Dishman to exit SEZ biz, raise Rs 600 crore

AHMEDABAD: Dishman Pharmaceuticals will scrap its six-year old SEZ project and sell land near Ahmedabad for Rs 600 crore. The Rs 1,000-crore contract research and manufacturing services company will pay off a bank debt of Rs 100 crore from the proceeds of the sale.

In 2009, Dishman scrapped its engineering SEZ owing to global slowdown and merged it with the adjoining pharma SEZ in Bavla. Both SEZ projects were valued at Rs 400 crore. Now, the company will exit the SEZ business altogether.

"We have initiated the process to sell our SEZ land and the entire process will be completed within six months" Dishman managing director JR Vyas.

The company has 163 hectares SEZ land. "We expect to raise Rs 500- Rs 600 crore from the land sell" said Mr Vyas adding out of that Dishman Infrastructure would provide Dishman Pharma Rs 100 crore for debt repayment.

The process has already started and negotiations with interested parties are going on. Declining to divulge the companies' name, Mr Vyas said "Companies from industrial and real estate segments are in talks with Dishman."