GSK may put two Karnataka properties on the block

GSK India, following the disposal of its two high value land assets at Worli and Mulund in Mumbai recently, is likely to put its other two such properties in Karnataka on the block.

Since the company has shut down its formulation facilities located at Bangalore and Mysore, it is proposing to sell off the surplus land at these locations. GSK currently owns land properties of about 80 acre at Bangalore and another 20 acre at Mysore.

As the 400-odd employees at these facilities were offered separation under voluntary retirement scheme (VRS) due to the company's decision to shut down operations at these plants, these two production facilities were lying idle.

The company sources confirmed that it has no plans to restart operations at these facilities.

Industry sources said that the company would soon initiate talks with interested parties or may invite competitive bids for the same.

However, GSK India Managing Director Kalayana Sundaram said that the company was yet to take a decision on the disposal of Bangalore and Mysore properties. "We are keeping our options open and it is quite early to comment on the issue," he added.

An industry analyst said that since the real estate prices in Bangalore have been rising, the GSK property would fetch a minimum of Rs 600 to 700 crore at the current prices.

In June 2003, GSK had sold its office premises located at Cunnigham Road in Bangalore to Dawat-E-Hadiyah Trust of Mumbai, for a consideration of Rs 23.10 crore.

The company had also sold its another plot located at Worli in Mumbai for Rs 107.60 crore to I-Ven Realty in 2004.

Last year, GSK had disposed another 20-acre plot in Mumbai, which belonged to Burroughs Wellcome India"� a company acquired by GSK, to Oberoi Constructions for Rs 221 crore.

While the Bangalore and Mysore facilities were shut down, GSK had around 250 people employed at the Bangalore factory and another 150 people at its Mysore plant. These employees were given a VRS package of Rs 8 to 10 lakh aggregating to over Rs 35 crore in December 2003.