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Cynthia Rodrigues
Tata Realty and Infrastructure has set
its sights on building up fast in a booming market
Tata Realty and Infrastructure (TRIL), one of the newer
companies in the Tata Group and a 100 per cent subsidiary
of Tata Sons, is all set to play its part in developing
the nation.
Dinesh Chandiok, managing director, TRIL, is enthusiastic
about the tremendous opportunity available for the growth
of realty and infrastructure in India. “This is
an area that is really growing. There is a huge opportunity
to build and develop the nation, to really do something
positive for the country,” he says. “The market
is worth $6 billion a month. Already the lack of infrastructure
is impacting our GDP significantly.”
TRIL’s development philosophy is to focus on strategic
projects with long-term returns, to undertake projects
of a size, scale and quality that are worthy of the
Tata brand, and to execute projects in accordance with
Tata values.
TRIL’s initial focus is on real estate —
which will include projects for Tata Consultancy Services,
other Tata companies and market opportunities —
and infrastructure, comprising airports, urban infrastructure,
special economic zones, roads, bridges and more.
“The Tata Group has a huge land bank, plots of
land that have been bought over the last 100 years and
more,” explains Chandiok. “These plots now
have a lot of value. Our job is to unlock the value
on some of these projects. We will do this by conducting
a highest and best-use
analysis to see how we can maximise our returns on a
particular piece of land.”
TRIL is currently pursuing the development of real
estate assets of various Tata companies. On the infrastructure
side, the company is trying to qualify for the Metro
Phase II in Mumbai. It is also trying to participate
in the Worli-Nariman Sea link project.
The government too has woken up to the urgent need
for building up the infrastructure. It is encouraging
public-private partnership for infrastructure development.
The projected growth in the urban population is also
creating a need for more homes and better infrastructure
to cater to the increasing population and the ensuing
lifestyle changes. TRIL estimates that migration to
urban areas will
also fuel a demand for housing.
Even as the opportunity grows, so does the need for
trained and experienced people who understand the infrastructure
and realty business well. Chandiok says, “Real
estate is about money; bricks and mortar come later.
We need people with a basic understanding of finance.
We will then train them on aspects relating to real
estate.”
One area that TRIL is ready to get into is the development
of logistics parks and distribution hubs. “This is
an important area,” says Chandiok, “because
trade inside India is growing rapidly and there is no
logistics mechanism here. We pay three times the distribution
costs, when compared with the US. There is a huge opportunity
to bring costs down and speed up delivery. So we need
logistics parks in key locations in the country.”
Establishing a logistics park, however, is a difficult
task. There are a number of things to be worked out,
including the building of a railroad siding so that
material can be brought in, proximity to airports and
highways, and access to a proper distribution network.
To work out all these issues, TRIL has entered into
a joint venture with JAFZA, a
Dubai World Subsidiary. Chandiok says, “They have
a lot of experience in doing this in many countries.”
TRIL has also signed an MoU with Changi Airports International
for investing in, developing and operating airports
in India. The company will enrich the joint venture
with its wealth of local knowledge.
With these and many other plans, TRIL is eager to establish
itself among the heavyweights of the industry as soon
as possible.
Uploaded in January 2008
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