Andrew Yule, LIC and United India Insurance are mulling the possibility of disinvesting their stake in Tide Water Oil Co Ltd. The three entities have 40% stake in the company. Tide Water Oil is a part of the diversified Andrew Yule Group which operates in areas like engineering, power generation and lubricants.
The committee appointed board of directors (CABOD) set up by the centre for disinvestment in Tide Water Oil will meet on September 24 to discuss the sell-off programme further.
Talking to reporters after the company?s annual general meeting here on Monday, chairman Kallol Datta said SBI Caps has been given the mandate to do the entire handholding exercise for selling stake of Andrew Yule, LIC and United India Insurance in Tide Water.
?The next meeting of CABOD, which will also have government representatives, will take a decision on how smoothly we can go ahead with the divestment plan in Tide Water,” Datta said.
At present, Andrew Yule holds 26.22%, United India Insurance 10% and LIC almost 4% stake in Tide Water. Andrew Yule expects to mop up Rs 110-130 crore from the stake sale.
Meanwhile, the company is planning to expand its lubricants producing capacity after two new plants are commissioned, which are being set up at a cost of Rs 35 crore.
Datta said Tide Water is setting up a modern lube blending plant at Oragadam near Chennai, which is expected to function shortly. Its turbhe plant in Navi Mumbai, wherein the operations of the Deonar plant had been shifted, commenced its operations in 2008-09. “The second phase of the plant will kick off after Diwali,” Datta said.