Tata Chemicals is all set to undergo a massive restructuring in FY18. CNBC-TV18 learns from sources the company will now completely shift its focus on chemicals and consumer products business.
The company plans to restructure parts of its international operations. It may exit operations in Kenya, and partly sell its volatile Europe and North American businesses.
It will exit from its fertiliser business in India and is actively scouting for investors for its Haldia plant.
The whole exercise is expected to bring down the debt of the company by 40 percent, which currently stands at around Rs 5,833 crore.
Post-restructuring, the company will focus on consumer businesses and launch products in the atta and rice segments in FY18. It is also reportedly looking at other products like wheat indigenous products and highly nutritious super foods.
Expressing his positive outlook on the likely change in the company’s business strategy, market expert Prakash Diwan of Altamount Capital Management told CNBC-TV18, “There is no point in setting up operations in so many places and you cannot manage this well.…Even if they sell it on a slump basis, if they sell it and get whatever they have invested, they will be very happy. I would be very happy as a shareholder to see that happen.”
Source: Moneycontrol
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