The Bombay Dyeing and Manufacturing Company Limited (BDMC) announced today that its board of directors has given approval to a proposal to sell a land parcel spanning approximately 22 acres, along with the associated Floor Space Index (FSI), in Mumbai’s Worli area. The buyer, Goisu Realty Private Limited, a subsidiary of Japan’s Sumitomo Realty & Development Company Limited, will acquire the land in two phases for a total consideration of about INR 5,200 crore.
The transaction is contingent upon the approval of BDMC’s shareholders. Upon their consent, Phase-I will see BDMC receive approximately INR 4,675 crore from the buyer. The remaining amount of roughly INR 525 crore will be disbursed upon the fulfillment of specific conditions by BDMC and the execution and completion of definitive agreements for Phase-II.
Nusli Wadia, Chairman of BDMC, expressed his satisfaction with the agreement, stating, “I am pleased to announce that BDMC is entering into agreements with Sumitomo Group for the sale of approximately 22 acres of land, along with the associated FSI, in Worli, Mumbai, for a total consideration of about INR 5,200 crore.” Wadia added, “Upon the completion of this proposed transaction, the company anticipates recording a pre-tax profit exceeding INR 4,300 crore, reporting a robust positive net worth, clearing all outstanding borrowings, thereby reducing interest costs, and releasing encumbrances on assets.”
BDMC’s strategic shift towards the real estate sector was charted by the Board of Directors in March 2022, with the aim of fostering future growth and profitability. This transformation includes expediting the sale of flats in Island City Centre (ICC), Dadar, as well as the monetization of land banks. Additionally, the board has granted in-principle approval for the development of unused land parcels within the company’s possession, capable of yielding approximately 3.5 million square feet (msq) of residential and commercial properties. This development is anticipated to generate revenue in the vicinity of INR 15,000 crore over the next few years. The entire transaction remains subject to shareholder approval.