Sharmistha_Ghosh_PGEMP95_A16_Capstone Project_Report_Draft.docx

Capstone Project-Batch 95
“Overcoming Space Constraints: Maximizing Revenue Through Innovative
And Strategic Utilization Of Bus Depot Spaces In Mumbai”
Submitted By: Sharmistha Ghosh| Roll No. PGEMP95/A/16
Guided By: Dr. Bindu Kulkarni
Mentored By: Ms. Anushree Ghosh
Company Name: Shapoorji Pallonji And Company Private Limited
Institution : S. P. Jain Institute of Management and Research ((SPJIMR)

Page | 1

1. Acknowledgement
I feel truly grateful for the opportunity to complete this capstone project, which has been a valuable
learning experience and an important milestone in my Post Graduate Executive Management
Program-PGEMP journey.
First and foremost, I would like to sincerely thank our faculty Mr. R. Jayaraman and Mr.
Debmallya Chatterjee of S.P. Jain Institute of Management and Research (SPJIMR), for the
structure program combined with focused learning sessions on the Capstone and providing a strong
foundation for this work.
I would like to express my deep gratitude to my faculty guide Dr. Bindu Kulkarni, of S.P. Jain
Institute of Management and Research (SPJIMR), for her constant guidance, thoughtful feedback,
and encouragement. Her support and insights have been instrumental in shaping the direction of this
project and enabling me to achieve its objectives.
I would also like to express my heartfelt gratitude to my mentor, Ms. Anushree Ghosh-Deputy
General Manager and my direct manager, Mr. Amrat Shetty- General Manager, Head CRM for
their valuable advice, motivation, and support throughout this journey. Their mentorship has not only
strengthened this project but has also enriched my overall learning experience.
My sincere thanks go to Mr. Mubasshir Dalal-Additional Deputy General Manager, Mr. Monish
Barua-Deputy General Manager, and Mr. Jitesh Bonde-Vice President – Regulatory Approvals
of Shapoorji Pallonji and Company Private Limited for their timely support and valuable inputs,
which were extremely helpful during data collection and analysis for this project.
I am deeply thankful to all the Faculty and Staff at S.P. Jain Institute of Management and
Research (SPJIMR), whose teaching, guidance, and encouragement over the past months have
broadened my knowledge and prepared me to handle real-world business challenges with
confidence.
I am also grateful to my Colleagues and SPJIMR Fellow Batchmates, who made this journey truly
enjoyable and memorable through their constant support and collaboration.
Finally, I owe my deepest gratitude to my Friends & Family for their patience, love, and sacrifices,
which gave me the strength to pursue my MBA and successfully complete this capstone project.
This project stands as a testament to the support, guidance, and encouragement I have received, and I
extend my sincere gratitude to all who made its successful completion possible.
Page | 2

2. BONAFIDE DECLARATION
This is to certify that the Capstone Project Report titled “Overcoming Space Constraints:
Maximizing Revenue Through Innovative and Strategic Utilization of Bus Depot
Spaces in Mumbai” is a genuine work carried out by Ms. Sharmistha Meghnath Ghosh under
the guidance of Dr. Bindu Kulkarni, Faculty Guide, S.P. Jain Institute of Management and
Research (SPJIMR), Mumbai, and under the mentorship of Ms. Anushree Ghosh-Deputy General
Manger
This project has been submitted in partial fulfilment of the requirements for the Post Graduate
Programme in Management (PGPM) at S.P. Jain Institute of Management and Research
(SPJIMR), Mumbai.
I hereby declare that this project is my original work and that all data, insights, and findings have
been collected, analysed, and presented in an ethical manner. All sources of information and
references have been duly acknowledged in this report.
This report has not been submitted, wholly or partly, for any other degree, diploma, or academic
qualification at this or any other institution.
The above is true to the best of my knowledge and information.
Name Sharmistha Meghnath Ghosh
Roll No: PGEMP95/A/16
Place: Mumbai
Date: 21
st
September 2025
Signature
Page | 3

Table of Contents
Sr. NoTable of Content Page No
1. Acknowledgement 2
2. Bonafide Declaration 3
3. Executive Summary 7-12
4. CP Score Card 13
5. Introduction 14-18
6 Background of the Project 19
7 Research Methodology 20-32
8 Primary & Secondary Data Analysis 33-42
9 Recommendation & Results 43-54
10 ESG Commitments for Bus Depot Redevelopment 55
11 Summary at Glance for Bus Deport Redevelopment 56
12 References, Webliography, Annotation 57
List of Tables
Sr. No Table of Content-Table details Page No
Table No-1 Estimated Growth by sampling two Bus Depot 7
Table No-2Benchmarking: Key Developers 16
Table No- 3Resource-Based View (RBV) & VRIO Analysis 17-18
Table No- 44C’s Alliance Framework 26
Table No- 5Comparison of residential segment for both the sites 28
Table No-6Comparison of the Business Models 29
Table No-7Feasibility of the site in specific to Mulund Site 33
Table No-8Secondary & Primary Research at the Glance 34
Table No-9Society Redevelopment vs. Bus Depot Redevelopment 35
Table No-10Business Models 36
Table No-11Gap Analysis-Secondary vs. Primary Research 39
Table No-12Mumbai’s Mulund Bus Depot Redevelopment vs. Hong Kong MTR
“Rail + Property” Model
42
Table No-13Decision Matrix 43
Table No-14Risk Analysis 45
Table No-15Risk Mitigation Analysis 46
Table No-16Project details-Mulund Bus Depot 49
Page | 4

Table No-17Estimated Costing 49
Table No-18Sales Velocity and Construction Timeline 50
Table No-19Cash Flow Projections 50
Table No-20Net Present Value 51
Table No-21Internal Rate of Return 52
Table No-22Modified Internal Rate of Return 52
Table No-23Payback Period Analysis 52
Table No-24Financial Analysis at Glance 52
Table No-25Balanced Scorecard 54
Table No-26ESG- Environmental, Social, and Governance 56
List of Figure
Sr. No Table of Content – Figure Details Page No
Figure No-1. Shapoorji Pallonji Group Legacy 14
Figure No-2. SWOT Analysis 17
Figure No-3 Showing Indian Real Estate Market & Market Growth20
Figure No-5 Mumbai Residential Sales Unit-Past and Projected21
Figure No-6 Mumbai Average Residential Price-Per Sq.Ft 21
Figure No-7 Mumbai Unsold Inventory 21
Figure No-8 Acticle Cut Out 27
Figure No-10 -17 Part of customer Survey 31
Figure No-18 Porter’s Diamond Framework Analysis 41
Figure No-19 Seven Degrees of Strategic Freedom 46
Page | 5

List of Abbreviation
AbbreviationFull Form
BEST Brihanmumbai Electric Supply and Transport
BMC Brihanmumbai Municipal Corporation
DCPR Development Control and Promotion Regulations
DM Development Management
ESG Environmental, Social, and Governance
FSI Floor Space Index
IGBC Indian Green Building Council
IRR Internal Rate of Return
JDA Joint Development Agreement
JV Joint Venture
LEED Leadership in Energy and Environmental Design
MIRR Modified Internal Rate of Return
MMR Mumbai Metropolitan Region
MMRDA Mumbai Metropolitan Region Development Authority
MoHUA Ministry of Housing and Urban Affairs
MSRTC Maharashtra State Road Transport Corporation
NPV Net Present Value
PAP Project Affected Persons
PPP Public–Private Partnership
RERA Real Estate (Regulation and Development) Act
SPRE Shapoorji Pallonji Real Estate
SPV Special Purpose Vehicle
STU State Transport Undertaking
TDR Transfer of Development Rights
TOD Transit-Oriented Development
WTT Wadala Truck Terminal
Page | 6

3. Executive Summary
Mumbai’s real estate market is facing serious space constraints. Land is scarce, prices are rising, and
competition has become tougher. Over the past two years, our organization has struggled to launch
new projects in the Mumbai Metropolitan Region because of title clearance issues, regulatory
hurdles, and the high cost of acquiring land. At the same time, the city’s population continues to
grow, creating pressure on housing and commercial space. These challenges have made it necessary
to look at new and smarter ways of using land.
This capstone project looks at the REDEVELOPMENT OF BUS DEPOT SPACES in Mumbai as
a potential solution. Many of these depots are located in prime areas with strong connectivity but
remain underutilized. By transforming them into mixed-use projects with both residential and
commercial components, we can create fresh revenue opportunities while also supporting the city’s
infrastructure needs.
The study combined secondary research like policies mentioned under DCPR 2034, market trends,
case studies of similar redevelopments then followed with primary research which include
discussions with depot employees, surveys with potential customers, and inputs from internal
business teams. The research helped identify opportunities, risks, and stakeholder expectations.
Business models such as Joint Development (JD) and Development Management (DM) were also
studied to see how risk and revenue can be shared fairly.
The findings show that depot redevelopment has strong potential. Based on initial estimates, selected
depots could generate 200,000–300,000 sq. ft. of saleable space, with possible revenues of INR
500–800 crore in 7–8 years. Customers responded positively when projects were designed to
separate residential areas from depot operations, and depot employees welcomed the idea if it
improved their working facilities. Authorities indicated support, provided public utility functions and
staff welfare remain protected. It is also important to note that revenues could be significantly higher
if a similar product is launched in a premium island city sector, such as the Colaba area, where price
realization is far above suburban averages. Please find a basic calculation below for ready reference a
proper calculation is presented at the financial analysis section with the Mulund Bus depot

Table-No-1- Estimated Growth by sampling two Bus Depot (conservative figures)
Depot Potential Saleable
Area
Estimated Revenue (3–4 years)
Mulund ~120,000–150,000 sq.ft.280–400 crore
₹
Bandra ~130,000–170,000 sq.ft.320–450 crore
₹
Combined~250,000–320,000 sq.ft.600–850 crore
₹
This project will help us re-enter Mumbai’s market with an innovative edge, reduce our reliance
on costly land acquisitions, and strengthen our ESG commitments by improving depot conditions,
creating jobs, and promoting sustainable design.
In summary, bus depot redevelopment is more than a growth opportunity it is a platform for SPRE
Group to demonstrate real leadership in contributing to Mumbai’s city development story. The
feasibility findings, showing potential revenues upwards of 1,000 crore from a single depot and
₹
strong acceptance from customers, employees, and authorities, make a compelling case to proceed.
The next step is to move into detailed planning, financial structuring, and stakeholder consultations
so that this vision can be converted into a landmark reality for both the city and the company
Page | 7

Problem Statement
SPRE Group-Joyville Shapoorji Housing Pvt. Ltd. has been facing consistent difficulties in
expanding its presence in Mumbai. For the last two years, our ability to launch new projects has
slowed down due to limited land availability, title clearance complications, regulatory delays,
and heavy competition. These challenges have slowed the revenue growth and has prevented us
from tapping into the strong demand that exists in the Mumbai Metropolitan Region (MMR).
Mumbai as a city continues to grow rapidly creating population pressure, rising inner-city density,
and a shortage of quality housing and commercial spaces have created a gap that the market is eager
to fill. We have noticed while demand keeps increasing, suitable land parcels for development are
becoming scarce and unavailable to secure at reasonable costs.
One of avenues where Mumbai’s prime real estate is being locked-up are the Bus depots a clear
example of underutilized land parcels in Mumbai. Many of them are located on prime plots with
good road, rail, and metro connectivity for instance, the Bandra Depot is just next to Bandra
station, the Mulund Depot is alongside of LBS Marg with access to both Eastern Express
Highway and the upcoming metro, and the Worli Depot is located close to the sea link which
give good connectivity via road ways . However, as of now they are used only for parking and
basic operations, without adding much value to the city’s real estate or infrastructure needs
This situation has created a mismatch:
On one side, there is growing demand for centrally located residential and commercial projects.
On the other side, public land assets like bus depots remain commercially underdeveloped and
underutilized
As a feasible expansion strategy to re-develop the Bus depots could potentially avert the
company
Loss of potential revenue opportunities which could have been unlocked through strategic
redevelopment of bus depots.
Delays in market expansion, leading to slower customer acquisition.
Increased financial pressure, as project inactivity affects cash flows and overall business momentum.
Missed chances to build stronger ESG commitments, such as improving infrastructure for depot
employees, promoting sustainable construction, and contributing to community welfare.
If this issue is not addressed through a timely innovative redevelopment model, SPRE Group-
Joyville risks losing further competitive ground in Mumbai’s highly dynamic market. At the same
time, valuable government-owned land will continue to generate sub-optimal returns, leaving both
the company and the community underserved.
This problem, therefore, is not just about real estate development it is also about reimagining land
use in Mumbai to benefit all stakeholders: the company, the government, depot employees,
customers, and the city at large.
Project Objectives
This project looks at how SPRE Group-Joyville can deal with the ongoing land shortage in Mumbai
by redeveloping underused bus depots. The aim is to create new revenue opportunities, stay
competitive in the market, and deliver long-term value for both the company and the community.
Page | 8

1.Use Space Better-Identify bus depots that are not being fully used and convert them into projects
that make better use of land.
2.Grow Revenue-Create new income streams by developing mixed-use (residential and commercial)
projects on well-located depot lands.
3.Stay Competitive-Overcome the challenges of land acquisition and strengthen Joyville’s presence in
the Mumbai real estate market through innovative redevelopment.
4.Create a Scalable Model-Build a framework for depot redevelopment that can be repeated across
other depots in Mumbai and later in other cities too.
5.Work with Stakeholders-Form win-win partnerships with government bodies, depot authorities,
and investors through models like Joint Development (JD) or Development Management (DM).
6.Support Community & ESG Goals-Improve depot staff facilities, add sustainable features like
green spaces and energy-efficient designs, and contribute positively to the community.
7.Enable Steady Growth-Build a consistent pipeline of projects for SPRE group-Joyville, reducing
dependency on traditional land acquisition while ensuring profitability over the long term.
Proposed Methodology
The methodology for this project was designed to study the practicality and profitability of
redeveloping bus depot spaces in Mumbai. It was carried out in two main parts – Secondary
Research and Primary Research. Together, these helped to build a full picture of the feasibility,
challenges, and opportunities linked to depot redevelopment.
Secondary Research
The first step was to review available data, reports, and policies to understand how depot
redevelopment could work within the current regulatory and market framework. This included:
Market Understanding: To understand the market of real estate, broadly first in India and then for
Mumbai in specific.
Case Studies: Review of similar redevelopment projects in Mumbai, Pune, and Gujarat, with special
focus on models like the
Mahim Bus Depot- Kanakia Miami
Kurla LBS Marg- Kanakia Zillion
Wadala - Truck Terminal Redevelopment,
Additional benefit- National Investment Program for Bus depot
Policy & Regulations: A detailed study of DCPR 2034- Development Control and Promotion
Regulations, 2034. These are the urban planning and building regulation guidelines notified by the
Government of Maharashtra for Mumbai, laying down rules on land use, permissible Floor Space
Index (FSI), zoning, redevelopment norms, and infrastructure provisions. and related rules to
understand land use, reservation clauses, setbacks, and environmental clearance requirements.
Government Initiatives: Review of MSRTC and BEST tenders and announcements related to depot
redevelopment to gauge policy direction and revenue-sharing structures.
Demographic & Transport Data: Census and commuter traffic statistics to evaluate population
density and transport usage near depot locations.
Competitive Benchmarking: Understanding the competition developers like Lodha, Godrej,
Mahindra and Joyville positioning in terms of revenue, pipeline, ESG focus, and micro-market
strategy.
Page | 9

Primary Research
The second step was to gather first-hand inputs from stakeholders through interviews, surveys,
focus groups, and site visits. This helped validate secondary findings and capture ground realities.
Internal Stakeholders: Discussions with Business Development, Finance, Legal, and Liaisoning
teams highlighted challenges faced in past land acquisitions, cost implications, regulatory risks, and
customer perception management.
Depot Employees: Bus drivers, conductors, and depot staff shared their current challenges, space
needs, and welfare expectations.
Customers (End Users): Surveys and focus groups with potential buyers and investors captured
perceptions of depot-based developments, concerns like traffic, pollution, and expectations regarding
amenities, pricing, and connectivity advantages.
Site Visits: Field visits to shortlisted depots provided on-ground observations about current land use,
accessibility, surrounding infrastructure, and potential development challenges.
Outcomes of Methodology & Research Results:
Feasibility Framework-Built a step-by-step understanding of how bus depot redevelopment can
work in Mumbai, covering legal, financial, and operational aspects.
Model Comparison-Compared Joint Development (JD), Development Management (DM), and
outright purchase models, highlighting their pros and cons.
Stakeholder Insights-Captured direct feedback on customer demand, authority approvals, employee
welfare needs, and community acceptance.
Scalable Structure-Designed a redevelopment model that can be applied across multiple depots in
Mumbai and later extended to other cities.
Impact on Business:
Better Use of Public Land
The study showed that bus depots, which are currently underutilized, can be transformed into mixed-
use projects with homes, offices, and retail spaces. This approach unlocks around 200,000–300,000
sq. ft. of saleable area in prime locations, turning idle land into a valuable revenue-generating asset.
Revenue Growth and Financial Benefits
By redeveloping depots, Joyville can potential generate an estimated INR 500–800 crore over the
next 7–8 years. Also this has the potential to creates a fresh pipeline of projects without depending
on upfront capital investment and uncertain land acquisitions. Using JD and DM models also
improves financial returns by spreading risks and reducing upfront capital needs.
Stronger Market Position
Bus Depot redevelopment allows SPRE group-Joyville to re-enter important micro-markets in
Mumbai where land scarcity has blocked launches. It provides a competitive edge by offering a
faster and more practical way to add projects, which can later be scaled across other metro cities
Page | 10

Value for Stakeholders: The depot redevelopment model is not just a real estate requirements it
creates a multi-stakeholder value ecosystem:
Government & Depot Authorities: Gain structured revenue-sharing partnerships, upgraded depot
infrastructure, and reduced financial burden of modernization. This ensures policy alignment and
long-term sustainability.
Depot Employees: Benefit directly through modern restrooms, canteens, dormitories, and safer
working conditions, improving morale and productivity.
Community & Residents: Enjoy better transport integration, green public spaces, and art of living
amenities within the redeveloped site.
Environmental Impact: Provision of mass EV charging stations and 24×7 maintenance yards,
enabling the transition to electric buses and reducing the city’s carbon footprint.
Developers & Investors: Potential usage of underutilized land in a city with extreme land scarcity,
creating a profitable yet socially responsible model with diversified revenue streams.
.
Sustainability and Social Impact: The redevelopment approach supports Joyville’s ESG
commitments by adopting green building practices, creating jobs during and after construction, and
balancing profitability with positive contributions to society and the environment.
Long-Term Strategic Growth: Bus depot redevelopment establishes a repeatable and scalable
model for SPRE Group-Joyville. It positions the company as a leader in urban regeneration and
helps address Mumbai’s space shortage while ensuring consistent growth and shareholder value.
Challenges and Limitations
While the study confirms strong potential for bus depot redevelopment, a few important challenges
need to be considered and managed carefully:
Regulatory Approvals and Coordination: Since bus depots fall under government agencies like
BEST and MMRDA, approvals involve multiple layers of regulation. Aligning across departments
may take time, but clear policies such as DCPR 2034 and recent government interest in Bus depot
redevelopment show that these hurdles can be addressed with proper planning.
Operational and Community Concerns: Bus depots are active transport hubs, and redevelopment
must ensure daily bus operations are not disrupted. At the same time, some customers and local
residents expressed concerns around traffic and pollution. These issues can be managed through
phased construction, modern design, and better integration of public amenities.
Financial and Partnership Risks: Models like JD and DM help reduce upfront costs but depend on
transparent agreements with authorities. While this introduces some dependency, it also creates a
shared-risk approach that makes the project more practical compared to outright purchase.
Page | 11

Learnings and Way Forward
Organizational Learnings
Underutilized public land, like bus depots, can become a viable alternative to traditional land
acquisition.
Cross-functional teamwork like working closing with Business Development, Legal, Finance,
Projects is essential to build practical and realistic feasibility models.
Strong stakeholder engagement with government, depot staff, customers, and communities ensures
wider acceptance of redevelopment ideas.
Feasibility studies that combine policy review, financial modeling, and customer research give
management a strong decision-making base.
Personal Learnings
Applied PGEMP concepts like market analysis, financial evaluation, stakeholder management to a
real business challenge.
Improved ability to analyse complex business problems and propose actionable solutions.
Developed confidence in presenting insights to management in an articulated, structured, and
practical way.
Learned the importance of balancing business objectives with social and community value.
Future Directions
Pilot Projects: The first step is to test the idea on 1–2 depots in busy areas like Bandra, Andheri or
Thane area. These places have great connectivity and strong real estate demand, so they’re perfect to
show whether the redevelopment model really works. If these pilots succeed, they’ll give
management confidence and serve as examples for future projects.
Planned Partnerships: Working hand-in-hand with BEST, MSRTC, and municipal bodies will be
crucial. Clear and fair agreements whether through Joint Development (JD) or Development
Management (DM) will allow risks to be shared, reduce heavy upfront investment, and build lasting
trust with public authorities.
Opportunity to Scale Up: Once pilot projects succeed, the next step is to create a standard Process
(SOP) or framework. This can then be used for other depots across Mumbai, and later for similar
projects in other cities facing land shortages. Having a repeatable model will save time, reduce
errors, and ensure smoother execution everywhere.
Sustainability Impact: The focus shouldn’t just be on financial returns. Future projects must also
adopt green practices like energy-efficient construction, certifications, and modern facilities for
depot staff. By showing commitment to both people and the planet, SPRE Group-Joyville can build
stronger credibility in the market and create developments that benefit everyone.
Page | 12

4. CP Score Card
Data on Financial Parameters of Capstone Projects
Batch Number 95
Graduating Year 2026
Name of participant Ms. Sharmistha Ghosh
Roll Number PGEMP95/A/16
Cell Number 9136919687
Company Name Shapoorji Pallonji And Company Pvt. Ltd.
Mentor Name Ms. Anushree Ghosh
Faculty Guide Name Dr. Bindu Kulkarni
Planning/ Actual of CP
1 2 3
Parameter to be measured Unit Base Amount
(INR or
Months or
Percentage)
Proposed
Amount of
Improvement
(INR or
Months )
Proposed
Percentage of
Improvement
(2/3*100)
Revenue Increase INR 0 as no Bus
₹
depot
redevelopment
projects
1,131 Cr As
₹
per Mulund
project
estimated
100% (new
vertical
created)
Project Execution Time
Improvement
Months Standard 7
years
Achieved
Payback in 4.05
years
~42% faster
Revenue Improvement Value, INRJoyville CAGR
~50% (FY18–
25)
Depot model
sustains CAGR
+ IRR 23%
CAGR
maintained
enhanced
Note on CP Scorecard: All numbers presented are estimates derived from the Mulund Bus Depot
feasibility analysis and reflect projected potential rather than realized outcomes. This Capstone
project on bus depot redevelopment is at the strategy formulation stage and has not yet moved into
implementation, so the CP Scorecard highlights planned inputs for senior management’s
consideration and approval. Market share is calculated against the Mumbai real estate market size,
and the percentage improvements are indicative, subject to execution, sales velocity, and regulatory
approvals; actual performance results are therefore not included in this report
Page | 13

5. Introduction
The Shapoorji Pallonji And Company Private Limited (SP Group)
https://www.shapoorjipallonji.com/timeline is one of India’s oldest and most respected business
houses, with a history of more than 150 years. Founded in 1865 and based in Mumbai, the group has
built its reputation on trust, quality, and timely execution. Over the decades, SP Group has
expanded into many sectors including engineering and construction, real estate, infrastructure,
textiles, renewable energy, oil & gas, and financial services. Its strong presence in India and abroad
has made it a well-recognized and trusted name.
Figure No-1-Shapoorji Pallonji Group Legacy
a.
a.Historical & Key Milestones
1865-Founded as Littlewood Pallonji, a partnership firm in Mumbai.
Late 1800s-Early 1900s - Early landmark projects included building the pavement on
Girgaum Chowpatty and constructing the Malabar Hill reservoir which served Mumbai for
over 100 years.
1930s-1950s-Constructed iconic public buildings such as Mumbai Central Railway Station,
the Reserve Bank of India, and head offices of HSBC- Hongkong and Shanghai Banking
Corporation and SBI- State Bank of India in Mumbai.
1936-Acquired F.E. Dinshaw & Co., founded by philanthropist Framroze Edulji Dinshaw, a
prominent finance firm with a stake in Tata Sons.
2001-02-Took over Forbes Gokak from Tata group and now it is known as Forbes &
Company Ltd.
2010-Completed The Imperial Towers, Mumbai then India’s tallest residential towers
(254m, 60+ floors), transforming central Mumbai’s skyline.
2012 - Launched Joyville Homes, the group’s affordable housing brand for aspirational
middle-income buyers.
2019 - Contracted to build the BAPS Hindu Mandir, Abu Dhabi the first traditional stone
Hindu temple in the Middle East, a global symbol of cultural diplomacy and engineering
excellence.
Page | 14

2022 - Nearing completion of Minerva, Mahalaxmi, Mumbai among the tallest luxury
residential towers in India (~300m), reinforcing SP’s skyscraper legacy after The Imperial.
Within the group, Shapoorji Pallonji Real Estate (SPRE) was set up in 2003, Over the years SPRE
has emerged as one of strategic verticals of the SP Group. While the initial years were focused on
commercial projects, in 2013, SPRE forayed into the residential segment to meet India’s fast-
growing demand for housing. By 2016, the business had two clear verticals: Luxury Housing and
Aspirational Housing under the Joyville brand.
Joyville was created to make homeownership possible for India’s middle-income families by
offering affordable yet high-quality homes. Today, Joyville has projects across Mumbai, Pune,
Gurugram, and Kolkata. It is supported by leading global investors such as the Asian Development
Bank, International Finance Corporation, Actis, and SP Co. Ltd. So far, Joyville has
successfully handed over more than 6,000 homes, has over 40 lakh sq. ft. under active
development, and is planning to add another 18 lakh sq. ft. in the coming years.
b.Joyville Business Performance and Growth Trajectory
Joyville’s journey over the past five years highlights its evolution from an emerging player to a
credible mid-income housing brand.
Performance Highlights:
2017–18: Projects launched at Howrah and Virar; Revenue 79.3 Cr
₹
2018–19: Entered Pune and Gurugram; Revenue 9.9 Cr
₹
2019–20: First handover at Howrah; Revenue 16.2 Cr
₹
2020–21: Two launches in Pune along with handover at Virar; Revenue 130.08 Cr
₹
2021–22: Handovers at Hinjewadi and Gurugram; Revenue 598.98 Cr
₹
2022–23: New launches in Pune; Revenue 587.32 Cr
₹
2024–25: Expansion into Pune, Gurugram, and Kolkata with strong institutional backing with
portfolio at 40+ lakh sq.ft. under active development and 18 lakh+ sq.ft. in pipeline.
Margins & Returns
In some projects, the company made only a small profit i.e around 7% , while in others,
profits went up to 35%.
The overall return on projects has also varied a lot from no returns at all in weaker projects
to as high as 35% in successful ones.
Among all locations, Pune projects gave the best results. This is because flats in Pune sold
quickly, and the cost of land there was more reasonable compared to Mumbai.
Industry Context:
The Indian real estate market is projected to triple in just 5 years — from USD 332.85
billion in 2025 to USD 985.80 billion in 2030.
This translates into a 24.25% CAGR, one of the fastest among major industries.
This growth is powered by four levers:
Urbanization-India will add ~416 million urban residents by 2050; cities like Mumbai
will see unprecedented housing demand.
Rising Incomes-Disposable income is steadily moving more households into the mid-
income and aspirational housing bracket.
Infrastructure Development-Expansion of metros, highways, and smart city projects is
unlocking new micro-markets.
Page | 15

Government Initiatives-Schemes like PMAY-U 2.0 and incentives in redevelopment
policies like FSI & TDR relaxations are actively fuelling supply.
c.Benchmarking: Key Developers along with SPRE Group-Joyville
Table-No-2- Benchmarking: Key Developers
DifferentiatorLodha Godrej PropertiesMahindra
Lifespaces
SPRE Group-
Joyville
Revenue ~ 13,779 Cr
₹
~ 29,444 Cr
₹
~ 1,257 Cr
₹
1,200 Cr.
₹
Number of
Active Projects /
Pipeline
~40+ ongoing
projects; 10 new
projects in pipe
line
Development
portfolio ~200
million sq.ft across
12+ cities
~34.5 million sq.ft
completed; ~5.6
million sq.ft
ongoing; ~11.3
million sq.ft
upcoming
40 lakh sq.ft. under
development; ~18
lakh sq.ft. upcoming
pipeline (across 4
metro cities)
Prominent
Cities / Presence
MMR (Mumbai),
Pune, Bengaluru;
expanding into
Bengaluru
aggressively
Mumbai, Delhi-
NCR, Pune,
Bengaluru; presence
across 12 cities
Strong presence in
Mumbai, Pune,
Chennai,
Bengaluru;
selective expansion
in Tier-2 cities
Strong base in
Mumbai suburbs
(Mulund, Bandra);
SP legacy across
India in EPC + infra;
focus on MMR
CAGR /
Growth Rates
CAGR ~20 to
30% in recent
years
30%+ CAGR in
bookings/pre-sales
in multiple periods
Revenue CAGR
~12–15% over last
5 years
Revenue CAGR
~50% (FY18–25)
Core StrengthsAggressive
branding, scale in
micro-market
dominance in
luxury and mid-
segment
Innovation design is
there forte they also
have strong ESG &
green credentials
along with pan-India
presence
Green Living-
pioneer; customer
trust; steady
delivery;
affordable-premium
positioning
SP legacy;
engineering
credibility; on-time
delivery; customer-
first approach;
aspirational housing
DifferentiatorsMicro-market-
driven strategy;
large integrated
launches; strong
marketing
Green certifications;
JV-led expansions;
innovative customer
offerings
First realty
company with
carbon neutrality;
strong sustainability
track record
Focused on trust,
quality, and delivery
in mid-income
housing; exploring
unique depot-
housing model
Limitations /
Challenges
High leverage in
past; premium
pricing reduces
affordability
High land
acquisition cost;
dependency on JVs;
thinner margins in
ESG builds
Smaller scale
compared to
Lodha/Godrej;
slower expansion
pace
Smaller brand recall
vs Lodha/Godrej;
weaker digital
presence; perception
risk of depot
adjacency
d. SWOT Analysis: The SWOT analysis highlights Joyville’s strong parent brand legacy, reliable
delivery record, and investor backing as key strengths, while limited brand recall and financial
pressures remain challenges. Opportunities lie in depot redevelopment as a scalable growth model
and in leveraging ESG-focused design, whereas threats include regulatory delays, community
resistance, and intense competition in the Mumbai market.
Page | 16

Figure No-2- SWOT Analysis
e. Resource-Based View (RBV) & VRIO Analysis for our company:
The RBV and VRIO analysis shows that Joyville’s legacy brand, global financial backing, and strong
delivery record provide a sustained competitive advantage. However, limited digital presence and
weaker brand recall versus top competitors highlight areas where new capabilities must be built.
Table-No-3- Resource-Based View (RBV) & VRIO Analysis for our company
Resource / Capability Valuabl
e
RareInimitableOrganized to
Capture
Value
Parent Brand (SP Group Legacy)- The SP
Group’s 150+ years of history gives Joyville
strong credibility and customer trust. While
heritage is rare, the reputation can’t be fully
imitated by new entrants. Joyville uses this
brand effectively in its positioning
Yes YesNo Yes
Financial Backing (IFC, ADB, Actis)- Global
investors provide Joyville with stable funding
and financial credibility. This is not rare in
itself, but when combined with SP Group
legacy, it creates a unique advantage. The
company is organized to leverage this support.
Yes No No Yes
On-Time Delivery Record In a market where
delays are common, Joyville’s timely delivery
track record is both valuable and relatively
rare. It is difficult to consistently imitate as it
requires strong systems and execution
discipline.
Yes YesYes Yes
Construction Quality- Good construction
Page | 17
Strengths
• Strong parent brand legacy
• Proven on-time delivery
• High trust and reliability
• Construction quality
• Customer-centric processes
Weaknesses
• Lower brand recall vs. leading peers
• Limited digital engagement
• Fewer completed projects than top
competitors
Opportunities
• Rising demand for mid-income housing
• Expanding digital sales channels
• ESG-driven housing demand
• Government housing initiative
Threats
• Intense rivalry from Lodha & Godrej
• Rising material and borrowing costs
• Customer skepticism toward real estate

quality is valuable but not rare, since many
competitors can achieve it. However, Joyville
maintains consistent quality through
processes, which strengthens customer
confidence.
Yes No No Yes
Customer-Centric CRM & After-Sales-
Joyville’s CRM builds loyalty and referrals. It
is valuable and somewhat rare because not all
developers invest in after-sales. While imitable,
it requires time and effort. Joyville’s organized
approach makes it a real strength.
Yes YesYes Yes
Referral-Driven Sales Model- Referrals help
reduce customer acquisition costs and build
trust. This model is valuable, but not rare, as
others can adopt it. Still, Joyville executes it
well, making it an advantage in practice
Yes No Yes Yes
Mid-Income Segment Focus-
Focusing on aspirational housing taps into a high-
demand segment. While not rare, Joyville uses its
brand and execution to differentiate itself. Needs
constant innovation to stay ahead of competition.
Yes No No Yes
f. Key Challenges:
Weak Brand Recall vs. Competitors: Requires stronger digital marketing and customer
engagement.
Financial Pressures: Rising costs and high borrowing rates affect IRR and margins.
Customer Skepticism: Needs improved transparency and post-possession engagement.
6.Background of the Project
Mumbai, India’s financial capital, is also one of the most land-scarce cities in the country. With a
fast-growing population, rising density, and strong demand for both housing and commercial spaces,
the supply of clear and usable land has become very limited. Developers face constant hurdles such
Page | 18

as title clearance problems, long regulatory processes, and high land prices, which slow down
new project launches and disrupt steady business growth.
For Joyville Shapoorji Housing, which works mainly in the competitive Mumbai Metropolitan
Region (MMR), this scarcity of land has become a serious challenge. The traditional way of buying
land parcels is no longer practical or sustainable, either financially or strategically. To stay relevant
and to meet the city’s growing housing demand, the company must look at new and innovative
ways to use land.
Shapoorji Pallonji has already demonstrated its ability to deliver on complex, land-constrained
projects through iconic developments such as The Imperial Towers in Tardeo two towers of 254
metres (60+ floors each), which were India’s tallest residential skyscrapers at the time of
completion in 2010. Built on a redeveloped mill land parcel, The Imperial created over 2 million
sq.ft. of luxury housing and generated an estimated 4,000+ crore in sales revenues
₹
, transforming
not just the skyline but also the property values of central Mumbai.
Drawing from the learnings of The Imperial, Joyville has scaled its mid-income housing platform,
delivering 8,500+ units across projects in MMR, Pune, and NCR and clocking annual revenues of
1,200+ crore
₹
. These examples prove the group’s ability to unlock value from constrained or
underutilized land. Going forward, redevelopment led strategies, including the innovative reuse of
bus depot land, can help Joyville create future ready housing supply while addressing the acute
land scarcity challenge in Mumbai.
One such opportunity lies in bus depots. These depots occupy large pieces of land in central parts of
Mumbai with excellent road, rail, and metro connectivity. However, most of them remain
underutilized. With new policy frameworks like DCPR 2034 and government interest in depot
redevelopment, these sites can be transformed into mixed-use projects that combine housing,
commercial spaces, and community facilities.
The benefits of redeveloping bus depots are many:
It helps bypass traditional land acquisition problems.
It creates steady revenue through models like Joint Development (JD) or Development
Management (DM).
It supports ESG goals by improving depot staff facilities, adding green infrastructure, and promoting
sustainable construction.
SMART Objectives:
Specific- Redevelop underused and underutilized bus depots in Mumbai into mixed-use
projects combining housing, commercial spaces, and mobility hubs.
Measurable-Deliver at least an 18 percent IRR, achieve payback within seven years, secure
over 85 percent occupancy in commercial spaces, and ensure 80 percent resident satisfaction.
Achievable-Use DCPR 2034 provisions and PPP/JDA models to reduce land costs and adopt
phased execution with proven risk-mitigation practices.
Relevant-Support Joyville’s strategy to re-enter Mumbai, unlock scalable growth, and
enhance ESG impact through sustainable design and staff welfare improvements.
Time-Bound-Launch one pilot depot project within five years and replicate the model across
at least three depots by 2032.
Overall: For SPRE Group–Joyville, this initiative is not just about finding land for new projects, but about
aligning with the company’s broader vision of delivering value-driven housing while also enhancing
Mumbai’s infrastructure and community well-being. At its core, the background of this project lies at the
intersection of the city’s ongoing space crisis, Joyville’s need for sustainable growth, and the unique
opportunity to transform underutilized public land into thriving urban development.
7.Research Methodology
The research combined secondary analysis of policies, market trends, and case studies with primary
insights from depot employees, customers, and internal teams. This dual approach ensured both a
broad market perspective and on-ground validation of feasibility, risks, and stakeholder expectations.
Page | 19

7.1 Secondary Research:
The secondary research for this Capstone Project was conducted with the clear goal of validating the
feasibility and business potential of redeveloping underutilized bus depot spaces in Mumbai into
high-value mixed-use real estate projects. This stage of research combined policy review, site and
market data gathering and competitive benchmarking to create a base for informed decision-
making. It also served as a blueprint for designing the primary research phase, identifying the right
for bus depots, and shaping the financial model.
This research was carried out by the Joyville Business Development (BD) team, supported by
Finance, Legal, and Liaison team. Below is a detailed findings, and its impact on the overall strategy.
a.Market Overview:
India Real Estate Market
The Indian real estate market was sized at roughly USD 0.66 trillion in 2025, and is projected to
grow at a CAGR of about 9.5% during 2025–2030, reaching approximately USD 1.04 trillion by
2030.
In the residential sector, there was a strong 17% year-on-year increase in sales during the first three
quarters of 2024, driven largely by buyer confidence, rising incomes, and premium housing demand
in cities like Bengaluru, Mumbai, and Pune.
Segments are showing different growth rates:
Mid-segment housing (prices ~ 50 lakh to 1 crore) is growing fast (≈12% growth in 2025)
₹ ₹
and holds nearly half of the market share.
Premium and luxury segments are growing faster in percentage terms, although from a smaller
base.
Figure No-3 & 4 Showing Indian Real Estate Market & Market Growth
c. Mumbai Real Estate Market
In FY 2024-25, Mumbai had its highest-ever annual sales, with ~49,191 units sold worth about
1,24,138 crore, which is a 26% increase over the previous fiscal year.
₹
Page | 20

The median property price across Greater Mumbai rose to 27,500 per sq. ft, about 6% year-on-year
₹
increase. Some micro-markets like Bandra-Andheri saw higher increases.
Property registrations in MMR reached a 13-year high in 2024, showing strong buyer confidence.
Price growth in Mumbai was 4–5% YoY in 2024, with rental prices growing by ~14% in Q4 2024
due to supply-demand imbalance
Unsold inventory in Mumbai fell to ~84,197 units (worth ~ 2,57,383 crore), and the inventory
₹
overhang dropped to ~20 months. This is much better than past years when overhang was very high,
pointing to a tightening market.
New project launches are increasing modestly. For example, in FY 2024-25, there was only about a
1% increase in new units launched compared to previous year in Mumbai, but in some clusters like
Jogeshwari to Borivali, launches grew more notably.
Key drivers in Mumbai include infrastructure projects like metro expansion, improved connectivity,
government policies for affordable housing, and growing suburban and micro-markets as central
zones become expensive.
Figure No-5-Mumbai Residential Sales Unit-Past and Projected

Figure No-6- Mumbai Average Residential Price-Per Sq.Ft
Figure No-7- Mumbai Unsold Inventory
Sales Units-steady growth from ~38k (2022) to a
projected ~62k units by 2028.
Average Price-rising from ~ 24.5k/sq.ft in 2022 to
₹
~ 33.8k/sq.ft projected by 2028.
₹
Unsold Inventory- declining from ~110k units (2022)
to ~68k projected by 2028, showing healthier
absorption.
d. Land Scarcity in Mumbai
Nearly 75% of new housing supply in Mumbai comes from redevelopment projects rather than
greenfield sites.
Page | 21

There are over 910 housing societies in Mumbai that have signed redevelopment agreements since
2020, unlocking about 326 acres of land for redevelopment.
These redevelopment projects are expected to deliver 44,277 new homes by 2030, valued at
approximately 1.3 lakh crore
₹
, which highlights how much of the future supply depends on
redeveloping existing built-up land.
Most of the society redevelopment deals approx. 80% of them since 2020 have been on plots
smaller than 0.49 acres, showing how only very small or fragmented land parcels are available.
The average size of housing societies being redeveloped in Mumbai is only around 0.45 acres.
e. Leveraging Group Capabilities through Afcons Infrastructure:
An additional strength for Shapoorji Pallonji lies in its group company Afcons Infrastructure,
which has built a reputation for executing some of India’s most challenging and iconic government-
backed projects. Afcons has successfully delivered the Chenab Rail Bridge in Jammu & Kashmir
the world’s highest railway bridge, and is actively involved in projects such as the Atal Tunnel in
Himachal Pradesh, the Agra Metro, and multiple metro corridors across India. These projects
demonstrate the Group’s ability to work seamlessly with government agencies, navigate complex
approval processes, and deliver large-scale infrastructure on time.
This track record provides a significant advantage when it comes to bus depot redevelopment in
Mumbai. Government-linked land parcels such as depots require developers to not only demonstrate
financial strength but also the ability to manage public-private partnerships, policy compliance, and
stakeholder coordination. Our group already has deep relationships with government agencies and a
proven ability to deliver projects that demand complex approvals, multi-stakeholder management,
and large-scale execution. This means that when we take up bus depot redevelopment, we are not
entering as a regular private developer, but as part of a group that has consistently delivered critical
infrastructure for the Government of India. Leveraging Afcons’ credibility and track record gives us
a natural advantage in securing approvals faster, building confidence with stakeholders, and
executing these projects smoothly.
e. Case Study-The Proof concept:
Case Study 1: Kanakia Miami (Mahim Bus Depot, Mumbai)
Overview
Kanakia Miami was launched in 2015–2016 as a premium residential project inspired by Miami’s
lifestyle and architecture. It targeted upper middle-class and premium buyers in central Mumbai.
Project History
The site where Kanakia Miami stands today was earlier the Mahim Bus Depot, owned by BEST
and used for bus operations and staff quarters. The plot measured about 1 acre. In 2007,
redevelopment rights were awarded to Parsvnath Developers. Around 2010, Kanakia Spaces
acquired these rights and took control of the project. This gave Kanakia the opportunity to redevelop
the depot land into a high-rise residential tower, making it one of the first examples of bus depot
land being transformed into premium housing in Mumbai.
Project Details
Location: Mahim (near Shivaji Park/Dadar)
Land Size: ~1 acre (~200 luxury apartments)
Type: Premium residential (theme-based)
Launch: 2015–16
Completion: 2019–2020
Page | 22

Unique Feature: Miami-inspired theme with modern lifestyle amenities
Investment & Expectations
Kanakia invested in creating a theme-based residential experience, targeting buyers willing to pay a
premium for lifestyle housing. The expectation was to capture a niche within central Mumbai’s
competitive residential market.
Outcome
The project attracted strong buyer demand, despite its higher price point, due to its unique design
theme and prime location.
Success Indicators
Achieved 30,000+/sq.ft. pricing
₹
, above the Mahim micro-market average.
Expanded visibility in the premium residential market.
Case Study 2: Kanakia Zillion (Kurla, Mumbai)
Overview
Kanakia Zillion is a large commercial development located in Kurla, Mumbai. It was launched
around 2013–2014 and positioned as a Grade A commercial hub in Central Mumbai.
Project History
Before redevelopment, the land at LBS Marg, Kurla was part of an older commercial and semi-
industrial belt with small industrial units and warehouses scattered across the area. The plot
measured about 5 acres, making it attractive for large-scale commercial use. Kanakia acquired the
land in the early 2010s during a period when Kurla was undergoing transformation due to its
proximity to Bandra Kurla Complex (BKC) and new developments like Phoenix Market City. The
acquisition enabled Kanakia to convert the underutilized site into a modern business district.
Project Details
Location: LBS Marg, Kurla, Mumbai
Land Size: ~5 acres (~5 lakh sq.ft. built-up area)
Type: Commercial office space
Launch: 2013–14
Completion: Phased delivery by 2017–2018
Key Tenants: BPOs, media houses, corporates
Investment & Expectations
The investment was aimed at creating a high-quality office hub with amenities like high-speed
elevators, landscaped podiums, and modern office layouts. Expectations were that Kurla would
emerge as an extension of BKC, attracting corporates seeking affordable central locations.
Outcome
Kanakia Zillion attracted strong tenant interest and became one of the first Grade-A office hubs in
Kurla.
Success Indicators
Occupancy reached 80% within 2 years of launch.
Rentals in Kurla improved due to Zillion’s presence.
Overall: Impact on Kanakia’s Growth
The success of Kanakia Zillion and Kanakia Miami gave Kanakia a dual advantage entry
into large-scale commercial real estate through Zillion, and positioning as a premium
lifestyle-driven residential developer through Miami. Together, these projects diversified
Page | 23

their portfolio, improved market credibility, and allowed Kanakia to expand market share
in both the commercial and residential segments of Mumbai.
Case Study 4: Wadala Truck Terminal (WTT) Redevelopment, Mumbai
Overview
The Wadala Truck Terminal was developed in the late 1980s as a centralised hub for goods transport
and logistics in Mumbai. Over time, with changing logistics patterns and congestion issues, the land
became underutilised and poorly maintained. The Mumbai Metropolitan Region Development
Authority (MMRDA) identified the 115-acre WTT land parcel as a prime candidate for
redevelopment into mixed-use urban housing and commercial space, in line with Mumbai’s
urban renewal vision.
Project History
Originally planned as a truck terminal for over 3,000 trucks per day, the terminal gradually declined
in utility due to lack of facilities and urban congestion. By the 2000s, most transporters had shifted
out, leaving vast land parcels underutilised. The land size of 115 acres made it one of the largest
potential redevelopment sites in central Mumbai. MMRDA initiated plans to convert the WTT into a
transit-oriented mixed-use development with residential, commercial, retail, and public amenities.
Project Details
Location: Wadala (along Eastern Freeway, near Chembur-Wadala corridor)
Land Size: ~115 acres
Type: Mixed-use redevelopment (residential, commercial, retail, civic amenities)
Authority: MMRDA-led redevelopment under DCR provisions
Timeline: Concept initiated in mid-2010s; detailed master planning ongoing in 2020s
Key Features: Transit-oriented design, public housing, commercial towers, integration with
metro and freeway connectivity.
Investment & Expectations
The project is expected to attract heavy investment from private developers under a PPP/JD model
with MMRDA. The expectation is to transform Wadala into a new business district with integrated
residential and commercial spaces, similar to BKC’s growth story.
Outcome-WIP
While still under planning and phased execution, the WTT redevelopment has already increased land
valuations in Wadala. Developers like Ajmera, Lodha, and Dosti have launched residential projects
nearby, capitalising on the expected transformation.
Success Indicators-Expected
Land valuations in Wadala rose by 30–40% over the last decade, partly due to WTT
redevelopment expectations.
Increased developer activity: residential towers within 2–3 km radius are marketed as “BKC-
Next” due to proximity.
Projected creation of thousands of residential units and commercial hubs once completed.
Overall: The Wadala Truck Terminal redevelopment shows how large transport-related land
parcels can be repurposed for urban housing and commercial projects. Like bus depot
redevelopment, it demonstrates:
The potential of public-private partnerships (PPP/JD models) with MMRDA.
Transit-oriented development as a driver of demand.
Page | 24

The role of such projects in unlocking underutilised urban land to meet Mumbai’s housing
and infrastructure needs.
f. Benefits other than Bus Redevelopment : National Investment Program for Bus-Based Public
Transport in India
Overview
India’s public bus system is the backbone of urban and regional transport, carrying more than 60%
of daily public transport users. However, the sector faces a severe shortage of buses, depots, and
maintenance facilities. According to the National Investment Program for Bus-Based Public
Transport:
India currently operates ~1.4 lakh buses under State Transport Undertakings (STUs).
The demand requires at least 3 lakh+ buses to meet global standards however curtly we only ~0.5
buses per 1,000 people in India vs 1.2–2.0 in developed countries
By 2031, India will require over 1,500 new depots and terminals to support expansion.
Land scarcity in urban centre’s is the single biggest bottleneck for depot construction.
Project Details
Authority: Ministry of Housing & Urban Affairs (MoHUA) and State Transport Undertakings
Program Aim: Upgrade existing bus infrastructure, develop new depots & terminals, and integrate
commercial revenue streams to make projects self-sustaining.
Estimated Investment: 60,000–70,000 crore by 2031combined state and central
₹
Key Focus Areas:
Modernization of bus depots and terminals.
Integration of electric bus charging and maintenance infrastructure.
Exploring Public-Private Partnerships (PPP) for depot redevelopment.
Aligning with National Electric Bus Program (NEBP) to deploy 50,000 e-buses in the next decade.
Investment & Expectations
Land Constraint: Land contributes 30-40% of depot project cost in urban areas. Redevelopment
models are critical for feasibility.
Revenue Models: National policy encourages using surplus depot land for commercial and
residential use to cross-subsidize bus infrastructure.
Private Participation: Developers are expected to bring 20,000–25,000 crore
₹
via PPP/JD models.
Expectation: Create modern, multi-use depots that serve as both transport hubs and urban real
estate assets.
Outcome & Early Results
Pilot projects in cities like Ahmedabad, Indore, and Nagpur show that depot modernization with
commercial integration increases financial viability.
In Mumbai, BEST has identified 7-8 depots which includes Mahim, Bandra, Mulund, and Kurla that
can be redeveloped under PPP models.
Benefits Expected:
Operational Efficiency: Up to 20-25% increase in operational efficiency better bus turnaround
times, reduced idle fleet.
Revenue generation: Commercial use of surplus depot land has generated 200–400 crore in pilot
₹
cases Ahmedabad Janmarg Ltd. and Indore iBus.
Page | 25

Staff Facilities: Redeveloped depots include modern dormitories, canteens, and sanitation,
improving working conditions for drivers/conductors.
Success Indicators
Urban Mobility Impact: By redeveloping depots, cities can increase bus fleet size by 30–40%
without needing fresh land.
Financial Impact: Cross-subsidization reduces the dependency of STUs on government grants.
Social Impact: Better passenger facilities like waiting areas, ticketing halls, safety measures and
improved staff welfare.
Environmental Impact: Provision for electric bus charging bays aligns with India’s EV adoption
targets 50,000 e-buses by 2030.
Overall: Mumbai Bus Depot Redevelopment-This national program directly validates my capstone
idea:
Problem Alignment: Mumbai’s depots like Mulund, Bandra, Mahim suffer from the same land
constraint highlighted nationally.
Solution: Redeveloping underutilized depot land into housing and modern depot infrastructure
directly addresses the shortage.
Strategic Value: Highlights that the project goes beyond real estate development, positioning it as a
solution to a critical national urban transport challenge.
Strategic Alignment: Shows that the capstone is in sync with national priorities, ensuring future
readiness and strong policy backing.
Table-No- 3-4C’s Alliance Framework
4C Element Meaning Bus Depot Redevelopment & National Program
Common
Purpose
Shared goals and vision
between partners.
From my analysis, both the government (BEST/MMRDA) and
private developers are aiming at the same outcome to
modernize depots and at the same time unlock land for
affordable housing and commercial hubs. This aligns naturally
with Mumbai’s larger urban renewal and sustainability goals.
Co-Creation Joint design, planning,
and execution by all
stakeholders.
Heere we see a true partnership: authorities providing land and
policy support, while developers contribute investment, design,
and project execution capabilities. Together, this joint effort
can reshape depots into modern facilities with mixed-use
development.
CommunicationTransparent, continuous
information sharing.
Consistent and constant communication. Regular joint reviews,
transparent progress sharing, and open engagement with
employees, authorities, and communities will help maintain
trust and smoothen implementation.
Competence Leveraging the
strengths and expertise
of each partner.
From the research, it’s clear that developers like us bring deep
expertise in Real Estate, engineering, and ESG practices, while
authorities provide the land, approvals, and alignment with
national policies. Combining these strengths ensures projects
that are technically sound, financially sustainable, and socially
meaningful.
g. Regulatory Policies and Government Frameworks
As part of this study, I reviewed the Development Control and Promotion Regulations (DCPR-
2034) to understand how bus depot land can be used for redevelopment in Mumbai. Specific sections
were most relevant:
Section 33(19): Gives incentives and additional FSI for redevelopment of public utility plots.
Page | 26

Section 30(A) and 17(B): Allow public undertakings like BEST to enter into Joint Development
(JD) agreements with private developers.
Section 34: Deals with commercial zoning and Transfer of Development Rights (TDR), which can
add flexibility to project planning.
For example: When these policies were cross-checked with official MMRDA land-use plans, some
bus depots stood out as high-potential sites because of their zoning and connectivity.
Bandra and Worli depots: Strategically located along metro corridors, making them suitable for
mixed-use projects. Bandra’s premium positioning shows the highest ticket sizes;
Mulund depot: Offers a larger land parcel, which makes it suitable for a township-style model.
Mulund shows the best demand velocity on our proxy metric.
Table-No-5-Comaprision of residential segment for both the sites
Micro-
Market
Avg
Price
Price
Trend
Visible
Inventory
Registrations-
Last 6 Month
AbsorptionDominant
Buyer
Bandra
(West)
51k–
₹
59k
₹
~10.8%
YoY
~985 ~325 ~33% Luxury & Ultra-
luxury 1.5–2.5
₹
Cr; > 2.5 Cr
₹
Mulund
(West)
26K-
₹
28K
₹
~7.2%
YoY
~1,329 ~496 ~37.3% Mid-end & High-
end 40– 80L;
₹ ₹
80L– 1.5 Cr
₹ ₹
I also studied recent Maharashtra Government urban renewal initiatives, including:
The Transport Modernization Policy 2023, which directly supports PPP-based depot
redevelopment.
MSRTC and BEST tenders which showed how revenue-sharing models and financial incentives
are structured for developers.
Figure No-8-Acticle Cut Out:
This review confirmed two important points:
Government support is clear there is a policy push for depot redevelopment through PPP
models.
Outright land purchase is not required which is a major advantage in Mumbai, where land
costs are very high.
Page | 27

Table-No-6-Comparision of the Business Models
Model Meaning Pros Cons
Joint
Development
Agreement
(JDA)
The landowner contributes the
land, while the developer
manages approvals, design,
construction, sales, and
marketing. Profits are shared
in a pre-agreed ratio (e.g., 30–
40% to landowner, 60–70% to
developer).
Developer avoids heavy
upfront land cost.
Landowner leverages
developer’s expertise.
Shared risk and reward.
Commonly used for large
parcels or government-
linked projects.
Legal agreements can be
complex. Revenue-
sharing may lead to
disputes over timelines,
costs, or quality.
Development
Management
(DM)
The landowner funds the land
and project cost. The
developer acts as a
professional manager,
overseeing design, approvals,
construction, and sales, and
charges a fixed fee (usually 8–
10% of sales or cost).
Very low financial risk for
developer. Asset-light
model, good for brand-
building. Predictable fee-
based income.
No share in profits.
Limited control over
pricing and design.
Dependent on
landowner’s financial
discipline.
Outright
Purchase
The developer buys the land
by paying full market value
upfront. The developer owns
100% of the project and
manages all approvals,
construction, sales, and
marketing.
Full ownership and control.
100% of profits accrue to
developer. Flexibility in
planning, branding, and
execution.
Requires very high
upfront capital. Highest
exposure to market and
regulatory risks.
Reduces liquidity for
other projects.
Public-Private
Partnership
(PPP)
A government agency partners
with a private developer to
execute projects. Models may
include Build-Operate-
Transfer or Build-Own-
Operate-Transfer or revenue-
share formats.
Access to large public land
parcels. Government
support in approvals and
clearances. Enhances
credibility and long-term
sustainability. Potential for
stable revenue streams.
Regulatory oversight
can be time-consuming.
Profit-sharing and risk
allocation vary by
contract. Higher
compliance burden
compared to private
deals.
Overall on Secondary Research: While the secondary research clearly shows that redeveloping bus
depot spaces in Mumbai is both feasible and aligned with market demand, regulatory frameworks,
and national policy goals, these findings need to be validated on the ground. To move from
opportunity identification to actual implementation, it is essential to understand the perspectives of
key stakeholders such as government authorities, depot employees, potential customers, and
investors. Primary research will therefore be undertaken to capture these insights.
h. Primary Research
The primary research was carried out to confirm and add to the findings from secondary sources by
directly engaging with stakeholders affected by bus depot redevelopment. The objective was to
capture the expectations, concerns, and willingness of the potential customer, government officials,
and depot staff towards possible redevelopment projects. This made it possible to understand ground
Page | 28

realities, check the feasibility of proposed ideas, and ensure that recommendations are aligned with
both stakeholder needs and practical challenges. The research design included multiple methods such
as interviews, surveys, focus group discussions, and on-site assessments.
Methodology: Multi-method approach was followed:
Surveys and Questionnaires:
Distributed to potential homebuyers and investors segmented by income and location, to
understand buying intent and affordability.
Pen-and-paper surveys in Hindi/Marathi were given to depot drivers and conductors, ensuring
their views were captured despite language or digital barriers
Structured Interviews:
Conducted with internal teams Business Development, Finance, Liaising and Legal to assess
financial feasibility, risk factors, and alignment with company strategy..
Focus Groups:
Held with 8–10 depot employees per location to gather insights on daily operational
challenges and expectations from redevelopment.
Sessions with prospective customer groups to test awareness, acceptance, and perception of
housing projects on depot land.
Site Visits:
Visits to Bandra and Mulund depots to directly study conditions and validate secondary data.
Observations recorded on accessibility, land availability, surrounding infrastructure, and
possible
i. Understanding from the Depot Employees & Drivers:
During the primary research phase, discussions and surveys were carried out with depot employees
and bus drivers to understand their perspective on the proposed redevelopment. The responses
revealed several common themes. Employees highlighted that the current conditions are
inadequate, with most depots lacking hygienic restrooms, proper canteens, and suitable resting
spaces. Sanitation was repeatedly mentioned as there biggest concern.
As we discussed the redevelopment of the bus depot, they we mostly agreed to the idea of
redevelopment of bus depot as a welcome opportunity, as it will get better facilities for staff and does
not compromise their operational requirements. Some issues were voiced like possible disruption
to daily bus operations and reduction of parking space during the construction phase.
The expectations from redevelopment were also checked the feedback that was given that they
require clean and functional toilets, well-maintained canteens, safe and hygienic rest areas, and a
more organized working environment.
Overall, it was notice that the idea of redevelopment has received a positive note. Employees are
supportive of the project as it will bring in improvements and welfare in their daily working
scheduled. They recommended phased construction and effective communication to minimize
inconvenience during the transition period.
j. Understanding from Internal Teams
Inputs were taken from Business Development, Legal, Finance, and Liaising teams to understand the
organizational view of bus depot redevelopment. The discussions brought out both the challenges of
past projects and the future initiatives that should be made safeguarding the company perspective .
Page | 29

The teams pointed out that title clearance and high acquisition costs were the main reasons why
earlier land acquisition attempts in locations such as Kalyan, Vasai, and Mulund could not progress.
These issues underline why exploring depot redevelopment is considered a smarter alternative.
From a financial perspective, outright land purchase was unanimously seen as high-risk, given the
capital intensity and regulatory hurdles involved. Instead, models like Joint Development (JD) or
Joint Venture (JV) with 30-40% revenue-sharing, or Development Management (DM) fee-based
structures, were highlighted as more sustainable and flexible options.
On the legal front, the internal Legal team emphasized the need for strict vigilance on FSI
allotments and compliance with RERA norms. Clear and watertight agreements with agencies such
as BEST and MMRDA were considered non-negotiable to safeguard the company’s interests and
avoid delays.
The Liaising team further emphasized the importance of continuous engagement with government
authorities to ensure smooth approvals and faster resolution of clearance issues. Their role will be
critical in aligning the company’s plans with regulatory requirements and avoiding procedural
bottlenecks.
Overall the internal teams perspective validates the strategic direction of this project. They see bus
depot redevelopment as financially viable, legally manageable with proper safeguards, and strongly
dependent on effective coordination with government bodies through the Liaising function.
k. Customer Feedback from the Survey:
Primary research with potential homebuyers provided useful insights into their preferences and
concerns regarding residential projects above bus depots. Most respondents expressed interest in
1BHK and 2BHK units, aligning with Mumbai’s mid-income buyer profile. The majority had a
budget below 2.5 Cr
₹
, showing strong alignment with SPRE Group-Joyville’s aspirational housing
segment. This indicates that bus depot redevelopment projects can cater effectively to the mid-
market, with some interest in higher configurations like 3BHKs among buyers in the 2.5–3.5 Cr
₹
range.
The next point that was discussed was about the impact of a bus depot below the building, a mixed
response was given a certain number of buyers admitted to concerns, especially around noise, safety,
and resale value, but a significant segment noted that these worries would ease if safety and noise
insulation measures were implemented. Importantly, customers emphasized that dedicated
residential access, separate from depot operations, would positively influence their decision.
Connectivity was seen as a strong advantage. Proximity to bus, metro, and train networks was rated
as very important by a majority of the customers. Many potential buyer were appreciative of a
residential complex being near a major bus depot as an added convenience for daily travel, provided
pollution and congestion were managed well.
Regarding amenities, the most frequently chosen were gym, rooftop garden, children’s play area,
and EV charging facilities, reflecting both lifestyle aspirations and growing environmental
awareness.
Price sensitivity was clear. A large share of customers said they would move forward with the
purchase if the project offered a 5–7% price advantage over comparable properties in Mumbai.
At the same time, government endorsement like MMRDA/BEST collaboration was seen as a
trust builder, increasing confidence in safety and quality.
Page | 30

Overall, customers are open to living in residential projects developed above bus depots considering
safety assurance, dedicated residential access, effective noise/pollution insulation, and
competitive pricing. With these safeguards, bus depot redevelopment can gain strong acceptance
among the target buyer segment.
Figure No-10 & 11 Part of customer Survey

Figure No-12 & 13 Part of customer Survey

Figure No-14 & 15 Part of customer Survey

Figure No-16 & 17 Part of customer Survey
Page | 31

Overall: The responses from customers and potential buyers reinforced the findings from secondary
research. For example, market data showed strong absorption and steady price growth of 5–7% in
Mulund and Bandra. The surveys confirmed that buyers would consider depot-linked housing if it
offered a similar 5–7% price advantage along with assured safety and dedicated amenities. Similarly,
the internal teams’ support for a Joint Development approach is in line with the policy framework of
DCPR-2034, creating consistency between market feasibility and stakeholder acceptance.
l. Feasibility of the site in specific to Mulund Bus Depot
Table-No-7- Feasibility of the site
Metric Value / Trend Implication for Depot
Redevelopment
Average Price /
Sq.ft
~ 28,000 / sq ft Average
₹
Mulund’s price band is premium-mid-
luxury. Redevelopment here can
command high price per sq ft.
for broader range we can consider
15,691-26,335.
₹
YoY Price
Growth
~ 5% over last 1 year for Mulund
central &West whereas in
The market is growing steadily buyers
expect appreciation. Helps in projecting
revenue.specific to Mulund west is
~ 7.14%.
5-Year Price
Trend
~ 21% growth over last 5 years in
Mulund West
Long-term property value gains are
attractive; supports investment
justification.
Demand &
Affordability
Significant interest in 1 BHK &
2BHK
These are likely unit types to prioritize
in our project. Helps decide mix of unit
types.
Investor &
Rental
Potential
Mulund is seen as favourable for
long-term capital growth plus steady
rental income, especially in West &
well-connected pockets.
Bus depot redevelopment project will
appeal both to homebuyers and
investors. Rental demand can help
presale or cashflow.
Challenges /
Risks
Price rise is steady but not as
expected some localities in Mulund
East have lower growth. Regulatory
& connectivity constraints could
moderate demand.
You may need to ensure competitive
pricing, strong amenities, good
insulation against noise and pollution,
obtain proper approvals. We also need
to ensure our project is well
differentiated.
m. Secondary & Primary Research at the Glance
Table-No-8- Secondary & Primary Research at the Glance
Page | 32

Insight AreaSecondary Research Primary Research Integrated Learning
Market
Viability
Mulund & Bandra micro-
markets show steady
growth (~5–7% YoY) and
strong absorption with
prices in 25,000–
₹
28,000/sq.ft range.
Customers indicated
willingness to buy depot-
based flats considering
proper safety and noise
insulation concerns are
addressed and 5–7% price
benefit is offered.
Market demand exists,
but pricing & amenities
will be decisive for
acceptance.
Stakeholder
Readiness
Policy frameworks
(DCPR-2034, Transport
Modernization) permit
depot redevelopment
under JD/JV structures.
Internal teams and
authorities preferred JD/JV
as financially sustainable
over outright purchase.
Joint Development is
both policy-compliant
and widely acceptable,
making it the preferred
model.
Social
Impact
Case studies highlight
improved urban
infrastructure and ESG
benefits in bus depot
redevelopments.
Depot employees
welcomed redevelopment
considering the concern of
sanitation, canteens, and
rest areas are upgraded and
resolved.
Redevelopment
improves both city
infrastructure and
employee welfare,
creating wider
stakeholder buy-in.
8. Primary & Secondary Data Analysis:
After the secondary and primary data were analyzed to build a complete understanding of the bus
depot redevelopment opportunity. Secondary data provided market-level insights such as pricing
trends, absorption rates, supply patterns, and regulatory guidelines, while primary data added the
perspectives of key stakeholders directly impacted by bus depot redevelopment.
Together, these two sources offered both a broad market view and on-ground realities, ensuring that
the analysis remained practical, reliable, and aligned with stakeholder needs.
Secondary Data Analysis: Bases the secondary research we chose bus depot redevelopment over
society redevelopment as the it is notice that in society redevelopment often faces delays due to
consent issues and resident disputes. Bus depots being government-owned and underutilized, offer
larger, well-connected land parcels with fewer legal hurdles. This makes bus depot redevelopment
more scalable, time-efficient, and commercially viable.
a. Society Redevelopment vs. Bus Depot Redevelopment
Table-No-9- Society Redevelopment vs. Bus Depot Redevelopment
Aspect Society Redevelopment Bus Depot Redevelopment
Land
Ownership
Land belongs to a cooperative housing
society of residents.
Land belongs to a public authority like
BEST & MMRDA enabling structured
agreements like JD or DM or PPP.
Decision-
Making
Requires consent of 70–75%
residents; often leads to disputes,
delays, and litigations.
Decisions are centralized with a single
authority or a government body,
making approvals more streamlined.
NegotiationsDeveloper must negotiate with multiple
residents, each demanding higher area,
rent, or amenities.
Developer negotiates with one
institutional partner BEST or
MMRDA, reducing conflict and
complexity.
Timeline High risk of delay due to resident Lower risk as authority approvals and
Page | 33

Risk disagreements, litigation, and rehousing
commitments.
contracts define clear timelines; bus
operations can continue with phased
planning.
Financial
Model
Costs include free rehousing of existing
residents, rent compensation during
construction, and additional amenities
reducing profitability.
No resident rehousing cost, developer
focuses on construction and revenue
sharing; stronger financial viability.
Customer
Appeal
Buyers often wary due to legacy
disputes or delays in society
redevelopment projects.
Depot projects are transit-oriented;
proximity to metro and bus hubs makes
them attractive to mid-income buyers.
Social
Impact
Improves housing for a limited number
of existing residents.
Benefits multiple stakeholders
upgraded public transport depot, better
facilities for bus staff, and new housing
supply for city residents.
ScalabilityLimited to individual societies, small
scale projects.
Can be scaled across multiple depots
in Mumbai, creating a replicable urban
renewal model.
b. Policy Support and Incentives:
Redevelopment of bus depots in Mumbai is strongly supported by urban planning regulations under
DCPR-2034, along with policies aimed at transport modernization. These frameworks provide
financial and regulatory incentives that make such projects both legally feasible and economically
attractive for developers as well as authorities. The major enabler for bus depot redevelopment is the
use of additional Floor Space Index (FSI), Transferable Development Rights (TDR), and Joint
Development (JD) models, which collectively provide a solid framework for project viability..
For instance:
Under DCPR-2034, incentive FSI is allowed for plots reserved for public amenities or handed
over for road widening, provided this is done within five years.
Section 33-20B permits developers in Mumbai’s Island City to use FSI up to 3.0, with 63%
of built-up area as saleable and 37% reserved for Public/Authority-Protected (PAP)
tenements.
In the suburbs and extended suburbs, the FSI limit can go up to 4.0, split equally between
saleable area (50%) and PAP housing (50%).
Road width also impacts incentives: plots on wider roads (12–18 meters) qualify for higher
FSI, premiums, and TDR benefits compared to those on narrower roads.
This policy-driven support ensures that redevelopment projects are not only aligned with city
planning goals but also deliver a balance of commercial viability and public benefit.
c. Market Demand and Pricing Dynamics:
In Mumbai, land scarcity is severe, especially in central areas and well-connected suburbs, which
drives strong demand for redevelopment. Projects near upcoming metro stations are already seeing
higher valuations like BKC–Colaba line or Andheri–Dahisar corridor. Developers with strong
brands names like L&T Realty, Godrej Properties, and Oberoi Realty are able to sell at 5-10%
higher prices than competitors. The market data also supports this trend around 3.5 lakh homes were
sold across major cities in 2024, with Mumbai alone accounting for 46% of premium sales above 1
₹
crore. This shows there is steady demand and capacity to absorb high-value redevelopment projects
near major connectivity hubs.
d. Proven Business Models :
Page | 34

International as well as Indian case studies show that Joint Development (JD), Development
Management (DM), and Public–Private Partnership (PPP) models are commonly used to create
value from underutilized public land. These models allow redevelopment without requiring the
developer to purchase land outright, thereby reducing upfront capital costs. However, the studies also
emphasize the need for carefully designed contracts to clearly define revenue sharing, risk
allocation, and responsibilities of each party.
Table-No-10- Business Models
Criteria Joint
Development
(Revenue Share)
Development
Management
(Fee Model)
Outright
Purchase (Buy
the Land)
PPP (Public–
Private
Partnership)
Financial
Returns
Brings in steady
and sizeable
revenue over the
project duration,
with strong
positive potential.
Income is limited
to fixed
management fees,
usually a small
percentage of
project value.
High profits can
be obtained if the
project performs
well but requires
very large
upfront
investment.
Returns are
moderate to high,
depending on how
revenue and risks
are shared with the
government.
Stakeholder
Acceptance
High-Authorities
prefer revenue
share, internal
teams find it
sustainable
Moderate-Works
only if DM fee is
strong, less
preferred by
authorities
High-Too risky,
internal teams
against it
High-Government
comfortable, seen
as long-term win-
win
Risk Profile Medium-
regulatory and
execution
challenges
Low-less financial
risk, sometimes
the brand suffers
High-capital,
title, and
regulatory risks
Medium-risk is
shared with
government, but
approvals take lot
of time
Feasibility
for SPRE
Group-
Joyville
Best balance of
risk and return
Limited option,
not scalable
Not feasible due
to cost and risk
involved
Good option for
scale and govt
partnership, but
slower process
e. Multi-Stakeholder Coordination:
In the Secondary research it has been highlighted that multi-stakeholder coordination is the single
most critical factor influencing the success of depot redevelopment projects. Unlike private land
development, depot land belongs to public transport authorities and is governed by multiple
regulatory bodies. This creates overlapping jurisdictions and differing priorities that can delay or
derail projects if not handled properly. For instance in the past the Mumbai Metro Line 3 depot at
Aarey was delayed by more than two years because of strong citizen opposition and environmental
concerns, despite government approval. In contrast, the Hong Kong MTR “Rail + Property”
model demonstrates how early alignment between government, operators, and private developers
can ensure both commercial viability and public acceptance.
With the context of bus depot redevelopment, we need to anticipate the below factors
Transport authorities will prioritize uninterrupted operations and staff welfare.
Page | 35

Municipal bodies will focus on compliance with DCPR-2034 and urban planning rules.
Developers will seek maximum saleable area and attractive financial terms.
Commuters and residents will evaluate the project based on safety, congestion, and amenity
improvements.
Financial institutions will only invest if approvals and risk-sharing are clearly structured.
f. Financial Understanding:
Bus depot redevelopment in Mumbai presents a strong financial opportunity, supported by both
market demand and enabling policy frameworks. The city’s housing market demonstrates healthy
purchasing power, with 46% of residential sales in 2024 recorded in the premium segment above 1
₹
crore. Additionally, proximity to transit nodes such as metro and suburban railway stations
consistently generates a 10–25% price premium, ensuring strong absorption potential for well-
located projects. On the supply side, DCPR-2034 provisions such as Section 33-20B allow
developers to access higher FSI up to 3.0 in the Island City and up to 4.0 in suburbs creating
significant additional saleable area.
Overall, to positions bus depot redevelopment as a financially attractive and strategically sound
initiative. The option to create value maximum lies in efficient construction phasing, disciplined cost
management, and effective risk-sharing mechanisms with stakeholders. With these measures in
place, redevelopment projects can deliver both strong financial returns and public benefits, while
minimizing operational challenges.
g. ESG and Sustainability as Value Drivers
ESG (Environmental, Social, and Governance) factors are now an important part of redevelopment
projects, adding both market value and regulatory approval. New rules require more open spaces and
amenity areas which improve liveability and environmental quality. Provisions like Section 33-7/B
also encourage sustainable design by allowing better use of carpet area in joint redevelopment,
leading to improved density and shared spaces. Adopting ESG practices such as green building
certifications, energy-efficient systems, waste management, and improved public amenities makes
projects more attractive to buyers, authorities, and lenders. These measures improve sales, strengthen
community acceptance, and align with government priorities.
Overall, focusing on ESG and sustainability not only creates long-term value but also helps projects
stand out in a competitive market while meeting stakeholder expectations.
Primary Data Analysis:
h. Depot Employees:
As the survey were conducted the strongest concerns from employees were around basic facilities.
Over 70% of staff surveyed pointed to unhygienic restrooms, lack of canteen hygiene, and absence
of proper resting spaces as their biggest daily challenges. This finding is in line with studies that
show transport staff in Mumbai spend 8–10 hours daily on-site, yet most depots do not provide
adequate welfare facilities.
Towards redevelopment: Staff expressed positivity and welcomed the idea. About two-thirds
supported redevelopment with the inclusion of new staff amenities, modern restrooms, and canteens.
However, they were clear that parking and operational space for buses must not be reduced.
Page | 36

Conditions for acceptance: Phased redevelopment was a recurring demand. Drivers and conductors
emphasized the need for temporary relocation facilities and guaranteed reinstatement of parking
bays before they would fully support the initiative.
i. Potential Homebuyers:
Customers: In the discussion with the customers and potential home buyers it has been noted that
connectivity emerged as the biggest attraction for potential homebuyers. Over 80% of potential
buyers said they valued proximity to bus, rail, or metro stations because it significantly reduced
travel time and increased daily convenience. This is consistent with property studies showing that
homes located within 500 meters of major transit hubs command 10–25% higher prices. This
shows that depot locations are already positioned to deliver a natural price premium.
Design challenges: It has been notice some respondents mentioned concerns about noise, air quality,
or traffic, these can be bifurcated as design issue rather than deal breakers. Buyers indicated that
features such as acoustic barriers and separate residential entry & exit would be sufficient to
address these worries. Importantly, the willingness to purchase remained high when such measures
were assured.
Pricing: Buyers showed interest in discounts but also highlighted that a 5–7% price advantage or
clear lifestyle benefits would equally influence their choice. This indicates that bus depot
redevelopment projects can attract demand either through competitive pricing or by offering strong
design and planning features that make them desirable. Something like Kanakia Maimi theme based.
Amenities: Amenities were the major factors that drive the buyer’s preference. The highest demand
was for 1BHK–2BHK units, reflecting Mumbai’s middle-class aspirations. Most requested amenities
included gyms, rooftop gardens, children’s play areas, EV charging points, and green building
certification. These findings are in line with the CREDAI 2023 survey, where over 65% of buyers
rated eco-friendly housing as “important” or “very important.”
Overall, the responses indicate that potential buyers are receptive to bus depot redevelopment as long
as projects combine the location advantage with smart design, modern amenities, and sustainability
features.
Page | 37

j. Gap Analysis-Secondary vs. Primary Research
The gap analysis highlights the differences between insights gathered from secondary research
(industry reports, policy documents, and market data) and primary research (surveys and stakeholder
interviews). While secondary data provided a broad market perspective and regulatory context,
primary findings revealed on-ground buyer preferences, expectations, and practical challenges,
bridging the gap between theory and market reality.
Table-No-11- Gap Analysis-Secondary vs. Primary Research
Theme Findings (Secondary +
Primary)
Gap IdentifiedGap Management
Stakeholder
Buy in
Both studies show many
parties are involved like
transport, BMC,
developer, community
The responsibilities are
unclear and this delays
projects.
No single
platform for joint
decisions.
We will try and set up a Joint
Execution Committee with all key
stakeholders and make sure
monthly review meetings happen
with clear accountability.
Land Use &
Design
Policies allow higher
FSI/TDR, but staff and
commuters worry about
losing parking or facing
congestion.
Saleable space
vs. operational
needs are not
balanced.
We will introduce multi-level bus
parking and prepare a master plan
that clearly separates depot
operations from
commercial/residential zones.
Revenue and
Public
Interest
Studies confirm depot
land has strong revenue
potential, and staff &
commuters expect
improved facilities.
Both needs are
important and can be
achieved together.
Current focus
leans more on
commercial use,
with less clarity
on how public
benefits will be
secured.
A balanced land-use plan where
revenue generation supports better
amenities and staff welfare. By
linking part of the project earnings
to public facility upgrades, I will
make sure both financial and social
goals are met.
Financial &
Legal Risks
JD/DM/PPP models are
preferred. Finance
teams informed about
RERA, FSI transfer, and
escrow needs.
If contracts are
not strong,
funding and
execution will
suffer.
We will bring in legal and financial
experts early, and make sure
contracts clearly cover FSI
transfer, revenue share and escrow
mechanisms.
Community
& Market
Acceptance
Homes near depots are
attractive if designed
well Buyers said they
need noise control and
amenities.
Market exists but
depends on trust
and design
quality.
Adding acoustic barriers, and
separate access in the plan with
modern amenities to match middle-
class demand.
Approval
Process
Both studies confirm
approvals are slow can
take 18–24 months.
Long approval
timelines raise
costs.
We need to create a dedicated
liaison team to work with
authorities and track approvals on
a shared dashboard for faster
progress.
Page | 38

k. Porter’s Diamond Framework Analysis
To understand the competitiveness and feasibility of redeveloping bus depot spaces in Mumbai in
specific to Mulund bus depot redeveloped, the project applies Porter’s Diamond Model
Framework. This model highlights the factors that create or limit the competitive advantage of a
location. When mapped to the context of bus depot redevelopment, it gives a clear picture of why
Mumbai offers both strong opportunities and real challenges, and what steps are needed to make
such projects successful.
1. Factor Conditions
Mumbai’s biggest challenge and opportunity lies in its land scarcity. With very limited free land
available, the underutilized plots owned by public transport undertakings such as BEST and MSRTC
become highly strategic. Market reports note that thousands of housing units in Mumbai are being
creating value through redevelopment agreements, showing how valuable such land banks are in
today’s market. In addition, the regulatory environment has become more supportive. The
Development Control and Promotion Regulations (DCPR-2034) provide a toolkit of mechanisms
such as incentive Floor Space Index (FSI), Transferable Development Rights (TDR), and provisions
under Section 33 (including 33(20)(B)) that allow higher construction potential in exchange for
meeting public obligations. These regulatory levers make it possible to design projects that are both
financially feasible and socially beneficial. Finally, the expansion of Mumbai’s metro and suburban
rail network further enhances depot locations. Sites such as Bandra, Mulund, and others are close to
rail and metro stations, making them naturally attractive for transit-oriented development. Together,
these factor conditions create a favorable base for redevelopment.
2. Demand Conditions
The demand side of the market is equally encouraging. Studies and buyer surveys consistently show
that properties located close to transit corridors bus depots, railway stations, or metro stops enjoy a
10 to 25 percent price premium compared to less connected areas. In Mumbai, connectivity is one
of the most important buying criteria, and over 80 percent of surveyed homebuyers expressed
willingness to consider residential units integrated with redeveloped depots if proper design and
amenities are provided. The mid-segment housing market dominates demand, with most new
launches in 2025 targeted at 1BHK and 2BHK buyers. This matches the findings from primary
research, where commuters and local residents preferred compact but well-amenities housing.
Amenities such as EV charging, rooftop gardens, and green building certification are no longer seen
as luxuries but as expected features. These demand conditions indicate that there is a large and
ready buyer base for depot redevelopment projects, provided design and execution address
concerns of safety, congestion, and pollution.
3. Related and Supporting Industries
Mumbai has a strong ecosystem of related industries and supporting institutions that make depot
redevelopment viable. The city hosts some of India’s largest real estate developers, engineering and
construction firms, and financial institutions experienced in complex projects. Global institutions
such as the International Finance Corporation (IFC) have already shown interest in working with
BEST on depot redevelopment and monetisation, signalling confidence in the concept. Professional
service firms consultants, architects, and project managers are also active in the city and bring
proven expertise in structuring joint development and public–private partnership (PPP) models. This
ecosystem reduces execution risk and ensures that once a project is structured correctly, the market
has the technical and financial capacity to deliver.
Page | 39

4. Firm Strategy, Structure, and Rivalry
The competitive landscape in Mumbai real estate is intense, but that rivalry can be turned into an
advantage. Developers are already familiar with redevelopment models such as Joint Development
(JD) and Development Management (DM), which reduce the need for large upfront land purchases.
Primary research confirmed that industry participants are most comfortable with revenue-sharing
arrangements in the 30–40 percent range, or fee-based DM models. This means the strategy for
depot redevelopment can build on practices already accepted in the market. At the same time, the
presence of multiple strong competitors pushes all players to raise the bar on design, speed, and
governance. For a company like Joyville/SPRE, this creates an opportunity to differentiate itself by
showing execution capability, transparent governance, and innovative commuter-friendly designs. In
a competitive market, the firm that positions itself as a trusted partner for authorities and
communities will gain a first-mover advantage.
5. Government and Regulatory Role
Government policies are central to the feasibility of depot redevelopment. On one hand, DCPR-2034
and recent modifications provide enabling incentives that allow developers to make projects
financially viable while safeguarding public obligations. On the other hand, the approval process
remains multi-stage and complex, often involving municipal bodies, transport departments,
environmental authorities, and fire and safety departments. Past examples such as the Aarey Metro
car shed highlight how projects can be delayed for years when government departments and
community stakeholders are not aligned. For depot redevelopment to succeed, proactive engagement
with authorities, continuous liaison, and transparent communication with the public are as important
as design and finance. In other words, government policy is favorable, but execution depends on
how effectively approvals are managed.
6. Chance and Timing
Finally, the element of timing is critical. Mumbai is currently in the midst of a redevelopment boom,
with thousands of old housing societies and public land parcels being unlocked for modern projects.
Institutions such as IFC and BEST are already taking steps to explore depot monetisation. This
creates a window of opportunity. Acting early allows a developer to establish credibility, secure
prime depot sites, and build strong partnerships with authorities before the competition intensifies
further. The momentum is on the side of redevelopment, and strategic action taken now can position
the project as a flagship pilot for sustainable public-private development in the city.
Overall: The Porter Diamond analysis shows that Mumbai offers a unique competitive advantage
for bus depot redevelopment. Favourable factor conditions with policy tools, transit connectivity, and
land scarcity, strong and sophisticated demand, and a robust supporting ecosystem create a fertile
ground for innovative projects. At the same time, risks remain in the form of multi-stage approvals,
community sensitivities, and financial structuring challenges. The findings reinforce that success will
depend on my ability to align stakeholders, structure balanced contracts, design commuter-
centric amenities, and set up transparent governance mechanisms. By doing so, depot
redevelopment can simultaneously overcome space constraints, generate revenue, and deliver
meaningful social value.
Figure No-18- Porter’s Diamond Framework Analysis
Page | 40

l. Benchmarking: Mumbai’s Mulund Bus Depot Redevelopment vs. Hong Kong
MTR “Rail + Property” Model:
To strengthen the case for the Mulund Bus Depot redevelopment, it is important to draw lessons
from successful international models. The Hong Kong MTR “Rail + Property” model is one of the
most cited global examples where underutilized transport land was transformed into thriving mixed-
use developments. By integrating residential, commercial, and community spaces above rail depots
and stations, the MTR not only unlocked valuable urban land but also created a steady revenue
stream to support public transport operations. This benchmark is highly relevant to Mumbai, where
land scarcity mirrors Hong Kong’s challenges. Applying similar principles at Mulund Depot can help
balance infrastructure needs with real estate growth, making the project both financially viable and
socially impactful.
Table-No-12- Mumbai’s Mulund Bus Depot Redevelopment vs. Hong Kong MTR “Rail +
Property” Model:
Criteria Mulund Depot Redevelopment
(Mumbai, India)
Hong Kong MTR – Rail +
Property Model
Cluster ProfileLocal developers liaison with
BEST/MMRDA, architects,
contractors. Focus on mixed-use
residential + commercial with depot
retained below.
Government-owned MTR
Corporation partners with global
developers. Focus on large-scale
integrated projects (residential, retail
malls, offices) above/around stations
& depots.
Government
Role
Governed by DCPR 2034, FSI
allocation, MahaRERA compliance.
Revenue-sharing with BEST/MMRDA
through Joint Development (JD) or
Development Management (DM).
Hong Kong govt grants land
development rights to MTR. Strong
central planning, transparent zoning,
long lease model. MTR retains part
of revenue to fund rail operations.
Demand ProfileMid-income to premium demand.
Buyers sensitive to safety, pollution,
High-density demand from both
residents and corporates. Projects sell
Page | 41

resale value. Strong appeal due to
connectivity bus and metro.
at premium prices due to connectivity
and limited land availability.
Capital &
Revenue Model
JD/JV with revenue share; DM fee
model also viable. Outright purchase
avoided due to cost.
Long-term lease & JV with
developers. MTR earns upfront land
premium + continuous revenue like
rent and profit sharing. Funds rail
expansion, making system financially
sustainable.
Risks &
Challenges
Title clearance, approvals, customer
perception, construction disruption of
depot operations.
Market can impact funding of rail.
Requires strong government backing
& long planning outlook
Sustainability
& Community
Redevelopment improves working
conditions for depot staff and creates
jobs
Projects include parks, schools,
public facilities integrated into
stations. MTR projects are
benchmarks in Transit-Oriented
Development (TOD).
Evaluating Business Model Approaches
To identify the most practical way forward, multiple implementation models were assessed,
balancing cost, benefits, risks, and long-term scalability. Options such as Joint Development
Agreement (JDA), Development Management (DM), Outright Purchase, and PPP/SPV structures
were compared through a decision matrix. Each approach was analyzed not only on financial returns
but also on regulatory feasibility, stakeholder alignment, and ability to scale across multiple depots.
While JDA emerged as the most balanced and commercially attractive option.
Table-No-13-Decision Matrix:
Option Cost ( )
₹
Benefit Resource
Needs
Risk Long-
Term
Overall
Score
Joint
Development
Agreement
(JDA)
Medium (shared
with
BEST/MCGM)
High –
strong
revenue
potential,
reduced
upfront
land cost
Moderate –
requires
legal,
financial, and
design teams
Medium –
depends on
transparent
contracts
Strong –
scalable,
repeatable
across
depots
09/10
Public–
Private
Partnership
(PPP/SPV)
Medium-High
(shared
investment with
BEST/MCGM)
High –
revenue +
policy
support
High – joint
governance,
monitoring,
compliance
Medium –
multi-agency
complexity
Very
Strong –
credibility,
replicable
model with
govt.
08/10
Development
Management
(DM)
Low (fee-based)Medium –
steady
income but
no profit
share
Low – mostly
project
management
resources
Low – less
financial
exposure
Moderate –
brand
building,
limited
returns
06/10
Outright
Purchase
Very High (land
acquisition cost
upfront)
Very High
– full
project
ownership
and profits
High –
capital-
intensive,
debt-heavy
High –
exposure to
title/regulatory
risks
High – full
control but
limited
scalability
05/10
Page | 42

9. Recommendation & Results:
Through a detailed understanding of secondary research and on-ground primary research, we have
examined every possible approach to overcome Mumbai’s land constraints. The evidence strongly
points towards bus depot redevelopment as the most viable and future-ready solution, balancing
commercial returns with regulatory feasibility and stakeholder acceptance. Taking into account the
policy frameworks, market demand, and direct feedback from employees, customers, and internal
team, the following recommendations represent a well-tested roadmap for SPRE Group–Joyville to
achieve sustainable growth while contributing to the city’s transformation.
a. Adopt a JDA Framework:
Projects should be developed through a long-term land-lease model of 60–99 years, allowing BEST
(Brihanmumbai Electric Supply & Transport) and MCGM (Municipal Corporation of Greater
Mumbai) to retain ownership while giving the developer secure development rights. This approach
minimizes title disputes, lowers upfront capital requirements, and provides legal clarity for financing
and sales. A revenue-sharing mechanism with BEST/MCGM, linked to residential and commercial
monetization, ensures that both public authorities and private partners benefit equitably. At the same
time, in-situ modernization of the bus depot must be completed before housing and retail
components are launched, so that operational continuity and stakeholder confidence are maintained.
b. Prioritize Mixed-Use Development
Depot lands should be designed as integrated, transit-oriented projects that combine multiple asset
classes for maximum value creation. Residential components should balance rehabilitation units
and sale units, while retail, office spaces, and a mobility hub ensure continuous commercial activity
and convenience. Such mixed-use planning not only diversifies revenue streams but also strengthens
the project’s positioning as a self-sustained community. At the same time, dedicating 20–30% of the
housing stock as affordable units aligns the development with DCPR 2034 provisions and broader
government housing policies, helping secure regulatory support and building trust with the
community.
c. Early Stakeholder Buy-In
Securing acceptance from key stakeholders at the initial stage is critical for timely execution and
long-term success of bus depot redevelopment. Engaging BEST unions, local communities, and
regulatory authorities upfront helps address concerns around job security, operational continuity,
and neighbourhood impact, thereby minimizing the risk of resistance or delays. Alongside this,
introducing a Design & Liveability Charter that incorporates features such as pedestrian-friendly
plazas, green corridors, and community amenities demonstrates a commitment to social value,
ensuring that the project is seen as both commercially viable and publicly beneficial.
Page | 43

Risk Analysis for Bus Depot Redevelopment:
Every large-scale redevelopment project carries inherent risks, and bus depot redevelopment is no
exception. Given the complexity of working on active transport land, multiple stakeholders, and
regulatory dependencies, it is critical to identify and address potential challenges early. The
following risk analysis outlines the key risks that could impact project timelines, costs, regulatory
approvals, and operational logistics. Each risk has been assessed for severity and likelihood, along
with mitigation strategies to ensure that the project remains feasible and within acceptable tolerance
levels.
Table-No-14- Risk Analysis
Risk Area Risk of Non-
Implementation
Risk During
Implementation
Risk After
Implementation
Regulatory
Delays (DCPR,
MoEF, traffic
NOCs)
Missed opportunity to
secure depot sites
early, losing first-
mover advantage.
Approval bottlenecks,
multi-agency clearances
may slow down timelines
and escalate costs.
Prolonged compliance
gaps could trigger
penalties or impact
future project
approvals.
Land Use &
Depot Operations
Clash
Depots remain
underutilized and
revenue opportunity is
lost.
Clash between ongoing
bus operations and
construction may disrupt
services and invite
resistance from unions.
Poorly planned
segregation could create
long-term operational
inefficiencies and safety
issues.
Community
Opposition
(resettlement,
traffic,
restoration)
Project loses social
license, making
approvals politically
unviable.
Protests or legal petitions
may cause stoppages and
cost overruns.
Perceived restoration or
inadequate amenities
may affect reputation
and marketability.
Financial
Viability
Reliance on high-cost
land acquisition
continues, squeezing
margins.
Rising construction costs
or weak revenue-sharing
terms could dilute IRR.
Delays in revenue
realization may stress
cash flows and debt
servicing.
Market Risk
(Residential Sales
Absorption)
No entry into key
micro-markets despite
proven demand.
Slow sales velocity or
pricing pressure could
extend project breakeven
timelines.
Unsold inventory may
tie up capital, reducing
ability to scale the
model further.
Infra Stress
(roads, water,
drainage)
No contribution to
easing Mumbai’s
infrastructure
challenges.
Existing networks may
face stress if planning
does not integrate with
civic authorities.
Overburdened local
infra could lead to
resident dissatisfaction
and regulatory
pushback.
Page | 44

Table-No-15- Risk Mitigation Analysis
Risk Impact Risk Score &
Response
Trigger Plan of ActionRisk Owner
Regulatory
Delays (DCPR,
MoEF, traffic
NOCs)
Project
timeline
slippages,
higher Interest
During
Construction.
(IDC)
High –
Avoid/Reduce
Delay in
approvals
beyond
statutory
timeline
Appoint liaison
consultants, set
up single-
window cell
with
BEST/MCGM,
phase approvals
Liaison & Legal
Head
Land Use &
Depot
Operations
Clash
Site access
disruption,
construction
delays
High – ReduceBus
operations
impacted
during
construction
Implement
phased
construction,
build temporary
depot facilities,
maintain depot
capacity
Project Execution
Head + BEST
Ops Team
Community
Opposition
(resettlement,
traffic,
gentrification)
Legal
challenges,
delays,
reputational
risk
Medium-High
– Mitigate
Local
protests,
petitions, or
media
coverage
Transparent
Resettlement
and
Rehabilitation.
plan, priority
housing for
staff/locals,
structured public
consultations
CSR/Community
Relations Lead
Financial
Viability
High upfront
infra &
modernization
cost
Medium –
Share/Transfer
Cost
escalation
beyond
projected
IRR
Blend financing:
equity + project
debt
Finance Head
Market Risk
(Residential
Sales
Absorption)
Slower sales or
cash flow
crunch
Medium –
Mitigate
Weak
presales, low
booking
velocity
Flexible unit
mix like 1,2 & 3
BHK, phased
launches,
market-aligned
pricing
Sales &
Marketing Head
Infra Stress
(roads, water,
drainage)
Overburdened
civic infra
pushback
Medium –
Mitigate
Negative
feedback
from
MCGM/civic
bodies
Developer-
funded infra
augmentation
(drains,
substation, STP,
TDR
contributions)
Projects &
Liaison Team
Page | 45

Implementation of Roadmap: Action Plan
a. Feasibility & Structuring
The first step is to conduct a joint feasibility study with BEST/MCGM that covers both technical
and financial aspects of the project. This ensures the plan is practical for depot operations as well as
profitable for the developer. Once the study confirms viability, a Joint Development Agreement
(JDA) should be finalized with clear terms on land valuation, revenue-sharing percentages, lock-in
periods, and a dispute resolution mechanism to avoid conflicts later.
b. Design & Master Planning:
A cluster approach should be followed, where multiple depots in nearby areas are planned together
to create economies of scale and improve project efficiency. The design must follow Transit-
Oriented Development (TOD) principles by ensuring last-mile connectivity, pedestrian-friendly
layouts, and smooth integration with bus, metro, and rail systems. This approach not only maximizes
land use but also makes the project more attractive for residents.
c. Execution & Phasing
To minimize disruption and maintain depot functionality, the project should be built in phases:
Phase 1: Upgrade and modernize the existing bus depot while also providing temporary housing
facilities where needed.
Phase 2: Construct residential towers, balancing rehabilitation units for staff/affected people with
saleable units for the market.
Phase 3: Develop commercial and retail spaces along with social and community amenities such as
gardens, play areas, and wellness facilities.
d. Governance & Transparency
A special purpose vehicle (SPV) should be formed jointly with BEST/MCGM they will own and
manage the bus depot redevelopment project, handle contracts, raise financing, and share
revenues as agreed to manage the project transparently. A quarterly monitoring committee
consisting of government representatives, developer teams, and an independent auditor should
review progress, finances, and compliance, ensuring trust and accountability throughout the project.
e. Sustainability & Branding
All new buildings should aim for green certifications (IGBC/LEED) to highlight energy efficiency
and environmental responsibility. The project can be branded as “Transit Living Communities,”
positioning it as modern housing built around mobility hubs. This emphasizes not just convenience
but also a lifestyle upgrade for middle-class families and professionals who value connectivity.
Figure-No- 19- Seven Degrees of Strategic Freedom

Page | 46

Change Management Recommendations: Kotter’s 8-Step Process for Leading Change
1. Create a Sense of Urgency
Highlight the scarcity of land in Mumbai and the opportunity of depot redevelopment.
Share data on financial gaps, urban housing demand, and risks of inaction.
Use urgency to motivate employees, partners, and stakeholders.
2. Build a Guiding Coalition
By forming a strong leadership team: senior management, BEST/MCGM officials, finance
heads, and project leaders.
Ensure representation from both public and private sides to build trust.
3. Develop a Clear Vision & Strategy
Vision: “Transform underused depots into sustainable, revenue-generating hubs.”
Strategy: Leverage PPP/JDA models, integrate mixed-use development, ensure citizen
benefits, and deliver long-term ROI.
4. Communicate the Vision
Consistently share the redevelopment goals through town halls, reports, press releases, and
digital platforms.
Simplify complex details into easy messages for residents, employees, and investors.
5. Empower Broad-Based Action
Remove roadblocks such as regulatory delays or unclear roles.
Provide training, toolkits, and clear delegation so teams can make decisions without
bottlenecks.
6. Generate Short-Term Wins
Showcase early successes: completion of pilot depots, successful in-situ rehousing, or early
retail lease agreements.
Celebrate these wins internally and externally to build momentum.
7. Consolidate Gains & Drive More Change
Use the credibility from early wins to push larger projects.
Continue improving processes like digitized sales platforms or ESG compliance.
8. Anchor the Changes in Culture
Integrate “redevelopment and innovation” into the organization’s DNA.
Align performance metrics, recruitment, and reward systems with the new strategy.
Reinforce the message that change is not a one-time event but an ongoing practice.
Overall: By applying these steps, the organization will not only minimize resistance but also build
lasting stakeholder confidence, secure smoother regulatory approvals, and strengthen community
acceptance. This structured approach lays the foundation for timely execution, scalable replication
across multiple depots, and sustainable long-term success of bus depot redevelopment as a
transformative growth model for both the company and the city.
Page | 47

Financial Analysis:
The financial analysis is a very important part of this project because it shows whether bus depot
redevelopment is not only a good idea but also a practical and profitable one. While design and
planning are important, it is the numbers that prove if the project can actually succeed. For this study,
we are taking the Mulund bus depot as a sample case to understand the revenue potential, costs, and
overall feasibility. The insights from this sample will help in creating a scalable model that can be
applied to other depots in Mumbai and later across metro cities
Table No-16-Project details-Mulund Bus Depot
Particular Amount Assumption Unit Formula
Plot 60450.624 Sqft=5616*10.764
FSI 3
FSI Area 1,81,351.87 Sqft=B2*B3
Buitup Area 2,44,825.03 Taking 35% Additional for
Calculation
Sqft=B4*1.35
Saleable Area 4,03,961.29 Taking 65% Loading =B5*1.65
Average Selling
Price
28,000.00 Sqft
Gross Revenue 1,131.09 Crs.=B7*B6/10^7
Table No-17-Estimated Costing
Particular
Amount Assumption Unit Formula
Land Cost
166.86
RR.73360/Sqm
of BUA
=73360/10.764*B5/10^7
Approval Cost
16.16

400.00
=C11*B6/10^7
Consultant
21.75
2% =C12*B8
Construction Cost
85.69

3,500.00
Crs. =C13*B5/10^7
Project
Management Fees

56.55
5% Crs. =C14*B8
Marketing &
Brokerage

56.55
5.00% Crs. =B8*C15
Legal Cost
2.26
0.20% Crs. =$B$8*C16
Page | 48

Contingency
28.28
2.50% Crs. =$B$8*C17
Admin & Office
Expense

5.66
0.50% Crs. =$B$8*C18
PS-Assumption is that Developer will take no loans to fund initial investment cost and will take out
the expense once in first year itself once the funds from initial revenue are available
Sales Velocity and Construction Timeline :
The sales velocity shows how the project is planned to sell in phases, with the highest sales (30%)
happening in the first year and tapering down in later years. Collections are staggered, with only part
of the money received upfront and the rest spread across later years. Construction is also phased,
starting small (5%) and peaking in the middle years before tapering off as the project nears
completion.
Table No-18- Sales Velocity and Construction Timeline
Velocity 0 1 2 3 4 5 678910
Sales 30%20.00%15%10%10%10%5%
Collection 30.00%10%10%10%20%15%
5
%

Construction5%10.00%15%20%20%10%5%
5
%
10%
Cash Flow Projections
The table below captures the year-wise cash flow movement for the Mulund bus depot
redevelopment project (all figures in Crs). It shows the
₹
initial investment and working capital
requirement in Year 0, followed by intermittent cash flows generated from revenues and operating
costs during Years 1–7. The project achieves strong profitability in Years 1–6, with peak free
cashflows of over 142 Cr in Year 5. While Year 8 reflects a temporary negative flow due to higher
₹
costs against lower revenue, the overall cashflow trend remains positive, confirming the financial
feasibility of the project.
Table No-19- All figures in Rs. Crs.
Years 0 12345678910
A)Initial
CF

Investment
221.89

Working
Capital Investment

-221.89

Working
Capital Requirementment

221.89
      000
Years 0 1 2 3 4 5 6 7 8 9 10
Intermittent
Revenue

339.33

113.11

113.11

113.11

226.22

169.66

56.55

-

-

-
Operating
Cost

221.89

244.82

34.40

45.87

45.87

22.93

11.47

11.47

22.93

-

-
EBITDA 0 0
Page | 49

94.50 78.71 67.24 67.24 203.28 158.20 45.09 -22.93
Depreciation
PBT 94.5078.7167.2467.24203.28158.2045.09-22.930.00 0.00
Tax

28.35

23.61

20.17

20.17

60.99

47.46

13.53

-6.88

-

-
PAT 66.2 55.1 47.1 47.1 142.3110.7 31.6 -16.1 0.0 0.0
(+)

Depreciation
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(-)Working
Capital

Change
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(-)
CAPEX
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cashflows 66.2 55.1 47.1 47.1 142.3110.7 31.6 -16.1 0.0 0.0
Years 0 1 2 3 4 5 6 7 8 9 10
Free Cashflows-221.8966.1555.1047.0747.07142.30110.7431.56-16.050.000.00
Net Present Value (NPV) Analysis
To assess the financial viability of the Mulund bus depot redevelopment, Net Present Value (NPV)
has been calculated using the projected free cashflows. NPV helps us understand whether the project
creates value after considering the time value of money and discounting future cash inflows against
the initial investment. In this case:
Free Cashflows range from a large outflow in Year 0 ( –221.89 Cr) to strong inflows in Years 1–6,
₹
peaking at 142.30 Cr in Year 5.
₹
At a 10% WACC, the present value of cashflows remains strongly positive across most years.
At a more conservative 17% WACC, the project still delivers a positive NPV of 43.42 Cr
₹
, proving
that the investment remains viable even under higher discount rate assumptions.
Understanding: A positive NPV means the project is expected to generate returns above the cost of
capital, making it financially attractive and scalable for future depot redevelopments.
Table No-20-NPV
NPV
Year 0 1 2 3 4 5 6 7 8 910
Free CF
-
221.8
9
66.15
55.
10
47.
07
47.
07
142.
30
110.
74
31.
56
-
16.0
5
0.0
0
0.0
0
PV @10% WACC
-
221.8
9 56.54
40.
25
29.
39
25.
12
64.9
0
43.1
7
10.
52
-
4.57
0.0
0
0.0
0
NPV @17% WACC
(Formula)
43.42
=SUM(C52:L52)-
ABS(B52)

NPV @17% WACC - Excel
Formula
43.42
=NPV(17%,C51:L51)-
ABS(B51)

Internal Rate of Return (IRR) Analysis
IRR is used to measure the project’s expected rate of return by discounting the free cashflows until
the net present value equals zero. It essentially tells us the maximum cost of capital at which the
project remains viable.
For the Mulund bus depot redevelopment, the calculated IRR is 23%, which is significantly higher
than the assumed cost of capital (WACC of 17%). This indicates that the project is financially
attractive, generates returns above investor expectations, and has a strong margin of safety for
execution.
Page | 50

Table No-21-IRR
IRR
Year 0 1 2 3 4 5 6 7 8 9 10
Free
CF

-221.89

66.15

55.10

47.07

47.07

142.30

110.74

31.56

-16.05

-

-
IRR 23%
=IRR(B
58:L58,
17%)

Modified Internal Rate of Return (MIRR) Analysis
MIRR refines the IRR calculation by considering both the financing cost (17%) and a more realistic
reinvestment rate (8%) for interim cashflows. Unlike IRR, which assumes reinvestment at the same
high return rate, MIRR provides a more conservative and practical measure of project returns.
For the Mulund bus depot redevelopment, the calculated MIRR is 13%. While lower than the IRR
(23%), it still remains close to the assumed cost of capital, showing that the project is financially
sound even when more conservative reinvestment assumptions are applied.
Table No-22-MIRR
MIRR
Year 0 1 2 3 4 5 6 7 8 9 10
Free CF

-221.89

66.15

55.10

47.07

47.07

142.3
0

110.7
4

31.56

-
16.05

-

-
MIRR 13%
=MIRR(B63:L
63,17%,8%)

Assuming
Reinvestment
rate is 8%

Payback Period Analysis
The payback period measures how long it takes for the project to recover its initial investment
through net cash inflows. It gives a clear picture of the time horizon required for breakeven.
For the Mulund bus depot redevelopment, the payback period is 4.05 years. This means the project
is able to fully recover its initial outlay within just over four years, after which all additional
cashflows contribute directly to profits. A payback period under 5 years in large-scale real estate
redevelopment indicates a healthy and attractive investment proposition.
Table No-23- Payback Period Analysis
Year 0 1 2 3 4 5 6 7 8 9 10
Free
CF

-221.89

66.15

55.10

47.07

47.07

142.30

110.74

31.56

-16.05

-

-
Cumul
ative
CF

-221.89

-155.74
-
100.64

-53.57

-6.50

135.79

246.53

278.09

262.04

262.04
2
62.0
4
Payba
ck
Period

4.05
Years
=F68+AB
S(F70)/
G69

Table No-24-Finacial Analysis at Glance
Method Independent Project As Per Working Remarks
Net Present ValueAccept if NPV is positive In our case NPV is 43.42 Cr (positive)
₹
Go
Ahead
Internal Rate of
Return (IRR)
Accept if IRR ≥ Required Rate of
Return (RRR)
In our case the RRR is 17% and IRR is
23%, so IRR is greater than RRR
Go
Ahead
MIRR Accept if RRR ≤ MIRR In our case the RRR is 10% and MIRR is
13%, so MIRR is greater
Go
Ahead
Page | 51

Payback Period Less than or equal to allowed limit
as per company policy
In our case, we recover the investment in
approx. 4.05 years
Go
Ahead
Strategic Framework for Bus Depot Redevelopment Using McKinsey’s 7S Model
As we establishing the financial feasibility of the Mulund bus depot redevelopment through NPV,
IRR, MIRR, and Payback Period analysis it becomes equally important to evaluate how such projects
can be structured and executed at scale. Numbers alone prove that the project is viable; however,
strategic alignment is required to ensure smooth bidding, execution, and long-term value creation in
partnership with authorities like BEST and MCGM.
From a private developer’s standpoint, McKinsey’s 7S Model serves as a practical lens to guide
depot redevelopment in Mumbai through Public-Private Partnership (PPP) or Joint Development
Agreement (JDA) models. While the financial models confirm profitability, the 7S framework helps
developers align strategy, organization, and capabilities with government objectives and regulatory
requirements, ensuring both commercial success and sustainable public outcomes.
The following framework adapts the 7S elements to the specific context of depot redevelopment,
drawing on lessons from ongoing initiatives such as BEST’s multi-depot modernization and
MSRTC’s long-lease models.
1.Strategy-(The developer's plan to secure and monetize redevelopment)
Application: Plan a bid-focused strategy to win PPP/JDA tenders by offering competitive premiums
or revenue shares, while maximizing returns from surplus land development i.e mixed-use towers
with commercial & residential spaces. Prioritize sites with high TOD potential for extra FSI (up to
4.0), integrating depot upgrades as a cost centre subsidized by high-value real estate sales. Aim for
20–30% ROI by cross-subsidizing public elements with luxury amenities.
Key Actions: Conduct market analysis for premium pricing, negotiate JDA terms for profit splits,
and include exit strategies like asset sales post-completion.
Alignment Check: Ensure strategy mitigates risks like litigation by building in buffers for delays,
aligning with authority goals for sustainability (e.g., EV-ready depots) to strengthen bids.
2. Structure (Internal organization and partnership setup)
Application: Organize as a project-specific SPV (Special Purpose Vehicle) for the PPP/JDA, with
dedicated teams for bidding, construction, and asset management, while interfacing with
BEST/MCGM via joint committees. In JDA, form equity-based JVs with authorities for shared
governance
Key Actions: Assign roles like legal team for contract negotiations, finance for premium
calculations, and operations for phased handover keeping mind the bus depot will be handed over
first.
Alignment Check: Design flexible structures to adapt to authority demands, ensuring developer
control over commercial portions.
3. Systems (Processes for bidding, execution, and monitoring)
Application: Implement streamlined systems for tender participation, FSI premium payments, and
project tracking, using digital tools for cost control and compliance with DCPR 2034. In PPP/JDA,
establish revenue-sharing mechanisms.
Key Actions: Use feasibility tools for land valuation and EIA; set up escrow accounts for premiums;
monitor via KPIs like construction timelines to avoid penalties.
Alignment Check: Integrate risk management systems for challenges like monsoon delays or
opposition, ensuring quick adaptations in JDA collaborations.
4. Shared Values (Core principles guiding the developer's involvement)
Page | 52

Application: Emphasize profit-driven innovation alongside public good, viewing PPP/JDA as
opportunities for sustainable urban impact that enhance brand reputation and long-term yields.
Prioritize values like transparency to build trust with authorities and communities, countering
perceptions of commercialization.
Key Actions: Incorporate ESG (Environmental, Social, Governance) in bids, such as green
buildings, to align with authority visions for inclusive growth.
Alignment Check: Reinforce through internal culture to ensure teams balance commercial gains
with partnership obligations.
5. Skills (Developer's competencies for success)
Application: Leverage expertise in real estate valuation, PPP structuring, and urban design to
optimize surplus land. Focus on skills in negotiating incentives like TDR and additional FSI.
Key Actions: Train teams on DCPR regulations and TOD planning; partner with consultants for
depot-specific engineering.
Alignment Check: Assess gaps, such as in sustainable tech, and upskill via collaborations like IFC-
backed projects.
6. Style (Leadership approach in partnerships )
Application: Adopt a proactive, collaborative style to foster strong relationships with
BEST/MCGM, emphasizing win-win negotiations in PPP/JDA.
Key Actions: Lead with data-driven pitches in tenders; engage stakeholders through consultations to
mitigate resistance.
Alignment Check: Shift to adaptive leadership for handling regulatory changes or community
pushback.
7. Staff (Human resources for project delivery)
Application: Assemble a lean, expert team including PPP specialists, architects, and financial
analysts to handle from bidding to handover.
Key Actions: Recruit for niche skills like lease management; incentivize with performance bonuses
tied to project milestones.
Alignment Check: Ensure staff embodies the developer's entrepreneurial spirit while respecting
public-sector protocols in JDA.
Overall: The 7S framework positions PPP/JDA models as high-reward opportunities for SPRE
Group–Joyville, provided they are managed with strong governance and stakeholder alignment. In
the context of Mumbai’s complex regulatory and operational environment, the most effective way
forward is to test the model through a pilot bus depot redevelopment, which will help validate
financial feasibility, demonstrate social and ESG benefits, and build confidence for scaling the
approach across other depots and metro cities.
Page | 53

Table No-25-Balanced Scorecard: Redevelopment of Bus Depots in Mumbai
PerspectivePublic Sector Focus (KPIs)Developer’s Perspective
(KPIs)
Residential Dimension
FinancialIncrease BEST’s non-ticket
revenue by thirty percent by
the year 2030. Reduce the
annual financial deficit
currently faced by BEST.
Ensure a sustainable return
on investment through bus
depot redevelopment.
The project achieves an IRR-
23% against a benchmark of
18%. The investment
payback period is ~4.0 years
compared to the standard
seven years. The net present
value is positive at 43.Cr.
Retail and office spaces are
expected to maintain more
than 85% occupancy.
Track residential sales
absorption by monitoring
the number of units sold per
quarter. Maintain a 30:70
ratio between affordable and
premium housing stock.
Customer /
Citizen
Improve passenger
satisfaction by 25%. Ensure
all redeveloped depots
comply with universal
design standards for
accessibility. Provide high-
quality public amenities
within depot premises.
Conduct tenant satisfaction
surveys. Track daily retail
and office footfall. Measure
the Net Promoter Score of
residents and users.
Achieve a resident
satisfaction index greater
than 80%. Reduce average
commute time for residents
through improved
connectivity. Ensure that
residents affected by
redevelopment are provided
with local in-situ housing.
Internal
Processes
Reduce project approval
timelines by 30%. Integrate
70% of depots with metro
and rail connectivity. Secure
IGBC or GRIHA green
building certification for all
redeveloped depots.
Ensure construction is
delivered on time with
minimal variance. Maintain
strict adherence to approved
budgets. Adapt project design
in response to market shifts.
Monitor the number of
residential towers integrated
into depot redevelopment
projects. Ensure a defined
share of the housing stock is
reserved for rehabilitation
and affordable housing
categories.
Learning &
Growth
Train more than 200 BEST
and BMC staff in public
private partnership and
transit-oriented development
practices. Ensure that over
50% of projects incorporate
smart infrastructure
solutions.
Successfully complete a
targeted number of PPP
projects. Establish strategic
partnerships with banks, real
estate investment trusts, and
mobility operators.
Pilot new residential formats
such as compact units and
co-living spaces, Integrate
sustainable features
including solar rooftops,
rainwater harvesting
systems, and other green
technologies in housing
blocks.
Page | 54

ESG Commitments for Bus Depot Redevelopment
In addition to financial, customer, and operational goals, long-term success of the depot
redevelopment projects depends on aligning with Environmental, Social, and Governance (ESG)
principles. These factors ensure the projects are sustainable, inclusive, and transparent, while
building trust with residents, investors, and government stakeholders.
Table No-26-ESG

Dimension Focus Areas Our Commitments
Environmental Energy efficiency All residential and commercial spaces
will follow IGBC or LEED green
building standards.
Sustainable designUse of solar rooftops and
rainwater harvesting systems.
Clean mobility Set up dedicated charging hubs
for electric vehicles.
Waste and water
management
Provide systems for waste
segregation, recycling, and
efficient water use.
Social Housing and rehabilitationEnsure in-situ housing for residents
displaced by redevelopment.Public amenitiesBuild with universal design so
that spaces are barrier-free and
accessible to all.
Jobs and skillsPromote local hiring and provide
training opportunities.
Health and safetyInclude on-site clinics, regular
safety checks, and secure public
spaces.
Governance PPP/JDA structure Maintain transparency with clear
revenue-sharing terms with BEST and
MCGM.
Compliance Strictly follow RERA and DCPR-
2034 regulations.
Stakeholder
engagement
Share regular updates with
authorities, investors, and
communities.
Ethical practicesUphold fair bidding, anti-
corruption measures, and strong
audit processes.
Page | 55

11. Summary at Glance for Bus Deport Redevelopment
Situation Before Implementation
SPRE Group–Joyville faced a serious growth bottleneck in Mumbai due to land scarcity, title
clearance delays, and high acquisition costs. This slowed project launches, impacted cash flows, and
limited the company’s ability to capture growing mid-income housing demand in the MMR. At the
same time, public bus depots in prime locations remained underutilized, creating a mismatch
between rising demand for quality housing and idle public land.
Situation After the Study
The Capstone demonstrated that bus depot redevelopment is a viable and scalable model,
combining financial attractiveness with IRR 23%, Payback ~4 years, positive NPV with social and
environmental value. Primary and Secondary research confirmed buyer interest in 1 & 2BHK and
focus to be on 5–7% value advantage, employee acceptance by upgrading the welfare in and around
the area and government policy support with the help if DCPR 2034, PPP frameworks.
For Joyville, this creates a repeatable growth strategy that can create value for approx.. 500–800
₹
Cr while enhancing ESG credentials and urban reputation.
Consolidated Analysis of Secondary & Primary Research
Feasibility: Strong market absorption, supportive policies, proven business models (JD/PPP).
Design Imperatives: Welfare upgrades, commuter convenience, sustainability features, and
functional separation between depot and residences.
Risks: Governance complexity, operational continuity during construction, and market perception of
depot adjacency.
Way Forward: Launch a pilot at Mulund with phased execution, transparent governance, and
balanced financial sharing. Success here can validate a scalable SOP for pan-Mumbai rollout,
Innovation Path: Explore co-living, senior housing, and green mobility hubs as future product,
Developer’s Added Value
For SPRE, depot redevelopment is not just real estate it positions the brand as a pioneer in Transit-
Oriented Development (TOD). Regulatory clarity, FSI/TDR incentives, and fast approvals will
determine success. Well-designed depots can evolve into urban hubs where profitability aligns
with civic benefits, giving Joyville a strategic edge over competitors.
Limitations of the Project
Approvals remain multi-layered and can delay timelines despite policy support.
Market acceptance depends on design excellence and noise/pollution mitigation.
Financial outcomes are projections; real results depend on sales velocity, cost control, and
partnerships.
Final Takeaway:
This project establishes a transformative growth path for SPRE Group–Joyville. It addresses
Mumbai’s space crisis, creates financial value, and fulfills ESG commitments. With execution
discipline, depot redevelopment can become a landmark model of public–private partnership in
urban regeneration—delivering sustainable housing, modern transport hubs, and long-term
competitive advantage.
Page | 56

References, webliography, annotation
https://www.hindustantimes.com/cities/mumbai-news/nod-for-redevelopment-of-3-best-
depots-101745609788758.html
https://bestpedia.in/2025/04/maharashtra-cm-devendra-fadnavis-gives-nod-for-
redevelopment-of-bandra-deonar-and-dindoshi-depots/
https://timesofindia.indiatimes.com/city/mumbai/best-to-redevelop-bandra-dindoshi-deonar-
depots/articleshow/120415119.cms
https://timesofindia.indiatimes.com/city/mumbai/metro-rail-and-bus-hubs-in-mmrdas-plan-
for-dharavi/articleshow/121997774.cms
https://www.hindustantimes.com/cities/mumbai-news/msrtc-to-redevelop-bus-depots-in-
mumbai-borivali-depot-to-be-first-at-a-cost-of-515-crore-101689707028752.html
 https://www.ibef.org/industry/real-estate-india
https://univdatos.com/reports/india-residential-real-estate-market
https://www.mordorintelligence.com/industry-reports/real-estate-industry-in-india
https://altois.com/blog/in-depth-report-india-real-estate-market-trends-2025-2026
https://www.liasesforas.com/admin/WhitePaper/67/WhitePaper_2025-08-
14_63890779266391.pdf
https://www.unimont.in/mumbai-real-estate-market-trends-forecast-2025
99acres – Mulund West price trends
Aurum PropTech – Mulund West rates & trends
Housing.com – Mulund West property rates
Housing.com – Mulund East property rates
Sheth Realty – Mulund property demand insights
Sunny Developers – Investing in Mulund (Dec 2024)
NDTV Profit – Mumbai’s unsold luxury stock rises Q1 2025
Development Control & Promotion Regulation (DCPR) 2034 — Mumbai PDF (MCGM)
Municipal Corporation of Greater Mumbai
Mumbai DCPR 2034 on OpenCity data portal OpenCity
Cushman & Wakefield report on DCPR 2034 insights Cushman & Wakefield
Comprehensive DCPR 2034 (CREDAI – MCHI) PDF MCHI
Article: Metro car shed in Aarey – delay costing 5.87 crore/day
₹
Hindustan Times
Indian Express article: Mumbai Metro 3 corridor delays & cost escalation in Aarey car shed
indianexpre
https://www.hindustantimes.com/cities/mumbai-news/nod-for-redevelopment-of-3-best-
depots-101745609788758.html?utm_source=
Moneycontrol – Society redevelopments drive Mumbai’s housing pipeline as land scarcity
grows
Times of India – Society redevelopment projects will add 44k apartments in Mumbai by 2030
ET Realty – Mumbai housing societies’ redevelopment to generate 1.3 lakh crore in new
₹

homes by 2030
Economic Times – Mumbai redevelopment to unlock 44,000 new homes worth 1.3 lakh
₹

crore by 2030: Knight Frank
Moneycontrol – Mumbai’s housing society redevelopment on a sticky wicket over huge
incentives: Knight Frank’s Gulam Zia
Reference take from Class Presentation
Reference taken from Course Pack
Reference taken from self assignment
Extensive research done on google and other search engines.
Page | 57

Sharmistha_Ghosh_PGEMP95_A16_Capstone Project_Report_Draft.docx

About This Presentation

Slide Content

Tags

Categories

Download

Quick Actions

Statistics

Related Slideshows

Sharmistha_Ghosh_PGEMP95_A16_Capstone Project_Report_Draft.docx

About This Presentation

Slide Content

Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Slide 30

Slide 31

Slide 32

Slide 33

Slide 34

Slide 35

Slide 36

Slide 37

Slide 38

Slide 39

Slide 40

Slide 41

Slide 42

Slide 43

Slide 44

Slide 45

Slide 46

Slide 47

Slide 48

Slide 49

Slide 50

Slide 51

Slide 52

Slide 53

Slide 54

Slide 55

Slide 56

Slide 57

Tags

Categories

Download

Quick Actions

Statistics

Related Slideshows

TLE-9-Prepare-Salad-and-Dressing.pptxkkk

LESSON 1 ABOUT MEDIA AND INFORMATION.pptx

GRADE-8-AQUACULTURE-WEEKQ1.pdfdfawgwyrsewru

Feelings PP Game FOR CHILDREN IN ELEMENTARY SCHOOL.pptx

Jeopardy_Figures_of_Speech_Template.pptx [Autosaved].pptx

Jeopardy_Figures_of_Speech.pptxvdsvdsvsdvsd