Bata India is in talks with local real estate developers to utilise the idle land of its 300 acre-factory at Bata Nagar near Kolkata.

A handful of real estate developers confirmed having talks with Bata authorities to "make good use of the land." The factory includes the production facility and residential complexes. P Anand, company secretary, Bata, neither denied nor confirmed the move. He said he was not aware of the development.

Sumit Dabriwal of United Credit Belani Group, one of the developers in talks with Bata, said, "We along with Bata executives are trying to find out how much land could be developed, excluding land required for production and housing for employees."

Real estate brokers said the Bata move had been kept under wraps, as it was a sensitive issue especially before the general elections. "Under the state government's rules, handover of a factory land for commercial development of real estate is easier in case of a sick company. The Bata move needs clearance from the state government," explained a broker.

The move to sell excess land is in line with its current strategy to hive off unused land at factories and other locations to release value.

The company witnessed a three times rise in net loss this year to Rs 26 crore (Rs 260 million).

The company is working on a plan involving shedding under-performing and surplus assets to put itself back on the track. The company has firmed up plans to sell portion of its staff colony at Faridabad. It has also hived off its canvas manufacturing unit spread over 28 acres of land.

It sold Colony-A, meant for senior officials spread over five acres of land, and Colony-C for employees spanning another five acres, some time back at Faridabad. The entire colony was vacated by the company before the sale. It is keen on selling the rest of the colony, comprising Colony-B for officers, the Bata Club, and related properties.