BBUNL To Be Dismantled Post-selloff: Chief

Kolkata, October 27: | Updated: Oct 28 2002, 05:30am hrs
Bharat Bhari Udyog Nigam Ltd (BBUNL) would be dismantled after second round of disinvestment of its four wholly-owned subsidiaries - Burn Standard, Jessop, Braithwaite and Bharat Wagon Engineering Co, BBUNL chairman and managing director RP Singh has said.

BBUNL will lose management control and be dismantled after second round of divestment of the subsidiaries, Mr Singh told PTI here.

The first round of divestment in the subsidiary units would offload 74 per cent share of the holding company while the rest 26 per cent would be divested in the second round, he said.

The government has already approved divestment of 74 per cent stake in wagon manufacturer Jessop & Co to Ruia Cotex but the matter was pending before the Calcutta High Court following a leave petition filed by the unions opposing the move.

Mr Singh, however, refused to comment about any possible time frame for divestment in the other units.

The issue of the dismantling of BBUNL had been a long standing demand of the employees unions of subsidiary units.

Meanwhile, with the performance of the units showing improvement, the companies were expected to register net profit after restructuring of the balance sheet, Mr Singh said.

Burn Standard, for instance, has achieved 53 per cent growth in gross production during April-September this year as against the corresponding period last fiscal.