Shriram Properties to bid for Britannia's factory land in Chennai

Industry analysts indicated that the property will attract much more value if converted for a residential or a commercial development

Britannia Industries, India’s largest publicly held food company, has finally decided to sell its factory as well as the land spread over 16 acres in Chennai’s industrial hub- Padi. According to information available, the company may look to sell this asset in two parts of close to 9 acres first and then the rest later.

Vinita Bali, MD, Britannia Industries said that they are in the process of selling the Chennai facility as it was not efficient She however, did not comment on the kind of amount the company was looking to mop up by selling this asset.

According to information available, Bangalore-based Shriram Properties is understood to be considering to bid for this property. Industry analysts indicated that since this property is in the industrial hub, it will attract much more value if it is converted and made ready for a residential or a commercial development. “If converted, an acre could fetch between Rs 10-12 crores per acre,” an industry analyst indicated and Britannia may be getting close to around Rs 100 crore by exiting the first parcel of close to 9 acres.

This move by Britannia to sell the land at Chennai comes parallely to a move which the company is contemplating to develop a 6-acre plot in Bangalore on which its headquarters is located.  The land, if unlocked can fetch around Rs 450 crore.