Premier has entered into a term sheet for the sale of its property at Chinchwad, Pune in the state of Maharashtra with Runwal Realty. The proceeds from such sale would be utilized substantially to reduce the company's debts, fund labour, statutory, relocation and other operating dues.
The proposed transaction is subject to definitive documentation, several regulatory, judicial and other approvals as well as certain other conditions. This will entail relocation of the existing operations to a new site at Chakan, for which the company has already initiated various actions.
Premier is engaged in the manufacture of automobiles and machine tools. The company has manufactured the widest range of commercial vehicles, which includes Premier Padmini -- one of the popular cars in India.