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N. Ramakrishnan
R. Balaji

To venture into new business areas; subsidiaries to facilitate expansion

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Chennai Feb. 23 Lancor G:Corp Properties Ltd, a Chennai-based listed company in property development, plans to expand into other southern States. It plans to have a residential project in Bangalore, after which it will look to expand in other locations.

Apart from residential and office space the company also hopes to move into new areas such as construction of hotels and factories through group companies, according to Mr R.V. Shekar, Managing Director, Lancor Holdings Ltd.

A proposal to merge Lancor G:Corp Properties with Lancor Holdings is awaiting statutory approval. Lancor G:Corp is an equal joint venture between Lancor Holdings and G:Corp. According to the merger proposal, G:Corp will get a 20 per cent stake in Lancor Holdings in exchange for its 50 per cent stake in Lancor G:Corp Properties through the issue of fresh shares. The stake of Mr Shekar and his family, the promoters, will be about 60 per cent from 72 per cent now, once the merger is completed, according to him.

Projects

In Chennai, the company has about 2 million sq ft of construction under development, most of which — except for about 3,00,000 sq ft — is in the market. This includes a 1,85,000 sq ft IT park on the posh St Mary's Road in Chennai, which is expected to be completed by December 2007.

With the buoyancy in the construction industry, Lancor expects its business to grow from Rs 50-60 crore in the current year to Rs 145 crore in 2007-08. It is in the process of expanding the profile of the company from residential and commercial space to new projects like factories and hotels construction, Mr Shekar said.

The expansion into neighbouring States could be through any of its subsidiaries — each of Lancor's subsidiaries handles the actual construction, projects, realty and maintenance.

Own land only

Lancor itself is considering setting up a mini township in Bangalore — Jayanagar. The company will concentrate on the residential segment in Bangalore because of the over-supply of office space there. Projects could also be implemented through G:Corp, which has a major presence in Bangalore, he said.

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