Mumbai, Feb 27 : Hindustan Organic Chemicals Ltd (HOC) is understood to bein talks with an Italian company Guarnislon Chemicals to offload 30 per centof its stake in its subsidiary company, Hindustan Flourocarbons Ltd (HFL).According to sources, this forms a part of the rehabilitation packagesubmitted by the company after it was referred to the Board of Industrialand Financial Reconstruction (BIFR). However, repeated queries made to thecompany failed to elicit any response.Industry sources pointed out that Guarnislon is a major manufacturer ofpolytetra fluoroethylene (PTFE). The company's move is in line with itsinterest to set up a base in the Indian chemical industry, said sources.While no official comment was available from the company, the sources pointout that the valuation of the deal has been fixed at around Rs 18 crore toRs 20 crore. However, as per the proposal, Guarnislon has made it clear thatHFL has to settle all the liabilities with the creditors so that it could goahead with picking up the stake in HFL.
At present, HOC has around 56 per cent stake in HFL and the balance 44 percent is held by financial institutions and Andhra Pradesh IndustrialDevelopment Corporation.
HFL is the sole manufacturers of PTFE with a capacity of 500 tonnes perannum.
According to analysts, a strategic partner at this juncture would certainlyhelp in turning around the company. It could help in hiking the productionwith new value-added technology. Further, with the financial help of the newItalian partner, if the deal fructifies, the company can work out strategiesto intensify presence in the market.
The company has already taken an optimistic view on the domestic market andhas strategised for maximising capacity utilisation.
HFL has been given the opportunity by BIFR to come up with a viablerehabilitation scheme. Consequently, the rehabilitation package suggested bythe company has to be cleared by both the financial institutions and theBIFR.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
