Aditya Birla Real Estate JV Closes Jhagadia Operations After ₹54.11 Crore Asset Sale

Aditya Birla Real Estate Ltd (ABREL), the real estate division of the Aditya Birla Group, announced the closure of its joint venture operations at Jhagadia, Gujarat. The joint venture, Birla Advanced Knits Private Ltd (BAKPL), jointly owned by Aditya Birla Real Estate and Grasim Industries Ltd, discontinued its activities following the sale of all plant and machinery to RSWM Ltd for ₹54.11 crore in cash. 

The sale agreement was finalised on October 13, 2025, completing the joint venture’s exit from the knit fabric business by the end of the day.

Reasons Behind the Closure

The company stated that the decision to shut down operations was driven by non-viability arising from economic disadvantages and high operational costs. Over the past few years, the Jhagadia unit faced challenges in sustaining production levels and profitability due to increased input expenses and limited market competitiveness. 

ABREL had earlier revealed that its equity investment in BAKPL stood at ₹114 crore, which was already accounted for in the company’s financials for FY 2024–25.

Transaction Details and Implications

Following the transaction, BAKPL has officially ceased all business activities. The deal included the transfer of all related plant equipment, accessories, and spares to RSWM Ltd. 

The company noted that the closure aligns with its strategy to optimise operations and focus on more viable business segments within the broader Aditya Birla Group portfolio. The move reflects a careful approach to financial discipline and asset realignment in a changing industrial environment.

Aditya Birla Real Estate Share Price Movement

As of October 14, 2025 at 01:05 PM, Aditya Birla Real Estate share price stood at ₹1,616.90 (NSE), marking a marginal increase of ₹0.60 or 0.037% from the previous close. The stock recorded a traded volume of 1.30 lakh shares with a traded value of ₹20.85 crore. 

Aditya Birla Real Estate share price has moved between a 52-week high of ₹3,140.00 on October 21, 2024 and a 52-week low of ₹1,562.60 on October 6, 2025, reflecting moderate market fluctuations. The company’s market capitalisation stood at ₹18,071.24 crore, with a free-float market cap of ₹8,443.56 crore.

Read more: Aditya Birla Capital Raises ₹3,400 Crore Via NCD Allotment

Conclusion

The closure of the Jhagadia operations marks an important phase for Aditya Birla Real Estate as it recalibrates its portfolio and aligns with more financially sustainable ventures. While the sale underscores the company’s focus on operational efficiency, Aditya Birla Real Estate share price continues to indicate investor confidence in its long-term strategic direction.

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