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Jayanta Mallick

Co plans to exploit assets at Goregaon in Mumbai

Kolkata , Sept. 25

Nirlon towered up by around 10 per cent with a traded quantity of 9.69 lakh shares on the BSE after unfolding its real estate business plans.

The stock has shot up by 40 per cent in the last one week as it indicated exploitation of its assets at Goregaon near Mumbai.

According to sources close to the developments, the company has planned four multi-storey towers on the erstwhile nylon tyre cord division land. The estimated valuation of the developed asset is in the region of Rs 1,000 crore. Shareholders' nod has been sought for amending the memorandum of association of the company at its AGM on September 28 to pave way for the proposed real estate related activity.

The sick company, which is implementing an amended and modified rehabilitation scheme, has already discontinued tyre cord manufacturing activity at Goregaon. It has let out 5.39 lakh sq ft built-up area at Goregaon. Surplus space of 70,166 sq ft at Tarapur, where the company's dipping unit of tyre cord fabric and industrial fabric is located, has also been rented out.

According to the management, "the company expects to complete the implementation of the rehabilitation scheme in the financial year 2006-07".

While the company is attempting to make the dipping unit "competitive", it is also trying to make the conveyor belting business profitable through its 26 per cent joint venture - Sempertrans-Nirlon (P) Ltd.

The joint venture outfit is in the process of expanding its capacity, trimming employee strength and improving quality this fiscal.

During the 15-month 2005-06 extended financial year, the company made a marginal profit before paying VRS to its closed tyre cord unit.

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