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OCPL plans to convert rupee term loans to foreign currency loans: Report

16 Sep 2015 Evaluate

In order to reduce its interest cost, Orchid Chemicals and Pharmaceuticals (OCPL) is reportedly planning to convert its Rupee term loans of over Rs 1,500 crore into foreign currency loans. The company, which has a debt level of about Rs 3100 crore and going through a Corporate Debt Restructuring (CDR) process at present, is expecting to breakeven in 2016-17. Further, some of the pending projects, which are nearing completion, will add to the revenue starting next year.

The total debt of the company is around Rs 3,100 crore, out of which Rs 750 crore is foreign currency loan equivalent, Rs 500 crore is working capital and remaining Rs 1,800 crore is Rupee loan. The company is paying an interest of 11% for the loans. After conversion there will be an annual saving of Rs 125 crore.

Orchid Chemicals & Pharmaceuticals is a pharmaceutical company engaged in development and manufacture of active pharmaceutical ingredients (APIs) and finished dosage forms. It is also engaged in research of new drugs. The company was incorporated in the year 1992 as a 100% export-oriented unit (EOU).

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