EXTREME STRESS

INDIA INC. MUST BRACE UP FOR LARGE-SCALE RATINGS DOWNGRADE, DEFAULTS AND ASSETS SALE

- ANAND ADHIKARI, NEVIN JOHN & NITI KIRAN

HOW CORPORATES ARE DEALING WITH STRESS

TATA STEEL Increased liquidity levels to ₹20,000 crore-plus as contingency buffer

PIRAMAL ENTERPRISES Sold 20 per cent stake in pharma business, replacing short-term debt with long-term borrowings

GVK GROUP Sold stake in Mumbai International Airport to Adanis

ARVIND FASHIONS Sold part of stake to Walmart, raised money through rights issue and mobilised resources by transferring trading business of Flying Machine

TAJ GVK HOTELS No capex plan in FY21; deferred renovation-related expenses; reduced operating cost considerably

THOMAS COOK Scaled down marketing spends, renegotiated rentals and improved debtor management

WOCKHARDT Sold part of domestic branded formulations division to Dr. Reddy’s Laboratories Ltd for ₹1,850 crore.

GMR INFRASTRUCTURE Divested entire stake in Kakinada SEZ to Aurobindo Realty and Infrastructure

The only man who sticks closer to you in adversity than a friend is a creditor,” 62-year-old Harsh Goenka, Chairman of RPG Enterprises, quotes a famous line to describe the current predicament of corporate India whose debt in stressed sectors amounts to ₹37.72 lakh crore, nearly 38 per cent of all loans given by the banking sector.