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Green foray: Mahindra Lifespaces' net-zero energy housing project at 5% premium in Bengaluru

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Green foray: Mahindra Lifespaces' net-zero energy housing project at 5% premium in Bengaluru

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In an interview with CNBC-TV18, Arvind Subramanian, MD and CEO of Mahindra Lifespaces shed light on Mahindra Eden, India's first of its kind net-zero energy housing project in Bengaluru. He explained that by using new technology, the company has been able to reduce energy consumption by 33 percent at the site. He mentioned that the project will be priced at a premium of 5 percent.

To discuss the project and the overall demand, CNBC-TV18 spoke to Arvind Subramanian, MD & CEO, Mahindra Lifespaces.
First up, Subramanian said that Mahindra Eden will be priced at a premium to market price. The premium will be around 5 percent, he mentioned.
“This would be at a slight premium to the market and that's not only because it's net-zero, and of course, net-zero is a pioneering effort and something that I believe will attract a select audience to this project," he said.
"It's a 7.5-acre land parcel on which we have only about 550 apartments. So it's a low-density project. It has also got a lot of investment around preserving and nurturing biodiversity. We are committed to preserving and nurturing 100 species of plants, 25 species of birds and 25 species of butterflies on the site,” he explained.
Subramanian said that the company has been able to reduce power load at the new project. He highlighted that using new technology has enabled the company to reduce its energy consumption by 33 percent at the site. He shared that the company will be tying up with local DISCOMs to buy green energy.
He said, “To generate renewable energy on-site, we have used a combination of wind and solar and the residual energy, we will be buying green power from the local DISCOMs for which we are tying up with a local DISCOM. So it's a long journey, but I am really heartened that we have got here because it shows that this is possible.”
Subramanian shared that the company has a target of Rs 2,500 crore of residential sales for FY25. Additionally, he mentioned that he is confident of the growth momentum.
“We have put out a goal for ourselves and been very public about it that by 2025, we would like to be at Rs 2,500 crore of residential sales and Rs 500 crore of leasing in our industrial parks. So we are on a good path towards that goal. Last year was a very strong year. We are building off that into FY23 and believe that we will continue to see the growth momentum,” said Subramanian.
On price hikes, he said that the company takes a price hike of 1.5-2 percent every quarter. He explained that the company is working on design efficiency to cushion the impact of soaring commodity costs.
“We have a very clear stance on pricing. One, irrespective of the input cost inflation, which has been a more recent phenomenon over the past 4-5 quarters, we have a discipline of taking prices up by about 1.5-2 percent every quarter," he mentioned.
"If prices don't go up, there is no reason for customers to buy an under-construction project. So we are very systematic about it, which means when we launch the project, we think very carefully about where the price could end up over the next 2-3 years of the construction period and price it accordingly. So there is value on the table at the time of launch,” said Subramanian.
“The recent commodity cost inflation has of course put further pressure on price increases. We are working very hard on design efficiencies, on procurement savings, as well as putting our advantage on the capital cost to better use to be able to get economic benefit from that,” he said.
Watch the video for the full interview.