Bombay Dyeing to Boost Realty Focus for Growth

Co expects over half of its revenues to come from realty biz this fiscal year

KAILASH BABAR MUMBAI

The 132-year old textiles firm Bombay Dyeing is getting its biggest makeover ever. Beginning this fiscal year, over half of the company’s revenues will be generated by the real estate business, which will grow to 75% in five years. “We will essentially become a real estate firm in the years to come,” Jeh Wadia, the managing director of the group told ETin an exclusive interview. The Wadia Group and Bombay Realty, the group’s real estate arm, have a land bank of around 10,000 acres spread across the country, including 700 acres of prime land in the city of Mumbai that were acquired at rock bottom prices, historically by group firms Bombay Burmah, Bombay Dyeing, Britannia and the current and erstwhile promoters in the 1800s and 1900s.
In what could be a windfall for the shareholders of the company, the Wadias have finally decided to get into real estate development in a big way. The real estate division of the company 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. In 2010-11, only a quarter of its revenues of Rs 1,950 crore came from the sector.
“To begin with, we are launching four major mixeduse projects spread over 180 acres by the end of March. This includes projects at Dadar and Worli, spread over 70 acres in island city of Mumbai and 100 acres in mainland Mumbai,” Wadia said.
Bombay Realty will act as a developer, while the title of the land will continue to be with group companies. Subsequently, all other Wadia Group companies will develop the land along with Bombay Realty through joint development pacts. “We would be looking at this business as a corporate and not as a developer,” he said. Bombay Realty will launch Island City Centre at Dadar and Wadia International Center at Worli, which would include a five-star hotel each, apart from a mall, a high street, residential and commercial buildings. The projects will be financed through internal funding, but he declined to share details. The company is aiming to complete both the projects in the next 7-10 years.
According to analysts, these two projects have total development potential of 9-10 million sq ft. However, Wadia only discussed about total 3 million sq ft development in first phase of these projects. The Wadia Group’s legacy dates back to over 250 years with the group’s first business venture of shipbuilding. The group later also diversified into commodity trading, textiles and dyeing business and now boasts of fast expanding position in its dairy, aviation, and sports business.