New Delhi : Century Textiles and Industries (CTIL) is focusing on growing its real estate business post its proposed divestment of cement division to Aditya Birla Group firm UltraTech.
The company is envisaging capital requirement of Rs 2,000 crore to grow real estate venture and expecting the offloading of cement division to help cut debt and provide firepower to invest into real estate and paper business.
“Demerger of the cement business will result in deleveraging the balance sheet reduction of net debt to EBITDA to 1.6x (times), giving firepower to invest in real estate and paper business,” CTIL said in an investors presentation.
While the cement business demanded intense capital investment to maintain market position, the company said its next phase of growth will come mainly from real estate, pulp and paper, and textiles.
“With a strong brand equity and national presence, Birla Estates is poised to capitalise on immense opportunities and focusing on becoming a significant player in the next 5 – 10 years,” it said.
Given the large potential in real estate and its relatively marginal position in the cement business, it has been decided to demerge the cement business along with debt of Rs 3,000 crore, the company added.
