TCI demerges its Real Estate and Warehousing division

Kolkata, Mar 17 : The board of directors of Transport Corporation of India Limited (TCI)'s India's leading integrated supply chain and logistics solutions provider, on Wednesday approved the demerger of its Real Estate and Warehousing undertaking into a new company namely TCI Developer's Limited (TDL) .

The management believes that TCI's Real Estate and Warehousing undertaking has the potential to develop the company's existing real estate into commercial ventures as well as create a focused entity to develop large scale logistics infrastructure projects like multi-modal logistics parks, truck terminals, free trade warehousing zones etc.

By creating a separate entity, the management intends to provide strategic direction and raise adequate funds for its development plans on the strength of its future profitability and growth plans in the Real Estate and warehouse construction sector.

Vineet Agarwal, Executive Director, TCI, said, "Our management has several years of rich experience in logistics business and we are continuously striving to take our core business to new heights. The proposed demerger will help the company in the management and operations of the real estate and warehousing division and create a focused team to achieve its objectives."

He further said, "As business models are different, the strategic and financial needs of the real estate and warehousing business are different from that of the logistics business. Investment in real estate and warehousing is more capital intensive and yields return over a longer period of time in comparison to the services model of the logistics business. Going forward, on a long term basis we would look at raising funds from strategic investors and financial institutions."

The book value of the undertaking being demerged comprising properties and investment amounts to approximately Rs. 50 crores. Post demerger, shareholding pattern of TDL (currently a 100pc subsidiary of TCI) will be a mirror image of TCI.

Every shareholder holding 20(Twenty) equity shares of Rs 2/- each in TCI will get 1(One) equity share of Rs 10/- each in TDL on scheme formalization.

The company presently has real estate properties in metropolitan and tier II cities including Delhi- NCR, Chennai, Pune, Nagpur, Bangalore, Ahmedabad and others.