Nilgiri's may unlock non-core assets for Rs 100 crore

The Nilgiri Dairy Farm, the Bangalore-based century old retailing firm, is planning to unlock its real estate holdings in Bangalore which is expected to fetch close to Rs 100 crore. This commercial property which has been with the Nilgiris’ family for long is understood to have been put on the block to raise cash for expanding the retailing franchise of Nilgiris across South India.

Prabhu Ramachandran, director, The Nilgiri Daily Farm confirmed the move to unlock real estate assets but declined to spell out a time line. “We have initiated discussions with prospective buyers for the asset. Depending on the price negotiations we hope to conclude a deal soon,” he said.

Industry information indicate that the company, which is controlled by US-based private equity fund Actis, is looking to sell a 12-acre plot in Bommasandra on the outskirts of Bangalore city. The company however declined to comment on this.

This move to raise Rs 100 crore comes hardly a month after the company exited its hospitality business along with the real estate at prime locations in Bangalore, Chennai and Coimbatore for Rs 95 crore. “We want to focus on expanding our retail operations and exit non-core assets. Our store count is now 100 and we want this to be close to 400 in a three year time frame,” Ramachandran detailed.

In addition to exiting non-core assets, the company is also embarking on a strategy which might eventually see all Nilgiris’ branded products to be available only in their outlets. “We may look at creating another brand for products from our stables for general trade,” he noted.

According to the company, the 100-odd stores generate sales of over Rs 300 crore annually.