Golden Tobacco to jointly develop land in Vile Parle

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Golden Tobacco to jointly develop land in Vile Parle

In an interview with CNBC-TV18, Sanjay Dalmia, chairman, Golden Tobacco (formerly GTC Industries Ltd), spoke about the latest happenings in his company and sector.

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Cigarettes and tobacco products manufacturer Golden Tobacco (formerly GTC Industries) has received shareholders' nod to enter into a pact with realtors Sheth Developers and Suraksha Realty to either jointly develop or sell 7.7 acre owned by the company in a suburb (Vile Parle) in Mumbai.

In an interview with CNBC-TV18, chairman Sanjay Dalmia spoke about the latest happenings in the company and his outlook for the sector.

Below is a verbatim transcript of his interview with CNBC-TV18's Ekta Batra and Gautam Broker. Also watch the accompanying video.

Q: Can you give us an update on what you plan to do with this Vile Parle land, where has this progressed in terms of may be a joint development or may be even a sale?

A: No, it's not a sale, it's a joint development.

Q: Earlier, there was some news that the I-T department, HDIL were averse to getting this e-auction done for the Andheri land. Has there been any progress on that front? What do you think will ultimately result into from both these I-T department and the HDIL, have you heard from them?

A: HDIL has nothing to do, no locus standi.

Q: What about the IT department?

A: IT department has also no locus standi. They did go to High Court yesterday for stopping this, they were denied. They did not get what they wanted.

Q: So, do you expect to conduct a joint development and proceed from it here on or do you think there is any other formality left?

A: There may be some formality, I can't pinpoint like that. Shareholders' valid permission is there. We have all the intention of going ahead.

Q: Can you give us a quick update on the process of the joint development? When could we possibly see some sort of culmination and what sort of property development you are looking at, commercial or residential etc?

A: What we are going to do, what we are not going to do, we will take joint decision because it's a joint development. So, whatever we have to do, we will do together.

Q: Why did you choose joint development vis-à-vis a sale of land, can you just give us the rational behind that possibly?

A: We wanted to do it jointly. We didn't want to sell it because we are also trying to be in the real estate business, one of the divisions of the company. We are not very good at this because we have just entered into real estate. So, we thought we will have somebody who can do it together and we learn from it and then later on we will see.

Q: Golden Tobacco has a marketcap of about Rs 150 crore. I understand that since you would be developing prime property, you would definitely need some capital. How are you going to fund this project?

A: There are various ways of doing it.

Q: So, is there any equity infusion?

A: I don't think we have applied our mind in that. Whatever we have to do, we will do it jointly. We are doing with another entity. So, obviously, we will have to see how to do it.