Companies

Emami Group close to becoming debt-free

PTI Kolkata | Updated on December 25, 2019 Published on December 25, 2019

Emami Tower at Kolkata

The Emami Group is inching closer to turning debt-free in line with the city-based diversified conglomerate’s plans for the 2019-20 fiscal, sources indicated.

The group had earlier this year said it was looking to pare the entire debt of ₹2,600 crore by March, 2020.

The target is likely to be achieved well within the internal deadlines, Emami Group sources told PTI.

The promoters had repaid in excess of ₹2,800 crore since April from resources raised through selling a part of their holdings in the flagship and listed entity - Emami Ltd, they said.

Speculation is also rife that the group would soon seal the deal for its cement business at a valuation ranging between ₹6,000 crore and ₹7,000 crore, the sources said.

According to media reports, UltraTech Cement has emerged as the front-runner in taking over its 8-million tonne capacity cement business.

Emami’s mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh are also a part of the valuation, over and above the cost of plant, machinery, land and installed capacity, they said.

Emami Cement had earlier sought a valuation of ₹8,000-9,000 crore.

The company had a total debt of ₹2,246.76 crore as on March, 2018, consisting of ₹2,093.86 crore as secured term loan from banks and financial institutions, and ₹152.90 crore working capital borrowings.

Published on December 25, 2019
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