Mitigating Business Risk By Catering To Rising Demand For Affordable Housing
Our foray into the business of real estate was part of our strategy to diversify our risk and broaden our offerings so as to lessen the vagaries and challenges of the other industries we are engaged in. We foresee enough potential, given the rising demand for affordable housing and infrastructural growth.
As part of our diversification and risk mitigation strategy, we diversified into real estate business. We have constructed two projects which are completely debt free. The Pradhan Mantri Awaas Yojana introduced by the Government for loans up to `12 lakhs has opened several opportunities for the affordable housing segment. With attractive subsidy on interest on home loans, it is a good opportunity for first time home buyers in the rising Bathinda City to leverage the prospect.
Bathinda – The New Growth Centre
Bathinda is the next growth centre of Punjab, located at the hub of Malwa region comprising the adjoining districts within a distance of 60-80 Kms – Barnala, Sangrur, Faridkot, Moga, Muktsar, Ferozepur and Fazilka. With a population exceeding 4 lakhs, the quiet town has become the hub of economic activity. The city is a leading cotton belt and has become a medical, engineering and business hub and on its way to become ultra-modern industrial, business and educational city of Punjab with modern facilities such as a domestic airport, several universities, hospitals, refinery. Other infrastructural progress in the city includes four-laning of major highways, water-based sports and the proposed All India Institute of Medical Sciences (AIIMS). It is one of the largest cantonment and railway junction in Asia and has close proximity to the State of Haryana and Rajasthan. It is the nodal point for attracting huge business and investment.
This is our first project is an integrated township project of 65 acres at Dabwali Road, Bathinda City.
The project includes service plots, villas, group housing, commercial complexes, mall and a dedicated temple. The township also has a school, club and community centre.
Most of the inventory of this project has been liquidated. We expect to liquidate the remaining part of the inventory during the current financial year.
Salient Features of the Project:
- Fully secure township with boundary wall
- Community hall, worship and meditation place
- Breathtaking lavish gardens and fountains
- Well-planned and well-lit metalled roads
- Regular canal water supply with power back-up
- Planted pathways and jogging track
- Round-the-clock surveillance through CCTV
- Bank, ATM and shopping facilities within township
- Single-point electricity connection
The second realty project is a mid-segment housing project located at Multania Road in the heart of Bathinda City.
The project of 555 flats and commercial units has been fully constructed and handed over to occupants. Most of the inventory has already been sold.
The Company foresees the balance inventory to be liquidated in FY2018 with the ever increasing need for mid-budget housing in Tier 2 & 3 cities and a host of schemes announced by the Central Government for Affordable Housing under their theme “Housing for All by 2022.
Salient Features of the Project:
- 24-hour gated security with CCTV cameras
- Attractive and suitable fittings for utility
- Provision of ample natural light
- 24-hour water supply and power back-up
- Excellent connectivity to newly-built Ring Road, Administrative and District Court Complex, Main Bus Stand, Dhobi Bazaar, Sirki Bazaar, Grain Market, Vegetable Market and Adarsh School
- Well connected to railway station, reputed educational institutes and domestic airport
- Bank with ATM, domestic gas agency and National Bakery