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Kohinoor Mandal

KOLKATA, Aug. 26

SBL Industries Ltd, which was earlier known as Shriram Bearings Ltd, is in the last stages of finalising its revival package and is likely to reopen its plant by the end of November.

The company is contemplating reducing the strength of its clerical staff, but a reduction in the labour force has been ruled out.

Mr P.C. Sen, Chairman of SBL Industries, said that the terms and conditions of the revival package had almost been finalised. "We are still continuing the talks with banks and financial institutions. We hope that everything will be ready shortly. I must also say that Jharkhand is also helping a lot'', Mr Sen told Business Line.

Meanwhile, the company has extended its accounting period to 18 months and closed its accounts on March 31, 2002. For the year ended September 30, 2000, SBL registered a turnover of Rs 17.23 crore and a net loss of Rs 5.50 crore.

It was expecting to break even in the next two to three years, but the process was interrupted by the closure of the factory. For the accounting period ended March 31, 2002, SBL Industries had continued with its losses but they had come down sharply as the factory has remained closed for a considerable period of time.

The 39-year old company, which has its head office in Delhi, has its shares listed in the Calcutta, Bombay and Delhi stock exchanges.

SBL Industries was earlier owned by Mr Arun Bharat Ram of the Shriram Group. In late 1999, 70 per cent of its stake was purchased by Mr Sen, who was formerly Chairman of Peerless General Finance. The remaining 30 per cent is widely held by the public.

The production unit of SBL has been closed for over a year now. However, Mr Sen appears confident of reopening it later in the year.

"First I wish to reopen the unit and thereafter I have other plans which will ensure a turnaround of the company. We may consider diversification into related activities in the future'', he said.

SBL's Ranchi manufacturing unit, which employs about 550 people, has a capacity to produce 15 lakh ball bearings every month for the automobile and consumer electrical sectors.

Of the total workforce, 500 are employed in the factory. The management does not feel any need to reduce the labour part of the workforce because 30-35 workers will be retiring every year for the next three years.

SBL Industries used to enjoy a market share of 5-6 per cent in the retail ball-bearings market. It held about 10 per cent share of the electric fan industry. Ball-bearings for fans account for about 75 per cent of the Ranchi unit's capacity.

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