Crompton to sell Skycell stake

The company was awaiting legal approval for the merger of a 100 per cent subsidiary, CG Polycrete with the parent company while another group company, CG Faximail, has been line up for disinvestment, he said.

The company, meanwhile, reported a net loss of Rs 13.79 crore for the first quarter ended June 1999 as compared to a Rs 16 lakh loss in the same period last year. "This is due to the poor order bookposition the company had at the beginning of the year especially in the power transformers and switchgear segment," Nohria said.

Sales were down to Rs 284.53 crore from Rs 333.19 crore. The company has kept expenditure down to Rs 262.64 crore as compared to Rs 304.56 crore. The gross loss has been reported at Rs 89 lakhs compared to Rs 9.85 crore earlier. The company has paid a higher interest of Rs 23.15 crore as against Rs 19.78 crore. Depreciation is up to Rs 12.90 crore from Rs 10.01 crore last year.

The company also plans merger of Punjab Power Generation Machines (PPGML) in the parent company. The company was earlier referred to the Board of Industrial and Financial Restructuring (BIFR). Amalgamation of CG Polycrete depends on the ongoing legal case, he said.

The company has also passed a special enabling resolution to facilitate restructuring of business which include mergers and divestments. Crompton has decided to cut costs by Rs 90 crore during the current financial for which it had earlierlaunched a voluntary retirement scheme. While 1,700 employees have already availed themselves of the VRS, another 1,000 are expected to follow suit this year. The company has targeted cutting costs by Rs 90 crore in the current fiscal.