The Hindu Business Line : Sundram Fasteners in race for SN Corp

THE on-going PSU reforms programme of the Government of Orissa, overseen by the Department of Public Enterprises (DPE), seems to have picked up steam. The sick SN Corporation Ltd, which manufactured high tensile fasteners, has received five bids.

The frontrunner among the bidders is Sundram Fasteners Ltd (SFL), the flagship company of the TVS Group, which specialises in high-tensile fasteners, cold extruded products, sintered components, intelligent systems and radiator caps. The other bidders, according to DPE sources, are Bhubaneswar-based Scaw Industries Pvt Ltd, Imperial Fasteners Ltd of Delhi, Ludhiana-based Nero Industries and Peckon Electronics of Kolkata.

Senior SFL officials, when contacted by Business Line, declined to comment as the bid has only been placed and not yet evaluated by the designated committee of DPE.

According to DPE sources, SFL has put in a bid excluding land and building, but including plant and machinery, equipment, raw materials and tools and finished products, which means it may not conduct any manufacturing activity at the existing site.

SN Corp is an undertaking under Industrial Development Corporation of Orissa Ltd (IDCOL), now called Bargarh Cement Ltd. Mr G.C.Pati, CMD of IDCOL, said the evaluation committee of the Government was expected to examine the bids on Thursday. Once the best bid is chosen, it would be placed before the High Court of Cuttack, as the Dhenkanal-based SN Corp is facing a winding-up petition before the court.

The reserve price for SN Corp, according to sources, is said to be Rs 7.12 crore. Sources said SFL had put in a substantial bid for all assets excluding land and building. It may well be a win-win situation for IDCOL, as land and building can be negotiated separately with any other prospective investor for a new project.

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