HCC to be spun off into four arms
HCC is set to revamp operations by demerging its four critical business divisions into separate companies, reports Lalatendu Mishra.Updated: Jul 07, 2008 21:03 IST
Hindustan Construction Company Ltd (HCC), one of India’s oldest construction firms, is set to revamp operations by demerging its four critical business divisions into separate companies.
The company recently created four verticals---construction, infrastructure, real estate and finance---which would be subsequently de-merged and listed as separate legal entities. Post demerger, HCC will become a holding company.
“We are migrating from being a construction company to a full services infrastructure company,” said Ajit Gulabchand, chairman and managing director, HCC. “We are in the process of forming separate legal entities, which would be listed…after these businesses reach critical mass.”
The move is expected to lower business risk, apart from unlocking value for shareholders who would “now own five to six companies rather than one,” as Gulabchand said.
The construction business (HCC Construction) is further divided into six business units, headed by independent CEOs. HCC Infrastructure would focus on developing and operating big projects. The real estate business has huge land asset reserves, and also has 65 per cent stake in Lavasa Corporation.