In a bid to cut debt and boost growth, Jain Irrigation is planning to divest 30-35% stake in the 10-year-old food-processing unit to strategic investors. The company is expected to fetch around Rs 610 crore from the said stake sale.
The money generated from the stake sale may be used to retire part of the company’s substantial debt amounting to Rs 2,924 crore. The company is likely to transfer its food-processing business to a separate company as part of the exercise.
Jain Irrigation’s food-processing facility in Jalgaon, Maharashtra, produces dehydrated onion and vegetable products, aseptic fruit purees, concentrates, clarified juices and frozen products marketed under the brand name FarmFresh.