Mumbai, Nov. 27: Morarjee Goculdas Spinning & Weaving Company Ltd (Morarjee Mills), one of the oldest textile companies in the country, is giving final touches to its conversion into a real estate major.
The board of Morarjee Mills today decided to demerge its tools division. The company has decided to change its name to Morarjee Realties Ltd to reflect the focus on realty business.
Morarjee Mills, part of the Ajay Piramal group, has been shifting its textile activities in Mumbai to real estate business. The decision has come at a time when the country's commercial capital is left with a few composite mills.
Morarjee Mills, in a communication to the exchanges, today said the decision of the board to demerge its tools division will enable the company to exclusively focus on its core strength in high potential realty business.
In real estate, the company had developed its Unit-2 property at Lower Parel and partly Unit-1 at Parel in Mumbai. It has also developed Peninsula Corporate Park with an area of 1 million sq ft to house approximately 10,000 professionals.
The company is now planning to develop a world-class residential complex at Parel. The concept design has been developed international architects and the complex will consist of approximately 800 flats with an area of 1 million sq ft.
To flourish in the realty business, the board today appointed Jaydev Mody as the managing director of the company. P. K. Gothi, who was looking after the textiles business, has stepped down as managing director and will now focus exclusively on the textiles business run by the company's subsidiary Morarjee Brembana Ltd.
Morarjee Mills also announced plans to list Morarjee Brembana on the stock exchanges. It added that with the acquisition of 50 per cent shares previously held by the Italian joint venture partner in Morarjee Brembana, the company's holdings will increase to 99 per cent. After seeking shareholder approval, the textile undertaking of the company was sold to Morarjee Brembana on a slump sale basis for a consideration of Rs 43.2 million.