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Andrew Yule takes revival route

Calcutta, Dec. 19: Andrew Yule is restructuring its operations and expects to make a profit this fiscal after seven years.

The ailing firm plans to spin off its electrical and engineering businesses into separate entities and sell off shareholdings in three subsidiaries.

Chairman and managing director Kallol Datta said Andrew Yule expected to complete the exercise by the next fiscal.

The company is divesting its stakes in lubricant maker Tide Water Oil, power generation venture DPSC Ltd and conveyor-belt maker Phoenix AG. It has already appointed merchant bankers.

Datta said he expected at least one sell-off by the end of this fiscal.

The valuation work on the company’s 26 per cent stake in Phoenix Yule, its joint venture with Germany’s Phonix AG, is at an advanced stage. Phoenix has the first right of refusal.

Andrew Yule holds a 15 per cent stake in the Calcutta Stock Exchange-listed DSPC Ltd and 26.22 per cent in Tide Water Oil, which is listed on the Bombay Stock exchange.

The company hopes to mop up Rs 151.21 crore from the exercise.

However, experts said it may earn more.

Tide Water Oil’s shares closed at Rs 4,150 on the BSE today.

This means Andrew Yule’s stake in the company could be valued at close to Rs 95 crore.

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