Daman-based Radha Madhav Corporation Ltd (RMCL), which had forayed into e-commerce space, is planning to raise ₹100 crore by selling assets and offloading stake.

The company will use 60 per cent of the proceeds to pay off debts and the remaining to strengthen its e-commerce ventures.

Predominantly a plastic packaging company, RMCL had forayed into the e-commerce space in 2010. The company is in talks with several firms to sell its packaging material manufacturing unit in Rudrapur, Uttarakhand, for ₹65 crore.

The BSE- and NSE-listed company has six units in Daman as well. “We expect to conclude the deal in 3-4 months,” said Mitesh Agarwal, MD, RMCL told BusinessLine . He declined to name the companies RMCL was in talks with, citing non-disclosure agreements. Further, RMCL is looking at offloading stake to either private equity players or companies to raise ₹35 crore. Agarwal expects to raise the funds in the first quarter of next financial year.

Going big

Following the fund raising, the company intends to take on established players such as Flipkart, Jabong and Snapdeal in a direct competition.

“There are a lot of activities in this space, and margins are lucrative. We have developed 1,100 own products in seven major categories and 300 private labels products. We already have an established distribution network and a customer base of 7 million,” Agarwal added.

RMCL expects revenue of ₹1,000 crore in revenues from both packaging and e-commerce business in FY16.

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