Industrial units turning into plush residential towers
Faced with depleting revenues due to the economic slowdown and rising inflation, industrial units around Mumbai, Thane, Pimpri Chinchwad are diversifying into the real estate business to develop additional sources of income.
Many companies are converting their land holdings from industrial to residential purposes. For example, so far the Pimpri Chinchwad Municipal Corporation has converted 5.32 lakh square metres of land from industrial to residential use and residential buildings have been constructed on these sites.
A few decades ago, when industrial development was being promoted in Thane and Navi Mumbai, the government had acquired land from local farmers and handed it over to the industries. With changing economic conditions, many industries shifted their production units out of Thane, Mulund, Bhandup, leaving many plots vacant. Taking advantage of the real estate boom, many industrialists have started converting their plots from industrial to residential. So far 30 companies have applied for the conversion.
Sandeep Belsare, secretary of the Pimpri Chinchwad Small Industries Association, said that although all necessary facilities are available in the city for industries, production costs have remained high compared to other places. Hence, all big manufacturers have shifted their bases elsewhere in the State or outside the State.
On account of the shifting of the big companies, small industries are not getting enough work, which is hurting their revenues. Moreover, rising real estate prices present a lucrative option for companies to change the purpose of their vacant plots from industrial to residential. Most industrial units are moving their facilities away from residential areas due to stringent safety norms and space constraints in such areas, said Anant Sardeshmukh, Director General, Mahratta Chamber of Commerce Industries and Agriculture (MCCIA).
