With rising land prices and the real estate market becoming increasingly lucrative, many prominent textile firms are now diversifying into this domain. By either developing or selling valuable real estate, they are effectively creating alternative revenue streams.
Key players like Provogue India, Century Textiles & Industries, Bombay Dyeing & Manufacturing, and Alok Industries are among those leveraging real estate to enhance cash flow while simultaneously working to decrease their levels of debt.
Over the past year, cities like Mumbai and Delhi have witnessed a significant surge in property values. Notably, Mumbai has been identified as the most expensive office market globally.
Kishor P Ostwal, the chairman of brokerage CNI Research, commented on the situation, stating that numerous companies possess substantial land banks. However, the market primarily values those who look to develop these land banks rather than merely retain ownership of them.
Consequently, both Century and Bombay Dyeing have been rated as a ‘buy’ according to Ostwal’s analysis, owing to their possession of large, prime tracts in the heart of Mumbai.