GTC set for Realty Business Separately

NEW DELHI:Cigarette manufacturer GTC Industries pronounced that its board of directors has considered and decided an in-principle approval to separate the tobacco and the real estate business into two different entities.

The two entities would be listed separately on the stock exchanges in India.

ET had initially reported plans of a separation of the real estate business last November.
Commenting on the progress, GTC Industries chairman Sanjay Dalmia  told that the separation would unlock distinctive shareholder value across both verticals, tobacco as well as  the real estate. The company is in the process of probing different options for working out a suitable scheme of separation keeping the interest of shareholders in mind.”

As reported earlier, GTC Industries had been looking forward to separate its real estate assets spread across Mumbai, Baroda and Hyderabad into a separate company.

The separated entity would then become a real estate development company while GTC would remain the cigarette manufacturer with brands like Panama and Chancellor. The separated companies would form joint ventures and develop real estate assets.

2 Comments

  1. Posted April 15, 2008 at 6:16 am | Permalink

    GTC Industries Limited (formerly Golden Tobacco Company), flagship of Dalmia Group, is a leading cigarette manufacturer in India. The company later diversified into petrochemicals, additives, paper, marine products, etc. The company has established Dalmia Resorts, and has co-promoted Gujarat Heavy Chemicals (GHCL) with GIIC to manufacture soda ash. It has forayed into the communications sector through DSS Mobile Communications, a joint sector company.

  2. Posted April 18, 2008 at 3:42 am | Permalink

    The taxes are very highly liable on the cigratte manufactures so the cost should be necessarily highly.

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