The Hindu Business Line : Two sick cos of Gayatri group may turnaround soon

The stakeholders of two of the Hyderabad-based Gayatri Group companies can now hope for some return on their investments in the ailing companies — Gayatri Sugars Ltd and Gayatri Starchkem Ltd.

The Gayatri Group promoters are confident of completely turning around the operations of these two companies in the next 6-8 months and post good profits to provide some relief to investors.

Responding to presspersons queries on the eve of announcing the proposed IPO of Gayatri Projects here on Saturday, its Managing Director, Mr T.V. Sandeep Reddy, said the group has ensured that Gayatri Sugars started posting profits and expects Gayatri Starchkem to come out of the BIFR purview shortly.

The group would consider several options on Gayatri Starchkem after bringing it out of the BIFR purview, which includes hiving off the company among others, Mr Reddy said.

Gayatri Sugars has been operating under a CDR (corporate debt restructuring) scheme since August 2003 for restructuring its debts. Under the CDR, the company got its term loans, cumulative redeemable preference shares and working capital limits restructured and IDBI was appointed as the monitoring agency for implementing the CDR package. During the last fiscal, the company posted a profit before tax of Rs 9.66 crore on a gross turnover of Rs 90.22 crore, he said.

Gayatri Starchkem had offered an OTS package to the banks and financial institutions. According to Mr Sandeep Reddy, while some of the banks and financial institutions including IDBI, GIC and Canara Bank (term-loan) had given their consent for the OTS proposal, the company is still awaiting consent from Canara Bank (working capital), Corporation Bank, (working capital), IIBI, LIC, United India Insurance and Oriental Insurance.

The company has already cleared the dues of IDBI, GIC and Canara Bank (working capital), he said.

More Stories on : Outlook | Sugar | Sick Units

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ashok Leyland launches factory built cab

Reliance finds gas in KG basin

Partner for Sun Pharma's de-merged entity ruled out

Kajaria to double capacity at Bhiwadi plant

Ranbaxy in pact with Gilead for anti-HIV drug

Claris signs pact with Spanish co Juste Pharma

Meet with a difference

Dunlop to resume operations at Sahagunj next month

Two sick cos of Gayatri group may turnaround soon