TVS Motors, a leading auto and two-wheeler developers, has entered into the real estate business by launching their first residential project in Chennai.
TVS group, the auto-major, has stepped into the real estate business with their new residential project in Chennai. This is the first major expansion of the group since it was established nearly four decades back. Emerald Haven Realty, promoted by the auto major, has already launched a residential project in Chennai.
Their initial project- Green Hills is launched at Perungalathur in South Chennai. Each housing unit, the project has total 448 housing units, is priced between Rs.25 lakh to Rs.45 lakh. However, TVS Motor’s CMD Mr. Venu Srinivasan could not be contacted for any comment on the group’s entry into the real estate sector.
No financial details are available. Yet experts opine that the plan of TVS Group to enter into the real estate business is significant. In the last four decades, TVS Motor group has not entered into any other massive businesses. The group has been concentrating on two –wheeler and motorcycles, a person with direct knowledge commented.
According to a property consultant, TVS Motor group is into real estate for longer period of time. He added that the housing will remain as a priority for many decades and the real estate wave does not seem to go away very soon. Real estate business could become a turning point to the group.
South India witnessed many successful entrepreneurs like Ashok Leyland, India Cements and Sanmar Group stepping in to the real estate business massively in early 1990s. Seeing the opportunity they all entered into building housing projects. However, they all quit the business as the competition increased it their core business.
Chennai-based real estate consultant said that how long the TVS Motor group will remain in the real estate business is a matter of doubt. When “competent” remains the keyword for all sorts of businesses, how the motor group will concentrate on other business? Anyway the group will not be leaving behind its core–business for the real estate business.