McNally to hive off product division to subsidiaryNovember 10th, 2008 - 8:26 pm ICT by IANS
Kolkata, Nov 10 (IANS) Engineering firm McNally Bharat Engineering Company Limited (MBE) would hive off its products division to its subsidiary McNally Sayaji Engineering Ltd, a top company official said here Monday.”McNally Sayaji is expected to achieve sales of Rs.10 billion by 2014-15,” McNally Bharat’s chairman Deepak Khaitan told reporters.
MBE acquired majority stake in Sayaji Iron and Engineering Company Ltd in May this year.
“McNally Bharat’s holdings in the subsidiary would be 92 percent following the demerger and transfer of the company’s products division to it. We would bring down our holdings at a stage when the market scenario is conducive to raise funds,” Khaitan said.
McNally Sayaji’s sales in 2008-09 are expected to be about Rs.2.10 billion, which would include McNally Bharat’s hived off products division, he said.
“We see McNally Sayaji’s turnover going up by 50-60 percent in 2009-10,” he said.
MBE’s current order book stands at Rs.24 billion and is expected to go up by another Rs.10 billion by March, Khaitan said.
MBE is looking at opportunities put forward by Coal India Ltd’s decision to set up 18 coal washeries across the country within the next three years.
“We see an opportunity in coal washeries in each of which close to Rs.4 billion would be spent. McNally Bharat has a natural competitive edge as we were the first company in the country to build such washeries,” Khaitan said.