Magarpatta City: Farmers Direct Investment (FDI)

26 Pages Posted: 25 Dec 2012

See all articles by Amit Gupta

Amit Gupta

Management Development Institute; Indian Institute of Management (IIMB), Bangalore; Indian Institute of Management Amritsar; Indian Institute of Management Amritsar

Sucheta Dalal

Moneylife

Debashis Basu

Moneylife

Amita Joseph

Business & Community Foundation (BCF)

Date Written: November 10, 2012

Abstract

Magarpatta City covers 430 acres of land that was owned by about 120 farmer families with 800 individuals. These farmers joined together to form the Magarpatta Township Development and Construction Company Limited (MTDCCL) and developed the city, thereby realizing their dream of converting their land into a value-added finished product that gave them benefits and returns in perpetuity. Satish Magar is the de-facto leader of the group because of his educational accomplishments, political connections, largest land holding and the trust that the Magar community has in his leadership and ability to take them collectively to a point where all of them collectively benefit.

Magarpatta City was conceived as an integrated planned township with multiple commercial zones, residential neighborhoods, school, hospital, shopping malls, hotels, restaurants, and recreation areas. These were designed to be contemporary with futuristic features and included a state-of-the-art IT Park called Cybercity that provided international facilities to leading global IT giants. Being encompassed by verdant greenery and pollution free environment has added to the townships allure. The city has its own rain water harvesting, garbage segregation and waste management, biogas plant, vermiculture, plant nursery and solar water heating arrangements that creates a self sustainable system and ensures further enhancement of the environment. A walk to work-home-recreation lifestyle is at the core of Magarpatta. All these facilities came with complete support to run new cutting edge information technology infrastructure, full power back up, ample parking, stringent security, and strict adherence to fire safety norms.

The case describes the process that the farmers went through to convert the raw material that they possessed (land) to a finished product, namely the Magarpatta Township. It illustrates the changes that the real estate sector is going through in India, issues related to getting government permissions for a township, conceptualizing, designing, planning, and constructing the township, marketing and financing the township, benefits that the township had for the farmers, residents, Pune city, business environment, and developing an organization that can carry forward the process of replicating the success of this model of real estate development.

Keywords: Corporate social responsibility (CSR), entrepreneurship, leadership, real estate development, city planning, management of cooperatives, and organization design and structuring

Suggested Citation

Gupta, Amit and Dalal, Sucheta and Basu, Debashis and Joseph, Amita, Magarpatta City: Farmers Direct Investment (FDI) (November 10, 2012). IIM Bangalore Research Paper No. 384, Available at SSRN: https://ssrn.com/abstract=2179495 or http://dx.doi.org/10.2139/ssrn.2179495

Amit Gupta (Contact Author)

Management Development Institute

Faculty Block, B3
P.O. Box 60, Sukhrali, Mehrauli Gurgaon Road
Gurgaon, Haryana 122001
India

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

HOME PAGE: http://amitg@iimb.ernet.in

Indian Institute of Management Amritsar ( email )

Inside Government Polytechnic Campus
Polytechnic Road PO: Chheharta, G.T. Road
Amritsar, 143105
India

Indian Institute of Management Amritsar ( email )

Inside Government Polytechnic Campus
Polytechnic Road PO: Chheharta, G.T. Road
Amritsar, 143105
India

Sucheta Dalal

Moneylife ( email )

315, 3rd Floor, Hind Services Industries Premises
Off Veer Savarkar Marg, Shivaji Park
Mumbai, 400 028
India

Debashis Basu

Moneylife ( email )

315, 3rd Floor, Hind Services Industries Premises
Off Veer Savarkar Marg, Shivaji Park
Mumbai, 400 028
India

Amita Joseph

Business & Community Foundation (BCF) ( email )

1 D, First Floor
Shahpur Jat, New Delhi - 49
India

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