After garnering about Rs 2,000 crore from the sale of about 10 acres of land in Mumbai’s prime locations, the National Textile Corporation (NTC) will put some of its properties in Bangalore and Indore on the block in October.
Through an e-auction, the company would be selling 16 acres at its Malwa Mill in Indore and 1.73 acres at the Minerva Mills in Bangalore. These mills had become defunct.
“We have fixed a reserve price of Rs 60 crore for Malwa Mill and Rs 50 crore for Minerva Mill,” NTC Chairman and Managing Director Ramachandran Pillai said.
The company is expecting double the reserve price, if not more, from the auctions.
The three-day process will start from October 25 in Indore followed by the Bangalore auction, he said.
Last week, the company gave an advertisement inviting tenders for the sale of land.
Recently, real estate major Indiabulls Infraestate bagged NTC’s 8.3 acres of Bharat Textile Mills land in the Worli area of Mumbai for a whopping Rs 1,505 crore.
It also won the company’s 2.3-acre Poddar Mill land for Rs 474 crore, paying almost double the reserve price of Rs 250 crore.
Industry experts said the expected response for Indore and Bangalore lands would not be as high as the Mumbai auction, as the financial capital typically commands higher rates.
NTC would use the funds for modernisation and diversification. “As part of this revival scheme, the company will set up one technical textile mill in Rajasthan and one in Coimbatore,” Pillai said.
After the sale of Mumbai land, the company has revised its mop-up target for this financial year by 60 per cent to Rs 8,000 crore.
The company has about 1,300 acres of land in various places like Mumbai, Bangalore, Indore, Karnataka and Coimbatore.
