Reliance Infrastructure Ltd of the Anil Ambani Group has decided to exit the cement and road businesses in a bid to monetise non-core units. The sale of the assets will help the company reduce its debts and focus on the emerging opportunities in the defence manufacturing sector.

CEO MS Mehta told media persons on Wednesday that the cement business, which is mainly based out of Madhya Pradesh, has reached a capacity of 5.8 million tonnes and with a capacity utilisation of 72 per cent. Therefore, the company wants to unlock the value in the business and dispose it through a formal process.

The company has short-listed seven potential buyers from a total of 15 parties that had submitted preliminary expressions of interest. Same is the case with 11 road projects, where ₹8,800 crore investment has been made by the company. Monetisation of the road business and sale of cement business is likely to happen by end of current fiscal, he said.

Mehta claimed that in the next 10 years the opportunities in the defence manufacturing sector would be about ₹20 lakh crore. Manufacturing for the land-based systems would be done out of Madhya Pradesh. Talks for land acquisition are on with the State Government, he said.

On the acquisition of the Pipavav Defence and Offshore company, Mehta said that certain regulatory clearances are in the process after which an open offer would be made for the shareholders, he said.

The company also announced its results for the quarter ending September 30. For the quarter, the company clocked 4.6 per cent increase in net profit at ₹451 crore, which in the year ago quarter was ₹ 431 crore.

The net sales for the quarter dipped by 4.84 per cent to ₹3,086 crore (₹3,243 crore).

On the BSE, the stock closed ₹399.05, an increase of 1.97 per cent over the previous closing price.

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