Me­galith adopts fac­tory ap­proach to af­ford­able hous­ing projects

Will build houses close to where jobs are avail­able

The Hindu Business Line - - NEWS - RASHMI PRATAP

In an in­dus­try strug­gling with high costs and low mar­gins, Bengaluru-based Me­galith Ven­tures is look­ing to mass man­u­fac­ture homes, and to make them af­ford­able for the eco­nom­i­cally weaker sec­tions (EWS), while en­sur­ing they re­main close to em­ploy­ment op­por­tu­ni­ties are.

The com­pany will sell a 2 BHK in Ne­la­man­gala, 24 km from Bengaluru, for ₹14 lakh begin­ning April.

“In South In­dia, there is no in­sti­tu­tional play in real af­ford­able hous­ing as most homes are avail­able up­wards of ₹30 lakh. We formed Me­galith only to cater to the re­quire­ments of EWS and lower in­come group (LIG) and won’t do any other prod­uct un­der this brand,” Mal­lanna Sasalu, founder and CEO, Me­galith Ven­tures, told Busi­ness Line.

Mass man­u­fac­tur­ing

The com­pany will fol­low the mass man­u­fac­tur­ing model, where it will repli­cate the same ar­chi­tec­tural de­sign, lay­out and floor plans across all projects, sav­ing op­er­at­ing costs.

The homes will use pre­cast tech­nol­ogy, where build­ing el­e­ments like slab, roof, beams and columns are cus­tom de­signed, and then joined at site, re­duc­ing the time by up to 64 per cent com­pared to con­ven­tional meth­ods.

“We have en­tered into an MoU with a Fin­nish com­pany for pro­vid­ing ma­chiner­ies and will un­der­take on­site man­u­fac­tur­ing. So we will go for projects with a min­i­mum area of 20 acres to bring in economies of scale,” said Sasalu.

The build­ings will be mod­u­lar in na­ture, with­out base­ments or stilts, but will of­fer open park­ing.

“These mea­sures will bring down cost of con­struc­tion per sq. ft. to ₹1400 com­pared to ₹1800-₹1900 that most de­vel­op­ers cur­rently in­cur. Our sell­ing price will be ₹2800-₹2900 per sq. ft., which is lower than oth­ers but still prof­itable for us,” said Sasalu.

City on the Out­skirts

Me­galith will fo­cus on projects only on the out­skirts, where the city has al­ready grown sub­stan­tially.

The com­pany has ac­quired three land parcels around Bengaluru. The Ne­la­man­gala pro­ject is spread over 24.5 acres and will have 3900 units with price tags of ₹10 lakh and ₹14 lakh for one and two bed­room homes re­spec­tively.

“Ne­la­man­gal is sur­rounded by four in­dus­trial town­ships and nearly 80 per cent of the tar­get buy­ers don’t travel to the main city for work. We are tar­get­ing these work­ers who can af­ford to re­place their rent with EMIs for homes,” he said.

The other two projects will come up at Bi­dadi and Sa­mana At­tibele.

“We have de­cided to pro­cure land ei­ther through out­right pur­chase or go for joint de­vel­op­ment. Cus­tomers will be iden­ti­fied through sur­veys around the pro­ject lo­ca­tion and we will also help them avail loan and sub­si­dies,” Sasalu added.

“We formed Me­galith only to cater to the re­quire­ments of EWS and LIG and won’t do any other prod­uct un­der this brand”

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