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Rediff News  All News  » Business » Wadias to sell Britannia property, raise Rs 700 crore

Wadias to sell Britannia property, raise Rs 700 crore

September 11, 2013 10:27 IST

BritanniaThe Wadias are planning to sell the prime property of Britannia Garden estate in Bengaluru and an 8.5-acre property in Chennai to raise Rs 700 crore (Rs 7 billion).

The company hasn’t been able to find a buyer because of the slowdown.

This is part of Wadia’s plan to raise funds on Britannia’s books and use the proceeds for product launches and expansion. Britannia plans to move its headquarters to a 90,000-sq-ft commercial property in Whitefield from the six-acre

one now in Bengaluru.

The valuation of the properties have increased since the company first said it would sell the Bengaluru property last year.

A Britannia official said: “Britannia is moving to a larger office in Bengaluru. The company has indeed advertised to sell its Chennai property.”

The company’s margins have seen a sharp decline from 12 per cent in FY05 to just five per cent in FY12 before improving to six per cent in FY13, say analysts.

A property sale will help it generate funds for launching products and entering new markets, especially abroad.

BS Reporter in Bengaluru