In an interview with ET Now, SL Narayanan, Group CFO, Sun Group, shares his views on the aviation industry, and talks about the status of stake sale in Spice Jet as well as the group's future plans and growth targets. Excerpts:
What is the status of stake sale in Spice Jet?
It will be very difficult to give any kind of statement on this because of the various sensitivities and we are not supposed to indulge in any kind of encouragement of a speculative frenzy which has already gripped the entire sector.
We should just leave it at this time. The good news is that the industry is doing a lot better, which is perhaps a reason why more investors from abroad are taking a slightly more favorable look at the Indian aviation players.
What is the status of stake sale in Spice Jet?
It will be very difficult to give any kind of statement on this because of the various sensitivities and we are not supposed to indulge in any kind of encouragement of a speculative frenzy which has already gripped the entire sector.
We should just leave it at this time. The good news is that the industry is doing a lot better, which is perhaps a reason why more investors from abroad are taking a slightly more favorable look at the Indian aviation players.
What is the stage currently? Are you still exploring a buyer or can we expect a deal anytime soon?
In fact, this is something which needs very careful elaboration because we will need capital in future. There was a certain capital expenditure plan that was drafted a couple of years ago at which time the industry was growing gangbusters and then we had this extraordinary situation where everybody was losing an arm and a leg.
The whole industry is looking at slightly more modest rate of growth, perhaps single digit growth rates and not the 15%-16% growth rate that we thought would continue for at least the foreseeable future. Therefore, that apex plan needs to be re-calibrated, but we would still require additional capital.
So we will be evaluating several options, including looking at a possible strategic investor. Nothing is happening at this time and because there has been a favorable development with respect to FDI flows, they have been more than just curious phone calls. So somewhere that has been misinterpreted to a deal in the offing.
If you would like to share your photos, videos, information etc. anything related to Aviation Industry kindly send me a mail at aviatorskingdom@gmail.com
No comments:
Post a Comment