Alok Industries is considering raising Rs 2,000 crore in the next two years by selling its Store 21, and well as land in Mumbai, Vapi and Silvassa.
The textile major plans to sell its land here in the next six months and hopes to raise at least Rs 300 crore from this sale.
"We are looking for a buyer for our UK retail chain, Store 21, and have appointed investment bankers for this. At the moment, our focus is selling all our non-core assets. Currently, we are in a consolidation phase and will not expand for at least the next three to four years," said Chief Financial Officer Sunil Khandelwal.
The company started shutting its India retail venture, H&A, two years ago.
It is focusing on reducing its debt, which stands at Rs 20,000 crore on a consolidated level; standalone debt stands at Rs 16,000 crore.
Recently, Alok Industries availed of a long-term export advance on an export performance bank guarantee limit of Rs 9,800 crore.
This is expected to help the company reduce its interest cost. In FY14, it paid Rs 2,496 crore as interest, while its operating profit stood at Rs 4,693 crore.
For the quarter ended September this year, it paid Rs 559 crore as interest costs, up 24 per cent year-on-year.
The company has also entered into a strategic alliance with Next Creations, a US-based company, to market its products in the US, as well as in other countries.
Next Creations has set up a wholly-owned subsidiary, Next Creations Singapore, to exclusively market Alok Industries' products abroad.
