29 November 2019

RMCL plan - news ,updates ,happenings

  Trickspagal       29 November 2019
Daman-based Radha Madhav Corporation Ltd (RMCL), which had forayed into e-commerce space, is planning to raise a total of Rs 100 crore by selling off assets and offloading stake.


The company would use 60 per cent of the proceeds to pay off debts and the remaining to strengthen its e-commerce ventures.Predominantly a plastic packaging company, RMCL has forayed into e-commerce space with private labels in 2010.
The company is in talks with a number of firms to sell its packaging material manufacturing unit in Rudrapur, Uttarakhand, for about Rs 65 crore. The company, listed on both BSE and NSE, has six units in Daman and one unit in Rudrapur.
Announcement by RMCL
“We expect to conclude the deal in 3-4 months,” said RMCL Managing Director Mitesh Agarwal told BusinessLine. He, however, declined to name the companies RMCL was in talks with, citing non-disclosure agreements.
Further, RMCL is looking at offloading stake to either private equity players or companies to raise Rs 35 crore. Agarwal, who declined to disclose the names of the PE funds the company was in talks with, expects to raise the funds in the first quarter of next financial year.
Following the fund raising, the company intends to take on established players such as Flipkart, Jabong and Snapdeal in a direct competition.
“There are a lot of activities in this space, and margins are lucrative. We have developed 1,100 own products in 7 major categories and 300 private labels products. We already have an established distribution network and a customer base of 7 million,” Agarwal added.
Revenue by RMCL
RMCL expects revenue of Rs 1,000 crore in revenues from both packaging and e-commerce business in FY16.

Latest announcement for RMCL


Packaging solutions firm Radha Madhav Corporation Ltd (RMCL) has forayed into ecommerce with its own brand of products and the firm expects to raise over Rs 100 crore in the 2015-16 fiscal to fund the expansion and repay outstanding debt.


The BSE and NSE-listed firm has developed a distribution network of 400 dealers for its ecommerce business. “We will sell some of our equity post the Budget and expect to raise somewhere between Rs 45-60 crore,” RMCL Managing Director Mitesh Agarwal told PTI. Besides, RMCL are in talks with some firms to sell its Rudrapur (Uttarakhand) packaging material manufacturing unit for Rs 65 crore and the deal is expected in the next 3-4 months, he added. “Both these efforts will help us to pay off our debts and utilise the remaining for expansion. RMCL has a cumulative debt of about Rs 150 crore as of December 2014,” Agarwal said.
On the expansion plans, he said the company has around 7 depots to store goods for ecommerce delivery and is planning to set up more across the country in the next 3 months to meet the demand of online shoppers. “We have a membership of 7 million customers, which we are in the process of bringing online and expect that in next 2 weeks, we will have around 6 million online customers. These are basically people who are at present buying our products from retail outlets,” Agarwal said. The company’s online site — rmcluniverse — has over 1,500 products in seven categories. Most of the products are self-produced. The firm will also partner with other firms to sell their products on its site.
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