Andhra Cement to retire loans

Andhra Cement to retire loans
Published: 18 July 2005

Andhra Cement, Calcuttam India will restructure its high-cost debt in the next three months. Only then will the board decide whether to sell the company or retain it and expand further. Andhra Cement chairman GP Goenka told reporters, “We are currently engaged in the debt restructuring exercise. Once that is done, the board will decide whether to sell the firm or improve its capacity.”

Earlier, reports said some of the big names in the cement industry — both domestic and foreign — had been eyeing the Duncan-Goenka group company. But no deal had been clinched. The company has asked the Industrial Development Bank of India to work out a roadmap for retiring the high-cost debt. Andhra Cement, with a capacity of 1.4Mt, has a turnover of Rs 180-Rs 200 crore.

Asked whether he has got any offer for Andhra Cement, Goenka said, “There is no such offer right now. If any offer comes to us, we will have to go through it in detail to see whether it is favourable to us or not.” However, analysts feel that the company’s move to clean up its balancesheet is a step towards selloff. “The company can fetch better prices if its financials are strong,” they added.