April 26, 2010
The ongoing rivalry between Tata Realty and Tata Housing, both subsidiaries of Tata Sons Ltd., has brought about complications detrimental to Tata Sons as a whole. In light of this, Tata Sons is urging these companies to discontinue their competitive practices.
Tata Housing Development Co. Ltd was specifically established to develop and market residential projects, whereas Tata Realty and Infrastructure Ltd was created to function as a fund and oversee infrastructure endeavors. Both companies are fully owned subsidiaries of the Tata Group.
Concerns regarding this competition began to surface approximately two years ago when Tata Realty started exploring real estate opportunities that directly overlapped with the interests of Tata Housing.
Currently, this rivalry has reached new heights, as both firms are now actively planning residential projects in prominent cities including Pune and New Delhi.
Tata Realty is now presented with two possibilities: it can either proceed with the development of its current and prospective residential projects as collaborations with Tata Housing, or it can choose to forgo housing projects altogether.
In response to questions regarding the competitive nature between the two entities, Mr. Brotin Banerjee, the managing director and chief executive officer of Tata Housing, chose to remain silent, merely indicating that while some overlaps exist, the companies operate under the same chairman, R.K. Krishnakumar.