News Point: The developer is looking to invest 2000 crore in next 3-5 years.
While, ATS has focused primarily on boutique and premium housing, HomeKraft would exclusively cater to the housing needs of affordable and mid income housing groups.
The newly created brand would launch housing projects in the range of Rs 30-70 lakhs; beginning with projects in NCR followed by rest of India. All apartments under this brand, would qualify under the PMAY scheme, wherein, various concessional schemes of govt. like interest subvention under CLSS, concessions on GST etc. are available.
All these benefits would pass on to the customer basis their respective eligibility and further reduce the cost of the apartment.
HomeKraft is led by Prasoon Chauhan, CEO, a banking veteran with more than twelve years of real estate finance experience in two of the finest private sector banks of the country namely ICICI Bank and Yes Bank.
“ATS is known for building premium projects and has earned goodwill of customers for delivering projects on time and with best in class construction quality. We’ve had a persistent demand for affordable & mid segment housing from prospective customers, who aspire for an ATS home but are unable to afford due to budget constraints. This has led us to create a new entity ‘HomeKraft’ under the leadership of Prasoon, with a focussed approach towards this segment” Getamber Anand, CMD, ATS Group said.
The Delhi-based HomeKraft is looking to clock sales of 6000-6500 units in the next 3-5 years with expected revenue in the range of INR4000-5000 crore.
It will invest close to INR 1,500- 2,000 crore for construction of these units and will fund it with a mix of internal accruals, debt and private equity funds. It is already in advance talks with a major PE firm to raise funds for HomeKraft in the next 2-3 months.
“HomeKraft aspires to be one of top five developers of the country in the next 3-5 years. We are building on the legacy of ATS, which is synonymous with quality construction and timely delivery. Moreover, in HomeKraft we are also designing every apartment with maximum space efficiency and integrated utilities which will fulfil the housing needs of this segment.” Prasoon Chauhan, CEO, HomeKraft said.
ATS has already witnessed a phenomenal growth with nearly 30 million square feet of residential space delivered and 40 million square feet underway, nearly 7,000 units of apartments delivered, 3,500 dedicated workforce, extraordinary in-house construction, security, facility and maintenance teams and unmatched brand equity.
Experts believe there is a strong demand for affordable housing segment as also it is a key pillar of Indian Government’s vision of Housing for All. With recovery now expected in the overall real estate sector, affordable and mid segment housing, which can benefit from PMAY are set to reap the benefits of revived buyer demand.