Jaiprakash Associates Ltd, a heavily indebted infrastructure firm, is in talks to engage consultants to support a business restructuring and turnaround strategy, according to individuals familiar with the matter. The company has reportedly held two meetings with a major consulting firm but has yet to finalize any formal hiring agreements.

The planned restructuring aims to reduce the company’s debt burden by either winding down certain operations or reallocating resources to strengthen other business segments. This approach follows the recent divestment of Jaiprakash’s cement unit, with the company now focusing on its remaining infrastructure projects.

Jaiprakash, along with other infrastructure developers facing similar financial pressures, has accumulated significant debt largely due to aggressive bidding in sectors such as road and airport construction. Lenders have been actively encouraging these firms to monetize assets in order to repay liabilities and improve financial stability.

As Jaiprakash navigates this challenging environment, the engagement of external consultants is seen as a step towards formulating a viable roadmap for sustainable growth and debt reduction. However, the details of the consultancy process and potential strategic changes remain closely held, reflecting the sensitive nature of ongoing negotiations.