Gammon India in talks with Hinduja Group to sell EPC division

Soon after announcing the separation of two of its businesses into different subsidiaries, debt-laden Gammon India is taking steps to monetise these divisions. Sources with direct knowledge share that Gammon India is in talks with Hinduja Group to sell its EPC business. Experts indicate that negotiations may be hovering around a valuation of Rs 300 crores.

Gammon India entered the CDR package by lenders in September 2013 and has made several efforts to sell assets to pare down its massive debt pile of Rs 13,000 crore. Engineering, Procurement & Construction division may be a good strategic fit for Hinduja Group’s listed company Jaihind Projects, experts pointed out.

Gammon India recently announced its plans to separate its EPC as well as transmission & distribution businesses into subsidiaries called Gammon Retail Infra and Transrail Lighting, respectively.

Hinduja Group had recently announced its intent to spend $10 bn in infrastructure and power projects. When contacted, Gammon India and Hinduja Group did not offer a comment on ET NOW’s query.