Dunlop eyes Rs 116 cr via realty sale

Dunlop India hopes to raise Rs 116 crore (Rs 1.16 billion) by selling its unused land at prime locations in Mumbai and Kolkata. The proceeds will be used to revive the company along with the Rs 20 crore infusion from the Jumbo group.

Of the sale proceeds, the Kolkata property is expected to yield around Rs 25 crore, excluding the 62A Mirza Ghalib Street property which was gutted in fire a week back. The management has also firmed up plans to dispose the property located at the heart of the commercial centre.

"This property was cleared for sale by the Board for Industrial Finance and Reconstruction and we will definitely sell this property in course of time," confirmed the official spokes person of Dunlop.

This former sales and marketing office, which also housed the company's aviation and exports departments four years back, attracted the ire of local authorities along with the unions since it caught fire despite electricity connections being cut a couple of years back.

Mayor-in-council, building, Swapan Samaddar who had rushed to the spot on the day of fire told reporters that he personally felt it was a case of sabotage.

In fact, mayor Subrata Mukherjee said that no new building plan will be sanctioned on the plot, making it difficult for the management to sell the property. The realty is, at present, mortgaged for Rs 7 crore with a Mumbai firm.

Meanwhile, Dunlop has already put four of its properties, with a total built-up area up of 74,000 square feet located in prime business area in Kolkata, on the block.

This also includes the former registered head office at 57A & B Mirza Ghalib Street from where the management once dominated the Indian tyre market till mid-80s. This office was situated on an 34,400 square feet area of land and had a built up area of 35,118 square feet.

Dunlop moved its registered office to 46/B Kings court last year - a major portion of which is also up for sale, along with a flat at Alipore and another at Park Street - all at prime locations in the city.

The property at Kings Court is approximately 35,000 square feet of built up area.

The sale will be conducted by the asset sale committee appointed by the BIFR.