The Hindu Business Line : Paid holiday for Bells Controls staff

Prior to its open offer, the directors-turned-acquirers of the instrumentation-maker, Bells Controls Ltd, have asked its 180-odd employees at the Kolkata plant to go on an indefinite paid leave from last Tuesday.

The ailing Bells Controls, owned by the former FICCI president, Mr Sudhir Jalan, is currently witnessing an interesting takeover game. Two of its present whole-time directors (through three companies) have approached the Securities & Exchange Board of India (SEBI) to acquire 20 per cent stake in the company after picking up almost 15 per cent through market operations.

The three companies, Advance Tie-up Pvt Ltd, Flexstar Dealers Pvt Ltd and Klick Vinimay Pvt Ltd, are owned by Mr Anoop Hoon and Mr S.D. Mookerjea, who are also the whole-time directors of Bells Controls.

The combined net worth of these companies is Rs 1.36 crore and it has approached SEBI to buy 22.58 lakh shares (20 per cent) of Bells Control for Rs 5 a share.

Their earlier acquisition of 14.91 lakh shares through market operations was within a price range of Rs 4.38-4.85 per share.

The open offer from these three companies was scheduled on January 21, but it has been delayed. Sources said SEBI had sought some more clarifications. It was learnt that the queries had been replied to and the open offer was expected to materialise soon.

Business Line made repeated calls to the offices of Mr Hoon and Mr Mookerjea, but none of them was available.

Incidentally, Mr Jalan, who used to be the Chairman and Managing Director of Bells Controls, relinquished the post in October last year.

Meanwhile, trade union sources said the new management had already decided to reduce the workforce and rationalise the asset base as part of a business-restructuring move. With these steps, the acquirers hoped to turn around the company.

The first step was reduction of manpower at its Kolkata unit through a voluntary retirement scheme. From the existing complement of 180, it is expected to be come down to around 60-70.

The management had already asked the workers to study the excess manpower situation in the company and a tripartite meeting had been scheduled for February 15. However, on February 12, the management asked all 180 employees to go on paid leave.

Earlier, the management had separated its subsidiaries, Bells Softech Ltd and Bells Softech Inc, from the parent company. Even its technical tie-up with the American firm, The Foxboro Co, was snapped. In July 2000, the company closed its Mysore unit.

For the year ended March 31 2001, Bells Controls' turnover was Rs 32.14 crore. It posted a loss of Rs 9.55 crore. Reserves were at Rs 11.14 crore on an equity base of Rs 1.46 crore.

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Paid holiday for Bells Controls staff