GMR Infra mulling strategy shift; may go for ‘growth’ strategy
GMR Infrastructure Ltd, which currently has an ‘asset light’ business strategy, is apparently planning an overall business strategy shift in favour of more ‘balanced growth.’
The business strategy shift which is being mulled by GMR will come at a time when the market sentiment is witnessing an improvement. The GMR Group is already prepared to list its energy and airport units – GMR Energy and GMR Airports respectively; and the plans of a possible strategy shift seemingly stem from the fact that SEBI has recently announced some reforms for retail investors.
Revealing that GMR is looking to go for ‘growth’ as part of its new business strategy, GMR Group’s founder Chairman GM Rao told Business Line that, against the backdrop of the improved market sentiment and SEBI;’s reforms, the group is planning to divest 10-20 percent, depending on market.
A few years back, GMR Group – which has diversified interests in energy, airport, and road – had decided to follow what it described as an ‘asset-light, asset-right’ strategy, under which it exit non-core areas.
However, noting that the changed market sentiment after the formation of the new Government has prompted GMR Group to review its strategy, Rao said: “We are now thinking of changing strategy. We may not continue with the asset-light plan. We may take a more balanced view and go for a growth strategy. We will finalise our plan after seeing how things pan out over the next 4-5 months.”
Source – The Hindi Business Line
