Tata Housing bets big on sub-Rs 10 lakh segment

Written by fe Bureau | Kolkata | Updated: Jun 12 2010, 07:39am hrs
Tata Housing Development Company Ltd (THDCL), a fully owned subsidiary of Tata Sons, is aiming to create a land bank of 300 lakh sq feet by end of 2010-2011, while betting big on Subha Griha, its sub-Rs 10 lakh apartments.

Brotin Banerjee, managing director and chief executive officer, after announcing the launch of its Eden Court Primo project in Kolkata, said THDCL currently has a land bank of 110 lakh sq feet across the country, which it plans to take up to more than 300 lakh sq feet by the end of this fiscal.

We have an investment plan of Rs 1,000 crore for 2010-2011, of which Rs 450-500 crore will be spend in land acquisition, Banerjee said. He said the balance amount would be invested to develop 45 lakh sq feet this year, of which 20% would be developed as commercial space.

THDCL's major thrust, according Banerjee, would be in Subha Griha projects, the sub Rs 10 lakh apartments, termed as value housing. The apartments of Subha Griha at Poisar in Mumbai, were priced between Rs 4 lakh and Rs 7 lakh, and this changed the realty game, Banerjee said.

Many players in the realty sector are trying to offer such value housing but none has succeeded so far, Banerjee claimed. Currently there are 1500 apartments under Subha Griha, which would increase to 4000 in another 3-4 years. Of the 45 lakh sq feet, which THDCL would develop this year, at least 40%-45% would be used to develop value housing across the country.

THDCL, Banerjee said, has entered into long-term contracts with material suppliers to escape volatility of input costs and offer its flats at competitive rates. The company was avoiding delays in project implementation by all means to escape cost overruns.

The project in Rajarhat, Kolkata, being developed on 8 acres, is a luxury housing project consisting of two high rise towers offering 3 and 4 BHK apartments with a minimum size of 1,732 sq feet and 2,180 sq feet maximum. Price of the flats starts at Rs 70 lakh.