As a first step, the group has recently sold its shipping division to Radiant Shipping, a Mumbai-based shipping company, for an undisclosed amount. The division consisted of three ships - two belonging to Balaji Distilleries and one to Balaji Industrial Corporation.

The sale proceeds of these divestments would be used for reduction of debt, said a senior group official. With the Royapettah Benefit Fund (RBF) liability hanging like democles sword on its head, the divestment proceeds could come in handy for the group.

The group companies, including Balaji Distilleries Ltd, Balaji Hotels and Enterprises Ltd, are currently undergoing a restructuring process. Another company, Balaji Industrial Corporation is looking for a buyer for its steel plant. The company had bought the plant from a South African company, with an investment of Rs 20 crore. The plant is currently lying in the bonded warehouse of the company near Red Hills, Chennai.

According to market sources, the Group will also divest its interests in its Printing & Packaging division in Pondicherry. Further, Group company Balaji Hotels is also hiving off its Chennai hotel project into a separate company - Magunta Hotels Ltd - to raise funds for completing the project. It is in the process of finalising an equity partner for the new entity.

Apart from distilleries and hotels, the group has businesses in the areas of power, shipping, steel, printing, bio-technology and construction. It also owns the premium cinema theatre in Chennai.