Have inked LoI for 10 screen multiplex: C&C Cons

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Have inked LoI for 10 screen multiplex: C&C Cons

In an interview with CNBC-TV18, GS Johar, Chairman of C&C Constructions, spoke about his outlook for the company.

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In an interview with CNBC-TV18, GS Johar, Chairman of C&C Constructions , spoke about his outlook for the company.

Below is a verbatim transcript of an exclusive interview with GS Johar on CNBC-TV18. Also watch the accompanying video.

Q: I understand that you have inked a letter of interest (LoI) with Cinepolis for a 10 screen multiplex in the Mohali junction. Could you tell us the timeline of when this is expected to be completed and how this would contribute to your profitability as well?

A: We are developing a bus terminus in Mohali, which is going to be up and about in 18 months beginning December.

Q: There is a 10 screen multiplex as well that is planned.

A: Yes. Part of this complex is to be used for commercial and retail purposes and part of the deal is that we sign up an agreement with Cineplex about 70 odd square feet space.

Q: If you can give us some clarification in terms of what is the revenue sharing that you are looking at and how much goes to Cinepolis? What has been the cost involved for this project?

A: We have a minimum guarantee of Rs 28 per square foot. At the first year it is at Rs 40 per square foot and then once it is running and up and about we would be getting 12% of their revenue. The current estimates are that it could vary from Rs 40 to Rs 55-60.

Q: What is the total project cost?

A: The entire complex that we are building is about Rs 500 crore.

Q: Are you sufficiently funded for it?

A: The financial closure is yet to happen and we put in about Rs 60 crore odd in the project right now.

Q: If you could just give us more details and split that up for us the multilevel car parking project and the projects from Cinepolis the timelines for both of these and when these would start flowing into your revenue stream?

A: The parking lot projects are in Delhi and they are Engineering, Procurement and Construction (EPC) contracts. There are roughly about Rs 180 crore. Rs 100 crore would happen by the end of June. These are all EPC.

Q: Where does your total order book stand as of now?

A: We are currently at Rs 3,000 crore.