Tatas Put Ralli House For Sale, Reserve Price At Rs 55 Crore

Mumbai, Sept 18: | Updated: Sep 19 2003, 05:30am hrs
Tatas have put Ralli House, which houses the registered office of Rallis India Ltd, on the block. The sale will serve to fetch a healthy amount for the company at a time when it is reeling under losses. The company has already given the mandate to real estate agents and fixed the reserve price for the building established in 1920 in the heart of the city at Rs 55 crore.

While addressing shareholders at the companys 55th annual general meeting in Mumbai on Thursday, Rallis India chairman R Gopalakrishnan said, We have planned to sell Ralli House and move to a less expensive corporate office. At present, we are looking out for a suitable alternative location for the office. This initiative is in line with the companys restructured business plan. Since 2000-01, the company embarked on a business restructuring drive and the board directed the senior team to implement much sharper cost control, cash collection, debt reduction and so on. However, the pace of restructuring had not been adequate and the board felt that it lacked the depth and sustainability it requires. The unfortunate consequence is the huge loss registered last year, he said. For the year ended March 2003, the company posted a loss of Rs 77.27 crore as against a net profit of Rs 58.75 crore in the previous fiscal.