The annual general meeting of Core Healthcare Ltd yesterday approved of the company's plans to divest its stakes in the power and pharmaceutical segments, though no details of the proposal were discussed.
CHL chairman and managing director Sushil Handa, however, told Business Standard that the divestment programme is a company initiative and not at the instance of institutional and other lenders to whom it owes over Rs 700 crore.
The financial restructuring programme, involving a two year moratorium on outstanding loans and the conversion of interest thereon into term loans, was also not discussed as the stamp of approval for it from FIs is yet to be received from ICICI, their co-ordinating institution.
More From This Section
The AGM also approved the company's plans to set up wholly-owned subsidiaries in Trinidad and Tobago and in Ukraine with marketing facilities, involving an investment of $100,000. Handa said six more subsidiaries are envisaged within the next six months in South-east Asia, Africa and Europe.
This is part of the company's global strategy to cope with the increasing international demand for its products. It plans to set up manufacturing facilities such as a fully-supplied turnkey project in Myanmar, and a joint venture in Tashkent with Uzpharm Prom, which is already under implementation.
Handa claimed the company's turnaround, following a net loss of Rs 83.77 crore in the last financial year, had already started with projected sales figures this year in the region of Rs 300 crore compared to Rs 176.18 crore in the last fiscal.
The losses were mainly due to cost overruns in its new facilities for IV fluids, syringes and needles, plasma expanders, nutrition, dialysis and blood banking, in which there is enough demand to utilise capacities.
Loan servicing, once the financial restructuring is in place, as well as fresh investments in India and abroad, would be met entirely through internal generations, Handa added.