GMR to complete airport split by December and reduce corporate debt to zero

MUMBAI GMR Infrastructure Ltd plans to complete the split of its airport and non-airport business by December 2021, the Hyderabad-based large infrastructure said on Monday in an investor presentation.

The company also plans to reduce its corporate debt to zero, but has not specified a timeline for that goal. The group said it had reduced its corporate debt by ??6,700 crores to ??4,500 crore in the 12 months between June 2020 and June 2021.

The company said it received ??1,690 crore from the sale of its Kakinada SEZ to Aurobindo Realty.

GMR also said it has sold 546 acres of land to Krishnagiri and also plans to monetize 1,900 acres of land. Approximately 466 acres are in the process of being sold and an additional 270 acres are under development as part of a joint venture.

Speaking about its future strategy, GMR said that for its airport operations, it plans to generate free cash flow over a three-year period while focusing on growing the business.

“Build a powerful consumer business backed by traffic growth, improved SPPs and penetration. Drive spend with effective segmentation and marketing, financial technology solutions, enhanced product lineup, presentation, and loyalty programs. Match Global Duty Free SPP (spend per person) benchmarks by maintaining high average transaction values. The duty-free SPP at Delhi airport is $ 10-11, compared to $ 19-20 at Changi and Dubai airports, ”the company said.

It also plans to monetize more than 2,000 acres of real estate as part of its business plan for airports.

For its non-airport business, the company said it will engage in technology-focused, consumer-centric, and light-asset businesses such as distribution, smart meters, electric vehicle charging and retailing. ‘energy.

For its highways and EPC activities, the company will focus on the divestiture of selected assets and leverage its EPC expertise to bid for HAM projects which have very low capital requirements. It also plans to increase its EPC order book by bidding for the Dedicated Freight Corridor Corporation of India (DFCC) and Rail Vikas Nigam Ltd (RVNL) projects.

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