TVS Motors Makes Foray into Real Estate with Chennai Residential Project
TVS Motors, a prominent player in the automotive and two-wheeler industry, has officially diversified into the real estate sector with the launch of its inaugural residential project in Chennai. This marks a significant expansion for the TVS group since its inception almost four decades ago.
Emerald Haven Realty Spearheads the Project
Emerald Haven Realty, promoted by the automotive giant, has spearheaded this venture. They've already launched a residential endeavor in Chennai. The development signifies TVS Motors expanding its business portfolio beyond its established automotive domain.
Green Hills Project Details
This initial foray into the residential market, christened "Green Hills," is located in Perungalathur, South Chennai. The project comprises 448 housing units, with prices ranging from Rs. 25 lakh to Rs. 45 lakh per unit. Attempts to reach TVS Motor's CMD, Mr. Venu Srinivasan, for comment on the group's entry into real estate were unsuccessful.
The TVS Group's first venture into the real estate market involves the development of this residential property. While financial specifics of the venture remain undisclosed, industry experts view this strategic move by TVS Group as a substantial development, given that the company has primarily concentrated on the two-wheeler and motorcycle segment for the past four decades, refraining from such large-scale diversification. An inside source corroborated this long-standing focus on their core automotive business.
A Long-Term Investment?
A property consultant revealed that the TVS Motor group has had a presence within the real estate landscape for an extended period. The consultant further emphasized the enduring demand for housing, suggesting that the real estate sector's momentum is likely to persist for the foreseeable future. This diversification into real estate has the potential to become a pivotal moment in the group's trajectory.
Historical Context: South Indian Businesses in Real Estate
During the early 1990s, South India saw numerous thriving businesses, such as Ashok Leyland, India Cements, and Sanmar Group, making significant moves into the real estate sector. Attracted by the perceived opportunities, these companies ventured into residential construction. However, the increased competition within their core businesses ultimately led to their withdrawal from the real estate market.
Long-Term Prospects
The long-term commitment of the TVS Motor group to the real estate sector remains subject to speculation, particularly given the intense competition prevalent across industries. Balancing their established automotive business with their new real estate venture poses a significant challenge for the motor group. However, it appears that the group does not intend to replace its core automotive operations with their venture into real estate.