Bombay Dyeing banks on real estate to go debt free

MUMBAI: Textile major Bombay Dyeing & Manufacturing Co may clear off its debt in the next few years with greater focus on real estate business, chairman Nusli Wadia has said. Bombay Dyeing’s debt stands at 1,775 crore.

“Debt has been a major concern and we will be close to becoming a debt-free company in the next 2-3 years,” Mr Wadia told shareholders at the company’s 130th annual general meeting. “With new real estate projects coming up, we expect better earnings in future that would help the company to ease its debt burden,” he added.

Real estate business income more than doubled to 562 crore last year. The company has a land bank of about 67 acres in Mumbai, where it plans to develop residential and commercial buildings.

Nusli Wadia’s younger son Jeh Wadia has recently been appointed as an additional director of the company. He will spearhead the real estate business. Elder son Ness Wadia is joint managing director of the company.

The textile business, once a money spinner, has been suffering losses for quite some time forcing the company to put the polyester plant up for sale. Bombay Dyeing’s polyester business incurred a net loss of 7 crore in the June quarter.