NTC may raise Rs2,000-cr from mill land sale

The National Textile Corporation is looking to sell two of its central Mumbai properties that will collectively raise more than Rs2,000-crore.

The two properties that are currently being sold include Kohinoor Mills 1 & 2 in Dadar east and Sitaram Mills in Chinchpokli. They will have a combined minimum price of about Rs2,000-crore for the nearly 20 acres of land. Bids for selling Kohinoor’s 13.65 acres and for Sitaram Mills’ 5.88 acres would be called next month.

The textiles major intends to use the sale proceeds to partly fund its growth plans and to initiate a downsizing exercise.

NTC, which owns nine properties with an aggregate land bank of nearly 60 acres in space-constrained Mumbai, is also a key player in setting benchmark property prices in India’s financial capital. Its mills are located in central Mumbai, the erstwhile textile district, in places such as Worli, Lower Parel, Dadar and Prabhadevi.

NTC has already kicked off the sale process. It has called bids for its properties at Bharat Textile Mills and Poddar Processes in Worli and fixed the minimum reserve prices of Rs750-crore and Rs250-crore, respectively.