Centak, a speciality chemicals venture, was forged five years back with two BK Birla companies, Century Textiles and Century Enka, together holding a 38.35 per cent stake in the company. Akzo Chemicals holds 40.53 per cent, with the balance being held by the public and banks. The move to exit from Centak is part of an ongoing recast within the BK Birla group. Birla himself was not available for comment. Senior officials of the group only said that a major restructuring was on but declined to divulge details.

Centak was set up to manufacture 500 tonnes per annum of polymerisation initiators at its plant in Mahed, Rajasthan. In fiscal 1997-98, it posted a net profit of Rs 6.98 crore on aturnover of Rs 20.56 crore. The company has gross fixed assets of Rs 16.54 crore and a net block of Rs 21.03 crore. If the sale deal is struck at Rs 350 for each Centak share, given the Rs 4.90 crore equity capital of the company, it could lead to an inflow of around Rs 70-75 crore for Century Textiles and Century Enka. The scrip prices of all the three companies have shot up over the last couple of months. Centak's stock traded at Rs 185 on the BSE and Rs 185.70 on the NSE on July 7. The scrip has moved up by 26.36 per cent on the BSE from Rs 146.40 on May 21 to Rs 185 on July 7, with volumes moving up from 500 to 15,300 shares during the same period.

On the NSE, the stock has moved up 30 per cent to a high of Rs 188.15 on July 7, up from Rs 151 on May 21, with volumes surging to 16,200 shares from 1,400 shares on May 21.

Century Textiles has jumped on the BSE from Rs 22.50 on April 28 to Rs 71 a share on July 9. Century Enka, on the other hand, has increased from Rs 27.5 on May 4 to Rs 78.70 on July 9.The BK Birla group has, over the years, diversified wildly into areas like cement, textiles, textile intermediaries, tyres, tea, paper, shipping, chemicals and engineering.

The recession in most of the businesses has hit the group hard, which has resulted in a steep decline in the turnover and profitability of most companies, and consequently eroded market capitalisation significantly. Flagship Century Textiles and Century Enka have both lost their erstwhile blue-chip status.

The shipping division of Century Textiles has now been on the block for almost a year now, as has been reported earlier in The Financial Express. Arthur Andersen has now been given the mandate to chalk out a new growth path for the company.

Similarly, Kesoram Industries has appointed Ernst & Young for its recast. The company's loss-making textile division is likely to be hived off into a separate company, while it is also considering bringing back Birla Tyres, a partnership firm between four BK Birla companies, into itsfold.