Jagatjit Industries is in talks with various parties for restructuring its debt, said Roshini Sanah Jaiswal, Promoter and Chief Restructuring Officer, Jagatjit Industries in an interview to CNBC-TV18.
The buzz is private equity fund KKR could be one of the potential partners. However, Jaiswal said talks are at a premature stage and nothing can be confirmed as of now.
With company's current debt at around Rs 280 crore, the company is looking for additional funding, but Roshini said that despite having many non-core assets, it won't be selling anything.
It will explore opportunities to leverage them.
The company has also started to relaunch its premium brands like Iced Vodka, AC Black and Aristocrat Premium.
Roshini also added that the company may have confirmation about the deal by next month.
Below is the transcript of Roshini Sanah Jaiswal’s interview with Nigel D’souza and Reema Tendulkar on CNBC-TV18.
Nigel: Could you clarify on this particular news. We are just going through your exchange disclosure and you are saying yes, you are talking to various parties. Could you tell us which are the parties that you are talking to? Is KKR one of them? And also, what is the amount you are looking to raise?
A: It is all really premature. We are actively talking to investors. I have said this several times earlier as well. But, as of now, there is no confirmation as to what and who we are going with, but I can confirm that we are talking to several people. That is all I can actually say at this time.
Reema: is KKR one of the parties that you are talking to or has expressed interest?
A: No, it is too premature to say anything, it really is.
Nigel: Can you at least tell us what is the quantum you are looking at raising. And also, could you tell us is it going to be an equity dilution or is it going to be a raising debt or some kind of other financial transaction?
A: This is again, something that we have not really, it is too premature that we are looking at various options, but nothing is really being finalised.
Nigel: But what are you going to looking at? If you are going to be raising some funds at least, what are you looking at? What is your current debts in your books? I was just looking at your finance payment is around Rs 10 crore per quarter.
A: We would be basically, our inclination would be to look at structural debt.
Nigel: And what is your current debt in your books?
A: It would be about Rs 280 crore.
Reema: So, what you would be interested is replacing this debt with another form of debt? Is that what you are saying?
A: No, that is not what we are saying. We are not looking at that. It is not like we are replacing anything. We are looking at additional funding.
Reema: Equity funding?
A: We are looking at additional funding for restructuring, we have got other assets. So, we are looking at debt coming in.
Reema: So, will you look to sell any of your assets and if yes, what would be the non-core assets you could be okay to sell?
A: Jagatjit has a lot of non-core assets, but we are not looking at selling at this point of time. We are just leveraging those assets. We are not selling anything right now at all. The reason we are looking at this is because, I am not sure whether you have seen or not, we have started re-launching some of our old brands. So, recently IICE Vodka was re-launched in January, has a completely now avatar, our iconic brand AC Black has just been re-launched about two weeks ago. The campaigns actually begins another 10 days from now. Aristocrat Premium, also one of our iconic brands is scheduled to re-launch in the market in May.
Reema: So, what could be the nature of the restructuring deal that you are working at or you would like to achieve?
A: At this point in time, we are just looking at bringing in some sort of structured debt into the company.
Nigel: Then since we are taking about Aristocrat Premium Whiskey, could you tell us what are your targeted sales? It used to be one of the most popular whiskeys that we used to see domestically. So, could you tell us what are your targeted sales? How many million cases are you looking at? You were indicating some launch later this year?
A: It is in May. It will be re-launched. We did some market study where we found, there was a certain amount brand fatigue with Aristocrat Premium (ACP). And it is now being re-launched. We had a UK company called Sedley Place that has actually redesigned the bottle, the lables and it is going to come out, we are coming out with a campaign which will be out in May for this brand. Currently, we are at about, as a company, we are about 10 million cases, ACP would constitute about 4.5 million. So, we are looking at about 25 percent growth for ACP in this coming year.
Reema: So, one final question, how soon will you be able to close this structured debt that you are looking at for restructuring?
A: We might be able to have some kind of confirmation in the next month or so.