Intend to exit CDR cell in next few months: Wockhardt

The pharma major has been posting consistently strong results, with an aim of becoming one of the top three profitable companies.

Speaking to CNBC-TV18, chairman of Wockhardt Habil Khorakiwala says that their goal now is to exit the CDR cell within the next few months. For this, they aim to use the funds received by the sale of their nutrition business to Danone.

“In the next few months we would be exiting, and I think our work would be very normal from our financial structuring point of view,” said Khorakiwala.

Wockhardt had applied to the corporate debt restructuring cell in 2009, when it came under heavy pressure because of the global economic slowdown. But now, tides have turned for the company.

The company plans to use its Rs 900 crore cash on books and the Danone sale process to clear its Rs 3,400 crore debt.

Below is an edited transcript of his interview.

Khorakiwala: The sale of the nutrition business to Danone was an important thing, but it did not come in the way of our organisational performance. You have seen over the last several years that we have been growing year after year to be among the top three profitable companies.

Obviously, this will help in reducing our debt. We are also taking a view to exit the CDR as soon as possible and we have already communicated to the empowered group of CDR our intention to exit. So in the next few months we would be exiting and I think our work would be very normal from our financial structuring point of view. As far as the business is concerned, it was always normal and we have been growing solidly.

Q: Could you just give us a highlight on your gross debt at the moment and how much of it you will pay through the money that has come in from Danone and how much was in CDR which would be exited?

A: Our total gross debt is Rs 3,400 crore and we have a cash of Rs 900 crore. On top of that we have the money that we received from Danone. Consequent to all is a net debt to equity is far below 1.

Part of this cash which we have will be utilised to pay part of the debt in India and that is how we will exit CDR.