The Hindu : Business : Birlas exit McNally Bharat

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Tuesday, Jun 28, 2011
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Birlas exit McNally Bharat

Special Correspondent

KOLKATA: The C. K. Birla Group will no longer be associated with McNally Bharat Engineering Company (MBEC), an outfit in which it once shared an equal holding with the B. M. Khaitan group.

MBEC is an engineering and project construction company, which has made domestic and overseas acquisitions to expand and consolidate its business presence.

3 members resign

While the Birla equity, held through various investment companies, were being reduced gradually, it had been maintained at around 17 per cent for quite sometime, before being sold totally this month, a board level source at MBEC said.

At a board meeting held on Monday, the resignation of the three Birla group board members — S. P. Sanghi, S. K. Pasari and C. K. Pasari — were accepted.

Khaitan joins board

Aditya Khaitan joined the board as did Prabir kumar Ghosh, currently the President of MBEC and its Chief Financial Officer. He will have the responsibility as the group CEO. Deepak Khaitan is already on the board of MBEC.

The 17 per cent Birla holding was offloaded in offmarket and market deals, it was learnt. It will now be held by four B. M. Khaitan group companies — Williamson Magor, Williamson Magor Finance Services Company, Kilburn Engineering and Babcock Borsig. The holding of the B. M. Khaitan group will now be 34 per cent.

Dividend

At today's board meeting a 20 per cent dividend payout was also approved. The company ended 2010-11 with a turnover of Rs.1,758 crore and a net profit of Rs.49.50 crore.

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