Nirlon Knowledge Park

A major commercial development by Nirlon at Goregaon IT park phase 5, Western Express Highway to spice up the commercial market in Mumbai suburbs.

The commercial space in the heart of the western express highway location in Goregaon west is going to get a major transformation nee addition as Nirlon Ltd has decided to develop the phase 5 of Nirlon Knowledge Park and for the same it has planned to borrow up to Rs 500 crore from HDFC.

A couple of years back the very cash rich Singapore sovereign wealth fund GIC entered into an agreement to acquire 39% stake in Nirlon Ltd that owns the 3.3-million-sq-ft IT park called Nirlon knowledge park at Goregaon west, Mumbai right at the bustling western express highway location.

Post this understanding, Reco Berry Private Ltd which is an affiliate of Singapore sovereign wealth fund GIC acquired an additional 28.4% stake in Nirlon Ltd through an open offer. The amount of money invested by such a strong international entity definitely confirms and validates the value of this prized development and its very bright future both in terms of rental yields as well as capital appreciation for a long time to come.

This IT Park is close the Bombay exhibition Centre and is now a major commercial and IT hub in the city of Mumbai. The major advantages of this location are of course the proximity of the highway, the airport and also the Goregaon railway station as well as the new proposed Oshiwara railway station.

The region therefore attracts a lot of talent since it is easy to travel from this particular commercial hub and therefore Nirlon Knowledge Park has seen some of the biggest companies setting up their bases out here.

The company's board of directors has approved a proposal to this effect, Nirlon said in a BSE notice and has decided to avail additional borrowing up to Rs 500 crore from HDFC for the proposed Phase 5 development of Nirlon Knowledge Park.

It is also important to note that the company has approved re-appointment of Rahul V. Sagar as an executive director for five years with effect from February 01, 2016. This signifies the stability within the company and thus ensures that the development would be carried out smoothly and successfully. This definitely augurs well for the investors as well.

A brief on the history of Nirlon Ltd which is almost a 70 year old company now provides significant insights into its transformation process. It was initially engaged in manufacturing of nylon filament yarn and later ventured into industrial rubber products. In 1980s Nirlon had to shut down its main business due to floundering revenues as well as major upheavals in the textile and clothing industry. After being deemed as a sick unit following the major deterioration of its core textile business, the company realigned and re-strategised and has managed to come roaring back using the prime land back that it had accumulated in Goregaon East bang on the western express highway.

As the overall development of Goregaon East progressed, the western express highway has become the fulcrum of the change and now it is one of the most prominent location in the western suburbs with both residential as well as commercial properties being in huge demand from buyers, investors, end users, companies, corporates, etc.

Nirlon Ltd has managed to ride this huge wave of development and in the year 2006 started utilizing the prime and pristine 23 acres of land bank where the Nirlon Knowledge IT Park today stands very proudly indeed. With the addition of the new phase in this IT Park, it plans to harness the huge goodwill that it already has in the market and further solidify its position.