Business Standard

Chandigarh firms innovate to tackle crisis

Vikas Sharma  |  New Delhi/ Chandigarh 

Chandigarh-based are finding innovative ways to tackle the ongoing recession.

Accounting and consulting firm is working with 15 regional firms and said credit crisis had been the foremost issue for companies.

Companies are divesting their noncore businesses to generate cash flow, said Paras Arora, director, Grant Thornton.

For example, a city-based steel company which earlier had diversified into real estate is looking to offload its realty business and plough back the cash in its core business.

Similarly, a textile firm in the region with interest in yarn and knitwear manufacturing, is planning to divest one of its manufacturing units located in Europe and utilise the money to fund core operations of the company.

Some of the companies are also looking to raise money through external commercial borrowings and high networth individuals (HNI) besides through offloading equity.

Cashing in on the downturn, region-based companies are also looking for overseas acquisitions that could bring synergies to their existing business.

Panchkula-based Drish Shoes recently acquired two footwear brands in Europe. AR Singh of Drish Shoes said the downturn provided attractive valuations.

RECOMMENDED FOR YOU

Chandigarh firms innovate to tackle crisis

Chandigarh-based companies are finding innovative ways to tackle the ongoing recession.

Chandigarh-based are finding innovative ways to tackle the ongoing recession.

Accounting and consulting firm is working with 15 regional firms and said credit crisis had been the foremost issue for companies.

Companies are divesting their noncore businesses to generate cash flow, said Paras Arora, director, Grant Thornton.

For example, a city-based steel company which earlier had diversified into real estate is looking to offload its realty business and plough back the cash in its core business.

Similarly, a textile firm in the region with interest in yarn and knitwear manufacturing, is planning to divest one of its manufacturing units located in Europe and utilise the money to fund core operations of the company.

Some of the companies are also looking to raise money through external commercial borrowings and high networth individuals (HNI) besides through offloading equity.

Cashing in on the downturn, region-based companies are also looking for overseas acquisitions that could bring synergies to their existing business.

Panchkula-based Drish Shoes recently acquired two footwear brands in Europe. AR Singh of Drish Shoes said the downturn provided attractive valuations.

image
Widgets Magazine

More News

Widgets Magazine
Widgets Magazine

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard