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Created by : Veena Gupta, Analyst, Blackstone Group  | 09 10 2009 13:47:40 +0000
Industry : Hedge Funds/VCs/Private EquityFunctional Area : India(Markets)
Activity:  1437 views;  last activity : 03 07 2011 16:29:24 +0000

Tata Housing which is a subsidiary of Tata Sons group that came into picture and scheme of things four months ago by launching homes for as low as Rs 4 lakh near Mumbai, is now in preliminary talks with at two PE funds, Sequoia Capital and Atlanta Equity, to raise funds for its multiple affordable housing projects, signalling that the PE players were willing to return to the real estate projects that promise good customer demand and thereby less risk.

But among all this news, what one question strikes people's mind is that 4 Lakh home and that too in Mumbai is it possible? I guess this is the question that will be doing rounds till the projects takes shape, and would like to know what people think on this matter, will Tata be able to come up with a 4 lakh house?

 
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Top Argument
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Tata has never failed in their promise till now, they promised the world's cheapest car and they delivered,and now they are coming up with mass affordable housing where they are going to build houses for 4 lakh near mumbai, and that is what is making this very interesting, how one can make houses at such cheap price. And the PE players who have entered this funding are very big houses, Sequoia and Atlanta equity, and this funding makes sure that Investors are returning to realty or construction business with markets in shape, there is good growth in this sector.

And whether Tata housing can come up with 4 Lakh or not wil have to wait and watch, cannot jump to conclusions here..would like to know others view regarding this.


By Veena Gupta, Analyst, Blackstone Group  09 10 2009 13:47:40 +0000
 
Top Argument
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If the inflation continues to march the way it has been!!! It seems difficult, also will it be a quality house...


By suchita Ambardekar, Director on Board, Vir Rubber Products Pvt Ltd, Vir auto enterprises Pvt Ltd  09 15 2009 06:26:54 +0000
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The cost depends on technology of construction,time design and management cost.Also cost of funds is another factor which comes into play. It is possible to construct such houses. As the scale will go up cost will come down.It is also not question of tata or another but the zeal and committment to achieve such objective and goal.Old structures in india were constructed without using cement and steel so can be now to cut major cost component
By Anoop kumar, Manager projects, Chandigarh Housing Board  | 03 07 2011 16:29:23 +0000
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Yes, Tata is a brand name in other sectors, like motor and others, and real estate is very booming sector now a days, so if Tata promise, it mean it will come..
By Narayan Gupta, Managing Director  | 03 07 2011 05:29:46 +0000
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Yes , it is posible to build a house with this cost of 4 lacs , The cost depends on scale,design.technology adopted for construction and land cost. By using combination of prestress aand ferro cement with other innovatve methods a house at a lower cost is possible in mass constructions


By Anoop kumar, Manager projects, Chandigarh Housing Board  | 02 09 2010 19:09:16 +0000
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Now a days, the cost of the house depends onthe cost of the site.

Whether Rs. 4,00,000/- house is possible.?  It all depends on scale of construction, method of construction. cost of site.  If u have to build at that cost difinitely it should be large, large scale of construction.,captive production at side, usage of batch mixing plant, purchaseof raw material on large scale.

Let us see and learn ,if it really happens.


By malladi madhukumar, AGM -MKTG, Andhra Cements Ltd  | 12 25 2009 22:54:36 +0000
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tata belive in delevering as per promises it was quite obvious from starting sanand nano project from a scratch & rolling out nano in dece itself after abonding all ready setup at singur let us wait they will make it possible

 


By ravindra karamchand makkad, management, h id c  | 12 15 2009 08:23:54 +0000
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So whats SO Great about it

Folks people who say near mumbai is relative terms Like surat is near mumbai

Also similar scheme was implement in karjat (TMC)

You get in 4lakhs houses in Naigoan,Vasai , Juhi chandra, Nallasopara and virar

But as can be seen from NANO it would of same quality.

And the place is Boisar Where Local Trains only go from VIRAR and no direct trains from churchgate or any other suburbs in mumbai.

Of course with type of Political backing , PR with media (like in case of Iodised case) and also using services of TISS It can arm twist goverment to give land like in SINGUR , also get started Train Services for BOISAR

Tatas have already started the game as in case of Iodised salt, Goverment decision not to provide water for new construction in Mumbai

Of all the things if they are really instrested why do not TATAS  construct in Island city by knocking some offices and bungalows owned by them

 


By manish , Freelancer, Freelancer  | 12 14 2009 04:49:30 +0000
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TATA never give wrong commitments....I 100% belive in TATA.

TATA keepi it up....


By Rajesh Khanna, Accounts Manager  | 10 05 2009 17:28:22 +0000
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TATA Never Give Wrong Commitments.....I 100% belive in TATA.

TATA keep it up.....


By Rajesh Khanna, Accounts Manager  | 10 05 2009 17:25:41 +0000
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I am a firm believer of the TATA group. They have always been innovative & at the same time pragmatic. They have shown this with their NANO project. 

They have caught the real Indian nerves. TATA is the first company which has really thought about what people in India really want. In India people don't really need those refined & high end products. If the stuff is working then it's fine here. For example take NANO, it's not that refined & a bit coarser compared to cars of it's range. This is where they have been able to cut costs. So it's nothing new for TATA.

If Mr. Ratan Tata has said that he will provide affordable housing at Rs 4 lakhs then i would just believe his word & say that yeah TATA can do this. It's just that we don't need MAMTA here .........


By Suvrajit Gangopadhyay, B.E. (Elex. & Comm.)  | 10 02 2009 16:02:58 +0000
1
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If Tata Investments provides the funds, Tata Steel gives the steel, ACC gives Cement and Tata Power gives electricity - for Tatas it is not at all difficult to provide houses at 4 lakhs in Mumbai vicinities. But profitability of all the above four may get effected due to internal consumption and non-profit (lesser profit) deals.

The idea of sweating the other group companies may easen the present stress on Tatas. But anyway, Tatas have got good opportunities and strength to carry out the venture successfully and overcome present weeknesses forced due to JLR takeover by Tata Motors.


By taranath joshi, DGM Operations, EOL,  | 10 02 2009 15:58:21 +0000
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TATA can do anything if he gets public support without interfearance of dirty politics.                                                                                                                               


By Dulalendu Biswas, Civil Engineer-Other, P.W.D. Govt Of West Bengal  | 10 02 2009 14:33:41 +0000
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Yes why not, If they think , they will!!!


By ABHIJIT KULKARNI, Project Manager, BNP Paribas  | 10 01 2009 09:50:56 +0000
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TATA is known for implementing their talks. Whatever they have promised till now they have proved. They are having a large business network with extremely experienced professional. If they can Offer a car within Rs.100000 than why not a house within Rs.400000


By Tapas Kumar Maji, Entry level, Progressivemediagroup  | 09 30 2009 09:32:08 +0000
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an ordinary building of 1000 Sq ft cost around Rs 500000 after all rebates in material. So if TaTa-Ji think in honest way so there is no himalayan task for him to give middle class people a affordable flat within a nominal range.Now a days peoples are so many greedy to earn more money in short time, they come in realty sector to make house for the rich-or high middle class family. Mr tata is so kind that he at least think for the middle class people- what other can not think.

hats off to you Mr. Tata.


By ANIRUDDHA SAHA, Construction-Heavy, SIMPLEX INFRASTRUCTURES LIMITED  | 09 29 2009 16:32:42 +0000
1
1

Tata group has their strong business ethics and they can do magic in this field of low cost housing.They have  been playing significant role in infrastructure development .They are one of the biggest steel producers in the country and also managing power generation and distribution quite efficiently.They are better equipped with resources than  others.The initial set back in Nano Car Project can not be attributed to Tatas, it has altogether been a political issue which Mr. Ratan Tata could not anticipate and had to absorb the loss unconditionally.

If necessary and unconditional support is given by Govt to Tatas in respect of control over price rise of building materials,there are undoubtedly bright possibilities that Housing at economical cost will be offered to all needy in the country.

 

Through this forum,we may appeal Tata Group to accept the challenge.


By arvind midha, Project Leader/Managing Consultant, self engaged  | 09 18 2009 12:15:16 +0000
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Tatas are reputed company and I hope they will not create slums.


By Ramakrishna Perumal, Electrical Specialist Engineer,  | 09 18 2009 11:04:53 +0000
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Yes Tatas will keep their promise as they did for 1.25 lakh car.


By Ramakrishna Perumal, Electrical Specialist Engineer,  | 09 18 2009 10:35:31 +0000
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i think it is quite possible. because this project is for common people. so political barrier will not be there. i think this will make the path smoother.
By Kunal Das, Sub Assistant Engineer, Public Works Directorate, Govt. of West Bengal  | 09 18 2009 08:31:10 +0000
0
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Yes it is possibleRs 2lakh could be its construction costRs.50000 up to land cost.Rs 50000 Profit. Rs 1lakh for transport And Market Electricity etc as it would be far from city.


By Suraj Sinha, Propritor, SRS Structure  | 09 17 2009 21:29:27 +0000
1
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Endorse the  views expressed by Veena Gupta in respect of Nano.

Yes,we may look to Tatas for some revolutionary changes. So far, the construction industry has nexus with mafias .Lot of underhand dealing with politians and local administrators led to exorbitant prices which are beyond the reach of common man.Howver, if it comes true,it will be a big boon for society.In any case,Tatas stand for their integrity and good will.Let us wish them success and support the cause.:arvind midha ,ujjain


By arvind midha, Project Leader/Managing Consultant, self engaged  | 09 17 2009 14:35:49 +0000
0
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4 lakhs house is possible one only......tata will achieve tat..


By rajasekarperiyasamy , site engineer, bridge&roof (co) india limited,mumbai  | 09 17 2009 08:22:06 +0000
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Tata will be success in this project. In mumbai,it is easy to sell house but it must be affordable by middle class people specially servicemen/women. If this type of project is in Kerla or West Bengal, it is not possible to fulfill the commitment.
By Tarun Singhal, Project Manager - Finanace  | 09 16 2009 19:42:19 +0000
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yes, they can build a flat of 400 sft within that amount


By A. Krishna Murthy, Civil Engineer, Irrigation Projrcts, Buildings.  | 09 16 2009 12:58:14 +0000
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if some one could inform me if whether  these 4 lakh rupees house of TATAS are ready in delhi ::

i would like to buy such a house in union capital of india which is in reach of a poor fakir like me ::


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 09 16 2009 05:52:22 +0000
1
0

It is possible to construct a decent house 1BHK ( 400SFT) with in Rs 4 lakh. In fact presently we are also constructing the same with very decent facilities and selling them. Yes with TATAs with there sound background and multiple raw material producing facilities they should be able to deliver more cheaper than this. The only thing which may hamper such projects is the land cost. Rest is all gimmicks of economics since everything in India works with numbers ( thanks to population ).

 

 


By PRADEEP K BAGMAR, SBU/Profit Center Head, BAGMAR ESTATES  | 09 16 2009 03:37:55 +0000
1
0

.

TATA is always innovative and practical. The idea of cheapest car, safe drinking water at low cost and now residential buildings at affordable price can only generate from a corporate citizen like him. We are fortunate and proud to have TATA in our soil. This kind of commitment and action can take our country to a developed nation. Taking this opportunity, I can say that TATA Will design and develop the cheapest alternative energy source for every house hold


By Santosh Kumar Mohanty, Civil Engineer-Municipal, Sambalpur University  | 09 15 2009 12:24:59 +0000
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TATA has always fulfilled his promise. Let it be steels,cars or any other industry, they have never failed. So, it is obvious that this time also they will become successful in fulfilling their promise.......


By Dayanand Deshpande, Senior Consultant, Ernst & Young  | 09 15 2009 06:22:15 +0000
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I have faith in TATA housing. Yes bit may be also true like nano it will be ++ project till the time it reaches hanover but still looking at the conditions thats also good deal.


By nikhil deshpande, Sr Engineer planning, Rohan Builders India Pvt Ltd  | 09 14 2009 18:52:14 +0000
3
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A flat worthy 4 lacs will have an EMI of Rs 4200 will be very much affordable to the public that now stays in CHAWLS & SLUMS. The rentals of these flats will be very much affordable to them. People might move out from CHAWLS to these new areas thus releasing lot of space in the city which could be used up for developmental work.


By santosh kumar, Marketing Manager, AUTOMOBILE  | 09 11 2009 07:50:09 +0000
0
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It may be a good proposal for the poor ..and at least no body will be homeless..

But willbe able to provide good infrastruture to such projects....The fear is mini ghettos or lsums should not spring up.....


By suchita Ambardekar, Director on Board, Vir Rubber Products Pvt Ltd, Vir auto enterprises Pvt Ltd  | 09 18 2009 10:42:37 +0000
2
0

charles is it a remake of slum dog millionaire villa ::

 

probably worth living in ::


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 09 17 2009 09:42:58 +0000
2
0

4 lakh house will be another type of Slum with more problems than existing slums.

Time will tell that it becomes a paidup  slum  dwelling especially in city like Mumbai.

I will not be surprised if the present slum dwellers in mumbai will be worth more than that and would certainly leave it to the lesser mortals like Mumbai beggars to b uy those dwellings.

4 Lakh house in Mumbai!!!! just visualise


By Charles davison, Project Manager, Douglas OHI LLC  | 09 17 2009 09:39:46 +0000
2
0

Whatever the promises may be, it will at  another 100% addtional. More than often they are gimmicks. And I'm sure, like Nano, which is after all the ++, I wonder if these housing projects will also be nothing less than 6 to 7 lakhs at possession!!

By the way, can Slums & Hutments can ever be done away in reality in INDIA???


By Mark D' Almeida, Fighting Corruption & attitudes, every step  | 09 14 2009 13:55:13 +0000
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