Delhi, India (PressExposure) August 21, 2009 -- Tata Housing Development Company, a division of Tata Sons, is expected to earn Rs 700 crore of revenue to low-cost housing in the next four years, a senior official said the company.
Tata housing starts over 1000 low cost houses under the name "Shubha Griha price between Rs 3.9 lakh and Rs 6.7 lakh in Bhoisar, a suburb of Mumbai, and plans to launch around 4000 houses in these other cities over the next four years, mainly targeting industrial workers and low wages.
The company is Rs 15.000 crore by FY13 revenue of its projects, covering an area of 20 million square feet. It plans to build 10,000-13,000 homes by then. The company aims to earn 5 percent of its revenue to lower house prices.
"Low-cost projects have more speed and can be completed in two years. We see enormous opportunities in this space, particularly in industrial belts," said Brotin Banerjee, Director General and CEO Tata Housing.
The company is launching two-three projects in Bangalore and the National Capital Region in this year and plans for joint development with land owners, where it will share a percentage of sales with owners of the land, and even the purchase of land in other cases, according to Banerjee.
A multitude of companies such as Omaxe and Ansal API have launched low-cost apartments targeting low wages and generate cash on the decline. While New Delhi-based Omaxe has launched in 5000 apartments Rs 5.99-8.99 lakh range Mayakhedi at Indore, 4000 Ansal API has launched low-priced apartments in Jaipur, Jodhpur, Agra and Meerut.
"Our revenues are doubling each year and we hope to continue to be present in the different categories and launching innovative products," said Banerjee. Currently, the company has more than 10 million square feet under development.
Banerjee said more land is now available to developers and land prices are down to realistic levels. "Previously, the price of land used for climbing in a month. The prices have hit their bottom and I expect to remain subdued for the eight to nine months," he says.