BK Birla for Mangalam Timber, Mangalam Cement merger
By IANSThursday, July 1, 2010
Kolkata.J - Basant Kumar Birla, chairman of B.K. Birla Group, is in favour of merging two group companies, Mangalam Timber and Mangalam Cement.
Loss-making Mangalam Timber’s board May 3 recommended merger of the company with Mangalam Cement. But the latter in a communication to the bourses May 12 had sought more information from Mangalam Timber for examining the merger issue.
“Directors and labourers are objecting to the merger proposal so I told my people since I have the majority holding it would not be a problem to go ahead with it,” Birla told reporters on the sidelines of the annual general meeting of Kesoram Industries.
Birla’s grand-daughter Vidula Jalan and Anshuman Jalan are managing the companies now. “They want to wait for few months before amalgamation,” he said.
He further said he wants to increase the promoter’s stakes of both the companies from present around 30 to 40 percent.
Mangalam Timber, which makes fibre boards, suffered a loss of Rs.1.23 crore in 2009-10 while Mangalam Cement earned a profit of Rs.118 crore.
