McNally Bharat to go for capital, HR restructuring

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Kolkata: McNally Bharat Engineering Company Ltd, the joint venture between BM Khaitan and GP-CK Birla Group, is going in for a capital as well as human resources restructuring with its $16 million acquisition process of Germany’s KHD Humboldt Wedag’s coal and mineral division completed.

Srinivash Singh, managing director, said the acquisition process got over on October 10 and McNally Bharat engaged PricewaterhouseCoopers (PwC) to conduct a study on human resources restructuring. PWC is expected to submit the report in six months.

For conducting a study on capital restructuring McKinsey, Ernst & Young, Accenture and KPMG has shown interest. McNally Bharat will decide on the consultant by December, Singh said.

McNally Bharat’s acquisition was through its subsidiary, MBE Holding Pte Ltd, Singapore.

Singh said with the new acquisition McNally Bharat is poised to have a global footprint in the business of coal and mineral technology and will also enter into engineering procurement construction (EPC) of cement, oil and gas refinery and nuclear power projects.

For EPC of nuclear power projects, the company will tie up with Areva of France and would jointly bid as a consortium for various projects. Both the companies would work together on a case-to-case basis, Singh said.

However, “this acquisition will help us expand our business in South America, the US, Australia, China, Mongolia, Vietnam Indonesia and Philippines and is expected to take our turnover between Rs 5,000 crore and Rs 7,000 crore by 2015,” Singh said.