Dewan Housing launches unit to target low-income states

Wadhawan Group, a real estate to retail company, is planning to target the low and low-middle income households in low-income states, by launching a new subsidiary — NewCo — under its housing finance firm Dewan Housing Finance Corporation.

Dewan Housing, which has been operating in India for the past 25 years, is set to kick off this project, with around Rs 100 crore, and is looking to divest around 20 per cent to a private equity investor.

NewCo will look at low and low-middle income households in Bihar, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand and Orissa.

“NewCo will target low and low-middle income households, who typically have limited or no access to formal financial services, and help improve access to housing finance for them,” a PE industry source detailed.

He added the low-income states, targeted to be reached through this project, account for a substantial proportion of the housing demand shortfall in India. “Despite this large demand, these states are highly under penetrated in terms of availability of affordable housing finance and this project is expected to help meet that demand.”