Mafatlal Industries has put its closed textiles mill in central Mumbai up for sale to cash in the rapid demand recovery in the city’s realty market. The proposed sale of seven acres, or roughly 28,000 square meters, of mill land might earn the ailing company at least Rs 1,000 crore. Mafatlal will give an equal amount of land to the adjoining Byculla zoo.
Byculla land is part of the assets identified as surplus under the BIFR (Board for Industrial and Financial Reconstruction) sanctioned scheme. The company is at a very early stage of evaluating the potential of the asset.
In 2000, Mafatlal Industries was referred to the BIFR which sanctioned a rehabilitation scheme in 2002 that was later modified in 2009. The company may not use the sale proceeds to implement the BIFR-approved rehabilitation scheme as it would soon come out of the BIFR net. Mafatlal Industries now produces 85,000 meters of textiles a day at its units at Navsari near
