GMR to complete airports biz demerger by Dec, cut corporate debt to zero
1 min read . Updated: 11 Oct 2021, 10:58 AM IST
Premium- The group said it had reduced its corporate debt from ₹6,700 crore to ₹4,500 crore between June 2020 and June 2021, and plans to bring down its corporate debt to zero
MUMBAI : GMR Infrastructure Ltd expects to complete the demerger of its airports and non-airports business by December 2021, the Hyderabad-based infrastructure major said in an investor presentation on Monday.
The company also plans to bring down its corporate debt to zero, but did not specify a timeline for this target. The group said it had reduced its corporate debt from ₹6,700 crore to ₹4,500 crore in the 12 months between June 2020 and June 2021.
The company said that it has received ₹1,690 crore from the divestment of its Kakinada SEZ to Aurobindo Realty.
GMR also said it has sold 546 acre of land at Krishnagiri, and also plans to monetize 1,900 acre of land. About 466 acre of this is under process of sale with another 270 acres being developed under a joint venture.
Talking about its future strategy, GMR said for its airports business, it plans to generate free cash in a period of three years while focusing on business growth
“Create a powerful consumer business supported by traffic growth, improved SPPs and Penetration. Drive spend through effective segmentation and marketing, financial technology solutions, improved product mix, lay-outing and loyalty programs. Match global Duty Free SPP (spend per pax) benchmarks by sustaining high average transaction values. Duty free SPP at Delhi Airport is $10-11, as opposed to 19-20 $ at Changi and Dubai Airports," the company said.
It also plans to monetize over 2,000 acres of real estate as part of its airports business plan.
For its non-airports business, the company said that it will foray into technology-enabled, consumer-centric and asset light businesses such as distribution, smart metering, EV charging and energy trading.
For its highways and EPC business, the company will focus on divesting select assets and leverage its EPC expertise to bid for HAM projects that have significantly low capital requirement. It also plans to grow its EPC order book by bidding for Dedicated Freight Corridor Corporation of India (DFCC) and Rail Vikas Nigam Ltd (RVNL) projects.
