The future of Bombay Dyeing Co. is based on the growth of the real estate division, according to manager Rahul Anand.
The Phase 1 consideration received from the Worli land sale deal has enabled the company to pay off Rs 3,500 crore in debt and allowed for funds for future growth projects, Anand, who is also the chief executive officer of Bombay Realty, told BQ Prime.
He expects the Phase 2 consideration of Rs 525 crore to come in Q4 FY24, as the agreement states "standard conditions that should not have any problems to being met".
Current Land Bank
Anand said the company currently has 15 acres of unencumbered land in Dadar. The land can yield almost 3.5 million square feet of area and has the ability to generate around Rs 15,000 crore in top-line, he said, terming this area as the company's next "flagship" project.
At the moment, the opportunity from the land parcel is predominantly assumed to be residential, but there is potential for commercial as well as retail developments, he said. In terms of the developmental time frame, Anand estimates it to be over five years.
The company is also looking into joint venture opportunities with like-minded landowners or other group companies, he said.
Business Segments
Bombay Dyeing operates in three segments: polyester, retail and real estate. While the retail and polyester segments have been longstays of the company, Bombay Dyeing is having discussions about the growth trajectory of these segments.
According to him, the real estate segment will be a key focus area. The company has been involved in real estate for the last couple of years. They developed the ICC Towers and sold off 190 units in a span of 12 months, making them one of the best-selling projects in the market, Anand said. The company has also built residential and commercial towers.
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