Ten companies had put in their bids for buying 74 per cent Government stake in Modern Foods. The bids closed on October 15.

The final strategic partner out of the four will be selected by the committee in a two-phased assessment by December first week, sources in the ministry of food processing industries said.

The committee is assessing the bids for both technical and financial viability, and would give its decision to pave way for the final divestment by December 15, the sources said.

The value of the assets of the company has been estimated at Rs 109 crore. But the final price of the equity has been kept a closely-gaurded secret.

The committee is being chaired by CS Rao, financial advisor and additional secretary, department of food. The other members of the commmitee include Siddarth Behrua from the department of economic affairs, KK Gupta, additional secretary, and KK Behrua, director in the food processing ministry.

Hindustan Lever, Nestle, and Britannia have already undertaken an independent study of the technical requirements to turn around Modern Foods, which were submitted to the ministry.

Under the terms and conditions for the bidders, the strategic partner's new management would be given a free hand to slash the work force to streamline the company's operations. It would also be allowed to offer a better package than the present voluntary retirement scheme being offered by the company.

The six interested parties which have been left out of the shortlist are Gujarat Ambuja Exports, General Mills, Diageo, Commonwealth Development Corporation, Nestle NA, CA Processing Industries, and Om Bakeries.

Modern Foods manufactures breads and cakes under the popular brand name of Modern, and has an installed capacity to produce as much as 268 million standard loaves of bread per annum. The company has 17 bread-manufacturing units and an efficient distribution system in the country, with as many as 22 operating franchisee units.