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India-based Reliance Infrastructure (RInfra), the infrastructure unit of billionaire Anil Ambani-led Reliance Group, has decided to divest its road and cement business to focus on the country’s defence sector.

Owing to challenges in the infrastructure sector such as regulatory uncertainties, procedural delays and legal challenges, the company decided to divest its assets.

The firm expects to sell its cement business and road projects by March 2016.

The firms invested Rs88bn ($1.33bn) in 11 revenue generating road projects spread out in seven states.

"The firm expects to sell its cement business and road projects by March 2016."

RInfra said in a statement: "The 5.8 million tonnes per annum cement business and related assets will be disposed off through a formal process.

"The company has short-listed seven potential buyers from a total of 15 parties that submitted preliminary expressions of interest."

These road projects are 100% owned by the company and are 1,000 km.

The organisation attracted interest from strategic and portfolio institutional investors in India and overseas for these two business. It intends to sell the complete portfolio of 11 road assets as one package.

Ambani said that defence and smart cities will be the two primary drivers of the company’s growth strategy. Proceeds from the divestment will be used for completion of the acquisition of Pipavav Defence, as well as to reduce debt.

Image: Gurgaon Road constructed by Reliance Infrastructure. Photo: courtesy of Reliance Infrastructure.