Indian real estate is happening, and a number of non real estate companies are entering the sector to leverage the opportunities. Most recently, auto major Hero Group joined the bandwagon. The group claims to have 10 acre of land in Gurgaon, Haryana and is planning to develop it into a commercial property. Similarly, Bata, India's largest footwear maker is also getting into real-estate development. They are developing flats that will be a part of the Calcutta Riverside Project. The group claims that the township will be ready by 20011-12.
Following the footsteps of private players, MTNL which owns large expanse of land in Delhi and Mumbai, was also considering developing commercial for lease out purposes. Also, Indian Railways and Postal department have also announced to develop properties on their own. Of late, the astounding success of Indian real estate developers have inspired many business organizations to either diversify into the sector as a full-fledged construction company or at least get its properties generate rental income. Besides, some are also poised to sell their assets at premium prices.
In a bid to explore the opportunities lying in the sunshine sector of real estate, a suit of India's business conglomerates has set itself high to utilize its land bank for the development of new properties. In fact, many of these are teaming up with established real estate developers to get things on the right track. Well, of course, the move is likely to enhance the revenue charts of these companies. Nevertheless, the rising value of prime land and the robust outlook of the realty sector have led to the increase in interest in real estate. Consequently, from automobile companies to plastic manufacturers, everyone needs a piece of this cake.
It has been observed that mostly the corporate houses tie up with developers for their project. The corporate houses bring in the land for development and the developers bring in their experience in real estate development. During 2006, we saw many business houses partnering, some of them were: Punj Lloyd with Delhi-based real estate developer Ramprastha Group for developing multi-storied residential housing project. Nilkamal Plastics entered the real estate business by forging an alliance with the Mumbai-based Bhoomi Developers. The company unlike others also ventured in converting its dilapidated properties into commercial properties.
Also, Rajesh Exports had set up a 100 per cent subsidiary-Bangalore Infrastructure Ltd to enter real estate and infrastructure development. The company had in past acquired properties at prime locations in Bangalore. The subsidiary will develop office complexes, residential and commercial properties. Asian Tea in a bid to diversify also entered into the real estate segment, and was acquiring locations for commercial development in Kolkata. It would be worth observing if the large corporate houses show the developer a trick or two to extract more from the gold mine
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