No concrete plans for Jaipur land bank: Compucom Software

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No concrete plans for Jaipur land bank: Compucom Software

Although Compucom Software Limited currently sits on a good land bank in Jaipur, the management tells CNBC-TV18 that they have no plans to monetize it just yet.

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Although Compucom Software Limited currently sits on a good land bank in Jaipur, the management tells CNBC-TV18 that they have no plans to monetize it just yet. In an exclusive interview, managing director Surendra Kumar Surana says that this land will be used by them to raise funds. "No immediate plans, but it will be used for raising funds or maybe used for making an educational venture on that," he said.

"We also have plans to enter the American e-tutoring market through one of our subsidiaries," adds Surana.
 
Below is an edited transcript of his interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: With respect to expansion, you have plans to increase your preschools by another 11 schools. Is there any kind of plan to monetize your land bank in Jaipur for the same?

A: Not immediately because that adds significant value to us when we go to raise funds in this risky market where paper money is not that important and people are hedging their risk. We are sitting on really good real estate and that helps us present ourselves in a more risk free environment.

So no immediate plans, but it will be used for raising funds or maybe used for making an educational venture on that, but nothing concrete yet.

Q: What sort of options will you be evaluating with regards to monetization of the land, would you look at selling it off completely or utilizing it in some form or manner?

A: Most likely will be utilized within Compucom Software itself, but it has not been finalized; we are looking at all the options. Monetization is another attractive option. We may hive off into a subsidiary and maybe that way we can raise some funds into that and move some businesses in there.

Evaluation of the land bank will be in the range of around Rs 50-60 crore which in the books maybe at low value but it is based on current market trends. So conservatively speaking, that is what it should be.

Another important plan we have is getting into the e-tutoring business in the American markets. Mr Ajay Kumar, the CEO of one of our subsidiaries is visiting us for finalization of that where we would be e-tutoring from our facilities in Jaipur. So we are taking advantage of the cost factor in IT business in the education segment.