HYDERABAD: Heritage Foods IndiaBSE 4.99 % (HFIL), the Rs 1,400-crore retail and dairy products company promoted by the family of Andhra Pradesh's former chief minister N Chandrababu Naidu, will hive-off its retail business into a separate arm to rope in strategic or financial partners, said a top official.
The move assumes significance in the backdrop of the government's move to allow foreign direct investment into the retail sector, allowing foreign companies to buy a controlling interest in Indian retailers.
"The board has approved a proposal to hive off the retail business into a wholly-owned subsidiary and to rope strategic or financial partners in a bid to accelerate the pace of growth in retail business," HFIL president M Sambasiva Rao told ET.
A separate entity, Heritage Foods Retail, was registered for the purpose and the transferring of the retail business to the subsidiary will take place along with the firming up of new partners, said Rao.
He ruled out promoters divesting stake at the parent company level. Heritage Foods, founded by Chandrababu Naidu in 1992, had in 2006 forayed into food and grocery retail. It currently operates in Andhra Pradesh, Tamil Nadu and Karnataka.
The retail division now has 72 'Heritage Fresh' branded retail stores with a total retail trading space of 2.1 lakh square feet. "It is a volume business and we want to at least double the retail trading space over the next two-three years with the help of partners in these three southern states," said Rao.
For the year to March 2012, the retail business reported sales of .`299 crore but had negative EBITDA (earnings before interest, taxes, depreciation and amortisation) of Rs 18.3 crore.
"We are open to roping in both domestic and foreign partners," he said. "There are some pure investment players who may be interested to invest and allow us to manage the business and some domestic and foreign retailers keen on active role in running the business".
Dear Sir,
ReplyDeleteDo you track SNL bearing?
Do you advise buying at current rate?
Regards,
saj
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ReplyDeletethanks,
Tom.
Dear Sir,
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Anmol
Hi,
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Thanks,
Tom.
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DeleteSir,
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Sir pls do give your valuable thoughts.
Thanking you.
Roshini
Expecting a rate cut in another 3 months .Rate sensitive may show some firmness on this expectation.
Delete