Birla Estates, the real estate arm and a subsidiary of Century Textiles and Industries, will be buying Hindalco Industries’ Kalwa property for Rs 595 crore. The required formalities such as the documents and agreements towards the sale will follow in the upcoming weeks. It will approximately take 15 months to complete the transaction.
“Around Rs 595 crore to be received in multiple tranches over a period of time and 1.5% of the sales revenue,” announced Hindalco Industries in a regulatory filing.
The company plans to deleverage its debt from this sale. Moreover, a part of the sale will also be utilised for general corporate purpose.
Hindalco Industries had listed their prime property of 33 acres for eight years. Back in 2015, the Aditya Birla Group had decided to sell their land through a bidding process. They had finalised the value of their land at around Rs 1,500 crore and was to initiate auction process.
Earlier in 2010, the company had decided to shut their Kalwa plant, where aluminum foil was processed as running unit was economically unviable. Hence, the operations were moved elsewhere in India.