RPG to sell its rubber estate at Rs 60cr

Harrison's Malayalam, which is controlled by the RPG group, is selling one of its 12 rubber estates, to a Kerala-based businessman for Rs 60 crore.

Harrison's Malayalam board is meeting in Kolkata today. An announcement on the deal, is expected after the meeting. However, at this point of time the company has refused to comment on the deal.

According to sources, Harrison's Malayalam might consider selling more rubber estates to the same individual, and eventually get out of the plantation business.
 
It is understood that the RPG Group wants to see how the deal pans out, as labour issues are also involved in it.

It is believed that Harrison's Malayalam wants to get out of tea business as well. However, till now it has not got a decent offer.

But, the company is looking out for buyers. As tea prices improve, it is hopeful of getting a better price for its estates.

The industry believes, that the only way Harrison's Malayalam could get out of the tea business, is by selling its gardens to real estate developers. But the company is not giving up hope just as yet.

RPG Group has informed that funds from estate sale would be used to retire debt. The company is planning one or two more sales. However, nothing has been finalised so far.

The RPG Group has mentioned that, Harrisons Malayalam's current debt is over Rs 100 crore. The company is planning to wipe out debt in a few months.

The RPG Group is also planning to rebrand retail business under Spencer's. The company is all set to invest about Rs 250 crore, in retail business.

The RPG Group expects to generate Rs 50 crore via internal accruals. It also intends to raise funds through IPO or private equity.