Eveready Industries India Ltd
(Eveready) has entered into an agreement for sale of its land situated at Tiruvottiyur Road, Chennai.
Under this agreement, the land will be sold to Alwarpet Properties, a part of the Chennai-based Olympia Group, for a consideration or Rs100cr, the company said in an exchange filing.
The land had been the location of a battery manufacturing facility over the last five decades. The factory became economically unviable on account of high standing costs & overheads, which led to it becoming idle for some time. The land, thus, became a surplus to the company's needs.
The transaction is scheduled to close over the next few months based on tangible milestones.
Amritanshu Khaitan, MD of Eveready, said, "The sale transaction will help reduce debts of the company and further improve the balance sheet. The closure of the factory, in any case, is positive to the profitability of the business on account of cost savings".
Eveready Industries India Ltd share price is currently at Rs199, down Rs4.65, or 2.28%, from its previous close of Rs203.65 on the BSE. The scrip opened at Rs203.40 and has touched a high and low of Rs207.65 and Rs197.50, respectively.