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Our Bureau

Kolkata. Jan. 2

THE Ruia group will complete the acquisition of two sick Orissa PSUs, Hirakud Cables and IDCOL Rolling Mills Ltd (IRML), by end of January or early February.

The acquisitions will be made at a total consideration of roughly Rs 20 crore.

Both the companies located at Hirakud are expected to provide backward and forward integration to fabrication and crane manufacturing business of Jessop & Co.

The Orissa Government had favoured the Ruia group's proposal to acquire Hirakud Cables, a sick aluminium conductor wire and transmission tower manufacturing facility in April 2005.

However, the acquisition was delayed due to court cases, including one filed by an employees union, pending at the Orissa High Court.

While the court cases were settled recently paving the way for the acquisition, Ruia group had emerged as the highest bidder for IRML in June. IRML has a capacity to manufacture 25,000 tonnes of rolled products, including torque steel, angle, flat and rounds. The company was closed since August 1998 and put on the block in 2003.

Though there were no legal barriers in taking over IRML, Ruia group delayed the acquisition as it was interlinked with its interests in Hirakud Cables.

"There are no further hurdles before acquisition of these two companies and we are hopeful to takeover both the facilities in January or February," the Ruia group Chairman, Mr P.K. Ruia, said.

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