Delhi NCR, Mumbai and Bangalore - Hubs of Physical verification business generation

Posted @ 12/21/2016 7:19:07 AM by admin Under( Fixed assets verification)


 
In our experience of 20 years in the industry of asset verification services, one of the bias is inescapable. It is the concentration of fixed asset verification and physical verification of assets assignments from the areas of Delhi NCR (this includes Delhi, Gurgaon/ Gurugram, Noida and greater noida) and Mumbai (Bombay).
Apart from these two historical bastions of business generation, Bangalore (Bengaluru) is fast emerging as the challenger to the throne of Business domination in India.
 
This fact let us on to develop a hypothesis of our own - Can the development of India be mapped by the  concentration, frequency and geographic spread of asset verification assignments?
 
This hypothesis led us to study in detail the different PV assignments executed by us from different companies till date, right from inception of this vertical of ours since 1996 and what inferences can be drawn by this data. Can it be used to estimate the next development hubs of India?
 
The asset verification assignments, on breaking them and distributing them based on geographical spread of our country throws a few surprising facts and to understand them we need to divide the last 20 years of our operative existence into 3 parts -
 
Phase I : 1996-2003
 
This was the dot-com boom phase and in India too we saw a lot of gearing in the IT sector. This is the main era when the IT industry found its green shoots in India. Though this was a time for very less regulatory and managerial interest on the companies fixed assets and well being and up keep (the big scams were yet to hit the country!), there were some pro active organizations which got their assets physically verified by us even in this period of laxity. It is satisfying to know that these companies still exist and are thriving. Thus we can reasonably deduce our own little logic here - The companies which are pro-active and sensitive towards their assets, and are ready to safeguard them even at some cost, are generally the well managed and far sighted ones. Just taking this parameter alone - What companies got asset verification exercises executed regularly even when there was no regulatory or compliance need? Answering this question can throw up few of the strongest companies of today which had just begun on their growth path in the 1996-2003 phase that we are talking about.
 
In this era the main physical verification assignments came from Mumbai (Bombay in those days). That was the main financial hub of the country and all the leading head-offices and corporate offices of the companies was based out of this city. Need less to say, in line with our hypothesis, today's Mumbai region was one of the country's most developed zones in this era.
 
Delhi too was had its own form of development, but it was more due to the fact that it was a political capital than because of financial development. And again in line with our hypothesis, not a lot of big assignments came our way from the Delhi region due to the general scarcity of big companies and their corporate houses here.
 
This period was also special, because this was the time companies started setting their shops in the greenfield area of Gurgaon (or todays Gurugram). DLF's enigmatic head of the time, Mr KP Singh was successfully able to persuade General Electric's Welch to start outsourcing some business to India and set up their bas in the city of Gurgaon. What followed then is history, as many other companies followed GE's footsteps resulting into the smart city and foremost developed cities of today - Gurgaon.
Another remarkable shift of this period was the starting of the expansion of city of Bangalore. More corporates were eyeing this city and the real story of this area started unfolding around this phase.
True to our hypothesis, following maximum physical verification assignments from Mumbai, Delhi threw in a few of its own. AAA asset verification, sensing the growing clout of Gurgaon and Bangalore as the next hubs of business, actively started pursuing companies in these areas of future growth and development.
 
Phase II : 2003-2008
 
In this era, asset verification exercise requests and queries started coming in from Gurgaon and Bangalore at a faster rate. The frequency was higher and so were the conversion rates of query into assignments.
Traditional hubs of Mumbai and Delhi kept their pace of being the business providing leaders of the country.
And applying our hypothesis of development and Fixed asset exercises business, new frontiers just came up.
Queries started coming in from Pune, another developing hub of central India in this period. Work flow also started coming in from Noida which was being developed at a faster pace. There were a few queries from Hyderabad, though to be true, not of them materialized for us during this period.
Another surprising area from where we got some business was Jaipur and Faridabad. This signalled that the development was touching these areas too.
Just when these multiple hubs of industry and commerce had started to come up, the US presented world with a crisis - The 2008 financial crisis. The businesses slowed down and so did the economic activity. True to our hypothesis, there were less PV exercises and fixed assets verification queries around this time of 2008 onwards but that is a topic for the next phase.
 
Phase III : 2008-2017
 
The present era, where India is coming up again as the super-power it once used to. Growing cities and their growing economies propelled more development all around. After the initila lull of about 2-3 years post the 2008 financial crisis, business activity again started bustling. This was pretty evident to us as 2011 onwards, more business started flowing in. Blessing in disguise was the period after the financial crisis led to regulatory tightening in all areas, which resulted into stricter requirements on various entities for keeping a check on their assets.
This resulted into massive inflow in business form us. I am afraid we didnt anticipate the same and were found lacking the operational man-power required to fulfill all the assignments coming our way. This was also a pivotal era form AAA asset verification services, as we started tightening our belts and started expanding our out reach throught the country. As we started getting more pan-India projects, we had to spread our operative capacities in every state. This skirmish of the early phase led us to today, when we can boast of unparalleled network throughout the country, in every state and major city.
 
This phase brought with itself bigger projects. Most of the recent projects have been covering the entire country. Bulk of the business still came from Mumbai, but it was no longer having the lions share of the orders. 
In line with our hypothesis of more assignments = more development, clients started coming in from all corners of the country. Apart from the obvious ones from Mumbai, Delhi, Gurgaon, Noida, Bangalore, Pune and Hyderabad which were growing at remarkable pace, surprising areas coming up were cities of Punjab - Ludhiana and Jalandhar in particular. Chandigarh started raising a lot of queries, so did cities of Jaipur and Agra. 
But the major surprise was from south India, where cities of Chennai, Kochi, Coimbatore started punching above their weight. Another surprise entry was from Nagpur, Raipur and Bhopal area. These mineral and natural resources rich area cities too started giving our physical verification and Inventory verification assignments.
Slow paced Calcutta (Kolkata) too started rising and development began there too. Also projects for verification started coming in from the state of Gujarat with bigger cities of Ahemdabad, Surat, Baroda (Vadodara).
 
As can be seen from the above, in our firms short history of two decades, the development of india can be traced as well by studying where we got our maximum clients and from the areas which gave us the most business. Thus the hypothesis of development of an area leads to more fixed asset audit and physical verification exercise of assets and inventories stand vindicated.
 
Just to keep in mind, few of the queries have started coming from Greater Noida in Uttar Pradesh and Nagpur's Mihan SEZ (Special economic zone) in Vidharba region of Maharashtra. Is the development boom coming in these cities next?
 

 

 






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