Jyothy Labs promoters to infuse around Rs 300 crore

Company says it will maintain growth of around 25-30% during current fiscal

Jyothy Laboratories Ltd (JLL), a Mumbai based fast-moving consumer goods company, said that the company is restructuring its debt with repaying part of it with Non-convertible Debenture (NCDs) and paying the rest by way of fund infusion by the promoter.

The promoters would be infusing around Rs 300 crore through preferential allotment, while the company would also raise around Rs 400 crore through NCDs.

Speaking to Business Standard after receiving award at the CIDM conference held at Chennai today M P Ramachandran, chairman and managing director of JLL said the company has a debt of around Rs 600 crore, which it hopes to repay by end of this month or in December.

The promoters will infuse around Rs 275-300 crore, for the balance the company is planning to go for an NCD issue to the tune of around Rs 400 crore. He said post the capital infusion, promoters stake in the company will be increased to around 67% from the current 63.5%.

The company said that it will maintain a growth of around 25-30% during the current fiscal.

"With the existing brands, which have got huge potential we can easily achieve our growth target,” said Ramachandran. JLL reported a solid quarter with 33% revenue growth yoy

He added at present the company has 28 manufacturing facilities across the country and utilisation is around 60%, by end of the fiscal the company hopes to increase the capacity utilisation to 100%.

To a question on whether the company is open for acquisitions, he said, regionally there are lot of good local brands if something comes up, the company will not shy away from acquiring.

It may be noted, in May 2011, JLL acquisition of Henkel India the company invested around Rs 783 crore to acquire 83.65% stake in BSE-listed and Chennai-based Henkel India.