Debt-ridden Future Consumer Ltd announced the sale of its dairy business Nilgiri Dairy Farm to AVA Cholayil Healthcare for Rs 67 crore on Aug 29. Future Consumer has entered into a "transfer agreement for the transfer of the entire business undertaking of 'The Nilgiri Dairy Farm Pvt Ltd (NDFPL)" according to the agreement.

This includes franchisee operations, retail trade operations, and the sourcing, processing, packaging, and marketing of dairy products, bakery products (except cookies), fast-moving consumer goods, staples, and other products.

This monetisation will benefit Future Consumer Ltd (FCL), which manufactures, brands, and distributes FMCG food and processed food products and has committed several defaults on principal and interest on NCDs.

The board of the Future Group FMCG arm in a meeting held on Tuesday, approved the sale of NDFPL business to AVA Cholayil Healthcare, which is in the business of manufacturing, marketing & distributing personal care and food products and running a chain of wellness clinics and hospitals.

The purchase price of Rs 67 crore will be paid in three installments if certain conditions are met.

The transaction, however, will be "subject to the obtaining of all necessary consents and approvals, including that of the Company's Lenders and Shareholders in accordance with applicable laws and regulations," it added.

NDFPL is in the business of manufacturing, marketing, and distributing dairy and bakery products, as well as procuring various FMCG, staples, and other items for distribution and sale to certain retail outlets through its franchisees.