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

The company would 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 has forayed into e-commerce space with private labels in 2010.

The company is in talks with a number of firms to sell its packaging material manufacturing unit in Rudrapur, Uttarakhand, for about Rs 65 crore. The company, listed on both BSE and NSE, has six units in Daman and one unit in Rudrapur.

“We expect to conclude the deal in 3-4 months,” said RMCL Managing Director Mitesh Agarwal told BusinessLine. He, however, 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 Rs 35 crore. Agarwal, who declined to disclose the names of the PE funds the company was in talks with, expects to raise the funds in the first quarter of next financial year.

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 7 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 Rs 1,000 crore in revenues from both packaging and e-commerce business in FY16.

rajesh.kurup@thehindu.co.in

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