The steel and raw material producer, Bhuwalka Steel Industries Ltd has entered into Joint Development Agreement (JDA) with Soul Space Realty Ltd (a B.L. Kashyap Group Company).

The pact has been signed in pursuant to the MOU, which had been signed last year, for joint development of Bangalore property where presently a TMT mill is situated.

As per the JDA, the Bangalore property measuring more than 9 acres shall be developed by Soul Space Realty Ltd. for commercial / retail purpose.

As per present guidelines, about 1.3 Million Sq ft area may be built up and 40% of the same shall accrue to the Company and 60% shall be retained by the developer.

The value of property accruing to the Company after the development will be about Rs 125 crore and the company expects a rental income of Rs 12 crore per annum in future.

The developer shall also pay interest free refundable deposit of Rs 11.50 crore to the Company which will be refunded at the time of handing over of developed area.

The company has registered 226.1% growth in net profit to Rs 1.77 crore for the quarter ended December 2007 compared to net profit of Rs 0.54 crore for the quarter ended December 2006. Its sales increased by 32% to Rs 126.71 crore.