Birla-Wadia Mumbai Land Truce: Century Textiles Buys Plot for Rs 1,100 Crore

Century Textiles and Industry, a Birla group company, has announced the acquisition of a prime land parcel from Nusli Wadia in Mumbai's mill district for Rs 1,100 crore. The deal resolves a longstanding dispute between the Birla and Wadia families, enhancing the Birlas' landholdings and real estate potential in the area.

In a development signaling a truce between the Birla and Wadia families, Century Textiles and Industry, a Birla group company, announced on Tuesday its acquisition of a prime land parcel in central Mumbai's mill district from Nusli Wadia for Rs 1,100 crore.

The two corporate families had been in a legal tussle over the Worli plot, which has evolved from mill land to prime real estate. The dispute had been ongoing in the courts.

Century Textiles and Industry made a surprise announcement, stating that its realty division, Birla Estates, is securing title rights for the approximately 10-acre plot from Nusli Wadia for Rs 1,100 crore. This transaction merges Century Textiles' existing leasehold with ownership rights, presenting a booking value potential of Rs 14,000 crore when fully developed.

The Wadia group, which had sold a nearby 22-acre parcel to Japan's Sumitomo for Rs 5,200 crore a year earlier, had its headquarters housed there. Meanwhile, Birla has ongoing developments on its existing land.

The latest deal creates a contiguous 30-acre landholding with a potential booking value of about Rs 28,000 crore. Century Textiles said its flagship project, Birla Niyaara, had already generated sales of Rs 5,700 crore since its launch.

Reports indicate that Nusli Wadia moved the courts in 2009 over the land use, initially leased for 999 years by his great-grandfather. The dispute intensified in 2022 when Birla launched a new real estate project, leading to caution notices from Wadia asserting control over the parcel. The Sumitomo sale was aimed at improving Bombay Dyeing's financial health.

Bombay Dyeing's board sought to reduce debt and achieve sustained profitability, turning a Rs 517 crore loss in FY23 into a Rs 2,948 crore profit in FY24. The company's stock rose 1.23% to Rs 210.65 on Tuesday, while Century's stock increased 5.41% to Rs 2,842.40.

(With inputs from agencies.)