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Extensive SWOT Analysis of Macrotech Developers – An Indian Multinational Real Estate Company

by | Case Studies | 0 comments

Previously we looked at the elaborated marketing strategy of Microsoft, the world’s leading software application provider. Now, let us hop over and look at the elaborated SWOT Analysis of Macrotech Developers.

Macrotech Developers is a construction company based in India and it is the largest by annual revenue in the Indian region; it employs more than 2700 employees.

Another aspect that has made Macrotech Developers a giant today is marketing. Marketing changes as the world goes online,  and when you want to stay up to date – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Want to see how Macrotech Developers have succeeded in the construction industry? In this blog, you will learn about the SWOT analysis of Macrotech Developers. Before we get started, learn more about the Macrotech Developers’ company, how it was established, its products, financial position, and its competitors.

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About Macrotech Developers

SWOT Analysis of Macrotech Developers

The company, formerly known as Lodha Developers, is a leading Mumbai-based real-estate developer. It is raising Rs 2,500 crore for its IPO. Macrotech Developers Limited, which commenced its operations in 1995 with Mangal Lodha at the helm, is a large realty player focused on constructing residential apartments in the Mumbai Metropolitan Region (MMR). 

The company, formerly known as Lodha Developers Limited (until 2019), primarily focuses on the affordable and mid-income housing segment, which accounted for nearly 55 per cent of its sales in FY21. The premium and luxury residences segment is also a crucial segment for the company, accounting for nearly 40 per cent of the sales. Development of commercial real estate, logistics, and industrial parks accounted for the rest.

The company currently has 36 ongoing projects covering around 29 million square feet (MSF) of developable area and 18 planned projects spanning over 45 MSF. The company also has a land bank of 3803 acres in MMR which can potentially develop 322 MSF overall. This is the company’s third attempt to come out with an IPO after two failed attempts in 2010 and 2018. During the financial year 2019-20, it reported a profit of roughly Rs 720 crore on sales of Rs 12,561 crore.

 

Quick Stats on Macrotech Developers
Founder Mangal Prabhat Lodha
Year Founded 1980
Origin Mumbai, Maharashtra, India
No. of Employees 2700+
Company Type Public
Market Cap Rs 56,283.28 Crore (2022)
Annual Revenue Rs 5,771.65 Crore (2021)
Net Income/ Profit Rs 40.15 Crore (2021)

 

Products & Services by Macrotech Developers

  • Residential
  • Commercial


Competitors of Macrotech Developers

  • 3P Land Holdings Ltd.
  • AGI Infra Ltd.
  • Ajmera Realty & Infra India Ltd.
  • Alchemist Realty 


As now we have a better understanding of Macrotech Developers, let’s look into the SWOT Analysis of Macrotech Developers.


SWOT Analysis of Macrotech Developers

The SWOT analysis of Macrotech Developers identifies company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Macrotech Developers to compare their business and performance with competitors and the industry as a whole.

SWOT Analysis of Macrotech Developers - SWOT Infographics of Macrotech Developers

So let us go ahead and first have a glance at the strengths of Macrotech Developers from the SWOT analysis of Macrotech Developers.

Strengths of Macrotech Developers

Your organisation’s strength is something that makes it stand out from the rest. It can be a competitive advantage that sets it apart from its competitors. Some of the strengths of Macrotech Developers are as follows –

  • Significant Brand Presence: The group has had a significant presence, especially in Maharashtra for the past 42+ years. The construction company has developed over 8.1 Crore of total land and delivered 51,000+ homes to happy customers. 
  • Completed Projects: Some of the notable projects of Macrotech Developers are  Lodha Altamount, The World Towers, Lodha Bellissimo, Trump Tower Mumbai and Lodha Park. The company has developed residential and commercial properties in Mumbai, Thane, Hyderabad, Pune and London.
  • Quality Craftsmanship: Every one of Macrotech Developers’ developments delivers the highest level of design and craftsmanship, uncompromising quality, and unparalleled service, putting Macrotech Developers in the league of the world’s finest. 
  • Brand Ambassadors: Macrotech Developers has partnered with several celebrities to be brand ambassadors, including Aishwarya Rai, Amitabh Bachchan, Akshay Kumar and Twinkle Khanna. The ambassadors have given the company a rising presence in the market.
  • High Level of Customer Satisfaction: Having a committed relationship with their customers helps them to achieve a high level of customer fulfilment among present customers and good brand equity among future customers.
  • Sustainable Vision: Macrotech Developers are guided by a vision to build a better life and sustainability. The company is committed to positively impacting the natural environment by bringing sustainability. This has created a positive brand image for the company.


Weaknesses of Macrotech Developers

Weaknesses are negative factors that can prevent an organisation from achieving its goals and objectives. Some of these include a poor brand, high levels of debt, inadequate supply chains, and lack of capital. So here are some of the weaknesses of Macrotech Developer

  • Weak Balance Sheet: The company is neck-deep in debt. A majority of the debt will be maturing in the coming twelve months and the company’s credit rating has recently been downgraded. 
  • Statistical Poor Results for Liabilities: On a consolidated level, the company’s total liabilities were at Rs 35,782 crore on an equity base of Rs 4,812 crore (7.4 times). Its net debt stood at Rs 18,367 crore as of December 31, 2020. 
  • Geographical Concentration: Apart from a couple of projects in the United Kingdom and one in Pune, the company principally operates in the MMR region. Therefore, the company would be adversely affected in case of any weakness in this market.\
  • Operational Inefficiencies: Different projects are running under government intervention and hence they are going with a slow rate of performance and the final output operates inefficiently.
  • Local Market Dependency: There is a stable market in the MMR region but if we consider the national scope then it is not that popular in the national market so maybe it would affect them if the localised competitors are working more efficiently in the national domain. 


Opportunities for Macrotech Developers

Opportunity is a type of competitive advantage that can be gained from various external factors. For instance, if a country lowers its tariffs, a car manufacturer can benefit by exporting its products to a new market. Opportunities for Macrotech Developers are as follows –

  • Land at Competitive Prices: High price demands from estate projects in mainly Mumbai where land prices are quite competitive so that profits can rise.
  • A pipeline of Projects: Robust pipeline of projects in the MMR, as well as select tier-1 Indian cities: The connected and aligned projects built over MMR, are strengths of this company that can impact their revenue to a remarkable extent. 
  • Affordable Housing Projects: Focused on affordable and mid-income housing projects which is a growing segment. It is a very crucial point if we consider the net income and operating income of every running project which will make them stand out in real estate.
  • Building National Relation: The company is always famous for real estate business in the MMR region but the company has its limitation of geographical location and its spread so there is a huge amount of opportunity to build the relationship with national companies of real estate to compete with competitors and also maintain the pace.
  • Multi-disciplinary Project Management: Not only the pipeline of projects in MMR but also the projects which are under government should have multi-disciplinary disciplines included while management and the practical implementation. So it is mandatory to avoid any kind of uniformity in different kinds of projects under the same sector to promote variations and increase the customers’ feedback and ratings in the market. 


Threats to Macrotech Developers

Many factors can affect your business outside its immediate environment. Some of these include factors such as a shortage of skilled workers or a supply chain issue. The threats Macrotech Developers is facing are as follows –

  • Litigation: The company has disclosed that there are 12 criminal cases and 271 civil cases against it, involving Rs 7,752 crore. Any adverse orders can substantially affect the company.
  • Impact of COVID: Real estate companies were hit hard during the pandemic and this has been reflected in the company’s financial results. The company incurred a loss of Rs 264 crore in the first nine months of FY21. It remains to be seen how quickly the company can bounce back.
  • Economical Drift: Due to online networking the companies which are multinational organisational are preferably promoted in the market and hence the local market was downstream due to the impact of covid-19 pandemic
  • Discontinuity in the Progress: If we consider the overall stock market and its progression concerning the revenues of this company after the pandemic there is a kind of drift in the same and after that, we can see that the progress is discontinued and also they can’t reach their threshold which was maintained before the pandemic situation so they have to cope up with this particular situation.
  • Unstable & Changing Market Demands: Due to changes in the evolutionary real estate the conventional techniques are not applicable and hence the change in the market may lead to decreased interest rates also market is changing in a dynamic manner which leads to unstable and unpredictable performance spectra.


This ends our elaborative SWOT analysis of Macrotech Developers. Let us conclude our learning below.

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To Conclude 

Based on the results of this business analysis, Macrotech Developers can enhance performance through differentiation. The company must broaden its enterprise in research and development to build extraordinary products. Currently, the massive equipment, engines, and construction services of Macrotech Developers are very identical to the clams available from competitors. To increase competitiveness, the firm must empower extra in developing novel products.

Macrotech Developers can also expand their financial performance by accumulating their distribution network. The firm must concentrate on developing markets because these markets have big economic growth rates. For example, the company could expand the number of Macrotech Developers distributors in countries like China. One way to tap into various markets while being cost-effective is through digital marketing. 

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We hope this blog on the SWOT analysis of Macrotech Developers has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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