New Delhi: FMCG major Emami Group has got its board’s approval to hive off its real estate arm into an independent entity.
The Kolkata-based company, which recently acquired a controlling stake in Zandu Pharmaceuticals, is planning to focus more on its core FMCG business while letting Emami Realty chart is course as a completely separate firm.
“The board has approved de-subsidisation of the realty business. It would work independently. Emami can focus more on its FMCG business,” Emami Director Aditya Agarwal said.
Asked if Emami was planning to exit from the realty business after spinning off the arms, Agarwal replied in the negative and said that Emami Realty would continue working on the various projects that it has started.
“We have almost 10 projects (commercial and residential) at present. We will continue working on them,” he said, however, declining to share the value of the projects.
On the source of funding of the projects, he said: “It is too early to talk (about it) at the moment.”
Emami Realty’s 10 projects comprise four IT parks, three shopping malls and three residential complexes in Kolkata, Coimbatore and Hyderabad, involving a construction area of over 50,00,000 sq ft. The projects are likely to be completed by 2010-11.
It is also a part of a consortium of real estate firms that recently completed South City Project, a Rs2,500-crore project developed in Kolkata.