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Cryogenics buys Kilburn unit

Calcutta, Oct. 6: Kilburn Engineering, a BM Khaitan group company, has sold its Vadodara unit in Gujarat to Cryogenics Inc — an American company— for Rs 11 crore. The sale of the plant is part of the company’s revival package which was approved by the Board for Industrial and Financial Reconstruction (BIFR).

The company was referred to the BIFR in early 2000. The company produces dryers and various sophisticated tailor-made equipment for the petrochemicals and chemicals industries. It also exports dryers to Sri Lanka, Kenya and the Philippines.

When contacted, Supriyo Mukherjee, adviser to Kilburn Engineering, refused to name the buyer. “We have just signed a memorandum of understanding with them. At this juncture it will be unethical for us to divulge the name,” he said.

The US company will decide whether the employees at the Vadodara plant will be retained.

A revival package has been agreed upon by the banks and financial institutions, including IDBI, UTI, IDBI Mutual Fund, GIC, Oriental Insurance, United Bank of India, Union Bank and Federal Bank, Mukherjee said.

The success of the revival package hinges on the sale of the Vadodara plant to US-based company. The BIFR has already approved the sale transaction. IDBI is the operating agency for the revival package.

The package includes Rs 11 crore sale proceeds from Vadodara plant and Rs 2 crore by way of promoters contribution and sale of shares. The Khaitans of the Williamson Magor group hold 65 per cent stake in the company.

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