Mumbai: Raymond Ltd, India’s leading apparel maker and garment retailer, said on Thursday that it plans to build homes on surplus land it holds in Thane, a Mumbai suburb.
Realty plans: Raymond’s Gautam Singhania. Hemant Padalkart / HT
The company’s board approved a plan to develop 15-20 -acres adjoining the firm’s factory.
“The idea is to unlock value for Raymond, and the operating area (the factory premises) will be untouched,” chairman and managing director Gautam Singhania said at a press conference.
“We are still working on it,” he said, declining to elaborate whether the subsequent phases of development would necessitate relocating the factory. The homes will be built by the company and not by a developer.
Raymond’s shares hit the upper limit on the Bombay Stock Exchange, closing 9.99% higher at Rs204.85. The benchmark Sensex closed almost flat with a 0.20% gain at 16,711.11.
Preeti Priyamvada, an analyst at Batlivala and Karani Securities, had written in a 16 September research report that any plans by Raymond to sell some of the 120 acres it holds in Thane may lead to an “upside to our estimates.” The report carried an “underperformer” rating.