Century Textiles Nusli Wadia deal

Century Textiles Seals Rs 1,100 Crore Deal with Nusli Wadia, Ending Decade-Long Dispute

In a landmark real estate deal, Century Textiles and Industries Ltd, a Birla group company, has acquired a prime 10-acre land parcel in Mumbai’s mill district for a whopping Rs 1,100 crore from Nusli Wadia. This deal not only signals the end of a long-standing legal dispute between two of India’s most iconic corporate families—the Birlas and the Wadias—but also marks a significant moment in Mumbai’s real estate landscape.

Century Textiles’ Big Move: The Rs 1,100 Crore Land Acquisition

Century Textiles, through its realty arm Birla Estates, has secured title rights for a prime 10-acre plot located in Mumbai’s coveted mill district. This acquisition merges Century Textiles’ existing leasehold interest with ownership rights, further cementing its presence in one of the most sought-after real estate zones in the city.

The land, which has a booking value potential of Rs 14,000 crore when fully developed, adds immense value to Century Textiles’ growing real estate portfolio. This deal is particularly significant as it ends a legal dispute between the Birla and Wadia families that had been ongoing for years.

Historic Dispute Finally Settled

The roots of this land dispute go back to 2009, when Nusli Wadia took Century Textiles to court over the use of the 10-acre plot. The land was originally leased to Century for 999 years by Wadia’s great-grandfather. After the shutdown of a textile mill on the plot in 2007, the Wadias sought approval for a change in land use. A local court, however, stayed any development on the plot in 2010, leaving the matter unresolved for over a decade.

The resolution of this dispute marks a historic moment in Indian corporate history, as it brings together two of the country’s most influential families. This truce opens up new opportunities for both groups, particularly in Mumbai’s booming real estate market.

Creating a Real Estate Powerhouse: 30 Acres of Prime Land

With this new acquisition, Century Textiles now holds a contiguous 30-acre land parcel in Mumbai’s mill district. The potential booking value of this combined holding is estimated at a staggering Rs 28,000 crore, positioning Century Textiles as a major player in Mumbai’s real estate sector.

This acquisition follows a previous deal in which the Wadias sold a 22-acre land parcel nearby to Japan’s Sumitomo for Rs 5,200 crore. With the addition of the newly acquired plot, Birla Estates is poised to transform the mill district into a bustling hub of residential and commercial activity.

Birla Estates’ Flagship Project: Birla Niyaara

Century Textiles’ flagship real estate project, Birla Niyaara, has already achieved impressive sales of Rs 5,700 crore since its launch. This luxury development is part of the larger plan for the newly acquired land and represents Birla Estates’ vision for transforming Mumbai’s mill district.

Birla Niyaara’s success underscores the strong demand for premium real estate in Mumbai and the strategic importance of this land acquisition. As the project continues to develop, it is expected to generate even more value for Century Textiles and its investors.

Financial Impact and Stock Market Reaction

The financial impact of this deal is already being felt in the stock market. Shares of Century Textiles surged by 5.41% to close at Rs 2,842.40 on Tuesday, reflecting strong investor confidence in the company’s real estate strategy. On the other hand, shares of Bombay Dyeing, which is part of the Wadia group, also saw a 1.23% increase, closing at Rs 210.65.

The consolidation of land holdings in Mumbai’s prime real estate market positions Century Textiles for sustained growth in the coming years. The deal not only resolves a long-standing legal battle but also sets the stage for significant financial gains.

Conclusion:

Century Textiles’ Rs 1,100 crore land acquisition from Nusli Wadia marks a pivotal moment in Mumbai’s real estate history. With this deal, the Birla group has not only ended a decade-long dispute but also consolidated its position in one of the most lucrative real estate markets in India. The potential for further development on this prime land is immense, and the deal is expected to reshape the landscape of Mumbai’s mill district.

For investors, this acquisition signals a strong growth trajectory for Century Textiles, with substantial booking value potential and the successful execution of projects like Birla Niyaara. As the company continues to expand its real estate footprint, the impact of this historic deal will be felt for years to come.

FAQs:

1.What do Century Textiles do?

A. Century Textile and Industries is an Indian textile and paper manufacturing and export company based in Mumbai. The main business activity involves manufacture of cotton textiles, yarn, denim, viscose filament rayon yarn, tire-cords, caustic soda, sulfuric acid, salt, pulp, and paper.

2.Who is the CEO of Century Textiles?

A. R. K. Dalmia – Managing Director – Century Textiles and Industries Limited

3.What is the booking value potential of the newly acquired land?

A. The newly acquired land has a booking value potential of Rs 14,000 crore when fully developed.

4.What is Birla Niyaara, and how has it performed?

A. Birla Niyaara is Century Textiles’ flagship real estate project, with Rs 5,700 crore in sales since its launch.

5.When did the dispute between the Birla and Wadia families begin?

A. The dispute began in 2009 when Nusli Wadia took Century Textiles to court over the use of the land.

6.What was the financial performance of Century Textiles’ stock after the deal?

A. Century Textiles’ stock surged by 5.41%, closing at Rs 2,842.40 after the announcement of the deal.

7.What is the total booking value potential of Century Textiles’ 30-acre landholding?

A. The total booking value potential is estimated at Rs 28,000 crore.

8.How has Bombay Dyeing’s stock performed after the deal?

A. Bombay Dyeing’s stock rose by 1.23%, closing at Rs 210.65.

9.What other land deals have the Wadias been involved in?

A. The Wadias previously sold a 22-acre parcel of land to Japan’s Sumitomo for Rs 5,200 crore.

10.What does this acquisition mean for Century Textiles’ future growth?

A. The acquisition strengthens Century Textiles’ position in Mumbai’s real estate market and sets the stage for significant future development.

Century Textiles Nusli Wadia deal

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