Tata Housing Development Company today said it will invest Rs 2,000 crore in the next three years to build a luxury housing project in Gurgaon and also announced its plans to foray into the overseas market this fiscal.
The Mumbai-based realty firm, a subsidiary of Tata Sons, said it is exploring the option of entering into two new businesses related to the real estate sector, which the company did not specify.
Tata Housing will invest Rs 1,000 crore this fiscal to acquire new projects and is targeting the addition of 20-25 million square feet of area over-and-above the 40 million square feet in its possession at the end of the last fiscal.
"We are launching a luxury housing project, 'Primanti', in Gurgaon, comprising 1,100 units. The investment to develop this project will be Rs 2,000 crore," the company's Managing Director and Chief Executive Officer, Brotin Banerjee, told reporters.
He said the company has bought 36 acres of land from group company Tata Realty and Infrastructure for about Rs 800 crore. The proposed investment will be met through internal accruals.
The company is offering homes at a price starting from Rs 1.5 crore.
On the company's expansion plans for this fiscal, Banerjee said: "We will launch 8-10 new projects this year. Besides that, We are looking at two new lines of business related to land development. It will be smaller in size than the realty business."
Moreover, he said the company is planning to expand operations into overseas markets this fiscal. "We are looking for partners to enter into two countries in the SAARC region," he said.
Banerjee said the plan to foray into the international market is in advance stages, while the proposal for expanding into two new lines of business is still at a preliminary stage. He refused to divulge further details on these new initiatives.
Asked about acquisition of a land bank, he said the company had 40 million square feet of developable area at the end of the last fiscal and is looking to add 20-25 million square feet this fiscal.
"We will invest Rs 1,000 crore on acquisition of new projects, which will be outright buy of land and joint development agreement with land owners. Some of it would go toward our overseas foray," he added.
Elaborating on the Gurgaon project, Banerjee said this is the company's second project in the city and the company is in advanced stages of launching two more projects in the Delhi-NCR this fiscal in a joint venture.