Tanglin may up stake in Sical; eyes Rs 1200cr rev in 5 yrs

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Tanglin may up stake in Sical; eyes Rs 1200cr rev in 5 yrs

Less than a month after Tanglin Retail Reality picked up a 40% stake in Sical Logistics through a combination of preferential allotment of shares and a stake buy, sources tell CNBC-TV18 that it is looking at upping its stake to 55% through an open offer, which will be completed by March of next year.

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Excerpts from India Business Hour on CNBC-TV18 Watch the full show » Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

VG Siddhartha, who owns the Cafe Coffee Day franchise, seems to want a lot more on his plate. He is learnt to be placing his bets on real estate, agriculture and logistics. CNBC-TV18's Sunanda Jayaseelan reports in detail.

He may maintain an extremely low profile but he certainly lives large through his companies. Less than a month ago, VG Siddhartha's Tanglin Retail picked up a 40% stake in Sical Logistics . This was done through a combination of buying from the open market and a preferential allotment.

Now CNBC-TV18 learns that Siddhartha is looking at hiking his stake in Sical to 55% through an open offer. This exercise could be completed by March 2011. Sources say this could help increase Tanglin's revenues from Rs 800 crore to Rs 1,200 crore in less than five years.

Siddhartha, who owns the popular Cafe Coffee Day chain, also owns two other business-one in agriculture, and one in hotels and resorts. And, he is learnt to have ambitious plans for both these business as well. These include building seven high-end resorts, all of which will be completed in the next five years. Also on the cards are high-end holiday homes cum residences. Both these projects, sources say, will contribute over Rs 200 crore over the next five years.

So how will these plans be funded?

Coffee Day recently raised Rs 960 crore from New Silk Route Ventures, KKR and Standard Chartered.

Of this, we learn that nearly Rs 425 crore will go towards expansion of the Café Coffee Day banner. Rs 250 crore will go towards Tanglin's expansion, and the balance will be invested in Siddhartha's real estate business.