Aditya Birla Real Estate Closes Birla Advanced Knits for ₹54 Crore
Aditya Birla Real Estate Ltd has announced the closure of Birla Advanced Knits Private Ltd (BAKPL) due to non-viability and high operational costs. The assets were sold to RSWM Ltd for ₹54.11 crore.
Aditya Birla Real EstateBakplRswm LtdReal EstateJoint VentureReal EstateOct 13, 2025
The sale agreement was executed on October 13, 2025, marking the complete closure of the joint venture’s knit fabric business by the end of the same day. BAKPL, a joint venture between Aditya Birla Real Estate and Grasim Industries Ltd, had to discontinue its operations due to non-viability arising from economic disadvantages and high operational costs.
Previously, ABERL had disclosed that the business operations of the joint venture were not sustainable. The company noted that its equity investment in BAKPL stood at ₹114 crore, which had already been provided for in FY2024-25.
Following the transaction, all operations of BAKPL have ceased, and the company has completed the sale of all related plant, accessories, and spares to RSWM Ltd. This strategic move is aimed at streamlining operations and focusing on more viable business ventures.
Shares of Aditya Birla Real Estate Ltd ended at ₹1,611.70, down by ₹16.00, or 0.98%, on the BSE. Despite the slight dip, the company remains committed to its strategic growth plans and continues to explore new opportunities in the real estate sector.
The Aditya Birla Group, a diversified conglomerate with a strong presence in various industries, has been proactive in optimizing its portfolio to ensure long-term sustainability and profitability. This decision to close BAKPL and sell its assets is a testament to the group's commitment to maintaining a lean and efficient business structure.
In a related development, ABERL recently announced that its FY25 booking value had more than doubled year-on-year, reaching ₹8,000 crore. This significant achievement underscores the company's strong market position and its ability to deliver robust financial performance in a competitive landscape.
As the real estate market continues to evolve, ABERL remains focused on leveraging its expertise and resources to drive growth and deliver value to its stakeholders. The company's strategic initiatives, including the closure of non-viable ventures and the sale of underperforming assets, are expected to play a crucial role in achieving these goals.
Frequently Asked Questions
Why did Aditya Birla Real Estate close Birla Advanced Knits?
Aditya Birla Real Estate closed Birla Advanced Knits Private Ltd (BAKPL) due to non-viability arising from economic disadvantages and high operational costs.
How much did RSWM Ltd pay for the assets of BAKPL?
RSWM Ltd paid ₹54.11 crore for the assets of BAKPL.
What was the impact of this sale on Aditya Birla Real Estate's shares?
The shares of Aditya Birla Real Estate Ltd ended at ₹1,611.70, down by ₹16.00, or 0.98%, on the BSE.
What was the equity investment of Aditya Birla Real Estate in BAKPL?
The equity investment of Aditya Birla Real Estate in BAKPL stood at ₹114 crore, which had already been provided for in FY2024-25.
What is the booking value of Aditya Birla Real Estate for FY25?
The booking value of Aditya Birla Real Estate for FY25 more than doubled year-on-year, reaching ₹8,000 crore.
Related News Articles
Court Takes Possession of Punia Group's Bungalow Over 5 Crore Loan Default
A Mumbai court has taken possession of a bungalow at Madh Island in Malad West belonging to the Punia group of companies under the SARFAESI Act for defaulting on a loan of nearly Rs 5 crore.
Sunteck Realty Sees 30% Jump in Sale Bookings to Rs 502 Crore in Q1 FY25
Sunteck Realty, a prominent real estate developer, reports a significant surge in sale bookings, driven by strong housing demand in the Maharashtra property market.
Godrej Properties Expands with Major Rs 9,650 Crore Projects in Pune and Bengaluru
Godrej Properties, a leading real estate developer, has announced ambitious future targets with the launch of several major projects in Pune and Bengaluru. Their strategy involves significant investment and expansion in these key cities.
Private Equity Investment in Indian Real Estate Dips by 4%
According to Shobhit Agarwal, MD & CEO of Anarock Capital, foreign investors, who are the primary drivers of office investments, have scaled back due to global economic uncertainties, leading to a 4% decline in private equity investments in the Indian rea
Cement Sector on the Rise: Strong Volume Growth and Price Hikes Boost Profits
The Indian cement industry is witnessing a resurgence, driven by robust volume growth, stable demand, and recent price hikes. Analysts predict a significant improvement in profitability, particularly in the second half of FY25.
Amol Ravetkar's Approaches to Urban Space Solutions in Pune
Amol Ravetkar, a seasoned real estate developer and founder of the Ravetkar Group, offers valuable insights into addressing the growing need for urban spaces in Pune. His expertise is crucial for the city's strategic urban renewal.