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Foundry Daily News

13. August 2008

India - Texmaco to become holding company for heavy engineering, foundry units

K K Birla group's heavy engineering and steel foundry unit, Texmaco Ltd, is re-organising its business and transferring its core engineering business to a subsidiary company. The company plans to raise Rs200 crore for the proposed subsidiary by selling part of its stake in the proposed new entity to private investors.

Texmaco is likely to sell between 10 per cent and 15 per cent of its stake in the new subsidiary through private placement to private equity funds as it demerges all heavy engineering functions and divisions including the foundry.

The company, which plans to double it's wagon manufacturing capacity from 20 wagons per day to 40 by September 2009, expects the proposed new subsidiary to get a better valuation for its wagon-making, process-engineering and foundry businesses.

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