The future prospects of Bombay Dyeing Co. are intrinsically tied to the expansion of its real estate division, as per insights shared by the company's manager, Rahul Anand. The proceeds from Phase 1 of the Worli land sale deal have not only enabled the organization to successfully retire a substantial debt of Rs 3,500 crore but have also paved the way for capital allocation to forthcoming growth initiatives. Anand, who also serves as the Chief Executive Officer at Bombay Realty, communicated to BQ Prime that the anticipated Phase 2 consideration is Rs 525 crore to materialize in the fourth quarter of the fiscal year 2024. He expressed confidence in this projection, citing the agreement's adherence to standard conditions, which are expected to be met without any notable hindrances.
Present Real Estate Holdings
Anand revealed that the company presently possesses 15 acres of unencumbered land located in Dadar. This sizable land asset has the potential to accommodate nearly 3.5 million square feet of development space and could yield an impressive top-line revenue of approximately Rs 15,000 crore. He enthusiastically characterizes this area as the company's forthcoming "flagship" project. While the primary utilization of the land is currently envisaged as residential, Anand also underscores the promising prospects for potential commercial and retail developments. In terms of the projected timeline for development, Anand estimates it to span over a period of more than five years.
He also mentioned that the company is exploring potential joint venture opportunities with landowners who share similar objectives or with other affiliated group companies.
Segments of Operations
Bombay Dyeing's operations are categorized into three core segments: polyester, retail, and real estate. While the retail and polyester divisions have remained integral components of the company's portfolio, Bombay Dyeing is actively engaging in discussions regarding the future growth trajectory of these segments. According to company management, the real estate sector is set to assume a pivotal role in their strategic focus. Over the past couple of years, Bombay Dyeing has expanded its presence in the real estate arena, most notably with the development of the highly successful ICC Towers. Within a span of just 12 months, the company accomplished the sale of 190 units, establishing ICC Towers as one of the most sought-after projects in the market. Additionally, the company has also undertaken the construction of both residential and commercial towers as part of its real estate endeavors.
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