Wadia Sr takes back realty in own hands

Company's lack of sales and involvement in court cases said to be reasons behind the move

After making management changes at the top in Britannia, Wadia Group chairman Nusli Wadia is now looking hard at day-to-day operations of Bombay Realty, the real estate arm of Bombay Dyeing.

Insiders say he is chairing management meetings, fixing targets and talking with government agencies to get expeditious approvals for projects in this city. Wadia is also in the forefront of various suits filed by the group against the Brihanmumbai Municipal Corporation (BMC) over the conversion of mill land for residential purposes and the government's share in mill land for public housing.

Earlier, Jeh Wadia was looking into the affairs of the real estate division.

Known as a hard taskmaster, Nusli, now 69, recently changed the top management of the group’s food company, Britannia. He asked Varun Berry, the chief operating officer, to look after the domestic business and transferring managing director Vinita Bali to look after the global operations which now contribute only five per cent to Britannia’s revenues.

Insiders say Bombay Realty’s very high cost properties were not selling and the company got involved in court cases. Which is when the senior Wadia stepped in. "Ultimately, either Ness (the younger son) or Jeh have to come back. Till that time, Wadia will be in charge of the company," said a senior source in the group.

An email sent to Wadia on changes in Bombay Realty did not elicit any response. But in an earlier interview to this newspaper, he’d said it was his plan to rotate his two sons across all group companies and various positions. Ness at present is managing director of Bombay Burmah Trading Corporation. Jeh is MD of Bombay Dyeing, where Ness is a director.

Group insiders say the biggest challenge for Bombay Realty is from litigation by the Mumbai municipal authority over handing over a part of its land in central Mumbai for public housing. Otherwise, realty division sales were doing well, with revenues up in 2012-13 to Rs 666 crore as compared to Rs 566 crore in the previous year. But with litigation, progress on projects has slowed.

<B>Legal issues </B><BR>
During 2012, the company was required to amend the building designs for its Spring Mills project in Dadar to meet the requirements of new development control regulations. Soon after, the BMC issued a stop work order at its Worli textile mill site, pursuant to withdrawal of approval granted in 2004 for modification to the textile mill modernisation scheme of the state.

This was challenged by the company before the high court.

There is a Supreme Court order of August, 2012 for handing over land to the Maharashtra state housing board and BMC at the two mills, respectively, for public housing.

Bombay Dyeing has given its plan for a consolidated handover and sought Supreme Court clearance.
LEADING FROM THE FRONT

• Bombay Realty is the real estate arm of Bombay Dyeing
• Insiders say Wadia Group chairman Nusli Wadia (pictured) is chairing management meetings, fixing targets and talking with government agencies to get expeditious approvals for projects in this city
• Wadia is also in the forefront of various suits filed by the group against the Brihanmumbai Municipal Corporation over the conversion of mill land for residential purposes and the government's share in mill land for public housing