Citigroup Global Markets picked up 2.3% stake in KSL & Industries. Discussing the company's business, Saurabh Tayal, Chairman of KSL & Industries says, currently most of the company's revenues and profits come from its textile business.

But once the real estate business, which is under construction, picks up, the company would focus more on it and it would contribute about 75% to the company's balancesheet, he adds.

Excerpts from CNBC-TV18's exclusive interview with Saurabh Tayal:

Q: The company is in its capital expansion phase and you are looking at raising money as well as at private placements at this point in time. How many private placements and what quantum are you looking at diluting?

A: The company’s present business is in textiles and real estate. The major focus will be real estate as the company has a rich land bank in five states across the country.

Within these five states, the company has 16 locations; in Maharastra, Gujarat, Himachal Pradesh, Union territory of Silvassa and in Punjab and other tier-II cities.

Q: What is the size of the total land that you hold and have you done any kind of valuation on it?

A: The total size of the company's land bank is approximately 250 acres. The vision of the company is to develop real estate activities across these locations after the the board gives its approval.

Q: Are you going at it alone, or are you going to form SPVs? Do you have the expertise in development of real estate or will you have to join hands for technology, capital infusion, etc?

A: The company has strong experience in developing real estate projects. The people we have tied up with are the best in the industry, Hafeez Contractor, Shapoorji Pallonji.

The company owns the land bank and is using it. The company will now develop residential apartments, IT parks, malls theaters, five star hotels and warehousing.

Q: Would you have a rough value in mind for the 250 acres of land?

A: Not yet calculated. But it could be roughly about Rs 2,000 -,2,500 crore.

Q: What is the kind of capital expenditure that you are looking at fuelling your development projects, as you are essentially looking at raising money through private placements?

A: We are looking at raising money from preferential, some private placements and through some small FCCBs.

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