DLF mulls restructuring of business, management
Business Standard, August 22, 2009, Page 3
DLF, the country's largest property developer, is mulling restructuring of its management, as the company is looking to reorganise its business into two vertical divisions from the existing five.
Ramesh Sanka, chief financial officer (CFO), is expected to head the newly created Leasing division, while Ashok Tyagi, currently executive director, is likely to become CFO.
"Since the company is integrating its business into two verticals, it wanted Ramesh Sanka to take up bigger responsibilities and that is why the management is likely to be restructured in the coming days," said an informed source.
However, a company spokesperson said, "We do not comment on market speculation."
Sanka has been group CFO for over five years and managed the finances during the toughest times. He handled the divesting of 12 per cent of DLF's equity for Rs 9,200 crore in June 2007. Of late, his strategy to exit the non-core business like hotels helped DLF bring its debt down from over Rs 14,000 crore to less than Rs 12,000 crore.
"The commercial segment needs a lot of negotiation with the corporates, as well as investors. DLF is also looking at raising a substantial amount of money through private equity and listing of DLF Assets Ltd on the Singapore Stock Exchange. Sanka would be the right person to head that segment," said Rupesh Sankhe, analyst at Centrum Broking.
Currently DLF has five verticals - home, retail, commercial, infrastructure and hospitality - which would now be integrated into two, sales and leasing. In the commercial business segment, DLF has constructed nearly 17 million sq ft and another 17 million sq is under construction.
Business Standard, August 22, 2009, Page 3
DLF, the country's largest property developer, is mulling restructuring of its management, as the company is looking to reorganise its business into two vertical divisions from the existing five.
Ramesh Sanka, chief financial officer (CFO), is expected to head the newly created Leasing division, while Ashok Tyagi, currently executive director, is likely to become CFO.
"Since the company is integrating its business into two verticals, it wanted Ramesh Sanka to take up bigger responsibilities and that is why the management is likely to be restructured in the coming days," said an informed source.
However, a company spokesperson said, "We do not comment on market speculation."
Sanka has been group CFO for over five years and managed the finances during the toughest times. He handled the divesting of 12 per cent of DLF's equity for Rs 9,200 crore in June 2007. Of late, his strategy to exit the non-core business like hotels helped DLF bring its debt down from over Rs 14,000 crore to less than Rs 12,000 crore.
"The commercial segment needs a lot of negotiation with the corporates, as well as investors. DLF is also looking at raising a substantial amount of money through private equity and listing of DLF Assets Ltd on the Singapore Stock Exchange. Sanka would be the right person to head that segment," said Rupesh Sankhe, analyst at Centrum Broking.
Currently DLF has five verticals - home, retail, commercial, infrastructure and hospitality - which would now be integrated into two, sales and leasing. In the commercial business segment, DLF has constructed nearly 17 million sq ft and another 17 million sq is under construction.
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