Bombay Dyeing & Manufacturing Company on Wednesday said that its board of directors approved the proposal to sell the land parcel of about 22 acres in Worli, Mumbai, to a subsidiary of Japanese conglomerate Sumitomo for Rs 5,200 crore. 

“Board of directors of The Bombay Dyeing and Manufacturing Company approved the proposal to sell the land parcel of about 22 acres (along with the associated FSI) in Worli, Mumbai, to Goisu Realty (a subsidiary of Sumitomo Realty & Development Company) in two phases for a total consideration of about Rs 5,200 crore, subject to approval of its shareholders,” said Wadia-owned Bombay Dyeing in a stock exchange filing. 

Upon approval of shareholders, Bombay Dyeing will receive about Rs 4,675 crore from the buyer for phase-I. The balance amount of about Rs 525 crore will be received upon completion of certain conditions by Bombay Dyeing and execution and consummation of the definitive agreements thereto for phase-II. 

Bombay Dyeing Chairman Nusli Wadia said: “I am happy to inform that Bombay Dyeing is entering into agreements with Sumitomo Group for sale of about 22 acres of land (along with the associated FSI) in Worli, Mumbai, for a total consideration of about Rs 5,200 crore.” 

“The board has also in-principle approved the development of the unutilised land parcels available with the company having a potential to create about 3.5 million square feet of residential or commercial property and generate a revenue of about Rs 15,000 crore over the next few years. The development will be planned judiciously in phases to manage the company’s cash flows efficiently. The company will also evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits,” said Bombay Dyeing.