The Mumbai-based firm is in talks with buyers – both domestic and foreign -- to sell its cement and road business, in which it has invested over Rs 15,000 crore, that will be utilised to cut debt and also to fund its foray into defence manufacturing.

The company is in advanced stage of negotiations with 7 prospective buyers out of the initial 15 parties, and the deal can be finalised anytime now, a source said adding it can be announced as soon as Ambani returns from Russia and could be this week also.

The buyers include Blackstone, Carlyle and KKR. Ambani, who is accompanying Prime Minister Narendra Modi on his two-day Russia visit, is likely to return tomorrow night. If this gets delayed, the final deal can be announced early next week, a person in know of the development said.

"The cement deal is in the range of Rs 5,000-6,000 crore and the company expects to get close to 50 per cent of the amount after paring the debt," he added. Reliance Cement, which has an annual capacity of 5.5 million tonnes, started operations in 2007. It has plants at
Maihar in Madhya Pradesh (2.8 million tonne per annum), Kundanganj in Uttar Pradesh (2.2 MTPA) and Butibori in Maharashtra (0.5 MTPA).

Reliance Infrastructure, with a net worth of over USD 4 billion, is trying to sell its non-core assets, including the road business to pare debt and fund expansion in the defence manufacturing sector, which it feels will be the primary driver for future growth.

Latest News  from Business News Desk