India Steel to sell Navi Mumbai land to cut debt by half

With a view to unlock value from its real estate and use the proceeds to reduce its debt by half, India Steel Works today said that it plans to sell its 2 acre plot in Navi Mumbai.

"We have a secured debt of Rs 70 crore which we intend to reduce through sale of this land. We are eyeing over Rs 35 crore from the sale," India Steel Works' Executive Chairman Ashwin Gupta told PTI here.

The company has a downstream finishing facility of 1,000 tonnes per month (tpm) at this site which it will now merge with its Khopoli plant. It has already completed the voluntary retirement scheme (VRS) at the Navi Mumbai plant.

Gupta said with real estate prices increasing, the company wanted to cash in on this and "knock-off half our debt. We plan to bring down our debt to Rs 35 crore".

The firm intends to complete the sale deal in a few months.

India Steel (formerly Isibars Ltd) makes products used in the construction, food and dairy industries, manufacture of electronic items and capital equipment.

At Khopoli near Mumbai, the company has a 15,000 tpm (installed capacity) plant. Downstream finishing will now be integrated at this plant and the firm will make a small investment financed entirely through internal accruals to construct a few new buildings and purchase some balancing equipment, he said.