Here is a verbatim transcript of MP Singh, Director, RDB Industries exclusive inerview on CNBC-TV18. also watch the accompanying video.
Q: Post the demerger, what are you going to do with the cigarette business?
A: As you know, the objective behind the entire exercise was to unlock the value for our shareholders and for all the constituents of the RDB family. We have definite plans in place for these two entities. As you may have gathered by now, RDB Realty & Infrastructure limited will be a separate entity and shares will be allotted in a 1:1 ratio to existing shareholders of RDB Industry. RDB Industry will be now focused on the cigarette business and other things that might come along. Realty and infrastructure will be an independent company as you know.
Q: If you could also tell us a little bit about your tobacco business, the kind of sales estimations that you have and now that the FDI and tobacco has been banned will this change your company plans going forward?
A: Yes. The tobacco business now gets a fresh lease of life regardless of the recent announcements by the government. We did have an open mind in the past to look for strategic partnership or FDI opportunity but given the current spectra of things, it looks like that option is no longer available. We have definite plans to take the tobacco business forward and from the current sales of Rs10-12crore per year we are planning this to be going to Rs70-80crore in 4-5 years time.
Q: If we can go back to your realty business, if you can update us on your Surat township?
A: Surat is a very strong area of operation, after Kolkata. A township project is in progress. Our land bank has further increased beyond what we had discussed. We are sitting pretty on very a reasonably acquired landmass, very strategically located and the township project will be a landmark for us and for the people of Surat at large.
