Diversified business group Essel today announced its foray into the affordable housing segment with plans to develop 10,000 homes next year entailing an investment of Rs 800 crore.
The Subhash Chandra-promoted group is targeting to build 2 lakh homes across the country by 2022 in line with the government's vision of 'Housing For All' by 2022.
Essel Group already has presence in the real estate sector through Suncity Projects (P) Ltd.
Chandra said the first project will be launched next month in Panchkula, Haryana at about Rs 1,500 per sq ft. The starting price of a flat will be Rs 15 lakh.
Besides, the company plans to develop affordable homes in Hisar, Bahadurgarh and Rohtak in the first phase.
"We are entering into the affordable housing as there is a huge demand in this segment. We will develop 10,000 affordable homes in 2016 and the target is to construct 2 lakh homes by 2022," Chandra told reporters here.
The affordable homes would be launched under the brand name 'ASHA (affordable shelter housing for all) 2022'.
The project cost for 10,000 homes would be Rs 800 crore and the same would be funded through internal accruals and advances from customers against sales, the company said.
Chandra said, the group will ramp up the construction capacity every year and meet its target of 2 lakh flats by 2022 with focus on fast construction, less margins and timely delivery.
Essel Group is in talks with a Japanese construction company for developing these projects.
"We will be tying up with a Japanese construction firm in the next 2-3 weeks," Chandra said without disclosing details.
The group would develop these projects through dedicated special purpose vehicles (SPVs) for each state. For Haryana, the group has shortlisted a partner and it is looking for entrepreneurs for other states like Uttar Pradesh.
Asked about the land bank, Chandra said the group would undertake outright purchase of land and also form joint ventures with land owners to develop the housing projects.
Chandra said it is the best time to enter the affordable housing with real estate sector facing demand slowdown.
Essel Group has presence in various sectors, including media, entertainment, packaging, infrastructure and education and technology among others. The group's listed entities have a combined market capitalisation of over USD 6 billion.