Maldives:

The First International venture:

Tata Housing Development Company Ltd., a leading real estate developer, has
announced its entry into the international market with the launch of its first overseas
project in Maldives.
The project will be jointly developed with local company SG18 Developers Pvt. Ltd
under the banner of Apex Realty, a special purpose vehicle (SPV) created for the
Maldives foray.
Brotin Banerjee, MD & CEO, Tata Housing Development Company, said, This
venture marks our international foray and gives us the opportunity to showcase our
expertise of building affordable as well as luxury housing in the foreign market.
In the coming years, we plan to expand our footprint in other SAARC nations and
Africa.
Problem in Maldives Market:
The Republic of Maldives is an Indian Ocean archipelago located 600 km south of
India extending from 0 degree 42 minutes 24 seconds south of the equator to 7
degrees 6 minutes 35 seconds north. It consists of 1192 small islands forming a
chain, scattered across 820 km in length and a maximum of 120 km in width within
an area of 90,000 sq km. The Exclusive Economic Zone of the Maldives extends
over an area of 859,000 square kilometers. For administrative purposes, the 26
natural atolls of the Maldives have been classified into 20 groups, each of which is
referred to as an "administrative atoll".
Housing stress comes from a variety of sources, all of which can be ascribed to
factors limiting residents from accessing adequate housing. At the national level,
some 12,000 families do not have their own housing. While few if any of them are
technically homeless in the sense of sleeping rough on the street, this means that
the equivalent of 85 per cent of the households in Mal are either crowding in with
other families or living in temporary/makeshift living space. At the same time,
Government efforts to supply housing to the market will remain at approximately 500
units per year for the foreseeable future, though none of this is intended to be
constructed in Malv
.Problems in housing availability and access are considerably compounded by
growing problems of housing unaffordability, which appears to be largely unregulated
by the Government. And even when housing can be found which is affordable to
residents concerned, many dwellers are forced to compromise in terms of
convenience, size, surroundings or proximity to institutions that are important to the
family (e.g. school, hospital, place of employment).
Housing Stress in Mal
In interviews in Mal (the countrys most urbanized settlements), ward officials,
members of the Development and/or Women's Committees, and other interested
local residents repeatedly described their housing situations as being nothing short
of dire. The research team heard repeatedly about issues such as exorbitant rent
levels, housing space, size, and overcrowding, unaffordable access to clean drinking
water, and many other problems. Here are just a few of the many examples
described to the research team:
Unhealthy Living Conditions / Habitability: A woman from Machangoalhi rents one
15sq ft room for herself and two sons. There is no ventilation, causing moisture to
condense and then drips down the wall. To keep the water from pooling on the floor,
they removed the linoleum flooring, leaving the cement floor bare.

Social Problems: Another woman lives with her family of six in one room. Three of
her children are over 18 years old. She says the majority of families in the ward live
in similar conditions. She and her husband force the children to leave the apartment
frequently because the parents cannot cope with having so many people in such a
small space at the same time. Other parents in similar situations have taken to
renting rooms by the day when they need some privacy.
Many respondents indicated that these circumstases were very common place and
indentified these problems as the key cause of rising social problems such as gang
warfare and drug abuse.
Furthermore, several social problems are also faced within the household including
child abuse,pshychological impact in growing up in areas of overcrowding,
breakdown of many families due to the hardship aced by them stimulation a ripple
effect o social disorder for the familes, the children caught in the situation.
Migrant Workers: Over 30,000 vi international migrant laborers now resident in Mal,
typically live in even more crowded situations. Local residents reported as many as
30 men sharing 3m x 3m flats without running water or sanitation facilities. These
workers have to queue at public water taps to access clean water and often have
sleeping shifts as not all of them are able to fit into the space they occupy at the
same time.


Institutional Support Role of Maldives Government
Maldives and especially Male, faces acute housing shortage with a long waiting
period, high population density and inadequate infrastructure facilities. In order to
cater to this shortage, the Government of Maldives has launched a $500 million
project to develop 10,000 housing units for the Maldivians.
Apex Realty has signed an agreement with the government for developing
residential apartments through a public private partnership (PPP) model. Tata
Housing will develop about one million sq. ft., at an estimated cost of Rs.850-900
crore in the PPP model, with the Maldives Government. The funding will be through
internal accruals and debt.
The project will be developed with SG18 and Tata Housing holding 65 per cent and
SG18 the balance 35 per cent in the SPV. The PPP contract is between the SG18
and the Government of Maldives.
The Government has allocated four plots on a long-term lease of 50 years to Apex
Realty to develop residential Apartments and retail space in Male.
While 80 per cent of the apartments will be handed over to the government, the
balance will be sold in the open market by Apex Realty. Additionally, the government
will provide commercial space measuring 1.5 lakh sq. ft. to be developed and sold or
leased out for 50 years and an exclusive island (Lhossalafushi) on Faadipolhu Atoll
to develop premium luxury villas measuring 20,000 sq. ft. each.
All residential properties are designed by reputed architects, F+A of the U.S. Other
amenities include unique landscaped deck designed in such a way that residents
can use it as social community space, swimming pool, spa and gymnasium, parking
space, secured access to residential lobbies and barbeque counters.

Projects in Maldives:
LA GRAND (to be sold in the open market by Apex Realty)
Towering amongst Mals skyline is an address you can tell apart from a distance.
Designed by reputed international architects F+A of the US, La Grande will be
developed by Apex Realty, a SPV jointly floated by Tata Housing Development
Company Ltd. and SG18 Realty Pvt. Ltd. The architectural sophistication of this
project will provide its residents elegance through its unique contemporary design.
Each residential unit is strategically designed to maximize its living space and the
flow of natural light and air.
La Grande, an exclusive offering, unfolds at two of the finest addresses of Mal:
Royale and Palais.
Palais, Block 263, Odeon
Located in a very desirable, high fashion retail district, Palais, will comprise of a nine-
storied residential condominium building and a six-storied Class A office building with
a rooftop pool deck which overlooks the city and the ocean. It will also feature
ground level and mezzanine retail/commercial spaces.
The architectural character has been developed by using modernist principles with
contemporary clean lines and details. Designed to adhere to the prescribed city set-
back requirements, each floor will have four spacious 3-bedroom 2-bath units with a
maids quarter. All units will feature balconies accessible through the bedrooms.
Royale, Block 58, Nahadi
Situated just one block from the exotic Male beach, Royale will comprise of a nine-
storied, 36-unit condominium building and a nine-storied service apartment complex.
Retail shops, including a two-screen cinema, will be located on the ground floor while
office tenants will be on the mezzanine level.
Using modernist principles and contemporary clean lines and details, the residential
component has been designed to adhere to the prescribed city set-back
requirements. Each floor will have four spacious 3-bedroom 2-bath units with an
internal maids quarter for each tenants convenience. And all units will feature
balconies accessible through the bedrooms. Also the luxurious service apartment
component offers business travellers 72 spacious studio and 1- bedroom
apartments. Each apartment will feature balconies overlooking the spectacular island
view.
LA VISTA (to be sold to government nominated buyers)
Envisaged by the Government of Maldives, La Vista will be developed by Tata
Housing Development Company Ltd., and SG18 Realty Pvt. Ltd., Designed by
reputed international architects, F+A of the US, La Vistas architecture will
characterize modernist principles with a contemporary look. Located on Gakoshi (La
Premiere) and Ma. Wayside (La Presdtige), La Vista will not only have natural light
and ventilation for all its residents but also offer an exclusive escape to a unique
landscaped deck above the retail podium.
LA PREMIERE, Gakoshi
Designed to give residents a relaxing atmosphere. This block is located next to a city
park. The central fountain within the internal Retail Street will enhance the
courtyard that would welcome visitors and residents alike.
LA Prestige, MA. Wayside
This unique block is designed around a large central retail courtyard, which gives its
residents an ideal escape from the busy urban streets. Residents can enjoy the
tranquil atmosphere as well as have the benefit of convenience shopping.
Tata Housing to construct project in Sri Lanka
Tata Housing has tied up with the Urban Development Authority (UDA) of Sri Lankan
government to invest in 6.7 mn sq ft project in Colombo. Tata Housing has said that
it will be making more than Rs 1,000 crore investment for this project. It is a mixed
use premium development in the heart of the city. The entire project duration will be
6 to 7 years, the company added. Moreover, the company will get 5.5 mn sq ft of
developable area. Its free sale component will have both residential and commercial
area. This will be the company's second international project after Maldives. In
addition, the company is also said to be in active talks for a project in Bangladesh.
Also, Tata Housing is scouting for more big ticket projects in other international
markets, especially SAARC nations and Africa.
Tata Housing is uniquely placed because we are present in multiple cities, which is a
major de-risking factor. We also straddle across all consumer segments from value
housing to ultra-premium luxury housing, so in case one segment suffers due any
economic factors, other balance the growth. We did a large number of projects on a
joint development agreement (JDA) and joint venture (JV) basis which helped us in a
big way during the recession.
Tata Housing ventured into the overseas market with a project in Maldives, where
we plan to develop about 1 million sq ft, at a cost of Rs8.5-9 billion, in a PPP model
involving the Maldives government. While 80 per cent of the apartments will be
handed over to the government, the balance will be sold in the open market by Apex
Realty, a special purpose vehicle created for this foray. Additionally, the government
will provide about 150,000 sq ft of commercial space and an exclusive island
(Lhossalafushi) on Faadipolhu Atoll to develop premium luxury villas measuring
20,000 sq ft each. Maldives and especially Male, faces acute housing shortage with
a long waiting period, high population density and inadequate infrastructure facilities.
The market for real estate assets in Sri Lanka has shown a significant growth
phenomenon since 2009 with a marked increase in price levels of real estate assets
including bare lands, residential housing, commercial premises and condominium
style apartments. The changing landscape of Sri Lankas real estate market is likely
to be further elaborated by shifting lifestyles of real estate buyers including broader
acceptance for apartment style living, further cities becoming accessible and
equipped with necessary infrastructure and a growing leisure sector across a
number of districts in Sri Lanka. Further transformation is also likely to take place in
the city of Colombo which moves to becoming a picturesque and yet commercial city
which could emerge as a trade hub for South Asia. Going overseas in real estate is
not very conventional, but Tata Housing saw it as a "good opportunity". We are doing
PPP projects along with the governments of Maldives and Sri Lanka, we thought it
was a good opportunities to move beyond our boundaries and execute projects in
foreign land. Since PPP projects are supported by respective government of the
country, it becomes far easier to execute as approval and the regulatory hindrances
are cleared faster. The key is to globalize profitably without compromising on values
or the nations interest.
Other companies in Competition:
1. DLF Limited
Laing O'Rourke is a UK-based construction company that built Dubai International
Airport and London's Millennium Tower. It will construct all DLF's landmark projects.
Nakheel of Dubai are partnering with DLF for developing townships in India. WSP
Group Plc is also partnering DLF, providing management and consultancy to the
built and natural environment. Feedback Ventures is providing consultancy for faster
project execution. DLF has also teamed up with Hilton Hotels to jointly develop
hotels in India.
2.Godrej Properties Limited
Godrej Properties, the real estate arm of Godrej Group has entered into a JV with
Oasis Buildhome Pvt Ltd which owns nearly 14 acre of land in Gurgaon, to develop a
premium housing project, BSE filing states. It has signed an agreement to develop a
13.76 acre property situated on Northern Periphery Road in Sector 88A/89A,
Gurgaon. This would be the fourth project of Godrej Properties in the NCR.
The project would be developed as a premium residential group housing project and
is expected to offer 1.2 million sq ft of saleable area. The company is currently
developing two residential projects in Gurgaon, Godrej Frontier and Godrej Summit,
and has recently added a new project at Okhla in Delhi where it plans to undertake a
premium housing project through JV.This well located parcel of land has strategic
access from the existing Pataudi Road and the NPR. Upcoming road infrastructure
will further enhance the connectivity of the project to Delhi and other parts of
Gurgaon.
In another development, the realtor has added 37 acre to its existing 110 acre
township project in Panvel. Located between NH4 and the MumbaiPune
Expressway, the land parcel will be developed in partnership with the landowners. It
has also acquired the Godrej trademark from Goderj Industries for R25 Cr.
In the past, Godrej Properties had raised funds through Right issue and commercial
papers. It had also raised debt funds for its commercial project at Bandra-Kurla
Complex in Mumbai.
An earlier attempt to raise $100 Mn from Singapore governments sovereign fund
GIC Real Estate for the project in February last year did not go through as the deal
was called off later on. In Jul, last year, it had created a residential development fund
worth R770 Cr along with a consortium of global investors led by APG.
Godrej Properties is currently developing residential, commercial and township
projects spread across 87.6Mn sq ft in 12 cities.

Method of market entry:
HIGH

MEDIU
M

TATA
HOUSING

LOW



SWOT Analysis:
Strength
1. Has almost 4 decades of experience
2. Partnered with internationally
acclaimed architects and design
consultants
3. Biggest proponent of green initiatives
in the real estate sector
4. Takes initiatives such as Wall Book to
provide a platform for social change
5. Tata Housing launched Smart Value
Homes Limited to cater to low-cost and
affordable housing in the price range of
Rs. 410 Lacs
6. Estimated potential target audience of
projects is over 25 million

Weakness
1.High cost of finance and immense
competition is a concern
2.Limited global presence
3.Vulnerable to local economic
conditions

Opportunity
1.Expansion in tier I and II cities
2.Shortage of houses in urban areas
3.Tax incentives for housing investment
Threats
1.Shortage of skilled professionals
2.Economic downturn
3.Fluctuating interest rates



Joint Venture in Indian Scenario
Tata Housing in the year 2011 changed its longstanding approach of a joint
venture/joint development model where it did not have to purchase the land from
owners, to a model where it buys land on a deferred payment term.
Brotin Banerjee, managing director and CEO at Tata Housing, told recently that the
company felt the JD/JV model caused it to lose out too much on the upside from
appreciation in a developed property and hence it would deploy capital to buy
property and capture a larger share of the upside.
The company also needs to raise funds for these and other overseas projects as
bank funding in Maldives is difficult to come by and, unlike India where home
buyers essentially fund the cost of construction, in the Maldives market it falls on the
developers to raise funding and hand over the apartments before they can recoup
their investments. When contacted for this article Banerjee said, At the moment, we
are not looking at raising funds.
Brand Localization
Positioning of Tata Housing: Role of Tata Sons
The Principle activities of Tata sons are:
To invest in operating companies to support their growth
To promote and invest in new businesses
To maintain its shareholding in major operating companies
Tata Quality Management Services, a division of Tata Sons, assists Tata companies
in their business excellence initiatives through the Tata Business Excellence Model,
Management of Business Ethics and Tata Code of Conduct.
Tata Sons is also the owner of the Tata name and several Tata trademarks, which
are registered in India and around the world. These are used by various Tata
companies under a licence from Tata Sons as part of their corporate name and/or in
relation to their products and services. The terms of use of the group mark and logo
by Tata companies are governed by the Brand Equity and Business Promotion
Agreement, entered into between Tata Sons and Tata companies.
Tata Sons is Tata Sons holds 99.78% of equity share capital of Tata Housing and
has been infusing funds in Tata Housing Development Company. These infusions
are aimed towards may bolster its net worth and signal to banks that it is solidly
behind the developer of housing projects that range from affordable to value
segment to luxury homes.









References :
http://www.thefreelibrary.com/International+activities+of+emerging+market+firms%3
a+a+critical...-a0306598025
http://www.moneycontrol.com/news/business/tata-housing-to-be-among-top-3-
realty-players-by-16-ceo_750297.html
http://www.mbaskool.com/brandguide/real-estate-and-construction/6559-tata-
housing-development-company.html
http://www.chinagoesglobal.org/wp-
content/uploads/2013/08/Prange_Better_at_home_or_abroad.pdf
http://mea.gov.in/Portal/ForeignRelation/India-Maldives_Relations.pdf
http://www.dlf.in/dlf/wcm/connect/0e3fc400459193c3acc6eee709a63f9d/CorpPresentation-
May08.pdf?MOD=AJPERES










Sir,

Please find enclosed the excavation drawings of Power House submitted by L&T. Following
inputs shall be required for final approval of these drawings from BHEL:

1. Approved EM drawing of Power House General arrangement Typical cross section
Cross section.
2. Approved EM drawing of Power House General arrangement L section incorporating
civil comments like confirmation of sump invert level.
Inputs pertaining to EM GA drawings of Transformer hall layout and cross section are still
awaited due to which transformer hall excavation drawings have not been submitted by L&T.

It is therefore requested that approved EM GA drawings for Power house and transformer
cavern are furnished so that the civil drawings may be accordingly planned, prepared
approved.