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Wednesday, Jul 02, 2003

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EKL gets Rs 45-cr grant from AB Electrolux

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ELECTROLUX Kelvinator Ltd (EKL) is getting yet another package from the Swedish parent AB Electrolux to improve its financial health. AB Electrolux has expressed its intention to make a voluntary and discretionary revenue grant of Rs 45 crore to EKL to meet its revenue expenditure requirements and improve its current liquidity position.

This follows close on the heels of its announcement in April this year to make a voluntary and discretionary revenue grant of Rs 20 crore. According to EKL sources, "AB Electrolux expressed the intention to give a grant of Rs 45 crore just last month".

Meanwhile, it may be recalled that EKL had received a letter dated April 3 from AB Electrolux expressing the parent's intention to make a voluntary and discretionary revenue grant of Rs 20 crore to the company. Earlier, in 2002, EKL had received a one-time voluntary, discretionary revenue grant of Rs 50 crore from AB Electrolux, to meet part of its significant revenue expenditure and to improve its current liquidity position. AB Electrolux, the principal shareholder in EKL has already brought in Rs 70 crore since last year to improve the health of EKL. The new package from the parent company, when it comes in, will be an addition to the kitty.

According to a company official, ``AB Electrolux stands committed to its Indian operations. The parent company has also subscribed to EKL's preferential capital issue of Rs 150 crore in December, 2002.'' AB Electrolux holds 76 per cent stake in EKL, with the Indian promoter having a stake of 10 per cent and the balance with the public.

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