The article in the url below outlines a new plan for the Tata conglomerate. Bolstered by its success with the Tata Nano (“the world’s cheapest car”), Tata wants to expand its access to the market at the bottom of the pyramid (Issues: Profit, p200) by building and selling homes in the poorest areas of India:
“Tata Housing Development … has begun its first ultra low-cost development selling homes ranging from 283 sq ft to 465 sq ft priced at between Rs390,000 ($8,200) and Rs670,000.”
While the size of the market is debatable, the size of the demand is not in doubt:
“Tata Housing calculates India needs at least 24m homes if it is to house all its people living in slums. One of the worst affected cities is Mumbai, where by some estimates about 60 per cent of its population lives in shanties.”
The firm calculates that, although living in the poorest areas, many consumers have access to sufficient funds to purchase affordable homes:
“However, many slum-dwellers are not destitute by local measures. Tata estimates 180m Indian households live on between Rs90,000 and Rs200,000 a year. Housing at Tata's new low-cost development - Shubh Griha, or "Auspicious Homes" - in Boisar, about 60km from Mumbai, comes with electrical, toilet and plumbing fittings built in.”
To make the communities even more appealing, Tata Housing also plans to build “schools, a hospital, shops and a recreation centre” nearby.
Take care
David
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Tata laying foundations to house India's millions of slum dwellers
By Joe Leahy and Varun Sood in Mumbai
451 words
29 May 2009
USA Ed1
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