Yash Birla Group signs JV with Mumbai firm

The embattled Yash Birla Group has entered into an equal joint venture with Mumbai-based Nahar Group to re-develop its property of less than an acre in South Mumbai.

The land parcel is located in South Mumbai’s Tardeo neighbourhood and has a total area of 4,300 square metres (46,268 sq ft).

It has been valued at Rs 34 crore (Rs 340 million) and Nahar has paid its share of Rs 17 crore (Rs 170 million), said Manju Yagnik, vice-chairperson, Nahar Group.

“We will jointly take the responsibility of developing the plot and re-setttling the 159 tenants,” Yagnik said. She declined to talk about development potential of the land parcel, saying that they are working on it.

A Yash Birla communications executive did not reply to calls and text messages sent by Business Standard.

The Yash Birla Group was in the news recently when the Economic Offences Wing of the Mumbai Police conducted a series of raids on the group’s offices for not repaying Rs 214 crore (Rs 2.14 billion) to the investors in Birla Power Solutions’ fixed deposit schemes.

Group president Ananth Vardhan Pathak was also arrested on charges of possession of drugs.

The sales and profits of Yash Birla Group companies have plummeted over the last few quarters.

Birla Power Solutions sales were pegged at Rs 5 crore (Rs 50 million) and net losses at Rs 8.61 crore (Rs 86.1 million) in the December quarter of FY 2014.

Birla Cotsyn’s sales were at Rs 30.37 crore (Rs 303.7 million) and losses at Rs 21.48 crore (Rs 214.8 million) in the same period.

Image: Yash Birla; Photograph: Uttam Ghosh/Rediff