Reliance’s ₹2,200 Crore Investment in Navi Mumbai Land
In a landmark move, Reliance Industries Ltd (RIL) has acquired over 5,286 acres of prime industrial land, situated strategically near the Navi Mumbai International Airport, Jawaharlal Nehru Port Trust (JNPT), and the Mumbai Trans Harbour Link (MTHL) project, for a sum of ₹2,200 crore. This acquisition, considered one of the largest industrial land deals in Maharashtra, marks a significant expansion of RIL’s industrial footprint.
The land parcel, originally part of a Special Economic Zone (SEZ) project, was sold by Urban Infrastructure Holdings Pvt Ltd (UIHPL), in which Anand Jain-promoted Jai Corp Ltd holds a 32 percent stake. UIHPL’s subsidiary, Dronagiri Infrastructure Pvt Ltd (DIPL), divested its 74 percent stake in Navi Mumbai IIA Pvt Ltd (NMIIA) to RIL for ₹1,628 crore, valuing the entire entity at ₹2,200 crore. The Navi Mumbai SEZ is projected to have immense economic potential, with some estimates predicting its value could exceed ₹1 lakh crore once key infrastructure projects, such as the MTHL and Navi Mumbai Airport, are fully operational. Despite these projections, RIL’s acquisition price reflects the current land and project value rather than the future returns expected from these developments.
Interestingly, the deal’s structure has raised questions about the relationship between RIL and the other stakeholders. UIHPL, with a substantial shareholding in DIPL, has disclosed that Reliance’s investment is not a related-party transaction. However, with Mukesh Ambani-led Reliance Group holding 33 percent in UIHPL, the transaction indirectly consolidates RIL’s control over the project, strengthening its position in the upcoming industrial hub. The Dronagiri project, which spans a vast 2,140-hectare area (roughly 5,286 acres), has seen significant investments and infrastructure development. With financial backing from both Reliance and Jai Corp, the land is set to become a key industrial and commercial zone. According to reports, the project has already secured substantial funding, including over ₹3,100 crore in equity and deposits, ensuring that future land demand within the zone is expected to rise.
Despite the promising outlook, questions remain regarding the valuation of the land and the returns expected from this acquisition. While the project has received environmental clearance, RIL’s focus on the long-term development of the area aligns with its broader strategy to capitalise on the booming industrial and logistics sector in the region. As RIL moves forward with this significant acquisition, the deal highlights the growing importance of strategic land investments in Maharashtra, driven by major infrastructure projects that are set to transform the region’s economic landscape in the coming years.
