Bombay Dyeing to transform into Real Estate Company: May soon Launch 4 Major Projects in Mumbai
Bombay Dyeing, which has seen fortunes dwindle from its textiles division, expects realty to generate over half of its revenues this financial year and three quarters in five years. “We will essentially become a real estate firm in the years to come,” managing director Jeh Wadia said. Jeh took charge of Bombay Dyeing in a management reshuffle earlier this year.
The Wadia Group and Bombay Realty, the group’s real estate arm, have a land bank of about 10,000 acres spread across the country. This includes 700 acres of prime land in the financial capital, Mumbai, acquired at rock bottom prices in the 1800s and 1900s by group firms Bombay Burmah, Bombay Dyeing, Britannia and the current and erstwhile promoters. The transformation of the 132-year-old company into a property firm could mean a windfall for its shareholders.
Its real estate division commenced partial property development at Spring Mills at Dadar, in central Mumbai in 2005-06, but the big thrust is expected from this fiscal year. Last financial year, only a quarter of its Rs 1,950 crore revenue came from real estate. “We are launching four projects spread over 180 acres by the March end. This includes projects at Dadar and Worli, spread over 70 acres in the island city of Mumbai and 100 acres in mainland Mumbai,” Wadia said. While Bombay Realty will act as a developer, the title of the land will continue to be with group companies. Subsequently, all other group companies will develop the land along with Bombay Realty through development pacts.
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