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Curtains on BBUNL after selloff

Calcutta, Oct. 27 (PTI): Bharat Bhari Udyog Nigam Ltd would be dismantled after the second round of disinvestment of its four wholly-owned subsidiaries—Burn Standard, Jessop, Braithwaite and Bharat Wagon Engineering Co Ltd, BBUNL chairman and managing director R. P. Singh has said.

“BBUNL will lose management control and be dismantled after second round of disinvestment of the subsidiaries,” Singh said here.

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

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

Singh, however, refused to comment about any possible time frame for disinvestment 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 units showing an improved performance, the companies were expected to register net profit after restructuring the balance sheet, Singh said.

Burn Standard, for instance, has achieved a 53 per cent growth in gross production during April-September 2002, to Rs 75 crore, from Rs 49 crore in the first half last year, company sources said.

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