The Hindu : Business : SMPIL machinery sale nets Rs. 30 crore

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Friday, Oct 06, 2006
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SMPIL machinery sale nets Rs. 30 crore

Shanthi Kannan

Shriram Properties plans to construct IT Park

CHENNAI: Shriram Properties Ltd. has netted Rs. 30 crore by selling the plant and machinery of the defunct Standard Motor Products of India Ltd. (SMPIL) through an e-auction, according to sources connected with the development.

It may be recalled that Standard Motor's land measuring 58 acres was taken over by Shriram Properties through an auction for Rs. 154.10 crore. Later, Shriram Properties decided to sell the plant and machinery and appointed Matex Net Pvt. Ltd. as its e-auctioneer for the sale.

The e-auction was held on September 27. About 80 participants took part in the bid. There were 40 to 50 bids for every single lot. Matex Net had divided the entire plant and machinery into 46 lots.

Nearly 400 Matex Net customers had shown interest and had also paid the earnest money deposit of up to Rs. 2 crore. The Standard Motor's site contained more than 60 sheds and 1,000 pieces of machinery.

Sources said the bidders were from all over the country, which included Maruti and Ashok Leyland vendors. Most of them were tier-II vendors.

Matex Net would earn nearly two per cent as commission charges for conducting the e-auction.

Once the plant and machinery is cleared, Shriram Properties proposes to take up the construction of an IT and ITeS Park. The State Government has accorded the status of a special economic zone for this land located near Tambaram in Chennai.

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