The Hindu Business Line : Akshaya Homes investing Rs 250 cr in Coimbatore

The company, which recorded a turnover of Rs 100 crore during last year, expects the business to grow to Rs 450 crore during the current fiscal and Rs 1,000 crore in the next year.

Speaking to newspersons here, Mr T. Chitty Babu, Managing Director, Akshaya Homes Pvt Ltd, said with the metros becoming over crowded, the IT companies were moving towards tier-II cities.

Akshaya wanted to capitalise on this trend and is launching its first residential project at Sundarapuram in Coimbatore which is being wooed by the IT and manufacturing industries. The project would have 142 apartments and the price is Rs 2,250 per sq feet. In line with the present trend, the project would have a club house, children’s play area with equipment, indoor recreational rooms and a mini AV theatre.

Residential project

He said the company was planning to launch a commercial cum high-end residential project on the Tiruchi road close to Race Course and an integrated project with an IT park and residential apartments on the Sathyamangalam road in the city. The total investment on these projects would be about Rs 250 crore.

Apart from Chennai and Coimbatore, the company would enter the real estate markets in Bangalore and Madurai this year. He expected the turnover of the group to be around Rs 450 crore during the current fiscal, up from Rs 100 crore turnover during last year.

Mr Chitty Babu said the company has also planned to enter in other towns in Tamil Nadu such as Hosur and Tirunelveli and spread its wings to big cities such as Hyderabad to establish a South Indian presence. Asked about the reasons for the growth optimism, he said the land bank for reaching a target of Rs 450 crore in the current fiscal was already available with the company. When this target was reached, the company would have 16 or 17 on going projects and about 10 projects would have been handed over. Similarly, for the next year, the company already has projects worth Rs 780 crore on hand and there would not be any hitch in reaching the Rs 1,000-crore turnover. He said the hike in home loan rates would not hamper the growth of the realty sector. With the economy firing on cylinders, he expected the housing sector to witness a sustained growth, at least for the next 4/5 years as housing demand was fuelled by growth in other sectors of the economy.

He said he has no plans to go for any public issue.

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