Financial Daily from THE HINDU group of publications
Wednesday, May 15, 2002
Samtel India sells unit to Color for Rs 40 crore
NEW DELHI, May 14
SAMTEL India Ltd on Tuesday said it has sold the profit-making deflection yoke unit to group company, Samtel Color Ltd, for Rs 40 crore as part of financial consolidation in the Samtel group of companies.
The net inflow of funds to Samtel India will only be Rs 22 crore as Samtel Color had earlier lent Rs 18 crore through `inter corporate deposit' (ICD), group officials said at a press conference here.
That ICD value has been netted against the total consideration.
With the sale of the deflection yoke unit, which makes a critical component for the television picture tube, Samtel India will now remain in only two spheres of activities - manufacturing of colour monitors and black and white televisions.
Samtel Color makes colour picture tubes, monitor tubes and electron guns.
"The restructuring is part of a consolidation,'' Mr Satish Kaura, Group Chief Executive, said at the conference.
Mr Kaura said the group would look at the possibility of becoming an original equipment maker in the colour monitor market to various international brands.
That would be possible only after Samtel Color starts making monitor tubes.
"Currently, the tubes for colour monitors of Samtel India are being imported. By the year-end, Samtel Color will start making the tubes in India itself,'' Mr Kaura said.
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