Asked whether the company planned to sell off or lease out the property, managing director Rajeev Bakshi said: "No, we have not decided on Cadbury House as yet. However, we are looking at all avenues which will enable us to utilise our current physical assets in an appropriate way to enable shareholder value creation."

Industry sources, however, say the company is exploring the possibility of leasing out a part of its plush building. The Rs 350-crore-plus confectionery major may also be considering the sale of a part of its real-estate assets to generate funds, they said.

Bakshi categorically stated that while a decision on `more efficient use' of its physical assets had not yet been taken, there was no plan to move to the suburbs. A number of multinationals have, of late, announced plans to shift their base to the suburbs in an attempt to cutcosts.

Cadbury House, the seven-storey building located at the busy Haji Ali-Pedder Road junction, also houses over a hundred company employees and some of its directors.

Cadbury India is a local subsidiary of the UK multinational Cadbury Schweppes group, which also owns a 100 per cent subsidiary, Cadbury Schweppes Beverages, dealing in soft drinks.

Cadbury Schweppes Beverages, which was set up four years ago and was initially operating out of Cadbury House, recently moved out to a new building at Prabhadevi in the heart of the city.

Cadbury's attempt to utilise its physical assets could have stemmed from slowdown in the confectionery market, which has eroded the company's margins. The company has targeted a growth of 12 per cent in volumes and 20 per cent in value in calendar 1998.