Promoters Hike Bombay Dyeing Stake By 1.75% To 42.6 %

Mumbai, April 24: | Updated: Apr 25 2002, 05:30am hrs
The promoters of Bombay Dyeing and Manufacturing Company Ltd (Bombay Dyeing) have increased their shareholding in the company over the last one year by 1.75 per cent. The promoters currently hold 42.6 per cent stake in the company.

The financial institutions hold 17.2 per cent and others 37.5 per cent. Jute baron Arun Kumar Bajoria holds 1.38 per cent. Bombay Dyeing chairman Nusli Wadia said that Mr Bajoria is suspected of holding about seven per cent stake in the company, through other companies.

Earlier, the board sought the approval of shareholders at an extraordinary general meeting (EGM) for internal restructuring of the company and to write off certain loans. The company plans to write off certain assets in the dimethyl terephthalate (DMT) division which are no longer of any use. The shareholders also approved writing off Rs 10 crore of doubtful debts, and the transfer of Rs 195 crore from share premium to security premium.

In his address, Mr Wadia said that the board was considering a proposal to relocate certain units of the company outside Mumbai but no decision had been arrived at. He said that the company may look at setting up new units outside Mumbai as running the show in Mumbai was turning out to be uneconomical, due to the high rates for water, wages and octroi. Mr Wadia also said that the employee strength has been reduced as part of a restructuring exercise through a voluntary retirement scheme (VRS). He added that rationalisation of staff was an ongoing process and the board has earmarked Rs 70 crore for future VRS programmes.

The company has spent about Rs 51 crore so far on VRS and reduced its workforce by 3,600 in the last five years. This accounts for 36 per cent of the total number of employees. Last year, the company reduced the number by 700.

Mr Wadia informed shareholders that 30 per cent of the 25 acre land where the mill is located could be developed by the company. He added that the company is working on a plan on how the real estate could be developed.

Mr Wadia added that the company is working on repositioning of the Bombay Dyeing brand and its logo so as to leverage on the Bombay Dyeing brand name. He, however, did not reveal plans about its Vivaldi brand.