(Bloomberg) -- Emami Group., an Indian conglomerate that runs businesses from cosmetics to a paper mill, has picked Arpwood Capital Ltd. and Credit Suisse Group AG to manage the sale of its cement unit, people familiar with the matter said.

The bankers will start reaching out to prospective buyers for Emami Cement Ltd., seeking a valuation of about $1 billion, one of the people said, asking not to be identified as the information is private. A decision is yet to be made about the size of the stake to be sold and the group can add more managers for the deal later, the people said.

The Kolkata-based conglomerate led by R. S. Agarwal and R.S. Goenka is joining tycoons including Anil Ambani and Subhash Chandra in selling assets to pare debt as a cash crunch in Indian markets increase funding costs. In June the founders of the group sold about 10% stake in it its listed flagship Emami Ltd. to trim borrowings.

The conglomerate, which makes Boro Plus cream and herbal products under the Zandu brand, is in discussions with investors including UltraTech Cement Ltd., KKR & Co, and Temasek Holdings Pte. for a stake sale in the cement unit, the Economic Times reported in June.

A spokesman for Emami and a spokeswoman for Credit Suisse declined to comment, while representatives for Arpwood didn’t immediately respond to an email and phone call seeking comment.

To contact the reporters on this story: Baiju Kalesh in Mumbai at bkalesh@bloomberg.net;P R Sanjai in Mumbai at psanjai@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Sam Nagarajan at samnagarajan@bloomberg.net, Anto Antony, Arijit Ghosh

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