power Plants- Bokaro Thermal (BTPS), Tenughat Thermal (TTPS), Chandrapura Thermal (CTPS) and New one SAIL-DVC Thermal. Gumia is famous for its biggest explosive plant in India.
Upcoming Projects to boost the current production & employment 4 times! Bokaro Steel Plant modernised and extended its capacity from 4.5 MT to 7.5 MT in 2010. There are further plan for SAIL to extend BSL capacity to 17 MT by 2020. Apart from this a SAIL Greenfield steel plant is planned to be set up before 2015 with capacity of 5 MT. By 2020 BSL total capacity will go up to 22 MT, approximately double the present capacity (13 MT) of all SAIL Steel Plants. If you just consider the SAIL story, employment and allied industries in Bokaro are expected to grow threefold in the next 7 to 8 years! Steel giant Arcelor Mittal is looking to set up a 12 million tonne greenfield plant in Bokaro. The company is now looking for 8,000 acres (32 sq km) of land but primarily has acquired 2,500-acre (10 sq km) of land at Petarwar/Kasmar (in Bokaro district) just 20 km from the Bokaro city centre. In Another move Arcelor Mittal is taking an initiative to utilise the spare land of SAIL by establishing a new steel plant of 3-4 ml/ton capacity in a 50:50 JV in the BSL premises itself by investing $2.7 billion.
Tata Steel - NDTV learnt from sources that Tata Steel wants to set up a steel plant with a capacity of 2-3 million tonnes at an investment of up to Rs. 14,000 crore in Bokaro along with SAIL. The jointly owned plant is proposed to come up on a 1,000-acre (4.0 sq km) plot of land that belongs to SAIL. Billionaire Anil Ambani-promoted Reliance Infrastructure has identified three potential sites in Jharkhand for setting up the Rs 40,000-crore, 12 million tonne integrated greenfield steel project where the most appropriate and final location is Bokaro (On NH-32, Near Damodar Bridge). The SAIL-POSCO JV announced another new steel plant for Bokaro as part of a joint venture with Posco and SAIL by using FINEX technologies for high quality steel. The Capacity of this plant will be 1.5 MT, and will be set up in the BSP periphery, taking up 500 acres (2.0 sq km). Bhushan Steel has also acquired land for its steel plant, capacity of 3MT. Electrosteel Castings Limited, a European steel major has acquired 2,500 acres (10 sq km) of land 18 km from the Bokaro city centre and is setting up 3.5 MTPA steel plant in there. They have invested close to Rs 80 Billion on this project which is almost operational. SAIL with Jaypee Group has a JV of 50:50 to set up a Cement Factory of capacity 2.1 MT by waste product from steel plants. DVC with SAIL has a joint venture of 50:50 to extend the capacity of Bokaro power plant from 500 MW to 1000 MW. ONGC has started exploring Methane Gas for Commercial use from Parbhatpur (10 km from Bokaro). Special Economic Zones (SEZ): Jharkhand government's second SEZ after Jamshedpur is planned to be set up in BIADA in 500 acres (2.0 sq km) land. Software Technology Park- Buoyed by the success of the software technology park (STPI) in the state capital, the government is planning to set up two more STPIs — one in Jamshedpur and the other in Bokaro. The Bokaro Industrial Area Development Authority (BIADA) is to make land available for the projects. It has suggested availability of land in the Balidih industrial area, where the ancillary units of Bokaro steel plant are housed. Studies and set up procedures are already underway.
What does all this industrial development mean to a retailer? • • • • • •
Bokaro will emerge as the prominent steel production hub of India Steel production to go up three times from current levels in the next 2 years Steel production to go up six times by 2020. This is directly proportional to manpower and hence, employment Software technology parks to assist employment generation and create a robust retail market by 2014 All plants are in the 20 km radius from Bokaro city centre and housing for the employees will be based out of Bokaro and its suburbs Massive population immigration of SEC A & A+ category and retail demand surge
Huge demand for quality housing. Chas, the twin city of Bokaro is already seeing a large number of residential developments by local developers Dining, self care and entertainment options to be in great demand
Education – Bokaro is the hub for the whole state and an excellent retail opportunity. Young shoppers mean business! Bokaro is the education hub for IIT-JEE, AIEEE and AIPMT aspirants in Jharkhand. The city has many technical institutes providing training in the field of Software, Hardware & Multimedia. There are many small institutes providing coaching to those preparing for competitive examinations. Most of these institutes are located in and around the City Centre, which is at the heart of Bokaro. Incidentally, the Bokaro Mall is also situated in this part of Bokaro. For retailers, we have chosen the location for the mall, very carefully! The students from the city schools are well known to excel in numerous public competitive examinations especially in engineering and medical streams. Bokaro is a dream destination for IIT JEE and CBSE Medical Aspirants as the education here is quite focused towards competitive exams. The district also boasts of very large expatriate population in US, UAE, Europe, Australia and New Zealand. A young and aspiring population also directly translates into your retail catchment. Bokaro is a ready to move in, matured retail market. Local entrepreneurs have been cashing in on this for years. Brands have tried and failed to get the right locations due to lack of organized and well located real estate. The Bokaro Mall aims to change all that with its location, design and exclusivity!
So, where is all the shopping happening now? The Bokaro steel city has various sectors and each of them is equipped with a market that takes care of the daily necessities. But that’s where it ends. Bokaro City Centre is currently the retail hub of Bokaro. From clothes, fashion, accessories, electronics, books and media to movies, there is no other choice for the lacs of people living in and around Bokaro. If it is retail, City Centre is the only option. Dhanbad, which is 45 km from Bokaro and is an hour and a half’s drive away is where all the retail brands are. A lot of Bokaro’s seasonal shopping happens from Dhanbad. Because of lack options despite having the money to spend, shoppers travel to Dhanbad for a day, explore and purchase and travel back. Ranchi, a town 130 km from Bokaro is another such destination for shopping, though second to Dhanbad. Kolkata, connected by comfortable and daily super fast trains like the Shatabdi Express is the destination of choice for the family functions and weddings.
Do you mean people from Bokaro actually go to other cities to do their big ticket shopping? Yes. Unfortunately, that is the situation right now. With a complete lack of options and the ambience and brand concentration that a mall like format provides, we estimate that about 65 to 70 percent of Bokaro’s retail spending is currently happening in other towns like Dhanbad, Ranchi and Kolkata!
How does Bokaro look like on Google earth? Is it developed? A Google earth snapshot of Bokaro and Chas shows a dense, organized housing and commercial mass, an airport and the huge Bokaro steel plant. To the eye of the experienced retailer, just looking at the density of development in this area will be an eye opener. Here is what Bokaro looks like:
How big is this Bokaro City Centre?
That entire 1 km by 0.33 km area that you see in the Google earth image above is the Bokaro City Centre! This is the nerve point of Bokaroâ€™s retail. The Bokaro Mall is here too!
Street level views? Oh yes, we have a lot of those too. The entire City Centre area is chock a block with local retailers. There are a few brands too, but in our surveys, we found out that national brands are not being able to make a foray into this market due to lack of ambient real estate.
More images follow in the next page. Well, we found some brands too!
â€Ś. Bokaro City Centre street level views
Well, here are some more. . .
We could fill up a few more pages with these, but this sure should give you an idea of the current Bokaro retail scenario.
Some news from the grapevine and points of note We extensively went around the city, speaking with retailers to understand the Bokaro retail market. Here are a few bullets to get you acquainted; •
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All big ticket shopping, especially involving brands is being done at Dhanbad, Ranchi and Kolkata currently by residents of Bokaro. The only mall in Bokaro, The Bokaro Mall is all set to change with its unique opportunity, design and exclusivity. Yes, there e are no other malls coming up in Bokaro for the next decade. There is simply no plan or scope for one! The Bokaro Mall has limited space and will accommodate select retailers to open their stores. This could be your chance to use the first mover advantage and have a relatively competition free market for a decade! Retail lease rentals in the City Centre area for stores on the ground floor are between INR 90 to 100 per Sq ft on an average. And we are talking about open roads with no circulation patterns. Retail area sales prices are as high as INR 15,000 per Sq ft in the City Centre area of Bokaro. Average prices are about INR 8,500 per Sq ft. Brands like Levis and others are looking for large store spaces in prime locations of City Centre at Bokaro. The Bokaro Mall presents to them a one of a kind opportunity.
Bokaro and Durgapur. Here is a basic comparo. Dear retailer, we see immense potential for you in Bokaro!
Shall we talk business? First mover’s advantage: At The Bokaro Mall, we give our retailers the first mover’s advantage. A ready and matured market awaits you with spending capacity and no organized retail, entertainment and F&B options currently. When you think of a ‘mall’, The Bokaro Mall is the only option that you have for quite some time to come. What more? Big Bazaar, Reliance Trends, Reliance Footprints, KFC and Tanishq are already at The Bokaro Mall. Other brands are seriously working with us to be present here. Maybe, you would like to explore this unique proposition too.
Entry barriers? Maybe: Does the term entry barrier not sound like a dream come true for a businessman? Let us explain. At Bokaro, all land is the property of the Bokaro Steel Plant (SAIL) and the land The Bokaro Mall is being built on has been given to Amit Realty (the developers) by BSP. There are no mall plans or proposals in Bokaro for the next 5 to 7 years for sure. You could be part of the select few to have set up store here or watch for another decade, as your competitors laugh all the way to the bank. The choice is yours!
Location, location, location? Yes, we thought of that as well: The nerve point of Bokaro’s retail is the Bokaro City Centre. A dense, sprawling area where a few retail brands fight for space with local retailers in a classic example of unorganized retail. The Bokaro Mall is located in this nerve centre of Bokaro. Just across the street from unending mass of shops. As a retailer, you are ready to set shop in an area which is already established as the only destination for big ticket shoppers in Bokaro.
Ready to go? The Bokaro Mall will be ready for fit outs by July 2012. As a financially strong developer, we made sure that construction was on before we approached you for leasing. Why don’t you travel to Bokaro and take a look at how well the mall is shaping up for real? TIP: Have you tried searching Google for ‘Bokaro Retail’? Why don’t you try and find out!
Contacts and support Need more information? A detailed proposal? Need to explore how the Bokaro Mall can help your expansion plan fetch optimum returns? Or would you want to visit the site? Drop us a line at: email@example.com Or simply call Avijit at - +91 98315 40607 www.bokaromall.com
The Bokaro Mall is developed by:
Published on Jun 14, 2013