Cable Corp to develop 22 acres in the western suburb
The company will run the real estate business through its subsidiary Cable Corporation India Projects
WESTERN suburbs of Mumbai are hot property. With an increasing demand for residential property, builders are converting old factories into residential projects. While players like Raheja, Kanakia Spaces, Sheth Developers and Oberoi have already made their presence felt, others are fast making an entry. In a recent move, Cable Corporation of India (CCI) marked its entry into real estate with a Rs 1,000 croreinvestment plan. The company is launching a new project on its erstwhile factory, which has now been relocated to Nashik.
Located in the western suburbs of Mumbai, this is a mixed-use project. The 22-acre plot of land is equivalent to about 3.5 mln sq ft of saleable area. A power cable company, CCI will operate in the real estate business through its subsidiary Cable Corporation India Projects. This would include residential, commercial, retail and hospitality segment of which a little less than 2.5 mln sq ft would be dedicated to residential segment. “The overall cost of production in Nashik was much less as compared to Mumbai due to various state duties like octroi that prompted us to shift this factory to Nashik where we have our other units,” said Hiten Khatau, chairman and managing director, CCI. Thus, it was a natural progression from being a landowner to a developer, said Mr Khatau.
Touted as a luxurious project, the project would have 2 and 3 BHK flats, costing between Rs 70 lakh to Rs 1 crore. The company is expecting to fetch Rs 2,500-3,000 crore from the project at the end of five to seven years. Another builder, Sunteck Realty, is developing a residential project closer to the above project. “A 1.5 acre highend project, this land was bought from Pioneer Embroideries which had its factory in that place,” said Kamal Khaitan, managing director, Sunteck Realty. However, these will have only 3 and 4 BHK flats. The average price would be closer to a Rs 1 crore.
Easy accessibility to the highway and better infrastructure are the main reasons why developers are going to western suburbs, added Mr Khaitan.
Supriya Verma Mishra ET INTELLIGENCE GROUP
My Comments:
Cable Corp a Khaitan gr of Co has huge accumalated loss.But many Cos having huge land bank will able to turn around and can turn the tide.
Cable Corp seems one of them as can be seen from the above article.They have huge land bank of 22 acres and are investing 1000 cr.......
Take your own call.......
Hello Rajeevji, its up by 20% today itself..... aap to aap ho.....aap jaisa koi nahin.
ReplyDeleteDear Rajiv,
ReplyDeleteI read your blog with great interest as I feel in many cases you have same thinking as I have. My investing is based on some thumb rules accordingly I gathered 800 share of CCL between AUG-08 to MAR-09 avg price 13.22. My rational was this company is from Khatau(not khaitan) group and they have very bad reputation in share market. First I was alloted CCL in public issue before 1990 and I sold with nominal profit later share sky-rocketed. I was working in WCL and using cables of this co. I was surprised to note that how company making such good product can vanish, my reaction was that management must have siphoned cash out of company and left shareholders lurching. Another co. with good branded product "Carona" shoe (I hold 700 cost 9000) also vanished. Khatau mill was also good runnig co. but met with same fate. Now I thought why CCL in again being traded on bourses, they must have plan to take share to dizzy height and make placement so I must get some share and I bought shares.Now company has come with property theory and every one is running after this share I will also ride the wave, however I am already in profit of more than my loss of Carona. I expect more profit to come.
Nalayakji
ReplyDeleteImpeccable logic. It could be two things. It could be that the management is upto the same old trick of making fools out of the shareholders by taking the shares to dizzy heights and then letting it sink.
Or it could be that they have come to the conclusion that in this different india, there is more money to be made by really benefitting the shareholder.
In any case, this time you will make profit since you are forewarned about the kind of management it is.
Avinash