GMR Infrastructure Ltd presumes to achieve the demerger of its airports and non-airports business by December 2021, the Hyderabad-based infrastructure major stated in an investor exhibition on Monday.
The company also intends to decrease its corporate debt to zero but did not stipulate a timeline for this aim. The group said it had lowered its corporate debt from ₹6,700 crore to ₹4,500 crores in the 12 months between June 2020 and June 2021.
The company stated that it had acquired ₹1,690 crores from the divestment of its Kakinada SEZ to Aurobindo Realty. GMR also said it has sold 546 acres of land at Krishnagiri and intends to monetise 1,900 acres of land. About 466 acres of this is being marketed, with another 270 acres being produced under a joint enterprise. Discussing future plans, GMR said for its airports business, it plans to create free cash in three years while concentrating on business development.
“Create a powerful consumer business supported by traffic growth, improved SPPs and Penetration. Drive spend through effective segmentation and marketing, financial technology solutions, improved product mix, lay-outing and loyalty programs. Match global Duty Free SPP (spend per pax) benchmarks by sustaining high average transaction values. Duty free SPP at Delhi Airport is $10-11, as opposed to 19-20 $ at Changi and Dubai Airports,” the company said.
It also intends to monetise more than 2,000 acres of real estate as a share of its airports business strategy. For its non-airports business, the group said it would enter technology-enabled, consumer-centric and asset-light companies such as distribution, smart metering, EV charging and energy trading.
For its highways and EPC business, the company will concentrate on seizing select assets and leverage its EPC expertise to offer HAM projects that have significantly moderate capital requirements. It also proposes increasing its EPC order book by offering Dedicated Freight Corridor Corporation of India (DFCC) and Rail Vikas Nigam Ltd (RVNL) projects.
