Financial Daily from THE HINDU group of publications
Monday, Dec 06, 2004
Financial Daily from THE HINDU group of publications Monday, Dec 06, 2004 |
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Corporate
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Alliances & Joint Ventures Industry & Economy - Real Estate & Construction Bata India makes realty foray — Inks joint venture pact for township development Anil Sasi
New Delhi , Dec. 5 BATA India Ltd — the country's largest footwear manufacturer — is foraying into real estate development. The company has entered into joint venture tie-ups with the Calcutta Metropolitan Group and the Kolkata Metropolitan Development Authority and plans to kick off operations by developing the excess land at its factory at Batanagar near Kolkata. "We are looking at developing about 260 acres of excess land at our Batanagar premises, which is our biggest factory in the country. The options under consideration include setting up an integrated township with housing and commercial facilities, and also setting up an industrial park," a senior company executive told Business Line. The company would take a decision on setting up more such real estate development projects in due course. "Depending on how this venture materialises, we will be deciding on taking up more real estate projects," the executive said. The Batanagar factory churns out around 25 million pairs of shoes annually. The plant was set up on land belonging to the Kolkata Port Trust, which has been leased out to Bata India Ltd for a 99-year period. The Indian arm of the Toronto-based Bata Shoe Organisation, which is in the process of restructuring its retail business and refurbishing its 1,600 stores across the country, has five footwear manufacturing units across India with a combined capacity of 40 million pairs annually. To turn around the fortunes of its mainstay footwear operations, the company has introduced a VRS scheme to cut down flab and is looking at wiping out its Rs 40-crore accumulated losses over the next two years. The company's board has also approved a rights issue to fund the restructuring exercise. The foray into real estate development is expected to generate an additional revenue stream, the executive said.
More Stories on : Alliances & Joint Ventures | Real Estate & Construction | Diversification
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