Emami Group aims to be debt-free by 2020
today Aug 13, 2019
Kolkata-based Emami Group aims to be a debt-free company over the next nine months by clearing its existing debt of Rs 2,600 crore ($364.7 million).
During the last six months, promoters of Emami Ltd had sold 20 percent in the company in two tranches for around Rs 2,830 crore ($410 million) to reduce debt.
After the sale, the promoters’ stake in the company has come down to 52.73 percent, from 72.73 percent they had during the start of the year.
Since the stake sale, the promoters have been looking at various options ranging from divestment to floating an IPO to be debt-free.
“We are fully covered to meet all repayment obligations in the group companies. In the last 4 months, we had repaid Rs 2,800 crore. The group promoters’ debt is now at Rs 2,600 crore,” Emami director Prasant Goenka told PTI.
“The group will become debt-free in the next nine months and promoters are working in this direction,” Goenka added.
Emami Group is engaged in the business of personal and health care products among others. Its FMCG unit is one of the leading personal and healthcare businesses in India, with a portfolio of over 300 products.
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