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Sunday, January 27, 2013

TVS group ventures into real estate business, unveils first project in Chennai


CHENNAI: After being in the business of auto components and two-wheelers for over four decades, the Chennai-headquartered TVS Group has unveiled its plan to diversify into real estate.

The auto major has promoted Emerald Haven Realty which has already launched a housing project in Chennai. The maiden project -- Green Hills in Perungalathur, just South of Chennai, has been conceived. In all, there are 448 apartments in the project, with a price range of Rs 25 lakh to Rs 45 lakh.  The apartments will be available in 2 BHK configuration, with option of 3 sizes.

While no financial details were available, sources said that the real estate foray is a significant strategic decision by the group, reports Times of India. 

"In the last 40 years, TVS has not created another mass market business after automobile components and two wheelers, particularly motorcycles," said a consultant with direct knowledge of the matter, who further added, "The group missed the IT wave which added significant value and size to companies like Wipro, M&M and . Real estate can be the game changer for TVS."

Though it is bit early to say that the venture would be the game changer for the Group, analysts feel that TVS again missed the time for entering into real estate when the sector is going through rough patch due to economic downturn for the last two years.

Well connected by road and rail links, and located before the start of the Chennai Bypass Road (which offers easy access to Porur, Madhuravoyal and surrounding localities), Perungalathur offers easy access to the rest of the city. It is currently the southern junction of choice for boarding on/off the south-bound long-distance buses. The proposed mono-rail facility linking Vandalur with Velachery, would also work in favor of this suburb in becoming a choice for those who might need to commute for work towards Velachery. Priced right, TVS Green Hills should be an attractive option for those looking into invest in this upcoming locality.

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