Indian industrial bigwigs in real estate sector

Now it’s the turn of Tata and Birla to try their lucks in the domain of real estate sector. It has been learnt these two globally acclaimed business groups of India are going to enter into the real estate sector with the same vigor and capital that have been their USPs (Unique Selling Proposition) for decades. While the Birla family happens to be one of the foremost business houses in the realm of India and has left its mark almost in every sector of national life, the Tata Group is a multinational conglomerate and in terms of market capitalization and revenues, it is the largest private corporate group in India.

What has been the prime reason to stimulate these two groups? Is it the ongoing downturn in the global arena and its domino effect on the Indian soil? Well, nothing is known yet, but it seems that both are definite to exploit in the best manner. However, as has been learnt, there are differences in the approaches of the two. The Birlas, by means of a financial services arm, are offering real estate as an alternative investment option to clients. On the other hand, the Tata Group is planning to develop surplus land under the possession of group companies. What’s more, according to experts, the Tata group is keen to invest in the sector part of funds raised through recent public offerings.

There is an existent recession as already said and the two are making the foray when real estate prices are correcting and low demand for projects (thanks to slump) have made many leading groups abandon lofty and ambitious projects. It is sure that each of them is going to work in large and profitable projects instead of any meager tract of land. Where the money will come from then? The global market is almost at the bottom and the Indian economy has failed to leave any mark too.

Furthermore, unyielding lending norms, adverse primary market and global financial worries have affected fund flow into the Indian property market. Nevertheless both are confident that essential money will be collected from the international market. Will it be ever? We have strong doubts but it’s definite that both groups can stimulate the Indian scenario though proficiency.