By Accommodation Times News Services
The revival of fortunes in the real estate sector has encouraged textile companies with huge land banks to foray into property development. Among such companies are textiles major Bombay Dyeing and Century Textiles. To date, most of the textile firms sold their land to developers.
Golden Tobacco, manufacturer of the Panama and Chancellor Cigarette brands, is also mulling to have its real estate arm to utilise its land assets across the country.
Earlier, groups like Tata, Mahindra and Godrej also entered the realty space. The Tata group has Tata Housing and Tata Realty while Mahindra’s venture is called Mahindra Lifespace Developers. Godrej’s venture goes by the name of Godrej Properties. Nusli Wadia, Bombay Dyeing’s chairman was confirmed a land bank of 64 acres in Mumbai to be developed in a phased manner. Bombay Dyeing’s property is situated in central Mumbai. The real estate business for the company clocked revenues of over Rs 250 crore for FY 09. Apartments have been developed in Worli and Lower Parel.
Bombay Dyeing does not have a separate company in place for the realty foray.
BK Birla Group’s Century Textiles, which has a land bank of around 20 acres in Worli, will be the other company to enter the real estate space.
Meanwhile, Golden Tobacco, a Sanjay Dalmia group company, is also mulling the option of having a separate real estate arm. The company has land in many parts of India. Its 7.5-acre property in Mumbai was intended to be developed with a real estate company. However, it is learnt that Golden Tobacco will now go alone on this project.
Gautam Singhania’s Raymond Group also announced its foray into real estate business recently. It is estimated that if the plans of these companies fructify, land worth $1.5 billion will come in as fresh supply.
Essar Group have 3000 acres in Khapoli and Lonawala will soon start their real estate venture. Reliance group have already acquired some 36000 acres across the country and reaching almost 1 lakh acres in consortium will be biggest land owners in the country.