No announcement yet.

Why this run after textile mill land in metros??


Why this run after textile mill land in metros??

Last updated: August 13 2007
1 | Posts
1086 | Views
  • Time
  • Show
Clear All
new posts

  • Why this run after textile mill land in metros??

    Hey!! I am more likely to ask the reason why our real estate developers are running to capture mill land (textile mills) and shaking hand with mill property owners to develop properties. I am just unable to understand the reason y is the focus on developing the mill lands?? I mean what could be the benifits apart from tht they will get big piece of land? Has it become dificult for the mill owners to run their old mills???
  • #2


    Re : Why this run after textile mill land in metros??

    Land - A Scarce Resource

    Hi Dennis!

    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!!!
    Last edited August 13 2007, 02:38 PM.


    Have any questions or thoughts about this?