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Big B
“We want to empower the lower sections of society.”
Brotin Banerjee, Managing Director and CEO, TATA Housing,
on the real-estate sector and his vision for the future of
the company.
On May 6, TATA Housing unveiled Shubh Griha, its housing
project for low-income families. Following closely as it does
on the heels of the launch of the car for the Indian masses
- the TATA Nano – the timing of the announcement seems
nothing short of a master move! In conversation with CHARU
BAHRI, young and dynamic Brotin Banerjee, Managing Director
and CEO, TATA Housing, speaks on the need to reach out to
the bottom level of the consumer pyramid, the role of branding
in the real-estate sector, and shares his vision for the future
of the company…
With the unveiling of Shubh Griha so close to the launch
of the TATA Nano, it seems as though TATA Housing is echoing
a key TATA ethos. Would you agree?
The TATA Group has always tried to contribute positively to
the environment and to communities without discriminating
against any one segment. As a fully owned subsidiary of TATA
Sons Ltd, TATA Housing Development Company Ltd has a strong
linkage with the core values of the group. Ever since inception,
we have envisioned empowering the people of India by creating
world-class real-estate infrastructure that enhances their
environment and lifestyle. We identified a need to create
quality life spaces based on thorough research and in-depth
understanding of the needs and preferences of the Indian consumer.
We have now launched our Shubh Griha project in keeping with
the TATA Group’s spirit of innovation and creating products
that cater to the people at the bottom of the pyramid. Like
our housing projects for middle and higher-income groups,
Shubh Griha will offer a complete experience going beyond
just providing a home. The ‘Neighbourhood and Comm-unity’
concept that forms the basis of this project will change the
conventional residential choices available for low-end consumers
today.
Is this endeavour exemplary of building on a brand, as the
TATA Nano also symbo-lises a quality commodity for the masses?
If you’d like to draw parallels, then yes! Like the
TATA Nano, Shubh Griha is a cost-efficient quality product.
Research has revealed that India today faces a total shortage
of 24.7 million dwelling units, with more than 70 per cent
of this shortage in the middle and low-income groups. Also,
it is estimated that there will be about 180.1 million households
in the income bracket of below Rs 2 lakh that consists of
the ‘deprived’ and the ‘aspirers’
by 2015. Most people falling in the low-income bracket are
individuals who have migrated to earn a livelihood in big
cities, where they live in rented accommodation or in crowded
chawls. As a real-estate developer, we are sensitive to the
need of providing this segment with their own home along with
a community life. Shubh Griha is all about empowering the
lower sections of society.
How important according to you is real-estate branding?
Extremely important. A good brand is at once a story - it
clearly spells differentia-tion from competitors and builds
an emotional connection with audiences. Nowadays, the situation,
especially in metros, has changed from a seller’s market
to a buyer’s market, driven more by customers than developers.
As more and more real-estate developers come up across the
country, we are heading towards a market that is undifferentiated
and commoditised, with near product parity between competitive
real-estate infrastructure players. The only way to gain ascendancy
and maintain a contin-uing competitive advantage in this scenario
is to develop a strongly differen-tiated position in the consumers’
mind space.
What symbolises TATA Housing? How do you stand apart from
other real-estate companies?
When we started out, we envisioned transforming the real-estate
scenario with our philosophy of providing customers more than
just a home. We aim to deliver ‘an environment and a
lifestyle’ through all our products. To this end, we
associate every project with a theme right at the conceptualisation
stage. The theme is then expanded at every stage of development
- it factors in our choice of site architects, planning the
project layout, internal planning of the building, construction,
and finishing. This approach makes for some of the finest
real-estate developments. For example, our Raisina Residency
project is a premium apartment complex based on the theme
‘Art & Culture’. The theme is brought to life
by appro-priate attributes, such as its campus spread of fluid
green landscaping and strategically placed sculptures, murals
and public art.
Three years ago, we pioneered the concept of energy - efficient
and environ-mentally sustainable buildings and townships.
At that time, there was very low awareness on this score.
Still, in keeping with our group ethos as well as acknowledging
the first mover advantage that accrues from taking the lead,
we adopted the mandate of adopting eco-friendly and sustainable
green building technologies. Another major TATA Housing initiative
is to maximise the open spaces in the communities we design
for the benefit of children and senior citizens. Superior
plann-ing and design enables us to keep over 80 per cent of
the space open, thereby providing uncluttered green living
spaces to our clients.
Do you envisage a role for rating agencies to grade real-estate
developers for the benefit of investors and clients?
Yes, this move would make the sector more organised. Besides,
it would empower consumers to pick the best product from what
is available in the market, as developers could easily be
segregated on the basis of their credibility.
When you joined TATA Housing Development Company Ltd as deputy
CEO in 2006, you brought 10 years experience in branding and
advertising campaigns with you that included launching products
for low-income segments. Could you share some salient highs
of your earlier tenures across key TATA Group companies?
I began my career with the TATA Group at TATA Chemicals. As
product manager - branded salt, TATA Chemicals, I launched
the popular campaign ‘TATA Namak - Desh Ka Namak’
with the aim to increase market share by enhancing the appeal
of the product to the Indian masses. Market shares did subsequently
rise to their highest level till then. I also believed in
the need to cater to the bottom of the pyramid. In the year
2001, TATA Chemicals launched a low-cost branded iodised salt
‘Samunder’ targeting the bottom of the consumer
pyramid. The aim was to encourage un-branded salt users to
use iodised Namak.
When the TATA Group acquired a strategic stake in Barista
Coffee Company Ltd, I was deputed to the company in the role
of vice president - marketing, strategy & corporate communications.
My role was to ensure revival of the brand that was
the pioneer in building the ‘out-of-house’ coffee
culture in India. I was subsequently promoted to the role
of chief operating officer.
Could you share some details of TATA Housing’s other
current and upcoming new and innovative projects?
TATA Housing’s current portfolio includes more than
10 million sq ft under construction, the sale of which is
happening in a phased manner. In the commercial space, we
have just completed Xylem, Bengaluru’s first gold-certified
green IT park. In the residential space, Raisina Residency
in Gurgaon and Aquila Heights, the tallest residential tower
in Bengaluru, are both under execution. We also recently launched
Eden Court, a residential project in Kolkata that will form
part of a larger integrated mixed-use township. More projects
in Mumbai, Chandigarh, Khandala and Hyderabad are slated to
commence in the next few months.
Where does the company see itself in coming years?
We are aiming to emerge as a
Rs 2,500-crore player by 2012. At the same time, we would
like to be known as a consumer-oriented company. We want consumers
to be proud of our projects.
TATA Housing is also looking to develop the parcels of land
owned by various TATA Group companies. As we move forward,
we at TATA Housing see ourselves emerging as the leading professionally
run corporate with a pan-India presence in the real-estate
sector, promoted with the primary objective of providing quality
life spaces in India.
How do you think the current economic climate will unfold
for the real-estate development sector in the coming year?
Prior to the slowdown in the economy, the real-estate market
saw a number of customers buying homes as an investment proposition.
With the world’s financial markets suffering extraordinary
volatility and stress in the past three months, the financial
crisis is now feeding through to many areas. People are avoiding
high-value purchases. Nevertheless, we are now witnessing
the government, the Reserve Bank of India and public and private
commercial banks come out with a series of fiscal and monetary
measures to boost the real-estate sector, especially housing.
As a result, we expect the demand for new homes on sale to
pick up dramatically in 2009, especially in India’s
smaller cities. An increasing interest in affordable housing
is also expected to help India’s real-estate markets
recover between 2009 and 2010. Going forward, we see the market
improving further as interest rates are lowered and government
initiatives help developers to mobilise liquidity for their
projects.
How does TATA Housing tackle and overcome challenges to its
growth, especially in the face of the current economic slowdown?
Are any of your projects on hold? If not, then are all your
projects amply provided for (financially)?
At TATA Housing, we understand that real estate is a cyclical
business. We, therefore, balance our growth aspirations with
a prudent approach towards buying by experimenting with different
financial agreements with landowners and companies. Entering
into a joint development or JV model instead of going in for
outright purchase helps us minimise the risk associated with
blocking huge amounts of capital. This enables us to plan
and strategise more efficiently.
How do you keep abreast of latest technology and apply it
in your projects?
We partner with internationally renowned architects and consultants.
Their understanding, experience and approach to the development
and implementation of design enable us to deliver technically
robust products with contemporary modern facilities. Conseq-uently,
our properties are benchmarked against the best in the class
on a global scale. We also learn and imbibe our partners’
methods to improve the way we develop and implement new project
designs.
What would you call your USP?
At TATA Housing we have always been sensitive to the needs
of our end consumer. I would cite our ethical business practices,
which include use of high quality construction materials,
adherence to quality control measures, timely completion of
projects, clear titles and transparent documentation, as a
major USP. Add to this the structure of our deals, our customer-friendly
approach and the fact that we work with the world’s
best architects and landscape designers and you have more
major different-iators. Working with top-drawer designers
and architects is expensive, but we believe our customers
deserve the best. This strategy pays off very well in the
final analysis, as it results in aesthetically and efficiently
crafted buildings and structures and creates a distinct corporate
identity for us. We bring world-class projects to India bearing
the TATA name.
In addition, our customer value proposition comes from our
extensive study of consumer preferences to offer clients what
they really want.
We are proud to have also been accredited in the CNBC Asia
Pacific Property Awards, 2009. TATA Housing is an award winner
in the Asia Pacific Awards 2009 for India in the following
two categories: Commercial - Office Development Category for
Xylem IT Park in Bengaluru and Residential - Development Marketing
Category for Raisina Residency in Gurgaon.
What is your personal success mantra?
It’s all about hard work and support from my team members.
Certification for the Quality of Aquila Heights
In another first for India, Tata Housing Development Company
Ltd (TATA Housing) will seek joint certification from the
Construction Industry Development Council - an organisation
representing the Indian construction industry - and the Construction
Quality Rating Agency - a Pune-based organisation that conducts
third-party quality audits - for the quality of construction
of its Aquila Heights project located within the HMT Township
at Jalahalli, Bengaluru.
Designed by International Architects, the Singapore-based
Ong and Ong Ltd, Aquila Heights across, 6.3 acre, will have
89 per cent of open green space. It will have 360 housing
units spread over three towers - Atria (29 storied), Polaris
(32 storied) and Vega (29 storied) with all covered basement
parking - that adhere to contemporary design, wherein steel
and glass dominate the elevation of the building. Standing
tall at 105 m (344 ft), Polaris will surpass the 24-storey
twin towers of Bearys Lakeside Habitat in Hebbal as Bengaluru’s
tallest residential building.
A ‘pre-certified’ green building by the Indian
Green Building Council, Aquila Heights incorporates a number
of energy-saving green building features, thus reducing the
operational cost for tenants.
Aquila Heights will boast of dedicated traffic zones, thereby
leaving considerable space for pedestrian movement and a host
of amenities, including an outdoor and indoor swimming pool;
three themed gardens over a conventional garden; an indoor
multi gym and an outdoor aqua gym.
Shubh Griha:
TATA Housing’s ‘Nano’ housing project
After its launch in the suburb of Boisar in Mumbai, the Shubh
Griha brand will go national as it is introduced in suburban
areas across Tier I and II cities. ‘Smart Value Homes’
from Shubh Griha will be priced between Rs 3.9 lakh and Rs
6.7 lakh.
The product mix of these value homes will include:
Units Unit Size (Sq. ft.)
1 room kitchen (small) 283
1 room kitchen (large) 360
1 bed room, hall and kitchen 465
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