Puravankara Projects Limited (Puravankara) and Desarrolladora Homex, S.A.B. de C.V., through its subsidiary Homex India Private Limited (Homex) announced the signing of a Memorandum of
Understanding through which the companies have established the rules for a non-exclusive Joint Venture Company to undertake projects in the affordable entry-level housing segment. The first project of the Joint Venture Company is expected to be in the metro area of Chennai, in South India.
Ravi Puravankara, the Chairman and Managing Director of Puravankara Projects Limited, expressing confidence about the new partnership said, "We look forward to this exciting opportunity that the JV represents. There is a huge requirement in India for affordable entry-level housing to be built across the Country, and with the expertise and proven business model of Homex and Puravankara's track record and experience in Indian housing, we feel
confident that through the combination of skills and market understanding -which is unparalleled in India-, we can become industry leaders in this segment".
Commenting on the signing of the Memorandum of Understanding, Gerardo de Nicolas, Homex's Chief Executive Officer, said, "We are enthusiastic about this relationship with Puravankara as it represents an important growth
opportunity for Homex in India. Our plan has been to cautiously assess opportunities to replicate our proven business model in other populous countries where the housing market is underserved. At the same time, we are
confident in the success of our relationship with Puravankara, as it has a track record of 35 years in the housing market in India and an inventory of suitable permitted land that will allow us to start our first pilot project with a reduced investment. We will be adding our expertise and business model to what we both feel is a strong business opportunity in India's affordable, entry-level market."
