Wednesday, June 1, 2011

Clutch Auto De-Merger.

Q: What is the intended demerger plan of the auto ancillary business?

A: We are dividing Clutch Auto into three units - one will be the prime Clutch Auto business which will be as it is. The second one is the prime land that we have on the Delhi border which will go under the name of a new company called Clutch Developers Ltd. Since Clutch Developers tenure will be short till the property is commercially disposed off or some alternate solution is available this will be a part of CA Clutch Vision Ltd which incorporates all the patents and technologies that Clutch Auto has developed but has so far not exploited.

Along with this will be the new technologies that have been developed with the NMITLI (New Millennium Indian Technology Leadership Initiative) under CSIR government of India, Department of Science and Technology. The new technologies and patents will go under CA Clutch Vision which will own Clutch Developers. All shareholders of Clutch Auto will be shareholders of CA Clutch Vision.

This means that whatever allotments come into their kitty after the approval of the stock exchange or the Delhi High Court will go as a bonus to these shareholders. They will have access to the benefits of the commercial properties that we own.

Q: For every share that you own of Clutch Auto today would shareholders be entitled to one share of the CA Clutch Vision?
A: No, that proportion has to be determined after the approval of the stock exchange and the Delhi High Court but some percentage of Clutch Auto’s shares will be allotted as opening shares of CA Clutch Vision.

Q: What is the land value of Clutch Vision given the land that it has in Delhi and what the market value is and what your assessment of the value of the patents that are captured in Clutch Vision?
A: The current value of the patents that we have already taken in United States, India, Australia, Mexico and Iran will be anywhere around Rs 100 crore. The new technologies that are coming in where the four institutions that are working with Clutch Auto for the last four-five years that is National Chemical Laboratory, Pune; Central Glass and Ceramic Research Institute (CGCRI), Kolkata; Advance Research Center, Hyderabad and Indian Institute of Technology, Delhi.
So the new technologies have developed which will increase the service life of clutch across the board by 100% and these technologies will come under CA Clutch Vision and the patents for those which accrue from these technologies will be filed jointly or independently by the respective institutions with Clutch Auto holding the first right for utilization of these technologies for Clutch application or other applications that Clutch Auto decides upon. The land value currently would be anywhere between Rs 100 crore to Rs 250 crore.

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