Properties may generate Rs 200-400cr revenue in 5 yrs: TCI

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Properties may generate Rs 200-400cr revenue in 5 yrs: TCI

The Board of Directors of Transport Corporation of India approved the Scheme of Arrangement relating to the demerger of "Real Estate & Warehousing" division of the Company with effect from April 01, 2010, subject to the requisite approvals.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Transport Corp to demerge real estate, warehouse unit TCI Q3 net profit up at Rs 11.8 cr See 20-30% rise in FY10 net profit: Transport Corporation ALSO READ See latest News about Transport Corp See previous management interviews See what other Experts & Brokerages are saying about Transport Corp Transport Corp BSE | NSE 29/05/12 Are Mutual Funds betting on Transport Corp?

Q: That is exactly what your shareholders would want to know, what kind of area you probably are sitting on in the prime locations, Delhi-NCR as you alluded to, Bangalore, Pune? How much square foot can you potentially develop, residential or commercial over the next two-three years as you start developing these areas?

A: In Delhi, we have a property that is about little more than acre. In Bangalore, we have about 7 acres of land on the outskirts of the city. In other locations, we have between 1 and 2 acres. So commercially we think that the properties themselves could generate, in the next five years depending upon clearances, maybe between Rs 200 crore and Rs 400 crore of revenues.

Q: When does this start, when do you rollout the blue print and when do you see the first bookings of revenues happening in TCI Developers?

A: First the process of demerger has to be completed. For that, we have to take the shareholder's approval, we have to get High Court approval and of course the stock exchange approvals. Once that is through then the development process will start, which is also going on simultaneously. So I think certain projects like the Delhi projects etc, we would probably start looking at generating some revenues closer to middle of next year.

Q: What is the promoter shareholding in this demerged entity and is the plan to list this part of the business as well?

A: The overall promoter holding in the parent company is 69% and because this new company will be exact mirror image of the parent company, so a person holding 20 shares in the parent company would get one share in the new company and there also the promoter holding will be 69%. This company should get automatically listed based on the stock exchange regulations.