Financial Daily from THE HINDU group of publications
Wednesday, Apr 27, 2005

Port Info

Group Sites

Corporate - Mergers & Acquisitions

Ruia group all set to acquire sick Orissa PSU

Pratim Ranjan Bose

Kolkata , April 26

AFTER turning Jessop & Co around, the Rs 500-crore Ruia group is now set to acquire Hirakud Cables, a sick aluminium conductor wire and transmission tower manufacturing State PSU in Orissa.

The group, which had acquired majority stake in the sick Central PSU Jessop & Co in September 2003, is also planning to sell its flagship Ruia Cotex textiles business to focus on the engineering sector.

Speaking to Business Line today, the Ruia group Chairman, Mr Pawan Ruia, said that though the Orissa Cabinet Committee has already cleared the disinvestment proposal, the acquisition has been delayed because of a few cases, including one filed by an employees' union, pending at the Orissa High Court.

"We are carrying out discussions with the petitioners to resolve the issues shortly."

According to Mr Ruia, the acquisition of Hirakud Cables will serve as a forward integration for Jessop's current line of business.

Hirakud Cables has two manufacturing facilities at Hirakud and Bhubaneswar; it offers a complete package with turnkey construction of transmission lines for the power sector.

Having once registered a turnover of over Rs 100 crore, the company had turned sick in later years and was identified for disinvestment by the Orissa Government.

Meanwhile, the Ruia group is planning a change in its business portfolio, with Jessop set to emerge as the flagship company.

Ruia Cotex, which has been the flagship so far, is now up for sale.

It has three manufacturing units at Ganganagar (West Bengal), Bhiwari (Rajasthan) and Ghaziabad (UP); the Ganganagar unit was shut down a few years ago. The company manufactures yarn, which is processed to grey fabric.

"We intend to make engineering our core business and are now working on selling the textile business," Mr Ruia said. The group, however, will retain its sugar mill as it is doing well.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NCL, DuPont sign research pact

Ocimum launches its brand of biochips
BILT forays into tissue paper, eyes acquisitions
Vehicle financing to contribute 12 pc of Tata Motors' PBT
Tata Steel may open retail outlets
Zutshi is now Deputy MD of Samsung India
Audi launches A6, priced at Rs 42.5 lakh
Rane Engine Valves EOU
Adlabs board okays pref issue to Arisaig Partners
Plea for probe into Birla Corpn shareholding pattern dismissed
Anil Ambani writes to SEBI
`IPCL stock sale: Reliance Capital loss Rs 1,000 cr'
`Laws governing corporate sector must be remodelled'
Eco violations: Reliance Energy fine cut to Rs 100 cr
Sterlite Optical Q4 net up at Rs 2.9 cr
Parliamentary panel seeks revamp of SAIL corporate plan
Ruia group all set to acquire sick Orissa PSU
Blue Star on major expansion drive
Bal Pharma eyeing North Indian location
Daewoo assets sell-off may be mired in more legal tangles
Glenmark's Swiss arm in deal with Teijin Pharma of Japan
Development, expansion of Tapti gas field: British Gas-ONGC-Reliance joint venture plans to invest $500 m
ONGC security reviewed
STC plans foray into new areas
The great growth story
Starting up a brand new day
Torrent launches anti-epileptic drug
Panacea launches pain relief drug

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line