778-Som-Lalit Institute Of Business Management - Gujarat ...

778-Som-Lalit Institute Of Business Management - Gujarat ... 778-Som-Lalit Institute Of Business Management - Gujarat ...

29.12.2013 Views

Wood Per Tonne 7,700 42,200 - Soil Per Tonne 1,100 3,500 - Land Per Sq. Meter 30,000 6,000 + Basic requirement for building a stadium is land, and as we can see in the above table, it is very cheap in Qatar than in India. Rate of the Land in suburban Qatar is Rs. 6000 per sq. meter which 1/5 th of the rate prevailing in India. It is around Rs. 30,000 per sq. meter in sub-urban part of Delhi. This also shows that building a total of 9 stadiums would be cost effective for Qatar considering the fact that the stadiums will be built in sub-urban areas. Constructing football grounds in Qatar is also beneficial because the artificial grass that will be used on the football pitch is 10 times cheaper than India. Current price of grass in Qatar is INR 560 per sq. meter. The main raw materials required for the construction of the stadium, i.e Sand and Cement are also cheaper than India. Cement and manufacturing sand are 33% cheaper than India and river sand is 20% cheaper. Wood per tonne in India is at INR 7,700 but in Qatar it is very expensive which is 5 times higher than India. But it‘s not an issue to worry because we can utilize less wood while constructing the stadium. Instead of using wood for seating arrangement, we can go for fiber/ plastic which is cheaper. Rate of making plastic/ fibre chairs will cost around INR 150 in Qatar per seat in comparison to INR 500 in India. The rate of Iron and Soil is more in Qatar but the other advantages we are getting are over shadowing this disadvantage. The only loss we can get is in steel, which is very costly. The rate prevailing in Qatar is INR 44,715 per m.t. which is 3 times costlier than the steel available in India. Cement prices dropped to 72% last year in Qatar whereas in India it rose by 10% Ready mix concrete declined to 25% in Qatar but in India it showed the same rise as cement. Iron and steel price rose to 16.78% and 10% respectively. 94 | P a g e

Direct labor conditions:- The other important aspect for constructing the sports facilities is labor, which is available at cheaper rate in Qatar. The prices/ wages that should be given to laborers are governed by Emir of Qatar. The working conditions and safety concerns are better than India due to which labor can be found easily. In Qatar, the average working hours are 40-48 hours a week and during Ramzan schedule are flexible and workers have to work for only 6 hours a day. While in India, the working hours are not fixed because of which the workers are made to work 12-14 hours a day and also do not get overtime wages. In addition to that many organizations face problems from labor unions. Both these factors cause high labor turnover rate in India Direct Expenses:- For constructing the facilities other direct expenses require are Transportation, Loading-Unloading, freight charges and warehousing. Transportation cost is 5 times lower than India due to cheap oil prices. Loading unloading cost is very low in Qatar due to mechanized process Freight charges are low. Warehouses are highly organized with adequate space and technology Technologies are more advanced in Qatar which helps in bringing a more safe environment for all the factors. 95 | P a g e

Direct labor conditions:-<br />

<br />

<br />

<br />

<br />

The other important aspect for constructing the sports facilities is labor, which<br />

is available at cheaper rate in Qatar. The prices/ wages that should be given<br />

to laborers are governed by Emir of Qatar. The working conditions and safety<br />

concerns are better than India due to which labor can be found easily.<br />

In Qatar, the average working hours are 40-48 hours a week and during<br />

Ramzan schedule are flexible and workers have to work for only 6 hours a<br />

day.<br />

While in India, the working hours are not fixed because of which the workers<br />

are made to work 12-14 hours a day and also do not get overtime wages. In<br />

addition to that many organizations face problems from labor unions.<br />

Both these factors cause high labor turnover rate in India<br />

Direct Expenses:-<br />

For constructing the facilities other direct expenses require are<br />

Transportation, Loading-Unloading, freight charges and warehousing.<br />

Transportation cost is 5 times lower than India due to cheap oil prices.<br />

Loading unloading cost is very low in Qatar due to mechanized process<br />

Freight charges are low.<br />

Warehouses are highly organized with adequate space and technology<br />

Technologies are more advanced in Qatar which helps in bringing a more<br />

safe environment for all the factors.<br />

95 | P a g e

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