Eveready to sell its land situate at Tiruvottiyur Road, Chennai

Deepthi | Myequity news | Date : 06-12-2018 16:25:00 IST

Eveready Industries India Ltd (Eveready) entered into an Agreement for Sale of its land situate at Tiruvottiyur Road, Chennai. Under this Agreement, the land is for sale to Alwarpet Properties Pvt. Ltd. (part of the Olympia Group, Chennai) for a consideration or Rs. 100 crores.

The land was earlier the location of a battery manufacturing facility over the last 5 decades. The factory became economically unviable on account to high standing costs & overheads, which led to it becoming idle for some time. The land therefore became surplus to the Company's needs.

Commenting on this development, Mr. Amritanshu Khaitan, MD of Eveready remarked- "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".

Mr. Chandrakant Kankaria, Director of Olympia Group commented- "The Olympia Group started its real estate journey in partnership with Eveready by developing the latter's land at Guindy, Chennai, where the iconic Olympia Tech Park emerged". Mr. Ajit Chordia, MD of Olympia Group added- "The Olympia Group plans to develop a world class retail and entertainment destination on this location, bringing together the best of experiences for dining, shopping and cinema".

The transaction is scheduled to close over the next few months based on tangible milestones.

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