New Delhi: Triveni Infrastructure Development Company (TIDCO) was set up with the intention of providing modern residential units within an affordable price band. With the capital’s real estate prices sky rocketing in the early 90’s and satellite townships beginning to take shape, it made good business sense to build 2-3 bedroom units in condominiums which had necessary back up facilities, but which did not go beyond the Rs40 lakh range.
Making affordable housing a reality
Making affordable housing a reality
Needless to say, the focused strategy of the group worked and their projects found encouraging market response. A family owned enterprise, within two decades, the company has under the stewardship of the brothers, Sumit and Madhur grown, into a Rs3000 crore conglomerate with diversified interests in domains of real estate development, automobiles, entertainment, finance and media.
Excerpts from an interview with livemint, where Madhur shares some of his thoughts on the company’s growth and future plans.
Q: Is it a conscious decision to focus more on the NCR than in the tier II and tier III cities?
Q: Our experience has shown that housing investments by people are based on the trust that they have in the builder they choose. To that extent, the local developers have a much stronger visibility. They are accessible and the fact that the prospective buyer can walk into their office any time, gives them a certain confidence, which an outside player cannot. Besides in the last decade there have been enormous opportunities for us to develop complexes in Ghaziabad and Faridabad. In our next phase we are looking at extending our operations in Gurgaon, Punjab, Uttar Pradesh, Madhya Pradesh, Chattisgarh and other northern states.
Q: Real estate prices in Delhi and Gurgaon have seen a correction in 2006-07 with prices dropping by nearly 20%. Do you see this trend changing?
A: The current Master Plan and General Plan drawn by the government is valid for the next 20 years. Land use has remained fixed which has turned out to be a gold mine for builders. Till 2020, commercial area will remain commercial. The current situation is such that there is no land available. A natural corollary is that prices will go up. Price stagnancy is not an issue. We are more of a control economy, under the circumstances, not a free economy. The timing is right and with systematic development, we can see at least 200% appreciation in the next three years in Faridabad and Ghaziabad where with the coming up of the express highway, enhanced connectivity and an international airport will give the requisite push.
Q: The concept of integrated townships – how effective are they, especially when towns like Faridabad and Ghaziabad are not particularly lauded for their law and order situation?
A: Which is precisely why we have spent a lot of thought in designing these integrated townships. Our clientele, which is mostly young working people in the age group of 25-40 years need to have the comfort of a residential complex that has all the facilities and services that they need. After spending four hours commuting to work and back, they are unlikely to have the enthusiasm and energy to drive out for dinner or go to the gym or to shop. By having an integrated complex that has restaurants, walking spaces, parks, malls, health clubs, community/ recreation centres we are trying to sell them a complete lifestyle that is safe, healthy and in sync with their aspirational needs. And ofcourse, the bottomline is that all this is within an affordable price range.
Q: What are some of your upcoming projects?
A: We are quite involved at the moment in developing 500 township villas in Faridabad, the project size of whichis Rs5000 crore. Projects in Dharuhera and Rewari in Haryana are under the approval stage and should take off by February, 2008. A 13-acre commercial and group housing project is also in the pipeline in Gurgaon.
An IT Park at Greater Noida will have a commercial complex, multiplex and entertainment zone along with a residential area; Triveni Galaxy at Faridabad is spread over a sprawling 100 acres offering premium 2/3/4 bedroom apartments; an integrated township in Noida is also underway.
Meanwhile the group is strengthening its presence in the automobile and media space. Triveni Group is a trusted name in the retailing of Maruti Cars, Honda Scooters and JCB Construction Equipments and Triveni Media is a group company that already has a channel that is devoted to religion. We will be stepping up our bouquet of satellite TV channels and entering the news, entertainment, business and lifestyle segments.