The Hindu Business Line : Chasing the skyline on its way up in Chennai

THEIR business has grown and changed with the city's skyline. Appaswamy Real Estate Ltd, which started in 1959, is today a Rs100-crore company and a leading player in the real estate market in Chennai.

Mr Ravi Appasamy, Director, Appaswamy Real Estate, said the company had seen the various changes that the city's construction industry had gone through. During his father's time (the company's founder) the company acquired and promoted a number of layouts in and around the city. The demand for housing picked up in the late 1970s and the company constructed flats in T.Nagar and Mylapore, he said.

Since 1980, the company has built over 300 million square feet in the city. At present, there are six projects on the drawing board. Apartments, nowadays, cater specifically to family units with recreation areas, party space on the terrace, common gas connection, car parking for all residents and 10 per cent space inside the compound for parking visitors' vehicles. The land around the apartments is landscaped and recycled water is used for gardening.

Reverse osmosis plants are another important difference in today's apartment blocks. The capital cost is around Rs 25 lakhs, but this is mitigated by the low running cost of about Rs 500 per apartment per month, said Mr Appasamy.

Since the 1980s, customer preferences have changed considerably. People want larger rooms with well-designed kitchens and bathrooms. In kitchens, for instance, the black Cuddapah stone counter has given way to coloured granite. The modular kitchen has become the norm, rather than the exception, Mr Appasamy said. The average cost of outfitting the kitchen would be around Rs 1 lakh, he said.

The next in importance is the bathroom. Once again, people are willing to spend on faucets, bathtubs, shower cubicles, designer tiles and so on.

In 1991, the company diversified into the hotel industry and started The Residency, a 3- star 133-room hotel in T.Nagar, a major commercial part of Chennai. Another Residency came up in Coimbatore three years later. This was followed by the Residency Towers, a 4-star hotel, also in T.Nagar.

Talking about growth plans, Mr Appaswamy said the company would continue to operate in these two segments. In the real estate business, the company would continue its business in Chennai while the hospitality sector would see expansion into Bangalore and Hyderabad.

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