The Tata Group is keen on giving a thrust to infrastructure.
Present in the sector for the last 100 years, today eight Tata group companies are involved in infrastructure.
At a media roundtable on Wednesday, senior Tata executives said that from around Rs.25,000 crore today, Tatas would execute projects worth Rs.70,000 crore by 2017 in infrastructure sector through three unlisted companies — Tata Realty & Infrastructure (TRIL), Tata Housing Development Company (THDC) and Tata Projects.
Tata Realty
Tata Realty & Infrastructure (TRIL) is into verticals such as infrastructure development, advisory services, commercial real estate and programme management. “We will execute projects worth around Rs.23,000 crore by 2017 with the bulk being in roads (Rs.7,500 crore), airports (Rs.5,000 crore) and real estate (Rs.4,000 crore),’’ Sanjay Ubale, Managing Director & CEO, TRIL, said.
The investment environment in infrastructure was more conducive now. “There is a lot of interest by foreign equity players regardless of the dollar-rupee rates as they look for a 13-15 per cent internal rate of return (IRR). We will consider an initial public offering (IPO) in a few years after our road projects cross 3,000 highway kilometres.”
It is executing a 4-lane 154 km stretch on the Pune-Solapur highway. It acquired three projects from IVRCL for Rs.2,200 crore. TRIL is keenly looking at airport development in Jamshedpur, Goa and the Navi Mumbai International Airport.
Tata Housing
Tata Housing Development Company (THDC) is into residential real estate where it is present in the affordable housing segment through Shubha Griha (Rs.8-11 lakh) and New Haven (Rs.15-40 lakh) and the premium segment with units priced between Rs.3-12 crore.
Brotin Banerjee, Managing Director & CEO, THDC said “We have a growth and de-risking strategy with an asset light model as half our projects are jointly developed. We will execute projects worth around Rs.25,000 crore by 2017.’’
It is in talks for a Rs.3,000 crore redevelopment project in Sri Lanka with the Urban Development Authority.
Tata Projects
Tata Projects is into EPC across seven verticals, including power generation, T&D, Railways, process industries, oil & gas, water and quality assurance. The company had an order backlog of Rs.15,000 crore for three years and by 2017, it would execute projects worth Rs.25,000 crore, said Vinayak Deshpande, Managing Dirctor, Tata Projects.
It is executing power projects with capacity of 1,300 MW in Bhusaval and Krishnapatnam, a dedicated eastern railway freight corridor and is bidding for city metros. “Besides, there are great opportunities in waste water management in emerging metros,” he said, adding that the company was commissioning India’s largest blast furnace for SAIL at Rourkela at 4,050 cubic metres and 8,000 tonne capacity.
