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- Land - A Scarce Resource
With land becoming a scarce source, property developers are now looking forward to textile companies for completely buying out their mills. While scouting through more information for the same, I narrow down on a piece of news which answers your question. Here it is:The prospect of joining hands is mutually beneficial for both the property developer and textile companies. The obvious reason is that growth in the apparel manufacturing business has hardly kept pace with that in real estate, particularly land prices. “While it gives the developer access to this prime real estate, the textile company gets an opportunity to unlock some of its non-performing assets,” says Omaxe chairman Rohtas Goel. The company is looking at such deals to get a foothold in the Mumbai market.
On the other hand, for textile companies, it’s like the optimum utilisation of available resources. “All the company’s resources must be utilised in the best possible way. These real estate developments can be a very good source of revenue for the company,” says Orient Craft CMD Sudhir Dhingra.
On a national basis, the trend of real estate majors acquiring land from textiles company has been prevalent for quite a while. In the last couple of years, some textile mills in prime Mumbai locations have already been disposed off by the National Textile Corporation (NTC).
It seems that the land has become hard to come by even in Metros!!!CommentQuote0Flag