Jain Irrigation may sell food processing unit stake soon

Jain Irrigation may sell food processing unit stake soon

Micro-irrigation company Jain Irrigation Systems is quite close to selling a stake in its food processing division.

“The company is in advanced stage of negotiations with prospective buyers for a stake sale in the food processing division a deal is likely to be concluded by September-October 2015, following which, the execution of the transaction is likely in the second half of the current fiscal,” Jain Irrigation management indicated in a conference call with analysts, recently.

It was indicated that the funds from the deal will be utilised towards repaying debt. It  plans to reduce debt by Rs 300 crore during the current fiscal earlier.

Revenues for the food processing business, during the quarter, stood at Rs 203.4 crore, as against Rs 192.2 crore in the same quarter last year.

Consolidated net debt for the company during the quarter increased by Rs 90 lakh (QoQ )to Rs 4,020 crore while standalone net debt increased by
Rs 60 lakh to Rs 2,920 crore.