Mawana Sugars disposing chemical assets to reduce debt

Mawana Sugars disposing chemical assets to reduce debt
In a move the balance sheet back in shape, Mawana Sugars has reported to sell out its chemical subsidiary, which is in an attempt by the company to reduce the company"s current outstanding debt of Rs. 470 crore to less than Rs. 200 crore.

Mawana"s MD Sunil Kakria announced Tuesday morning that some of the assets mainly from the chemical business will be disposed off by the firm so as to put the balance sheet back in place. Financial advisory firm, SBI capital has been aligned by the sugar producers to evaluate strategic options before selling their chemical arm. A reserve price of Rs. 151 crore has been fixed in this regard with the bid closing this Wednesday.

However, it is interesting to note that 24 percent of the annual revenue is generated from chemical segment and is free from debt. 

Apart from selling the chemical unit located within 87 acres land in the outskirts of Punjab, the company is also in talks to sell an adjoining property of 48.67 acres. The plant manufactures caustic soda, chlorine and caustic flakes along with hydrochloric acid, stable bleaching powder, hydrogen and sodium hypochlorite.

These chemicals are mainly demanded by firms producing soap, detergent, textile rayon, paper pulp, petroleum refining and rubber amalgamation. Company"s owner Siddharth Shriram has sold a number of assets in past including ITC Agrotech, Daikin, vanaspati brand Rath and a number of properties located in Delhi to real estate giant DLF.

Read more about: mawana sugars, bse, chemical
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