Affordability Driving Consumer Demand for Residential Real Estate in Peripheral Areas of Bengaluru: Magicbricks Data

* Home buyers are retaining size preference but reducing budgets

* Security, proximity to school, local markets and offices are key deciding  factors

* Whitefield, Sarjapur Road, Electronic City and Bellary Road most preferred localities

With India intermittently unlocking, new encouraging trends are now visible in the real estate sector after a period stagnancy. The sector is witnessing a tectonic shift and according to Magicbricks data, consumer preference in Benglauru is shifting towards peripheral areas due to affordability.

The shift in consumer demand towards Bengaluru’s peripheral areas has been accentuated by the demand-supply mismatch in the less than Rs.5000/sqft price category. Magicbricks data also suggests that Bengaluru’s consumer demand for BHKs and size hardly remain unchanged pre-COVID vis-à-vis post-COVID indicating that home buyers are retaining size preference but reducing budgets to move to the peripheries of the city in search of larger houses at lower cost.

Magicbricks data suggests that peripheral areas near employment hubs like Whitefield, Sarjapur Road, Electronic City and Bellary Road were the most preferred localities for home buyers during the April-May-June period of 2020. The consumer demand in these localities are driven by factors like affordability, better access to IT hubs and sound connectivity to the airport. The extension of metro lines from Baiyappanahalli – Whitefield and RV Road – Bommasandra is likely to boost the demand for the economic hubs of Whitefield and Electronic City in the future.

Commenting on the changing consumer behaviour, Mr. Sudhir Pai, CEO, Magicbricks, said: “We are experiencing a strong recovery in demand after searches dipped by 50% in April. Buyers are back in the market and our data suggests that Bengaluru’s recovery rate is faster than the national average. There is an emerging trend towards larger homes; but with budgets which are lower than earlier, buyers are searching more towards peripheral areas of the city. Our recent survey suggests that around 33% of home buyers in Bengaluru prefer under construction properties, which is significantly higher than the national average, reflecting their trust in branded developers. We are also witnessing an uptick in demand for plots and from NRIs.”

Bengaluru’s home buyers also displayed increasing propensity towards ready-to-move in properties with as many as 67% respondents suggesting that they want to cut down risk factors by opting for ready-to-move in units. Overall, 74% users are planning to reduce their budget preference and around 50% have cut it by 10-30%. Factors like gated community and proximity to schools and colleges remain the two main priorities for home buyers while selecting a property while amenities such as clubs, gyms and open areas have lost their sheen since COVID-19. Our survey also suggests that in Bengaluru, 55% of the respondents said that they would choose any developer (Tier 1/2) who can give the most economical option/best deal.

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Global Prime Residential Index Witnesses an Annual Increase of 0.9%:Knight Frank Prime Global Cities Index Q2 2020

* Bengaluru ranks 26thoutperforming New Delhi (27th), Mumbai (32nd)

* Bangkok was the weakest-performing global city in the year to June, with luxury home prices falling by 5.8%.

Knight Frank India, a leading international property consultancy, in its ‘Prime Global Cities Index Q2 2020’ report cited Bengaluru as the26th fastest-growing Indian prime residential market in the world, in terms of annual price appreciation.The premium micro-markets of the city recorded a rise of 0.60% in annual capital value change in Q2 2020 to an average price of Rs 19,727 per sq. ft.

New Delhi ranked 27th on the global index, witha 0.30% rise in terms of annual capital value change in the prime residential market to an average price of Rs 33,625 per sq. ft. in Q2 2020. Whereas Mumbai's prime residential market ranked 32nd in Q2 2020, registering a decline of 0.60% with an average price of Rs 64,388 per sq. ft.

Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value. The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 40+ cities worldwide using data from Knight Frank’s global research network.

According to Knight Frank’s research analysis, 20 cities that witnessed a decline in prime residential prices in Q2 2020 - nine were in Europe, seven in Asia, two in Australasia, one in the Middle East, and one in Africa. The Prime Global Cities Index, an unweighted price index of prime residential prices across 45 cities, increased by 0.9%; recording the lowest rate of annual growth in 11 years. According to the report, 67% of the global cities registered flat or positive yearly price growth; Australasia recorded the strongest performing world region in the year to Q2 2020, and the Asian prime residential prices declined by 0.2% in the three months to June 2020.

Manila,leads the index with prime home prices rising by 14.4% over the 12 months to June 2020, followed by Tokyo (8.60%) and Stockholm(4.40%). Bangkok was the weakest-performing global city in the year to June 2020, with luxury home prices falling by 5.8%.

While Bengaluru and Mumbai moved up by one place in Q2 2020; Delhi gained five places in the same period.

Shishir Baijal, Chairman and Managing Director at Knight Frank India, said, “The pandemic infused economic stress has engulfed the global markets with a fear of uncertainty. Ultra-rich buyers around the world are seen deferring the high premium purchase of a prime residential asset class and preferring investments in liquid assets, primarily gold and cash equivalents. With the expected price correction and uptick in sentiment depending on the news related to vaccine discovery, buyers with adequate liquidity will find value to enter the prime residential asset class in India.”

Key Highlights:

* Bengaluru’s prime residential market performed better than Mumbai and Delhi. Globally, the city ranked 26th with 0.6% annual price change for the period Q2 2019 – Q22020;with 0.00% price change in Q2 2020compared to the previous quarter.

* Delhiranked 27th with 0.3% annual price change for the period Q2 2019 – Q2 2020. The city saw a flat 0.00% price change in Q2 2020 compared to the previous quarter.

* Mumbai ranked 32ndwith -0.4% marginal annual change for the period Q2 2019 – Q2 2020. The city registered a price decline of -0.50 % in Q2 2020 compared to the previous quarter.

* Manila ranked 1st with 14.10%annual change for the period Q2 2019 – Q2 2020. The city saw a flat 0.00% price change in Q2 2020 compared to the previous quarter.

* Bangkok ranks 45th with -5.8% %annual change for the period Q2 2019 – Q2 2020. The city registered a price decline of -1.40% in Q2 2020 compared to the previous quarter.

Brigade Group Announces Q1 FY21 Financial Results Operational Highlights (Q1FY21)

Residential

Achieved 0.4 mn sq ft. of new sales in Q1 FY21 valued at Rs. 250 Crore vs 1 mn sq ft. valued at Rs. 593 Crore in the corresponding quarter of the previous year

Realization per sft has gone up by 14% compared to the same period in the previous year

Jasper Block at Brigade El Dorado of 0.62 mn sft launched during the quarter

Strong pipeline of 16.24 mn sq ft. and upcoming 2.06 mn sq ft. to be launched in FY21

Lease rental:

Leasing segment for offices remains stable with over 95% collections

Construction of the Brigade Twin Towers development has commenced

Hospitality:

All hotels are operational with Ministry of Home Affairs and State Government protocols in place

Average occupancy of 11% due to impact of COVID-19 & lockdown

All non-essential capital expenditure and renovation has been deferred to reduce cash outflows

Various cost saving measures taken including reduction of manpower costs of about 40% and reduction of about 70% in other overheads during the quarter

Financial Highlights:

Consolidated Performance Q1FY21 vs Q1FY20: 

Total Revenues at Rs.214 crores vis-à-vis Rs. 717 crores

EBITDA at Rs. 58 crores vis-à-vis Rs. 191 crores

EBITDA margin at 27%

PAT/(Loss) after Minority Interest at Rs. (53 crores) vis-à-vis profit of Rs. 41 crores

Commenting on the results, Chairman & MD Mr. M.R Jaishankar said, “While this quarter was  impacted by COVID-19, our continued focus on digital marketing,  online booking of apartments  and collections have yielded results even though most of the first quarter was under lockdown.    Despite the pandemic, our total collections for the quarter was Rs. 376 crores. The rental collections from Office in the Leasing Segment is stable. Although the biggest impact has been in the hospitality and retail segment, all efforts are being taken to improve their performance and we are positive that these segments will normalize soon.”

COVID-19 Impact & Outlook

Company outlook:

Construction has resumed at 30% labour strength post unlock 1.0 & has now crossed 50%. We expect to reach 100% by end of Q3 FY21

Green shoots are visible in residential business with a pickup in enquiries and sales

Office business remains stable with 95% collections, retaining a positive outlook

Business in malls and hotels will pick up gradually along with the improvement in economy

Brigade has a strong balance sheet and is in a good position to manage operations while maintaining liquidity to meet business obligations

Industry outlook:

Rate reduction by RBI and consequent low rate of interest for housing loans is a big positive

Adequate liquidity in the economy has helped restrict the damage

Recent announcement by RBI to allow banks to restructure loans in impacted sectors is a step in the right direction

Economy is expected to rebound in the later part of the calendar year; however, GDP contraction is expected for the financial year

Operational Impact:

Construction activity was impacted because of intermittent lockdowns

Lower revenue recognition in real estate segment was due to government office shutdowns

Malls and Hotels underperformed because of the lockdown, travel restrictions and weak consumer sentiment

Collections were impacted because of the reasons mentioned above though partially mitigated by prudent capital expenditure and reduction in overheads

Relief & Efforts:

John’s Health Centre at Brigade Meadows was inaugurated on June 24, 2020

Donation for purchase of an ambulance by St. John’s

Donation for purchase of prefabricated 5 bed ICU module to K C General Hospital

Donation for purchase of ventilator to Sri Vasavi Hospital

Dry ration to more than 3000 families in Bangalore

Sustenance allowance provided to migrant workers and supported them with ‘dry rations

80,000 Meals provided during lock down period

Workers engagement programmes viz. exercises, aerobics, yoga, as well as workers’ counselling

Awards and Recognitions:

Brigade Enterprises Ltd. has been recognised as one of India’s Top 100 Best Companies to Work For 2020, in one of India’s largest workplace study conducted by the Great Place to Work®️ Institute and The Economic Times.

This year, Brigade Enterprises Ltd has been "Ranked 43", in the coveted Top 50 category, across companies. Brigade Enterprises Ltd also has the distinction of being among India’s Top 100 Best Companies to Work For, 10 years in a row.

Brigade Hospitality Services Ltd. has been ranked 3rd amongst India’s Great Mid -Size Workplaces in 2020 by the Great Place to Work Institute and The Economic Times.

Salarpuria Sattva Employs Native Labours to Keep the Construction Momentum On

In a bid to reiterate its commitment towards quality construction and on-time project handovers, Salarpuria Sattva Group, employed 600+ native labourers’ at their projects across Karnataka to boost the real estate sector, during this COVID breakout. This will not only help in continuum of production, investment, labour and native supply chains in the state, but it will also be instrumental in revival of the real estate sector, sooner than anticipated.

With millions of workers migrating to their hometowns, continuing the momentum at the construction sites has been a constant challenge for the developers. In a grim scenario like this, while Govt. is taking measures to uplift the present economic situation, companies across industries will have to be proactive and  self-sufficient.

Being at the forefront of the real estate industry, Salarpuria Sattva, decided to tap into the indigenous manpower of Karnataka and neighbouring states, by employing labour in the construction sites across their projects.

Commenting on the same, Mr. Bijay Agarwal, MD, Salarpuria Sattva, said, “The pandemic has impacted industries across every domain including real estate. Amidst this major economic slowdown, we feel that the need of the hour should be employment and demand generation. Therefore, we have decided to take charge of the situation and empower our indigenous manpower in order to narrow the project delivery margin as much as possible. We hope this will not only help us in handing over projects on time, but also will help ease the labour shortage in Karnataka and neighbouring states, and help them to survive during this unprecedented time.”

This labour clutter has been divided into different sets, basis their skills in masonry, carpentry and interiors. Considering the present situation, the company is prioritizing projects and engaging native labour for completion and handover. All proactive safety measures like screening, sanitization, social distancing etc., are undertaken at sites for the safety of the workers.

About Salarpuria Sattva Group:

Present over the past 3 decades, Salarpuria Sattva Group has grown into one of the most trusted builders in the country today. Headquartered in Bengaluru, India, it also a well-known name in Hyderabad, Kolkata, Pune, Coimbatore, Jaipur and Goa. The Group will soon be expanding its presence in Mumbai. With 48 million sq.ft spaces completed consisting of world class commercial spaces, cutting edge tech parks and elegant residences, 36 million sq.ft under construction and 32 million sq.ft in the planning stage, Group is one of the leading developers in India today. Salarpuria Sattva’s flagship commercial project and Asia’s Best IT Tech Park- Knowledge City is located in Hitec City, Hyderabad. The Group’s other cutting edge upcoming projects in Hyderabad include: Knowledge Capital, Knowledge Park and Image Towers (a unique project for gaming and animation industry with world class facilities, in P.P.P model with Telangana State  and industrial infrastructure corporation). By further expanding into various ventures such as co-working, co-living, education, aerospace, embedded technology, hotels, facilities management and warehousing, the Group today stands tall as a frontrunner, shaping India’s growth story. The Group’s unwavering adherence to quality has given it the “trusted” tag among builders in the country, renowned for its “A Stable” CRISIL rating.

Brigade Group Announces Q4 FY20 and FY20 Financial Results

Key Points 

* Highest ever pre-sales of 4.3 mn sft  in FY20 and Collections of Rs. 2,539 Crores

* Brigade Enterprises Limited’s Consolidated Revenues for the year ended 31st March 2020 was Rs. 2,682 crores as compared to Rs. 3,027 crores for FY19. PAT after Minority Interest was at 131 crores as compared to Rs.240 Crores for FY19.

Operational Highlights:

* Achieved 3 Mn sq ft. of sales in FY20 compared to 3 Mn sq ft. in FY19 (44 % increase)

* Sale value of Rs. 2,377 Crores in FY20 vs Rs. 1,644 Crores in FY19. (45 % increase)

* Achieved 1 mn sq ft. of new sales in Q4 FY20 vs 0.9 mn sq ft. in Q4 FY19 (10 % increase)

* Sale value of Rs.651 Crores in Q4 FY20 vs Rs.520 Crores in Q4F Y19 (25 % increase)

* Leased 5 Mn sq ft. of new office area in FY20 which is estimated to yield rental of Rs.237 Crores.

* Collections are at 2,539 Crores in FY20 compared to 2,242 Crores in FY19 (13% increase)

* Commenting on Company’s performance, Mr. M.R. Jaishankar, Chairman and Managing Director, Brigade Enterprises Limited:

“FY20 has been Brigade’s best operational performance where we have sold an area of 4.3 million sft. All our business segments- Residential, Lease Rental and Hospitality, have performed strongly in FY20   and the same is reflected in the numbers. The unprecedented crisis due to Covid-19 pandemic resulting in the nationwide lockdown has had a negative impact on all sectors. However, we expect business to gradually pick up from the 3rd quarter of this financial year ”

Financial Highlights

Standalone Performance FY20 vs FY19:

Total Revenues at Rs.1994 Crores vis-à-vis Rs. 1929 Crores

EBDITA at Rs.635 Crores vis-à-vis Rs. 605 Crores

EBDITA Margin at 32% vis-à-vis 31%

PAT at Rs. 261 Crores vis-à-vis Rs. 234 Crores

Consolidated Performance FY20 vs FY19:

Total Revenues at Rs. 2,682 Crores vis-à-vis Rs. 3,027 Crores

EBDITA at Rs.713 Crores vis-à-vis Rs. 844 Crores

EBDITA Margin at 27% vis-à-vis 28%

PBT (Before Expectational Items) at Rs.180 Crores vis-à-vis 427 Crores

PAT after Minority Interest at Rs.131 Crores vis-à-vis Rs.240 Crores

Collections increased by Rs.297 Crores in FY20 when compared to FY19.

Consolidated Q4 Performance (Q4FY20 vs Q3FY20) 

Total Revenues at Rs. 644 Crores vis-à-vis Rs. 569 Crores

EBDITA at Rs.144 Crores vis-à-vis Rs. 172 Crores

EBDITA Margin at 22% vis-à-vis 30%

PBT (Before Expectational Items) at Rs.7 Crores vis-à-vis Rs.36 Crores

Net Profit after Minority Interest at Rs. 3 Crores vis-à-vis Rs.49 Crores

New Launches in Q4 FY20 & FY20

Launched 4 real estate projects aggregating to 2.5 Mn. Sft. in Q4 FY20.

Total area of 5.3 Mn. Sq. ft. has been launched in FY 20 across all business segments.

Final Dividend

The Board had  declared  and paid an Interim Dividend of Rs. 1.00 per equity share  in March 2020 (10%). There is no final dividend recommended by the Board. The Interim Dividend  paid in March 2020 will be the final dividend for the financial year 2019-20.

COVID 19 relief efforts and initiatives

Around 9,500-10,000 migrant workers supported with ‘ Dry Ration’ and money was remitted to their Jan Dhan Bank Accounts/given in hand.

Provided 3,65,000 meals during the lockdown period to migrant workers and economically weaker section of the society.

Over 7 truck loads of rice distributed in Chennai.

Dry rations provided to more than 3,500 families in Bangalore and bread loaves of over 11,500 provided in slums.

Outlook

The Group is currently developing about 21.4 million Sq. ft across Residential, Office, Retail and Hotel segments. Further, launches to the extent of about 4.5 million Sq. ft. are planned for the financial year 2020-21.

Kansai Nerolac Celebrates “Father’s Day and International Yoga Day” with #NerolacYogawithDad

Kansai Nerolac Paints Ltd. has constantly engaged with its audience to underline the importance of being careful in the current Covid-19 situation. With Father’s Day and International Yoga Day around the corner, Nerolac has launched an engaging contest, #NerolacYogawithDad, as an extension of its latest brand campaign #AajCarefulTohKalColourful. Through the initiative, Nerolac urges citizens to encourage their fathers to kickstart their fitness journey for a healthy and bright future! This is the fourth extension in the campaign’s ongoing series.

The initiative encourages participants to post a picture practicing Yoga with their father across social media platforms including Facebook, Instagram and Twitter with the hashtag #NerolacYogaWithDad.The winning entries will feature on Nerolac’s social media page.

The contest #NerolacYogawithDad is being promoted across Kansai Nerolac’s social media platforms.

About Kansai Nerolac Paints Limited:

With a rich heritage of 100 years in the paint industry, Kansai Nerolac Paints is one of the largest paint companies in India and the leader in industrial segment. A wholly owned subsidiary of Kansai Paint Co. Ltd., Japan, which is among the Top 10 companies worldwide, Kansai Nerolac manufactures a diversified range of products ranging from decorative paint coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for industries. Kansai Nerolac has established itself as a leader in product innovation with its initiatives including no added lead, Low VOC and HD finishes with brands like Excel. Its product portfolio and customer awareness campaigns promote environmental sensitivity. www.nerolac.com

Dr. Fixit’s Initiative to Support Contractors During Critical Pre-Monsoon Waterproofing of Buildings

Summary

* Pre-monsoon repairs, often critical, needed by 6-8 % of  buildings/ structures

* To benefit 5000 + contractors, Dr. Fixit’s initiative will include safety certification training as per MHA, WHO guidelines along with training on advanced waterproofing techniques and mechanisation

* It will be rolled out in 10 cities - Mumbai, Delhi, Pune, Hyderabad, Bengaluru, Indore, Ahmedabad, Surat, Kolkata, Nagpur

As the lockdown enforced to combat the COVID-19 pandemic eases, monsoon is set to enter the country. While it will bring general relief, the ensuing rains could well worsen the leakage issues faced by consumers in their houses and cause damage to structures. This will impact the large numbers of people living in buildings and homes that need serious preventive waterproofing before the rains arrive this year. It is expected that 6-8 % of buildings and structures may need critical pre-monsoon repairs. The waterproofing contractors play a crucial role in ensuring the structural integrity of buildings and depend upon the pre-monsoon work for a big part of their earnings.

However, consumers have heightened health & safety concerns this year and may be wary of workers entering their homes. It is necessary to address these consumer’s concerns as it may lead to reduced repair & waterproofing work impacting incomes for waterproofing community.

Keeping this in mind, Dr. Fixit, the construction and waterproofing expert from the house of Pidilite Industries Ltd, has rolled out multiple initiatives which will benefit thousands of hardworking waterproofing contractors. This will not only help them to safeguard their livelihoods but will also benefit those consumers who urgently need waterproofing.

The program has been rolled out across 10 cities - Mumbai, Delhi, Pune, Hyderabad, Bengaluru, Indore, Ahmedabad, Surat, Kolkata and Nagpur, and addresses two objectives.

Contractor/User safety training: The first is to train and certify contractors on all safety aspects they and their workers need to adopt to prevent contracting and spreading of COVID-19 while conducting site operations. Dr Fixit has launched a full-fledged training & certification program for contractors on how they can ensure their own safety and that of their workers, and consumers at the site of their work. The program imparts training and information about all precautions as per the guidelines of MHA and WHO. At the end the course, participants take a detailed exam, with successful participants being duly certified. 

The certification training, conducted over video conferencing, has been helping contractors allay fears of potential customers and prospect for fresh work with them to undertake waterproofing jobs.  Moreover, Dr Fixit has complemented the entire extensive training with an audio visual guiding users on how to handle site work during the Corona pandemic.

For effective job completion: The second objective is provide technical training to contractors /users on advanced waterproofing techniques so that they can be equipped to complete all jobs faster, with fewer workers, and as per stringent quality standards.

To this end, the Dr Fixit teams have been providing technical training on advanced waterproofing techniques, including the use of mechanized tools and devices that would help them speedily complete and deliver their jobs to the best quality. Dr Fixit has partnered with multiple companies that manufactures these mechanization equipments and has been training its users on these machines.

For the mental peace of their hardworking and safety-trained contractors and their teams, Dr Fixit has stepped up to also provide them with free COVID insurance cover.

IT SEZ from realty firm in Ahmedabad

A city based realty developer Calica Construction and Impex pvt Ltd laid the foundation stone for an It and ITeS Special Economic Zone here on Sunday.

The SEZ will be spread over 20 acres of land on the outskirts of the city and would house small and medium sized information technology companies.

The developers have planned to complete the first phase of the project in two years with initial investment of Rs 300 crore while total estimated cost of the project is Rs 650 crore.

Union minister of state for small and medium enterprises Dinsha Patel and Gujarat minister of state for industry and energy Saurabh Patel were among those present at the foundation stone lying ceremony.

According to Bipin Shah, one of the developers of the new venture, the company has already got the notification from the Board of Approval (BoA) for SEZ and other clearances are in the process.

He said that over 30,000 square feet space will be created for the It and ITeS companies.

He added that they are also in the process of tying up with major IT firms to set up their centres in the SEZ which would offer world class infrastructural facilities.

Agencies

Has US companies cut 4,91,000 jobs during April 2009?

In a possible sign that the worst may be over for the country's labour market, a new report shows that American private companies slashed as many as 4,91,000 jobs in April, much less than expected.

The latest ADP National Employment Report showed that non-farm private employment fell 4,91,000 from "March to April 2009 on a seasonally adjusted basis".

Experts were expecting that the decline would be more than 6,00,000.

"The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 7,08,000," ADP said in a statement on Wednesday.

According to the report, private employment in the service-providing sector plunged by 2,29,000 in April. During the same period, jobs in the goods-producing segment decreased 2,62,000 while that in the manufacturing sector dropped by 1,59,000.

Last month, construction employment dropped 95,000, which was also the "smallest" in nearly six months.

"This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April's decline, however, was the smallest since November of 2008," the statement said.

Large businesses, defined as those with 500 or more workers, witnessed their employment decline by 77,000 whereas medium-size businesses -- having between 50 and 499 workers -- skid by 2,31,000.

Further, small-size entities, which have less than 50 workers, saw a fall of 1,83,000 in employment.

"The employment declines among medium-and small-size businesses
indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy," it noted.

The report sponsored by ADP is maintained by Macroeconomic Advisers, LLC and it is a measure of employment derived from an anonymous subset of roughly 5,00,000 US business clients.

In the last six months of 2008, the subset represented nearly 4,00,000 US business clients representing nearly 24 million American employees working in all private industrial sectors, ADP said.

Agencies

Are layoffs raising? Reports say 9,000 job vanishing each day

More and more people are becoming unemployed this year, with nearly 9,000 jobs vanishing worldwide on an average each day in January.

As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26.

Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month.

Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each.

Dutch entities - electronics firm Philips and financial services company ING - together would be axing 13,000 jobs in the coming months.

Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000.

The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people.

Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500.

Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100).

Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession.

Agencies

India Inc may lay off 25pc jobs in 10 days

ASSOCHAM said the job cuts would be across the steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors Indian firms are likely to lay off a quarter of their employees in the next 10 days, as part of steps to contain costs in the face of shrinking margins amidst the economic turmoil, an industry body said on Wednesday.

Trade body Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the job cuts would be across the steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors.

Expansion has slowed in Asia's third-largest economy in the last two quarters, from the 8 per cent or more annual growth in the past four years, with high interest rates crimping demand and on the global financial crisis.

The central bank last week cut its forecast for growth in 2008/09 to 7.5-8 per cent from its earlier view of 8 per cent. This compares with the economy's 9 per cent growth in 2007/08.

"Employers have no other alternatives as part of their corporate strategy ... for sustaining their operations with squeezed margins (even) after after drastic cost cutting measures," ASSOCHAM said in a statement.