Indu Projects looks to affordable housing

Indu Projects Limited, a Hyderabad-based infrastructure and real estate company, is considering taking up affordable housing projects. It is currently scouting for suitable land parcels where it can launch the affordable housing projects for low and middle-income groups, said the company's chairman and managing director I Syam Prasad Reddy.

Speaking to Business Standard, he said the pricing will depend on the cost of the land. “We expect the pricing of the housing units to be truly affordable within a price band of Rs 5-12 lakh depending on the size and location,” he said.

According to him, the salability of such projects is very high in the current market conditions. Also, banks are keen on funding affordable housing as the internal rate of return is high. The company has lined up core infrastructure and residential projects this year.

“The company will not deter from making investments in the planned projects,” he said, adding that the company was in a position to raise funds from creditors for its growth plans.

Indu, started in 2001, has operations across the country and expertise in developing IT parks, IT SEZs, townships, shopping malls, multiplexes, hotels, theme ventures and irrigation projects, energy projects and roads in the infrastructure segment. It’s turnover for 2007-08 was Rs 1,567.7 crore.

The affordable housing is part of Indu’s plans to align its business to the present market conditions.

“There is a lot of opportunity in affordable housing, which was relatively lesser focused till recently,” he said. Growth in the real estate sector has decelerated in the past due to non-availability of credit and investment flows, which again is attributed to the high cost of housing projects, he added.

“We are now rationalising our staff. Excess staff from certain projects are being realigned to other projects instead of hiring new recruits. For instance, we have deployed 150 engineers from urban infrastructure to core infra projects. On the other key manpower positions, we are continuing to recruit talent,” Reddy said.