TVS Emerald, the real estate arm of the 7-billion-dollar Chennai-based TVS Group, launched in 2013, completed its first residential project few months ago. The company now has plans to consolidate and expand business within Chennai’s property market.
With 448 apartments and another project launch under its belt within 2 years, TVS Emerald is now keen on expanding its footprint. The company recently announced that it would make Rs 300 crore investment in eight residential projects. CNBC TV-18 has learnt that the company is looking to acquire multiple land banks between 5 and 20 acres each.
The plan is to continue building mid-sized residential projects initially, before the group ventures into its long-term vision of building gated communities. Almost all these projects, the company says, will be located off Chennai’s grand southern trunk road.
“One core philosophy of what we want to build is a clean, green community. For a community, you need young people; you need middle-aged people and old people also. They all form a community”, says the company’s President and CEO, R Chandramouli.
That is why the company claims it doesn’t have a specific target audience. The strategy is to fall back on its extensive and diverse customer database built by its two-wheeler business and in keeping with its main customer demographic, TVS is choosing to focus on small-sized apartments and villas, at affordable prices.
“When we went to the customer, they were constantly telling us that they have a ticket price and a budget and they want to maximize on the budget in terms of value and not square feet area. That’s what we focus on”, Chandramouli says. For now, TVS Emerald will focus on its next residential project, Green Acres, scheduled for a 2017 completion deadline. But, the real test will be in building affordable townships in what is still proving to be a difficult property market.