Tata group company Rallis India, which is in the midst of a major restructuring of operations, is looking at selling large chunk of real estate properties all over the country to rake in cash.
On top of the list is a nine lakh square feet property in Andheri, in suburban Mumbai, which real estate brokers feel could fetch the company as much as Rs 70 crore.
Rallis chief executive Rajeev Dubey told Business Standard: "We are looking at disposing our non-performing assets. These include several properties all over India, and the Andheri property is on the priority list."
More From This Section
The company is understood to have engaged a multinational real estate consultancy firm for the purpose, but Dubey said no final decision has been taken on the Andheri property.
He said that selling properties or other assets was not the main strategy to turn around the company. "Selling properties lead to only one-time benefit. Our primary aim is to bring about improvement on the operations front," he added.
As part of the plan, the company is looking at rationalising its production facilities, as it has too many facilities spread all over the country. Rallis has been looking at the option of consolidating operations at fewer locations.
The move would also lead to significant reduction in working capital requirement, as well as lower associated freight cost, analysts said.
Rallis is country's largest agro-chemicals company with focus on seeds and pesticides. Recently, the company has sold its fledgling pharmaceutical business to Shreya Impex, an expatriate-controlled company.
As part of the strategy for impart a new look to Rallis that the Tatas are planning, it is possible that the company could get into biotechnology as well. The recast exercise at Rallis is being advised by Tata Strategic Management Group and Eicher Consultancy.