The company is on course to reduce debt at corporate level, at group level by Rs 14,000 -15,000 crore. "We are exploring various options for debt reduction. It could be cement assets, power asset, it could be our assets in UP or maybe in Himachal, but we will reduce our debt for sure in this financial year" confirms Gaur in an interview to CNBC-TV18.
Gaur says as of now there seems to be more interest in their hydro-power projects than thermal power projects.
On a lighter note, Gaur is confident of hosting the Indian Grand Prix at Buddha International Circuit in March 2015.
Also read: JSW Steel acquires Heidelberg Cement's Raigad grinding unit
Below is the verbatim transcript of his interview on CNBC-TV18
Q: You said your anticipated debt reduction for FY14 was approximately Rs 15,000 crore. You have done about Rs 4,000 crore, thanks to the sale of your cement business in Gujarat to UltraTech. You have got Rs 10,000-11,000 crore remaining to do in terms of a debt cut down. Are you in stages of finality in terms of conversation regarding any of the other asset sales, whether it is the hydro power plant or any other cement businesses on the block?
A: I am also observing that after the share price was needlessly hammered there seems to be some interest in minds of people.
We are proud of the fact that in the last 6-7 years good quality assets were created be it in hydropower, cement, real estate.
Q: While the stock has done very well this week and this month, it is down over 50 percent year-to-date. I will bring your attention back to this balance sheet deleveraging plan that you have been so focused on and if you can give us some more information on where you have reached in those conversations, whether it is hydropower or it is cement what are you most likely going to be able to sale first up?
A: I am not all exuberant that share price has gone up, because share price was hammered down for reasons not known to us.
Coming to our deleveraging plan, as an organisation we have created assets we are proud of and now we are on course to reduce debt at a corporate level, at a group level by about Rs 14,000-15,000 crore.
We are exploring various options for debt reduction. It could be in cement assets, power asset, it could be our assets in UP or maybe in Himachal, but we will reduce our debt for sure.. However as far as power is concerned there is more interest for hydro power as compared to thermal power. So, let us see how things move in next few weeks.
Q: If you are saying a few weeks that means you are fairly confident that one or many of these transactions might take place in the next month or so, let us say by the end of November?
A: For the last 7 years we were focused to build our assets and now we are focused to upgrade the assets which we have and also equally focused to reduce our debt. That is why I am very confident that in few weeks you will hear some very positive results. Whether share price goes up or comes down I think for sometime we have stopped bothering about it.
Q: When you sold the Gujarat plant it was loss making but the asset sales that we are now talking about, some of them are profit making like the Karcham plant for example is one of the jewel that you have. So are you being arm-twisted in a sense by bankers to sale some of these priced assets?
A: Let me reiterate with all humility that no arm-twisting by anybody and no short-term loan have been taken by company. No loan against shares has been taken by the company.
As far as Gujarat asset is concerned it is not loss making asset, it is a very good asset and very strategic for any company that wants to remain in cement. There were long suitors for Gujarat assets.
I am thankful that you realised that Karcham is one of the finest plants which the organisation has. But yes, in tough times good things go, which his well known.
I do not know what exactly will happen, but we will reduce our debt as we mentioned in this financial year.
Q: Do you think thge Indian Grand Prix atBuddh International Circuit In March 2015 will take place?
A: In 2015 March F1 will take place.
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