Rs 1,016 cr record bid for Bharat Mills | mumbai | Hindustan Times
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Rs 1,016 cr record bid for Bharat Mills

The online auction of Bharat Textile Mills kicked off on Wednesday with a record bid of Rs 1,016, the highest-ever for any individual property owned by the National Textile Mills (NTC).

mumbai Updated: Aug 05, 2010 01:10 IST
Naresh Kamath

The online auction of Bharat Textile Mills kicked off on Wednesday with a record bid of Rs 1,016, the highest-ever for any individual property owned by the National Textile Mills (NTC).

The reserve price of this 8-acre Worli plot was fixed at Rs 750 crore. There are still two days for the bidding process.

An elated K. Ramchandran Pillai, chairman and managing director of NTC, said, “We estimate we will be able to get at least Rs 1,500 crore from the sale of this mill.”

Pillai explained that his estimation was based on last week’s auction when Podar Processing Mill was sold for Rs 474 crore, almost twice its reserve price of Rs 250 crore.

Of the six mills auctioned by the NTC till date, the Mumbai Textile Mills has fetched the highest price, Rs 702 crore, from the DLF group in 2005.

The seven bidders, who have deposited Rs 37.50 crore each, are DB View Infracon Private Ltd, Indiabulls InfraEstate Ltd, Peninsula Real Estate Management Private Ltd, Ahimsa Realtors Private Ltd, Perspective Realty Private Ltd, Videocon Realty and Infrastructure Ltd and Lodha Structure Developers Private Ltd.

Of its 25 mills, the NTC has sold six. It proposes to use the money to fund its Rs 9,000 crore expansion and modernisation plan. The NTC has also entered into joint ventures to revive four of its mills and has handed over three of its mills to the municipal corporation and state housing authority.