Bayer Crop Science has sold its 104 acre land parcel at Thane in the outskirts of Mumbai for Rs 1,250 crore to Agile Real Estate. The company was manufacturing crop production products in the Thane factory.
Bayer entered into a non-binding agreement with Agile Real Estate in March last year after receiving an earnest money and advance of Rs 520 crore.
Bayer and Agile Real Estate agreed on a valuation of Rs 1,250 crore for the property. The first manufacturing unit of Bayer was set up in Thane in 1969.
Bayer stocks hit a new high of Rs 732 on Thursday.
However, it shelved part of its gain to close at Rs 712 and closed six per cent higher.
Bayer Crop Science business in India is divided into three groups -- crop protection, environmental science and bioscience. Its crop production products include insecticides, fungicides, herbicides, seed treatment and plant growth regulators.
Other units in Thane
Though the company had budgeted capex of Rs 66 crore for this fiscal, it prefers to source from contract manufacturing units since it is more efficient and economical, said Vijay Mallya, Chairman (non-executive and independent), Bayer Crop Science, at the company’s recent AGM.
“Seventy per cent of our total formulations are contract manufactured,” he added.
Many of the manufacturing units, especially chemical companies, have shifted out of Thane as residential property sprung up in the region. In April, Rallis India, a Tata Group company, shut its plant in Turbhe as the surrounding area developed into residential locality. The company started its operation at Turbhe in 1970.
BASF India, a diversified chemical company, discontinued production of expandable polystyrene (EPS), a type of plastic, at its Thane plant in September.
The company manufactures tanning agents, crop protection chemicals, textile chemicals and automotive and coil coatings, construction chemicals.