Emami Group on Friday said it has decided to sell its cement business, Emami Cement, to Nuvoco Vistas, part of the Nirma Group, for an enterprise value of ₹5500 crore.

The company in a release said, “it has entered into a binding agreement with Nuvoco Vistas Corporation Limited for the divestment of its 100 per cent equity stake in Emami Cement”.

Emami Cement operates one integrated cement plant and three grinding units with a total cement grinding capacity of around 8.3 million tonnes per annum.

According to Manish Goenka, Director, Emami Group, the transaction is an important step in our Group’s stated objective of becoming debt-free.

“With this transaction, we will substantially achieve this objective (of being debt-free). We strongly believe that in Nuvoco, we have found the right acquirer who will be able to develop the business further in the interest of all the stakeholders,” Goenka said.

Emami it may be recalled has been trying to reduce debts at a group level and also release pledged promoters shares.

The promoters - Agarwal and Goenka families had sold nearly 20 per cent share in its group flagship and the FMCG arm, Emami Ltd, last year to raise around Rs 2,830 crore. The sale was made in two tranches to bring down debt.