Tata Housing logs 120 per cent of FY21 sales target in residential segment
Revenue for residential grew by Rs 200+ Cr; up 15% from last FY
Tata Housing Development Company (THDC), one of the leading real estate development companies in India, announced the organisation’s performance for FY 20-21. Owing to a variety of thoughtful consumer-centric initiatives and offers in the pandemic stricken year, the company generated 1.9+ Lakh Leads, 12.4K+ Site Visits. The revenue for residential grew by Rs 200+ Cr; up 15% from last year, with increase in sales of large units owing shifting homebuyer preferences of spacious homes owing to the pandemic.
In terms of Tata Housing’s properties, some of the best performing projects were luxury residences like Primanti Gurgaon, Ariana Bhubaneshwar, Avenida Kolkata, Serein Thane Mumbai and Promont Bengaluru and second home projects like Myst Kasuali, Prive Lonavala.
Speaking on the annual performance, Mr. Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Limited said, “The past year has tested every organisation’s ability to be agile and adaptive to the new normal. We were one of the first companies to embrace digitization at a rapid pace and that helped us stay relevant in these unprecedented times. Throughout the lockdown, we provided financial assistance to homebuyers, many of them being first time buyers, to invest in their safe havens amid this pandemic. As a result, our revenue for residential grew by Rs 200+ Cr, (15% from last year) in FY 20-21. The influence of NRIs also played an important role in the recovery of the sector, with organic enquires coming from Nigeria, Singapore, Australia, Greenland, USA & UK for our properties.
He further added, “We shall continue analyzing the data to understand the needs of our customers and increase the growth prospects for our 20 projects across 15 cities with over 10 million sq.ft. in our 2021 portfolio across residential, office and serviced apartments.”
Mr. Sarthak Seth, Chief Marketing Officer, Tata Realty & Infrastructure Limited, shared that “Our marketing campaigns are based on homebuyer insights and we take pride in our ability to delight our customers. FY20-21 was challenging but it allowed us to push the boundaries and focus more on digital performance and continuous engagement through social media. Currently, online comprises 60% of our overall marketing strategy whereas offline makes up 40%. We introduced at least five consumer-centric campaigns in the past year, including the ‘The Grand Indian Home Festival’ and ‘The Final Rush’ campaigns that contributed to our remarkable growth in the residential segment.
Strengthening of distribution channels like channel partners (CP), referral and Tata employee programs were more crucial to drive which led to virtual DigiMeet with partners, virtual events with existing customers etc. The response to these efforts gives us the confidence to continue with our marketing strategy, which is a holistic 360- degree approach. We are also making use of video walkthroughs for increasing sales and are planning to launch campaigns that will offer ease of payment to customers as well as special benefits.”
Mr. Amit Parsuramka, Chief Sales & CRM Officer, Tata Realty & Infrastructure Limited, said “The pandemic-induced lockdowns brought everything to a standstill, making it crucial to reimagine the prevailing distribution channels in an industry that is predominated by f2f relationships. To help real estate get back on its toes, we focused on improving our relations with channel Partners, referral through existing customers, Tata group employees and their family and friends through Tata Shop Share Smile and our special tie-up with Army Welfare Housing Organisation (AWHO). These specific initiatives and schemes with AWHO and Tata Employees added to the performance with a 10-15% contribution to overall sales achieved.
Despite the hurdles, we ensured timely brokerage release for all our partners to keep their spirits high. We are hopeful to keep the momentum going this year as well and drive better channel engagement for Southern and Western markets, along with reduction in fixed costs around direct marketing channels. We are also planning to introduce a Smart Brokerage program and to fix 15-21 days window for brokerage processing and payment after submission of bills plan in order to support the recovery of the sector.”
This year, Tata Housing also observed reduction in time taken for home buying in almost all projects and affinity towards larger houses. For properties like Eureka Park in Noida, 3BHK was an obvious choice of customers with over 70% units sold in the year being in the 3BHK format. Various infrastructural projects getting approvals from government further strengthened Noida’s growth story and the company is confident of being successful in this market in the coming quarters. Growing popularity of second homes due to the pandemic led to Tata Housing’s residential project Myst in Kasauli recording over 345% increase in revenue and 86% increase in enquiries in FY 20-21 compared to FY 19-20, prompting the company to launch Phase 2 of Myst in order to meet the market demand.