7 November, 2007
In yet another
case of corporates selling off
real estate in Mumbai, car maker Fiat
has divested its 53 acres in Kurla.
Fiat has now joined the likes of
Bombay Dyeing, Cadbury India, and L&T
who have sold off their Mumbai
properties.
The trend seems to be an ongoing
phenomenon, with companies who look at
make huge amounts of money by cashing
in on the booming real estate segment,
turning realty players. Fiat sold its
53-acre property in Kurla for a hefty
Rs 608 crore to IKG Associates, said a
report.
With the sale of the Kurla land, Fiat
will now operate out of Ranjangaon,
near Pune, in over 200 acres of land,
said the report. The production of
various cars from the Fiat stable such
as the Uno, Palio, Siena, Weekend,
Adventure, and the Petra were being
carried out at the Kurla plant.
Earlier in 2006, Fiat had stopped its
operations at Kurla and had shifted
the production of Palio to the
Ranjangaon facility. The company had
earlier also shut down the Kurla plant
for six months after suffering losses
soon after heavy rains lashed across
Mumbai. The Ranjangaon facility has
been set up at an investment of Rs
4,000 crore. Fiat had kicked off
operations at this facility in
February 2007.
The sell off executed by Fiat has been
in line with its strategy to
restructure and consolidate its
operations in India. Fiat plans to
transform its production facilities
and focus on launching new models in
the country.
