Mukesh Ambani mulls entry into low-cost housing

After successfully dabbling in organised retail in 2006,
Mukesh Ambani, chairman of India’s largest private sector
company, Reliance Industries (RIL), has now set his eyes
on no-frills, low-cost housing. The initiative, still on the
drawing board, could be kicked off by 2010, reports Business Standard.

An RIL official said the company would do large projects
and at multiple locations.
“RIL has deep pockets and excellent execution skills.
It has executed two large projects like the Jamnagar refinery
and the KG-D6 basin in a record time. Another such large
project is only obvious for the company to get into,” a source
close to the development was quoted as saying.

RIL holds a land bank of 5,000 hectares in Haryana
through Reliance Ventures, a subsidiary of RIL created
by forming a joint venture with Haryana State Industrial
Investment Development Corporation and over 4,840
hectares through the Navi Mumbai SEZ, in association with
Cidco (the Maharashtra government’s industrial and township
development arm), the report added.

“RIL is sitting on a huge land bank with regard to its
special economic zones (SEZs) in various locations.
It could be putting that to commercial use for mega housing
projects in the no-frills category,” said an analyst from a
Mumbai-based broking firm who tracks RIL closely.

Earlier this year, the Tata Group’s unlisted firm,
Tata Housing Development Company, said it would
invest up to Rs 100 crore in a 1,200-unit township at
Boisar, on the outskirts of Mumbai, and would sell
apartments at prices ranging between Rs 3.9 lakh
and Rs 6.7 lakh. The company aims to build up to 15,000 low-cost
homes over the next four years across several cities, including
Mumbai, Delhi and Bangalore, it said.

Source:Business standard