Media Video demerges its realty arm

NEW DELHI: Consumer durables and infrastructure firm Media Video on Tuesday demerged its real estate operations into a separate entity as it targets to increase group turnover to Rs 1,678 crore by 2012.

The company has received Delhi High Court approval for its restructuring plans.

"Demerger would help us concentrate on both our businesses in a better way and we are aiming at revenues of Rs 1,000 crore for our real estate business by 2012 while our consumer durables business is also expected to reach Rs 678 crore mark by then," Media Video Managing Director Prem Asip Rishi told reporters here.

He said the real estate arm is expected to earn profits of Rs 700 crore by 2012 due to realisation of executed projects by then. As per the scheme, the real estate division would be demerged into a separate entity, MVL Ltd, which would be subsequently listed on the bourses.

Post demerger, existing shareholders in the company would get 60 shares of MVL Ltd and 40 shares of the consumer durable arm, Media Video, for every 100 shares held in the parent company.

"We want to unlock the real value for our shareholders through this demerger. The shareholders would now get an option to invest their money either into real estate arm or consumer durable biz," Rishi said.

MVL Ltd's six subsidiaries would be subsequently merged with the company.Rishi said MVL Ltd is presently executing projects worth over Rs 4,300 crore and cumulative completed projects are expected to touch more than Rs 8,000 crore by 2012.

"Presently, we are executing three residential complexes, one already in construction mode while other two would start in October and November, and three IT parks, work on which would start by next month," he said.