Dishman Pharma in talks to sell Gujarat land to Nirma.

Dishman Pharmaceuticals and Chemicals Ltd. is in talks to sell its 175 hectares in Gujarat to Nirma for about Rs. 650 crore to cut its debt.

The Ahmedabad-based contract research and manufacturing services company is also looking at exiting its Shanghai facility, industry sources said.

Dishman did not respond to emails sent for comments and its Managing Director JR Vyas did not answer calls.

The company is looking at selling the Gujarat land to reduce its over Rs. 800 crore debt, sources said, adding that Dishman plans to pay off a bank debt of Rs. 100 crore from proceeds of sale of its Shanghai facility.

Talks with Nirma are in final stages, they said.

Dishman had in 2009 scrapped plans to set up an engineering special economic zone (SEZ) due to global slowdown and merged it with the adjoining pharma SEZ in Bavla, near Ahmedabad.

Sources said the company is looking at exiting the SEZ business altogether by selling of the land in Gangad and Kalyangadh village near Bavla in Gujarat.

HBL