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The Rs 3,000 crore (Rs 30 billion) Wadia group is getting into real estate and aviation, group chairman Nusli N Wadia told reporters at the sidelines of the annual general meeting of Bombay Dyeing and Manufacturing Company. And the group is exiting Citurgia Biochemicals, a producer of citric acid and calcium carbonate.
The group, through flagship Bombay Dyeing, is betting big on property development business and it has appointed M K Singh as chief executive officer.
Wadia added, "We are seriously looking at getting into aviation. An international consultancy firm is helping us on this front. Our application is pending with the government."
Bombay Dyeing is restructuring its textile business and will be eventually moving out its mill operations from the high-cost manufacturing place in Mumbai to a site in Maharashtra. "We see real estate development as a opportunity and we want to create this as a different enterprise and business model, "Wadia said.
The company will be developing a commercial and residential complex at its plant locations in Dadar and Worli. As the first step, the textile manufacturing activity is being consolidated at the Textile Mill, Worli and the manufacturing activity at Spring Mill at Dadar is being wound down.
Later, the company intends to move out its entire operations from Worli to a low-cost operations area in Maharashtra. It is understood that it is considering two destinations Talegaon or Ranjangaon in Maharashtra.
The company has obtained the necessary clearances to develop 4.5 million square feet area and will be investing Rs 75-80 crore (Rs 750-780 million) towards developing the land. The company has given voluntary retirement scheme to the 1,500 employees and has spend Rs 56 crore (Rs 560 million) towards this.
Also, the company has finally managed to dispose its Jamnagar and Roha plants. Bombay Dyeing has sold the Roha plant for Rs 1.45 crore (Rs 14.5 million) to USP and the Jamnagar facility for Rs 2.25 crore (Rs 22.5 million) to Salsa Enterprise.
Citurgia Biochemicals has sold its citric acid unit at Surat in Gujarat and had paid off all the workers, Wadia said. The company is looking for a buyer for its calcium carbonate facility at Rishikesh in Uttaranchal.
The company is planning to upgrade and refurbish the retail business. The company currently has 150 retail outlets across the country and plans to enter new retail segment like departmental stores and malls. Bombay Dyeing has targetted to turnover Rs 210 crore (Rs 2.10 billion) this year.