TATA Housing Development, a subsidiary of Tata Group is venturing into its home market in Mumbai by undertaking projects to redevelop old building complexes. The developer has initiated operations across India, mainly focusing on building townships and residential complexes near Greater Mumbai.
Expansion into Mumbai
Brotin Banerjee, Managing Director & CEO of TATA Housing Development, stated, "We anticipate commencing the premium housing redevelopment projects in the western suburbs of Mumbai, such as Andheri and Bandra. However, these societies usually invite bids, making the process highly competitive." Banerjee continued, "We believe our reputation for ethical behavior will give us an edge even if our bid is lower than others. These societies have had poor experiences with lesser-known realtors."
Banerjee emphasized, "Unlike certain other developers, we cannot engage in illegal activities or cut corners as these actions violate the TATA code of conduct. Therefore, it’s safer for societies to work with developers who adhere to rules and offer superior quality housing products."
Revenue Strategy
Banerjee explained, "These projects will help us ensure that premium developments account for approximately 60% of our revenues this year, even though they will constitute only around 40% of the units being constructed." The company currently manages 45-50 million square feet under development, divided between value and premium housing, with an additional 4-5 million square feet dedicated to commercial and office development.
Future Plans
The company aims to sign its first redevelopment projects within the next 6-9 months. Banerjee added, "Under the Smart Value Homes and New Haven brands, we have 15,000 homes under construction." By the end of this fiscal year, the company plans to have operations in Kolkata, Mumbai, Pune, Ahmedabad, Khandala, Chennai, Hyderabad, Bangalore, Chandigarh and the National Capital Region.