Birla Estates formally acquires Hindalco factory plot in Kalwa

MUMBAI: A subsidiary of Birla Estates has acquired Hindalco Industries’ Kalwa’s plant, spread over 24.5 acres, for ₹537.42 crore. Both the companies involved in the deal are part of the larger Aditya Birla Group. In July 2023, Hindalco Industries announced that its board had given its approval to sell the plot to Birla Estates’ Ekamaya Properties.

The deal was formalized and finalized on September 4, with Ekamaya Properties acquiring nearly 24.5 acres or 99,021.47 square meters, documents available through proptech portal Square Yards show. The amount ₹37.61 crore stamp duty and registration fee of Rs. was paid ₹30,000.

Hindalco Industries had been looking to sell this plot of land since 2013-14. At that time, the company had estimated that it would fetch a value of around ₹1,500 crore in the auction. Before the auction process began, several developers expressed interest but the sale never took place.

The international group, headed by Kumar Mangalam Birla, operated an aluminium foil plant in Kalwa, which was shut down in 2010. It produced printed foils and a range of laminated products. Its annual production capacity before it ceased operations was up to 6,000 tonnes, catering to sectors such as food processing, pharmaceuticals, healthcare and confectionery.

Kalwa is an extension of Thane city and has emerged as one of the most sought-after real estate markets due to its strategic location, connecting various areas of the Mumbai metropolitan region. In 2019, Raymond entered the real estate space by launching a project in its industrial space in Thane’s Pokhran Road. The debut project is taking shape and will include a residential complex spread over 14 acres.

“We are witnessing leading developers strategically positioning themselves in key markets by acquiring significant plots. This is in line with the growing demand for office space as well as apartments in gated communities as homebuyers’ preferences have shifted towards projects that offer a range of amenities and open spaces. These valuable transactions in the market clearly signal profitable opportunities for developers in both the residential as well as commercial sectors,” said Anand Moorthy, Co-Founder & CBO, Capital Market & Services, Square Yards.

He added that global companies and tech giants are increasingly expanding their presence in India. “Digitization of land records and increased transparency have played a key role in increasing stakeholder confidence in the Indian real estate sector.”

An email sent to Birla Estates enquiring about the company’s expansion plans remained unanswered.

Birla Estates has a market share in the Mumbai Metropolitan Region, Pune, Bengaluru and the National Capital Region. As per Square Yards data, Birla Estates has been ranked third in MMR Mumbai among the developers with the highest recorded home sales values ​​in the April-June quarter of 2024, registering transactions worth ₹1,126 crores.