Nano Homes
TATA, the company that made worldwide headlines with its $2,000 Nano car, now plans to build 1,000 tiny apartments outside Mumbai that will sell for $7,800 to $13,400 each. The company plans to roll out low-cost projects outside other major cities.
TATA Housing, a subsidiary of Tata Sons, today launched the project that will have 1,200 apartments under the Shubh Griha brand. To be built on a 63-acre plot in Boisar — north of Mumbai — the price range for the apartments would be between Rs 3.9 lakh and Rs 6.7 lakh. The project, whose timeline is about two years, is expected to clock a turnover of about Rs 100 crore, the company said.
Under Shubh Griha, the company would be offering houses in three sizes — 283 sq ft, 360 sq ft and 465 sq ft. Interestingly, a couple of private builders are already selling homes at similar rates in Boisar
Tata's housing division is targeting a segment of the market that was largely overlooked during the housing boom. India's builders were concentrating on building shiny new high rises and mansions on golf courses. Builders were after profits, but they were also trying to justify their fast-accelerating land costs, especially in and around Mumbai (formerly known as Bombay) and other major cities.
But some business consultants (most prominently, C.K. Prahalad) were arguing that companies would profit handsomely if they target the "bottom of the pyramid" where the bulk of consumers are. It looks like TATA is taking that advice.
Luxury flats in Mumbai can cost more than ones in Manhattan. But these apartments won't be luxurious. The TATA apartments will be built on 67 acres in Boisar, an industrial area where many lower-wage commuters already rent. These apartments will be absolutely tiny. The carpeted area of the smallest units will be 218 square feet, too small even for most Manhattanites. The largest units would be about 373 square feet . Can you imagine squeezing a family into one of these units? The community would have its own garden, post office, meeting hall, schools, and hospital.
TATA is not targeting India's poorest people or even the lower middle class.
They are targeted at folks earning an annual salary of $6,000 to $10,000. The average call center employee with 10 to 20 years experience earns 320,000 rupees or about $6,400 a year.
Today, the company has over 15 million square feet, with 80% going towards residential and the balance for retail.
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