VOLTAS TO HIVE OFF FRIDGE BUSINESS INTO JV WITH MNC

Article Abstract:

Voltas Ltd will be spinning off its loss making white goods business, mainly consisting of refrigerators manufacturing, into a new joint venture with a multinational company. Voltas is yet to receive the approval of the financial institutions (Fis) for the move. Currently, FIs hold a 24 percent stake in Voltas. The refrigeration division contributes 20-22 percent to its total sales. The refrigeration business includes the business of Allwyn in Hyderabad, that has been posting losses. During 1997- 98, Voltas posted sales of Rs1,538.7 crore (Rs1,469.4 crore in 1996-97) and a gross profit of Rs63.5 crore (Rs55.8 crore). (ag)

Comment:

Will spin off loss making white goods bsns, mainly consisting of refrigerators mfg that includes the business of Allwyn

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ELECTROLUX FIRST IN LINE TO BUY VOLTAS' WHITE GOODS DIVISION

Article Abstract:

AB Electrolux of Sweden is holding final negotiations with Voltas to acquire the latter's white goods division. The Voltas board recently decided to hive off its white goods division, mainly manufacturing refrigerators, and pick up a minority stake in the proposed new company. Voltas plans to focus only on its core competence areas of air conditioning and engineering segments. The white goods business account for 20 percent of Voltas' total turnover, including the loss-making Allwyn unit in Hyderabad. The refrigerators are manufactured in two units, one in Nagpur and another in Hyderabad. (gsh)

Comment:

Holds final negotiations with Voltas to acquire the latter's white goods division incl Allwyn unit, India

Electrical & Electronic Equip, Electrical Equipment, Appliance, and Component Manufacturing, Acquisitions & mergers, Foreign operations, Sweden, Electrolux AB

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HDC TO HIVE OFF MP IRON & STEEL

Article Abstract:

As part of its restructuring programme, Hindustan Development Corporation (HDC) of Calcutta will hive off its steel wing, Madhya Pradesh Iron & Steel (MPIS) in favour of a new firm Malanpur Steel Ltd (MSL). Under the arrangement, MSL will issue seven equity shares of Rs10 each for every eight shares held by promoters of HDC. After the hiving off exercise, HDC's share capital will come down to Rs13.93 crore (from Rs111 crore). HDC is involved in railway wagon manufacturing, castings and calcined petroleum coke. (gs)

Comment:

Will hive off its steel wing, Madhya Pradesh Iron & Steel, in favour of a new firm Malanpur Steel

Primary Iron & Steel, Iron and Steel Mills and Ferroalloy Manufacturing, Malanpur Steel Ltd., Madhya Pradesh Iron and Steel, Hindustan Development Corp.

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