Onida looks to monetise realty assets for revival

Kolkata: Onida Electronics, maker of once-iconic Onida television brand, plans to monetise its real estate portfolio to raise funds, with part of proceeds earmarked for reviving the brand as it takes on deep-pocketed rivals such as LG, Samsung, Haier and Hisense in India's fiercely competitive consumer electronics market.

Newly appointed managing director and chief executive Gunjan Srivastava said the company is evaluating the monetisation of three land parcels: its 2,143 sq m headquarters, Onida House, in Mumbai's Andheri; its 60-acre manufacturing facility at Wada, which is being shut down; and a five-acre parcel at Lote in Ratnagiri.

The assets could be sold outright or redeveloped, either independently or through partnerships, with a decision expected by the end of this calendar year. Options under consideration include redeveloping the Andheri property into an office or IT complex, while the Wada site could be converted into a logistics hub because of its connectivity.


"The Wada factory was being used for contract manufacturing of televisions. We have discontinued those operations and are exiting this business as we could not achieve the scale required, which diverted focus from our core business," Srivastava said.

Onida will continue to manufacture washing machines at its Roorkee plant, while television production will be outsourced to contract manufacturers.

The move places Onida among a growing list of Indian companies unlocking value from legacy real estate. Biscuit maker Parle Products, for instance, is redeveloping its oldest factory at Mumbai's Vile Parle into a commercial complex in a project estimated to be worth more than ₹3,900 crore.