Internship Report

At

VIRTUE INFRA (B) PRIVATE LIMITED

Submitted by

Dhananjaya A
1RN21BA040

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY,

BELGAVI

In partial fulfilment of the requirements for

The award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. Manjunath N Ms. Vishnu Priya
Assistant professor Assistant Manager
Department of MBA & Research Centre Virtue infra private limited
RNSIT, Bangalore
Bangalore

Department of MBA & Research Centre

RNS Institute of Technology,
Dr. Vishnuvardhana Road, R R Nagar Post,
Channasandra, Bengaluru – 560098
November 2022
Virtue infra private limited
 Virtue infra private limited

DECLARATION

I, Dhananjaya A, hereby declared that the report entitled “ORGANIZATION STUDY

OF Virtue infra (B) private limited” prepared by me, under the guidance of PROF.

MANJUNATH N, faculty of MBA Department, RNS institute of technology and external

assistance by Ms. Vishnu Priya Assistant manager virtue Infra.

I also declare that this study is towards the partial fulfilment of the university regulations

for the award of degree of Master of Business Administration by Visvesvaraya Technology

University, Belagavi.

I have undergone an organization study for a period of 4 weeks. I further declare that this

report is based on the original study undertaken by me has not been submitted for the award

of any degree/diploma from any other University/Institution.

Place: Bangalore Signature of student

Date: 19-11-2022 DHANANJAYA A
USN 1RN21BA040
 Virtue infra private limited

ACKNOWLEDGEMENT

It was a great opportunity for me to conduct an organisational study on Virtue Infra (B)
Pvt Ltd, one of the leading companies in Real Estate business in Bangalore. I am
extremely grateful to those who have shared their expertise and knowledge with me and
without whom the completion of this project would have been virtually impossible
Firstly, I express my sincere gratitude and thank to Ms. Vishnu Priya (Assistant
manager), Virtue Infra Pvt Ltd Bangalore.

I would also like to thank my faculties of "RNS Institute of Technology" Specially Dr. M
K Venkatesha, principal of RNSIT College.

I also want to express my heartfelt gratitude to Dr. U Bhojanna, Head of the MBA
Department and Research Centre for being the backbone of support throughout the study.

It is my foremost duty to express my wholehearted thanks to my guide Prof. Manjunath

N for the valuable guidance, support and motivation during the course of this study. The
inspiration provided by my guide at every stage of my work has helped me immensely in
completion of this organization study and preparation of this report.

I would also like to thank the overwhelming support of all those people that helped me a
lot with their suggestions and ideas in the making of this project report. And I would also
like to thank my parents and rest of my family members for being patient and very
supportive always especially during the project study.

Place: Bengaluru Dhananjaya A

Date: 19-11-2022 USN 1RN21BA040
 Virtue infra private limited

TABLE OF CONTENTS

PARTICULARS PAGE NO
SL.NO

CHAPTER-1 INTRODUCTION ABOUT INDUSTRY PROFILE 01-09

CHAPTER-2 ORGANIZATION PROFILE 10-18

Background 10
Nature of business 10-11
Vision, Mission, 11
Workflow model 12
Product/ service profile 13-14
Ownership pattern 14
Achievements awards 14
Competitor analysis 14-15
Market share analysis 15-16
Skill matrix and competency mapping 16-17
Future growth and prospects 17-18

CHAPTER-3 MCKENSEY’S 7’S FRAMEWORK AND PORTERS 19-26

FIVE FORCE MODEL

CHAPTER-4 SWOT ANALYSIS 27-29

CHAPTER-5 ANALYSIS OF FINANCIAL STATEMENT 30-35

CHAPTER-6 LEARNING EXPERIENCE 36

BIBLIOGRAPHY 37
 Virtue infra private limited

EXECUTIVE SUMMARY

Virtue infra private limited started its journey in 2010. It has embarked upon a mission to
make the maximum use of minimum land being sensitive to both environmental concerns
and social continuity. Virtue infra corporate company has currently 210+ employees. I
completed my internship in this company, I was working there at marketing department
and HR department for one months and my prime objective was to know about the entire
activities of virtue infra. The purpose of this internship report is to analyse marketing
activities in the real-life situations of an organization.

The organizational study part consists of introduction about organization, organization

profile, vision, mission, ownership patter, workflow model, product profile, mckensey’s
7’s framework and porters five force model, SWOT, and financial statement etc...
 Virtue infra private limited

CHAPTER-01
INTRODUCTION ABOUT THE ORGANISATION AND INDUSTRY

1.1 INTRODUCTION TO THE INDUSTRY

The real estate industry refers to all companies dealing with the purchase, sale or rental
of land, buildings or apartments. Real property is real property consisting of land and
buildings.

Here we deal in residential real estate and land. Housing construction can be done by
individual property owners themselves, specialized housing construction companies,
general contractor developers, or public or social housing providers. It helps develop
the economy and improve infrastructure. The construction industry contributes
significantly to the gross domestic product of many countries, and the construction
industry drives economic development and provides many non-monetary benefits to
many countries.

Commercial areas are used for industrial development. Industrial parks have been used
as a powerful tool to promote and grow small-scale industries. They have also been
used as tools for rural and urban development. An industrial park can also be defined
as a place where factory housing is provided by the government to establish new
industries.

1.1 WORLD VIEW

The real estate market is getting bigger and more globalized. Institutional real estate
is expected to grow more than 55% from $29.0 trillion in 2012 to $45.3 trillion in

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2021. According to calculations, it could continue to grow to $69.0 trillion by 2030,

according to various possibilities. Subsector themes emerge that can be used
worldwide. Experts are already emerging in areas such as agriculture, education,
retirement villages, luxury shopping malls and new urban developments. These topics
will continue to grow. In addition, the real estate investor community can adapt to
their individual needs.

Economies of scale are becoming increasingly important. Some of today's leading

global managers are becoming mega managers across all regions and channels. Some
of these managers have expanded organically by acquiring smaller managers. A
manager with expertise in a particular market or property. However, real estate is a
business in which local knowledge is important. So, there will always be slots for
local players and single players. And mega-managers who have lost sight of the
importance of local knowledge suffer. In the future, real estate agents will need
greater foresight and deeper expertise in their chosen areas of activity and locations
to identify investment trends in their respective markets at an early stage.

Foreign investment in the commercial real estate sector reached US$10.3 billion from
2017 to 2021. Given the uncertainty of COVID-19, we are continuously monitoring
and assessing the direct and indirect impacts of the pandemic. These insights are
included in the report as their key market contributions. Rapid urbanization across the
globe is one of the key factors driving the market growth.

A growing population, a growing need for quality housing and infrastructure, and a
growing trend towards nuclear families are driving the growth of the real estate
market. Therefore, consumer preferences are changing towards clean and safe
environments and the rapid development of infrastructures such as connectivity by
road, air, and rail, makes better market prospects. Moreover, various technological
advancements such as artificial intelligence (AI) and integration with the Internet of
Things are influencing market growth. These technologies provide a centralized
platform for storing documents and managing emails and messages from online rental
payments.

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In addition, significant growth in the information technology (IT) industry, driving the
need for infrastructure and organized space, is also having a positive impact on the
growth of the market. Increasing purchasing power of consumers and other factors
such as the implementation of various government initiatives to develop infrastructure
projects are expected to boost the growth of the market.

1.2 INDIAN VIEW

In India, the real estate sector is the second-highest employment engine after
agriculture. Bangalore is considered the most popular real estate investment
destination for people, followed by Ahmedabad, Chennai, Pune and Delhi. India's
ranking in the Global Real Estate Transparency Index has improved five notches from
34 in 2014 to 39 in the last six years. From regulatory reform, better market data and
commitment to environmental protection. The emergence of nuclear families, rapid
urbanization, and rising household incomes are likely to remain major drivers of
growth in real estate, including residential, commercial and retail.

The country's rapid urbanization is driving real estate growth. The Covid-19 pandemic
has changed the way people work and socialize across the country. As normalization
floods our lives. Relevant is the fact that urbanization is no longer confined to big
cities. Fully sustainable multi-story buildings, fully secure well-designed commercial
facilities and shopping malls are what people in Tier 2 and Tier 3 cities and
communities also want. There is a demand for satellite cities due to hybrid ways of
working, further increasing demand for the best commercial spaces in these cities as
well.

The Indian real estate industry is agile and resilient, with asset classes created to meet
evolving demands. This positive development was further fulfilled by a trend focused
on flexibility, meeting specific end-user requirements and evolving homebuyer needs.
of companies produced this segment.

1.4 MARKET SHARE ANALYSIS OF INDIA

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By 2040, the property market will grow from 12,000 crores in 2021 to 65,000 crores.
By 2025, it will contribute 13% to the country's GDP. Commercial real estate is also
growing significantly, providing basic needs for India's infrastructure growth. The
Indian real estate sector has over 1700 acres of land traded in 7 cities. About 40 million
square feet will be delivered in India in 2021. The country is estimated to have a 40%
market share in the next 2-3 years. India plans to offer her 46 million square feet in
2022.
In 2020, manufacturing accounted for 24% of her 5.7 million square feet of office
space rentals. SMEs and electronic component makers have leased the most vehicles
among Pune, Chennai and Delhi NCR, followed by Chennai, Ahmedabad and Pune.
The e-commerce and retail segments account for 34%, 26%, and 9% of office space
rentals, respectively. The office segment accounted for 71% of total real estate
investment in Q4 2021, followed by retail at 15% and residential and warehousing at
7%.

Top real estate companies in India

• Godrej Properties: Godrej Properties is one of India`s leading real estate companies.
The company was founded in 1990 and has since developed numerous residential and
commercial projects across the country.
The company has received multiple awards and medals, including the National Real
Estate Development Council's Developer of the Year Award.

• DLF properties: DLF Limited With over 75 years of real estate investment,
development and management experience, DLF has an unrivalled scale of offerings

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and an unrivalled track record of client-focused services in India. Founded by

Chaudhary Raghavendra Singh in 1946, the DLF initiated the establishment of 22
urban colonies in Delhi. In 1985, the company expanded into the unknown Gurugram
region, creating superior living and working spaces for new Indian global
professionals. DLF is a listed real estate company in India. Today, DLF is India's
largest listed real estate company, owning residential, commercial and retail properties
in 15 states and 24 cities.

• SOBHA developers: Sobha Corporation is one of the largest and only backward
integrated real estate providers in the country. With his 30 years of experience creating
lavish interiors for palaces and masterpieces in the Middle East, PNC Menon founded
Sobha Developers in 1995 with a clear vision to change people's perceptions of quality
in the Indian real estate sector have a vision. He is one of the top 10 real estate
companies in India, an Indian real estate brand. In 2006, Sobha went public through
the 2006 IPO. This is the event that this issue made history with his record of 126
oversubscribing.

1.5 MARKET SHARE OF THE WORLD

The global real estate market was valued at US$ 6,883 Billion in 2021, It is expected
that the global real estate growth rate of 2022-2027 will be about 1.90%. Growth was
driven by residential which is by far the largest real estate sector, accounting for 79%
of all global real estate value. The world’s most significant store of wealth is real
estate, compared to other global equities and debt securities.

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• Residential real estate:

China is home to 1.4 billion people, is the world’s most valuable residential market
and now accounts for 30% of total global residential value, followed by the US, Japan,
Germany, UK, France, South Korea, Canada etc. At a regional level residential wealth
is concentrated in Europe and North America, and accounts for 43% of value
combined despite being home to just 17% of the global population.

• Commercial real estate:

The total value of global commercial property fell by 5% in 2020 due to the first wave
of the pandemic. The United States is the largest global commercial property market,
accounting for 27% of global commercial real estate value.

• Agricultural land:
Valued at 35.4 trillion, agricultural land is now more valuable than all commercial
land, following a period of exceptional growth in the years after the global financial
crisis. Total value declined by 7% in 2020, however raising after covid19 decreased.

• Other assets:
Growth value is more to real estate compared to the total value of securitised debt,
equities or gold.
Rental houses hold 55% of the market share, followed by the lease with 25% and 20%
of the owned land, site or plot.

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1.6 CHALLENGES AND ISSUES FACED BY THE REAL ESTATE INDUSTRY

• Unavailability of land: There is a large share of underutilised and vacant land, that the
government should spare for development through land regulations and land pooling
policies. This will help the real estate sector grow and improves infrastructure
development and Nuclear tested land can be utilised for real estate building.

• Overpopulation: Population is one of the major issues faced by the real estate
industries, by 2050 India will be the world’s most populated country, with over 50%
of people living in the urban centres and tier 1 cities. To sustain such a big population,
India requires more new cities and urban centres on large scale to provide all necessary
resources.

• Tax and demand shift: GST is another factor that the real estate sectors are facing.
Before the GST, the service tax was 4.5% and after the introduction of the same, the
services tax has risen to 12%, so the willingness of the buyers to invest in real estate
decreased.

• Delay in sanctions: Government corporations and local Authorities have very rarely
taken care steps in facilitating the growth and development of private sectors. Even to
date delays are faced in obtaining intimation of Disapproval or in obtaining an
occupation certificate or completion certification and this issue is faced by most
developers. It has a direct impact on the projects and increases the cost of building

1.7 RECENT TRENDS IN THE REAL ESTATE SECTOR

Indian real estate is going through turbulent times due to the unprecedented COVID-
19 wave. However, looking at the current trends in the Indian real estate market, real
estate investment is on the rise.

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• Capital spending is steadily increasing in 2021, and the real estate market is restarting.
The current situation is showing an upward curve, and homebuyers are eager to invest
in properties that fit their budget.

• Rising house prices: Real estate prices have also surged as demand in the wake of the
pandemic. But the development runs counter to pandemic trends that have forced
property owners to reassess property prices. Now, despite the asking price,
homebuyers are willing to buy properties again and ensure they have a property that
fits their eye-catching budget.

• Decline in the rental property market: Shrinking rental housing market Migration
to urban and small towns is a major factor in the decline of the metropolitan rental
housing market. Additionally, the work-from-home culture has shifted people's focus
to buying their own homes rather than renting. People prefer to settle in their
hometowns and places away from the big cities. This emerging trend will continue in
the current scenario for the next few years.

• Lower mortgage interest rates: Lower mortgage rates are good news for
homebuyers. Homebuyers with good credit can get low mortgage rates. Declining
mortgage rates are a trend designed to stimulate and sustain the real estate market for
potential homebuyers.

1.8 INDIAN GOVERNMENT INITIATIVES TO STRENGTHEN THE REAL

ESTATE INDUSTRY

• Government of India, along with other governments, has taken several initiatives to
promote development in this sector. The smart city project, which plans to build 100
smart cities, is a great opportunity for real estate companies.

• The central government will build 20 million affordable housing units in urban areas
across the country by 2023 under Pradhan Mantriawa's ambitious Yojana program of

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the Federal Ministry of Housing and Urban Affairs, and the residential sector is
expected to grow significantly.

• Real estate capital must work more closely than ever with central and local
governments to help them finance and plan the new cities of the 21st century. Only by
working with governments will it be possible to mitigate some of the risks of projects.

• The form of government partnerships varies from project to project. Developers are
likely to seek support in the form of local infrastructure and public transportation
services or build more formal public-private partnerships to support the economics of
their projects.

• Developers must monitor and understand government development goals.

• Urban program developers need to be experts in creative ways of advising and

influencing governments to build closer relationships and collaboration with
governments.

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CHAPTER -2
ORGANIZATION PROFILE

2.1 BACKGROUND
Virtue Infra Builders Pvt Ltd is a leading property developers firm started in 2010. It
provides urban realty services with high-quality living environments. Virtue Infra
Builders always aims to achieve excellence in the field of construction and works
continuously to ensure total satisfaction for customers. The company always try to
maintain perfection in their work. Virtue Infra Builders ensures at most satisfaction by
completing the project as per schedule and commitment towards building value.
Virtue Builders is very particular in detailing Vaastu aspects and innovative features.
Where it deals with the concept of the villa, they provide both plot and building
construction with affordable prices to the customers. Even middle-income people can
also offer the site. Currently having completed 39 projects, with ongoing 4 projects at
present.

2.2 NATURE OF BUSINESS

Real estate is a profitable and risk-free investment, where people can use their
investment to increase their profit. We must invest rather than save money at home or
bank. Savings cannot double your money while investments can increase your money.
Moreover, it is a low-risk investment where you have less chance of losing your
money.

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Company Name: VIRTUE INFRA (B) PRIVATE LIMITED

Establishment year: 2010

CEO of Company: Mr Arvind Kumar

President: Hari Krishna

Type: Private

Headquarters: Bengaluru, Karnataka, India

Nature of business: Real Estate and construction company

Address of company: #878 & 879, 3rd floor SLV Tower, 7th main road, near
Ragigudda Temple, 3rd phase j.p Nagar Bengaluru,
Karnataka 560078

Web site: www.virtueinfrabuilders.com

Email Address: [email protected]

No. of employees: 210+

2.3 VISION
• To provide premier property which is a basic need for everyone at an affordable
price.
• Transforming your thoughts on living and workspaces.

MISSION

• To enable sustainable living using the latest technologies.

• To provide total solutions to satisfy the customers and maximize the return on
investment.
• Maintaining long-term relationships with customers.

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2.4 WORKFLOW MODEL

Sale
Start registration
agreement

Project Site property

launch booking Sold

Legal
Marketing
verification

Lead
Site launch
generation

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2.5 Product or service profile

Virtue infra builders deal with plots, sites, and building construction. They prefer more
DC conversion land, BMRDA land, and BBMP land. Virtue infra has completed many
projects within in less time, here is a few completed project lists
• Virtue sapphire city
• Virtue elite county
• Virtue Rubi city
• Virtue smart city
• Virtue Lakeview habitat
• Virtue royal Nisarga

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• Virtue Rubi city and virtue smart city has been the major important projects for the
company because demand for this both projects is huge compared to other projects.
Both projects have been sold within 3weeks after the launch. This project had a major
impact on the development of the company within a short span.

2.6 OWNERSHIP PATTERN

Virtue infra (B) private limited is a private company owned by MR. Arvind Kumar
the CEO and managing director of the company owns all the (100%) shares of the
company.

2.7 AWARDS AND ACHIEVEMENTS

• Best developer in residential projects, Karnataka was given in 2019.
• Mid-range villas construction award was given in the year 2021.

2.8 COMPETITOR ANALYSIS

Main competitors are:

1. Oraiyan groups:
Oraiyan Group is one of the leading and major competitors for virtue infra. The
company started in the year 2017, Mr H.V Gurumurthi and Mr K Vinod Rao have
been the pioneering force behind the company. Under the leadership of the founders,
oraiyan groups developed several residential projects in Bangalore. Soon Oraiyan
Group is expanding its business in the major cities of India.
The company is unique because it deals with all kinds of projects including gated
communities, urban townships, villas, and apartments. They are masters in turning
empty spaces into living spaces by using design and technology.

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2. AR Groups:
It is one of the premier land developers’ properties based in Bengaluru, they deal with
the development of large subdivisions, new industries or even single houses. AR
groups bring you land development and building expertise to make the dreams
fulfilled of the customers. Their success in the atmosphere of building apartments has
earned them many numerous projects, hence customers’ trust has been over the years.

3. Bhurani Real estate:

It was set up in the year 1995, it has grown rapidly in a short span. Today it is a name
that commands respect in the market, and the minds of the customers. The CEO of the
company is Mr Santosh Bhurani. The strong foundation of a good real estate agency
is based on trust and commitment. One of the key factors is they have a decade’s
experience in the business of property. Over 75% of new business comes from
referrals by old clients.
4. AR property
5. Bhoomi groups

2.9 MARKET SHARE ANALYSIS

Virtue infra builders private limited is a non-government company, it is not listed in

the market share of a huge company. Shares are limited by the company.
Virtue infra is the leading real estate in their small business market, acquiring about
33% of their marketplace.

Market share analysis of India

List of top companies/ key payers of real estate
▪ DLF ltd
▪ Prestige estates projects ltd
▪ NBCC India ltd
▪ India bulls’ real estate ltd
▪ Brigade enterprises ltd
▪ Godrej properties ltd
▪ Omaxe ltd
▪ Sunteck realty ltd

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Revenue

DLF
4%2%
7% 24% Prestige

9% NBCC
Indiabulls
Brigade
15%
20% Godrej
Omaxe
19%
Sunteck

Note: The market share of companies has been taken based on the revenue of the company.

2.10 SKILL MATRIX AND COMPETENCY MAPPING

SKILL MATRIX FOR MARKETING DEPARTMENT

RATING

SKILL
1 2 3 4 5

COMMUNICATION
✓

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CUSTOMER
REQUIREMENT ✓

PROMOTION
✓

DIGITAL
MARKETING ✓

NEGOTIATING ✓

STRATEGIC ✓
ANALYSIS

CHANNEL ✓
PARTNERS

2.11 FUTURE GROWTH

• Soon expanding the business in different states, with a motive of providing
plots within a minimum cost that middle-class people can also afford easily.

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• Entering into huge apartment construction work using good quality raw
materials.
• Long-term survival in the real estate industry, and acquiring other market
shares.
• Development of company and human resources management in upcoming
years.
• Launching more projects in the upcoming years, which help in the
development of the company and can lead to an increase the profit
maximization.

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CHAPTER – 03
MCKENSY, S 7S FRAMEWORK AND POPRTER, S FIVE FORCE MODEL

MICKENSY, S 7S FRAME
The 7s framework model help in analysing the internal situation of an organization and
monitoring it. This model helps every organization to operate successfully if the following
seven elements are properly followed.

STRUCTURE

STRATEGY SYSTEMS

SHARED
VALUES

SKILLS STYLE

STAFF

HARD ELEMENTS SOFT ELEMENTS

Strategy Shared value

Structure Skills

System Style

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staff

3.1 STRATEGY
The goals and vision that the company wishes to achieve are clearly and properly
communicated to everyone working in the organization. The goals are set in such a way that
they should be specific, achievable, and measurable. A short-term mission helps in achieving
the long-term objectives of the company. Strategies of virtue infra are

• Social media posting: Virtue infra company mainly uses Facebook media platforms for their
promotion.
• Business to business: Several real estate agents are appointed on behalf of the virtue infra
company to sell their plots or sites.
• Convincing strategy: The customer is convinced according to their needs and requirements.
• Price negotiation: Making customers feel more comfortable, by providing affordable prices.

3.2 STRUCTURE

A company structure is a system that describes how activities are organized and coordinated
to achieve goals. These activities generally include rules to follow and the roles and
responsibilities of people within the company.

• CRM Department: This department deals with queries about the company and maintains
information about the customers. These people help in gathering the customer’s details and
they maintain interaction with the customer.
• Admin department: price negation is done in this team.
• Legal department: This department deals with the legal aspects like documents, site
verification details, conversion, and site documents available in this team.
• Loan department: It deals with providing site loans or building loans to customers, loan
process time may take up to 1 month after applying for the loan.
• Refund department: Here any customers who want to cancel their site booking are done in
this department, only for legal issue cancellation are allowed and refunds are given, not for
personal issues.
• Sales and marketing departments: Main team in the entire organization, because the major
contribution is from the marketing team, they handle the promotion part of the company.

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FLOWCHART

CRM
DEPARTMENT

ADMIN
DEPARTMENT

LEGAL
DEPARTMENT

LOAN
DEPARTMENT

REFUND
DEPARTMENT

SALES AND
MARKETING
DEPARTMENT

• Chairman’s decision will be final. The general manager plays an important role in the
organisation, the one who handles all the employees.

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3.3 SYSTEM
Marketing: Here first property advertisement is done on different social media platforms,
so it helps in the collection of customer data, who are interested in buying property.

Lead generation: Generating leads through different media like Facebook, property apps
like 99 acres, no broker, Olx, hosing.com etc.

Property evaluation: Evaluation of different properties for a different customer, depending

upon the location required for the customer. We will show them the land or site.

Following the customer: The main thing after the evaluation is following the customer, it
impacts a good customer relationship, and it can lead to very soon registering of the site.

Price valuation: whether the customer is interested in this price or he might negotiate the
price with the company.

Payment collection: Payments are collected through different modes like cash, cheque, UPI,
debit or credit cards. Payment can be made through easy EMI.

Registration: It is the final step in the entire process, after the collection of payment, the
company will set a date and time for the property registration.

3.4 SKILLS

• Knowledge of the industry: Specific knowledge of real estate helps in better

understanding the market and industry. It helps in analysing and controlling the real
estate market easily.
• Communication: This is more challenging for real estate agents because they will be
frequently in touch with the customers over the phone, or directly. You need to be an
expert in communication and you must be fast at responding.
• Patience: patience is a skill for real estate agents because sometime we may be lucky
enough to sell a plot immediately after we put it on the market. But sometimes it could
take months for a single deal to close.
• Negotiation: our company project plots are slightly negotiable; we provide the best deal
for buyer parties.
• Affiliate marketing: This is the best way to generate leads, in this company SM are
hired, and they promote the projects on various social media.

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3.5 STYLE

Virtue infra private limited follows an autocratic leadership style where top management
makes the decision. Leadership plays a different value in an organisation because of its
policies and procedures, it reduces the stress level of the employees, so that the employee
can concentrate on sales rather than taking unnecessary decisions. The work will be divided
into various teams, team-wise competitive, and team-wise achievements.

3.6 STAFF

Virtue infra–Pvt Ltd has a sufficient number of employees employed in the organisation.
Employees for different job roles and positions are hired internally depending on the
requirements. The employee skill level at virtue infra is sufficient to achieve the business
goals of the company.
The number of employees in virtue is around 210+ each employee in the company has
different ideas and strategies. The human resources management department manages the
human resources activities of the company.

PORTER’S FIVE FORCE MODEL

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Threats of New Entrants

A new entrant can bring huge competition among the existing company, and acquiring the
exciting market requires a lot of promotion and marketing. All new entry companies cannot
survive in the market, they may under losses in the initial stage of the business.

New entrants in Real Estate bring innovation, and new ways of doing things and puts
pressure on Real Estate Investors through lower pricing strategy, reducing costs. By
innovating new products and services, new products not only bring new customers to the
field but also give old customers a reason to buy Real Estate products.

Spending money on research and development helps in developing a new innovative idea.
Having zero knowledge about the industry and entering the industry is very difficult. It is
not so easy for any company to just build a villa or building. There will be some obligation
to deal with it, if he gets success in one project then, he can move with other deals. While
entering they have to think twice because there will be some rules and policies to be
followed.

Bargaining Power of Suppliers

Due to the boom of the real estate firm, the price of the construction and the materials they
supply for the construction are high, the bargaining power depends on the current market
rate. virtue profit is less when compared to other organisations, it causes a problem in
making a profit, the cost of the workers is too high.

All most all the companies in the Real Estate industry buy their raw material from
numerous suppliers. Powerful suppliers use their negotiating power to extract higher prices
from firms in the Real Estate field. The overall impact of higher supplier bargaining power
is that it lowers the overall profitability of a virtue Real Estate company. By experimenting
with products using different materials so that if the prices go up for one raw material, then
the company can shift to another.

Bargaining Power of Buyers

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Virtue company meet up with several customers in the field, some customers will be ok with
the price, and some customers ask for reducing the price. It’s very common in this area, so
to some extent, the amount will be reduced by the company, if it’s not convinced to that
price, it’s completely left to them. In the organisation some margin prices will be fixed, in
this field, the bargaining power of buyers is high.

Buyers are often demanding a lot; they want to buy the best offerings available by paying
the minimum price possible. This put pressure on the virtue Real Estate Industry by not
making profitability in the long run. The higher the bargaining power of the customers and
higher the increasing discounts and offers.

This will be helpful because it will reduce the bargaining power of the buyers plus it will
provide an opportunity for the company to increase its sales and production process. By
rapidly innovating new products. Customers often seek discounts and offerings on
established products, so if the Real Estate industry keeps on coming up with new products,
then it can limit the bargaining power of buyers. New products will also reduce the defection
of existing customers in the Real Estate industry.

Threats of Substitute Products or Services

Some customers choose for low-cost raw materials, without thinking about the quality, there
is no other alternative for site and plot, rather than choosing the same land but in different
places.

When a new product or service meets a similar customer need in different ways, company
profitability reduces. Virtue infra understands the need of the customer rather than what the
customer is buying.

Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is more, then it will lead to down
prices and decrease the overall profits of the company. This competition does take the overall
long-term profitability of the organization. It brings differentiation among various real estate
companies, by Collaborating with competitors to increase the market size rather than
competing for a small market.

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It helps in the development of new ideas and innovation and can increase the brand image
of the company, for virtue company there are major 4 competitors, who compete in the real
estate industry.

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CHAPTER-4
SWOT ANALYSIS

SWOT- (STRENGTH, WEAKNESS, OPPORTUNITIES, THREATS)

A SWOT analysis can be used to aid decision-making and as a tool to assess an

organization's strategic position. Identify internal and external factors for achieving
project objectives.

4.1 STRENGTHS

➢ High level of customer satisfaction: The company with its dedicated

customer relationship management department has been able to achieve a
high level of customer satisfaction among present customers and good brand
equity among the customers.

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➢ Highly skilled workforce: Through successful training and learning

programs. Virtue infra–Real Estate is investing huge resources in the training
and development of its employees resulting in a workforce that is not only
highly skilled but also motivated to achieve more.

➢ Service Quality: Virtue infra private limited management is always

committed to better services.

➢ Sales team: Virtue infra has an effective sales team.

➢ Code of conduct: Virtue infra maintains good relationship between top

management and employees.

➢ The prime location of projects: Experienced management and a large

number of projects around Bengaluru.

➢ Affordable price: Compared to other real estate companies’ virtue infra

private limited offers less price, and even middle-class people can also offer
the site and plot.

4. WEAKNESS

➢ Rules and policies: It doesn’t maintain the rules and regulations according
to the appropriate law.

➢ Salary: There is no fixed salary in this company, every employee in this

company has a variable salary except the manager and general manager and
legal department members. If the target is achieved salaries are provided to
the employees.

➢ Autocratic leadership: Decisions can be taken by only the top management.

➢ Promotion level: Lack of adequate marketing like an advertisement.

➢ Price increment: The increased prices of industrial materials will be difficult

to pass on to the customers.

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➢ High risk: Huge amount of money needs to be invested in the industry and
the inefficiency of funds may lead to a high level of risk.

4.3 OPPORTUNITY

➢ Expansion: virtue infra company plans to expand the business to other

districts and states.

➢ Partnership: Increase the market share and revenue of the company by

merging the company with other real estate companies.

➢ Collection of funds: It creates an opportunity to get a huge amount of money.

➢ Quality service to the customer: virtue infra company plans to provide

better service quality in the future years.

➢ Merging Public-private: The combination of both private and public

partnerships will bring further opportunities.

➢ Technology: Virtue infra is upgrading themselves by adopting new

technology in the field of construction with minimum cost.

4.4 THREAT

➢ New companies: Increasing in the number of real estate companies in the

market.

➢ Rules and regulation: Government rules and policies impact the development
of the company.

➢ Increase in cost: Raw materials and cost of labour are increasing day by day.

➢ Competitive rivalry: Huge competition among the exciting real estate

company. Customers Switch different real estate companies, in search of the
best price for the property.

➢ Population: population may be a threat in the upcoming days because they

may not fulfil the customer’s needs by not providing the required land to the
customer.
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CHAPTER-5

FINANCIAL STATEMENT ANALYSIS

Balance sheet of virtue infra private limited as on 31/03/2021 and 31/03/2022

Particulars March 2022 March 2021

EQUITIES AND LIABILITIES

Equity share capital 43600000 43600000

Reserves and surplus 30100000 33800000

Total shareholders’ funds 1,35,00,000 98,00,000

NON-CURRENT LIABILITIES

Long term borrowings 2900000 7400000

Deferred tax liabilities 2800000 4800000

Long team provision 000 000

Total non-current Liabilities 57,00,000 1,21,00,000

CURRENT LIABILITIES

Short Term borrowings 00000 00000

Trade payables 36400000 40600000

Other current Liabilities 78400000 58700000

Short Term provisions 000 000

Total Current Liabilities 118400000 99500000

Total capital and liabilities 13,40,00,000 12,15,00,000

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ASSETS

NON-CURRENT ASSETS

Tangible assets 69100000 77200000

Intangible assets 000 000

Capital work in progress 2500000 1800000

Fixed assets 7,16,00,000 7,90,00,000

Other non-current assets 1500000 1100000

Total non-current assets 7,31,00,000 8,01,00,000

CURRENT ASSETS

Inventories 4600000 11900000

Trade receivables 47700000 22000000

Cash and cash equivalents 200000 1100000

Short term loans and advances 000 000

Other Current Assets 8400000 6300000

Total Current Assets 6,09,00,000 4,14,00,000

Total Assets 13,40,00,000 12,15,00,000

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Profit and loss Account of virtue infra private limited as on 31/03/2021 and
31/03/20222

Particulars March 2022 March 2021

INCOME

REVENUE FROM OPERATIONS 14,08,00,000 14,31,00,000

Revenue from operations [ Net] 140800000 143100000

Other operating revenues 1000000 1100000

TOTAL OPERATING 14,18,00,000 14,42,00,000

REVENUES
Other income 000 000

TOTAL REVENUE 14,18,00,000 14,42,00,000

EXPENSES

Cost of materials consumed 67200000 78700000

Purchase of stock in trade 000 000

Operating and direct expenses 000 000

Changes in inventories of FG, WIP and 1800000 8700000

stock in trade.
Employee benefit expenses 1.4000000 14900000

Finance costs 900000 4400000

Depreciation and amortisation 10000000 8800000

expenses
Other expenses 46400000 31700000

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TOTAL EXPENSES 14,02,00,000 14,73,00,000

PROFIT/ LOSS BEFORE 16,00,000 (31,00,000)

exceptional ITEMA and TAX
Exceptional items 100000 (25,00,000)

PROFIT OR LOSS BEFORE TAX 17,00,000 (56,00,000)

Deferred tax 20,00,000 700000

TOTAL TAX (20,00,000) (7,00,000)

PROFIT OR LOSS FOR THE 37,00.000 (49,00,000)

PERIOD

RATIO ANALYSIS

➢ 5.1 CURRENT RATIO

Current Ratio is the financial ratio that is helps to examine the liquidity of the company
and its ability to pay of its short-term Liabilities (debts and payables) with its short-
term assets like cash, inventory, etc. The current Ratio is calculated by the formula:
Current Assets | Current Liabilities

The ideal Current ratio is said to be ‘2:1’

For the year 2021, the current ratio = 4.14|9.95 = 0.42
For the year 2022, the current ratio = 6.09|11.48 = 0.53

Graph 1: Current Ratio for the years 2021 and 2022

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From the above calculations, it can be seen that for both the years, The current ratios
are 0.42:1 and 0.53:1 respectively. This mean that for every 1 Rupee of Current
Liability, there is 0.42 and 0.53 Rupees of Current Assets respectively. The company’s
Current Assets and Liabilities are not in an ideal position since the current ratio is less
than 1 for both years 2021 and 2022. Since the current ratio is on an increasing trend
it went from 0.42 to 0.53, it shows that company is not in a better position in regards
to short term solvency in 2021 than in 2022. For both years it can be seen that the
company is in the position of being able to pay of its current liabilities with the help
of its current assets.

5.2 LIQUIDITY/QUICK RATIO

Liquidity/Quick Ratio is an indicator that measures the amount of the most liquid
current assets there are to cover current liabilities. The Liquidity Ratio is calculated
by the formula:

Current Assets – (Inventories + Prepaid Expenses) | Current Liabilities

The ideal Liquidity Ratio is ‘1:1’
For the year 2021, the liquidity ratio = 4.14-1.19/9.95 = 2.95/9.95 = 0.30:1
For the year 2022, the liquidity ratio = 6.09-0.46/11.48 = 5.63/11.48 = 0.49:1

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Graph 2: Liquidity Ratio for the years 2021 and 2022

From the above calculations, it can be seen that for both the years, the liquidity ratios
are 0.30:1 and 0.49:1. This means that for every 1 Rupee of Current Liabilities, there
is 0.30 and 0.49 Rupees of liquid Current Assets. Therefore, it can be seen that in
2022, the company had a better immediate solvency position than in 2021.

5.3 NET PROFIT RATIO

Net Profit Ratio is a profitability ratio that showcases the relationship between net
profit after tax and the net sales of a company. It is very useful as it helps measure the
overall profitability of the business. The Net Profit Ratio is calculated by the formula:

Net Profit | Net Sales * 100

For the year 2021, the Net Profit Ratio = (0.49)/14.43 * 100 = -3.36%
For the year 2022, the Net Profit Ratio = 0.37/14.02 * 100 = 2.60%

Graph 3: Net Profit Ratio for the years 2021 and 2022
From the above calculations, it can be seen that for both the years, the Net Profit Ratios
are 3.36% and 2.60% respectively. This means that for every 100 Rupees, the
company gains a net profit of 3.36 and 2.60 Rupees respectively. Compared to 2021,
in 2022, the Net Profit ratio has increased by 5.96% due to the decrease in expenses
incurred.

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Chapter- 6
LEARNING EXPERIENCE

It had been a wonderful experience in virtue infra private limited, as it helped me to

understand the real-life situation. Learned about how the organization functions and
the department’s role in the entire organization’s work. During the organization study
of four weeks, I got enough exposure to how an organization will run successfully.
Learned and understood the history, nature of business, services, ownership patterns,
achievements/awards, and many more.

It gave me good experience in gathering information related to the organization's

report. The internship experience has greatly helped in the review of theoretical
concepts.

Got an opportunity to work with professional mentors and to begin to build networks
within their profession. Learned about the skill sets required, and also learned about
organization structure, how employees work and how they feel about their work and
how they coordinate with managers.

Felt happy doing this internship in virtue infra because they gave complete information
about the company and working structure of the industry and also, they provide
various facilities to employees and also a good environment. Learned about organizing
the business in the most conductive manner keeping in mind to explore new strategies,
workplace, organization culture, policies, and management.
The study of mission, vision, and quality policy gave me the experience to know how
an organization is bound to fulfil various goals and objectives.

The study of Mckensey7’S framework gave exposure to know the 7’S. The category
of hard and soft elements made clear that hard elements are easy to identify and
management can directly influence them, whereas soft elements are more difficult to
describe and are less tangible in nature.

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The SWOT analysis of virtue infra provided improved analytical thinking and
increased the ability to think about what factors can become strengths, weaknesses,
opportunities, and threats to an organization in the internal and external environment
and how to take advantage of strengths and opportunities to overcome weaknesses and
threats.
Finally, I would like to thank my college and MBA department for giving me this great
opportunity to work on an internship report.

BIBLIOGRAPHY

➢ www.vibpl.co.in
➢ www.slideshare.com
➢ magazines and newspapers.
➢ Indian real estate industry.
➢ Strategic management. AUTHOR Fred R David 1986
➢ Professional management. AUTHOR Louis A. Allen 1973

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