Eveready Industries, one of India’s largest battery makers, said it has signed an agreement to sell its plot on Tiruvottiyur Road in Chennai to local real estate developer Olympia Group for Rs 100 cr.
The agreement, said the battery maker, was executed yesterday with Olympia Group firm Alwarpet Properties Private Limited.
Mr. Ajit Chordia, MD of Olympia Group said his company plans to develop “a world class retail and entertainment destination on this location, bringing together the best of experiences for dining, shopping and cinema”.
Olympia Group started its real estate journey in partnership with Eveready by developing the latter’s land at Guindy, Chennai, now home to Olympia Tech Park.
The sale of the Tiruvottiyur plot is expected to be completed within 4-10 months, based on tangible milestones, the company added.
The land was home to a battery making unit for five decades.
The factory became economically unviable due to high standing costs & overheads and was idle for some time, it said.
“The sale transaction will help reduce debts of the Company and further improve the balance sheet,” said Amritanshu Khaitan, MD of Eveready.
“The closure of the factory, in any case, is positive to the profitability of the business on account of cost savings”.