Tata Realty and Infrastructure (TRIL), one of the newer companies in the Tata Group and a 100 per cent subsidiary of Tata Sons, is all set to play its part in developing the nation.

Dinesh Chandiok, managing director, TRIL, is enthusiastic about the tremendous opportunity available for the growth of realty and infrastructure in India. “This is an area that is really growing. There is a huge opportunity to build and develop the nation, to really do something positive for the country,” he says. “The market is worth $6 billion a month. Already the lack of infrastructure is impacting our GDP significantly.”

TRIL’s development philosophy is to focus on strategic projects with long-term returns, to undertake projects of a size, scale and quality that are worthy of the Tata brand, and to execute projects in accordance with Tata values.

TRIL’s initial focus is on real estate — which will include projects for Tata Consultancy Services, other Tata companies and market opportunities — and infrastructure, comprising airports, urban infrastructure, special economic zones, roads, bridges and more.

“The Tata Group has a huge land bank, plots of land that have been bought over the last 100 years and more,” explains Chandiok. “These plots now have a lot of value. Our job is to unlock the value on some of these projects. We will do this by conducting a highest and best-use
analysis to see how we can maximise our returns on a particular piece of land.”

TRIL is currently pursuing the development of real estate assets of various Tata companies. On the infrastructure side, the company is trying to qualify for the Metro Phase II in Mumbai. It is also trying to participate in the Worli-Nariman Sea link project.

The government too has woken up to the urgent need for building up the infrastructure. It is encouraging public-private partnership for infrastructure development. The projected growth in the urban population is also creating a need for more homes and better infrastructure to cater to the increasing population and the ensuing lifestyle changes. TRIL estimates that migration to urban areas will also fuel a demand for housing.

Even as the opportunity grows, so does the need for trained and experienced people who understand the infrastructure and realty business well. Chandiok says, “Real estate is about money; bricks and mortar come later. We need people with a basic understanding of finance. We will then train them on aspects relating to real estate.”

One area that TRIL is ready to get into is the development of logistics parks and distribution hubs. “This is an important area,” says Chandiok, “because trade inside India is growing rapidly and there is no logistics mechanism here. We pay three times the distribution costs, when compared with the US. There is a huge opportunity to bring costs down and speed up delivery. So we need logistics parks in key locations in the country.”

Establishing a logistics park, however, is a difficult task. There are a number of things to be worked out, including the building of a railroad siding so that material can be brought in, proximity to airports and highways, and access to a proper distribution network. To work out all these issues, TRIL has entered into a joint venture with JAFZA, a
Dubai World Subsidiary. Chandiok says, “They have a lot of experience in doing this in many countries.”

TRIL has also signed an MoU with Changi Airports International for investing in, developing and operating airports in India. The company will enrich the joint venture with its wealth of local knowledge.

With these and many other plans, TRIL is eager to establish itself among the heavyweights of the industry as soon as possible.

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