Fertiliser majors set eyes on RCF stake

Iffco managing director U.S. Aswathi said, ‘‘We will be shortly sending our officials for a detailed study of the RCF plants. We have decided to go on our own.’’

A Tata Chemicals Ltd spokesperson said, ‘‘Currently, we are evaluating the option. However, no decision has yet been taken on this matter.’’

An AV Birla Group spokesperson declined to comment on the issue and said, ‘‘It’s not our policy to comment on speculation.’’

While Tata Chemicals has also evinced an interest in NFL, Indo Gulf Fertilisers has kept options open for both NFL and MFL. Iffco, too, is likely to bid for both PSU firms.

The government of India (GoI) intends to disinvest 51 per cent of its equity in RCF through strategic sale. GoI currently holds 92.5 per cent of the equity capital of RCF.

The ministry of disinvestment has allowed the employees of the company to bid for the 51 per cent stake, provided at least 15 per cent or 200 employees, whichever is lower, can participate in the bid.

The government has already invited bids for appointing an adviser for managing the disinvestment process successfully. It is learnt from sources that around 12 bidders submitted their expressions of interest on June 9, 2003. However, the final call has not yet been taken on this matter.

RCF, one of the largest fertiliser and chemical companies in Asia, is situated on the country’s western belt. It is engaged in the production and sale of fertilisers and chemicals, including urea, complex fertilisers and a variety of industrial products. The company has its manufacturing facilities at Trombay and Thal in Maharashtra. These units produce nitrogenous, phosphatic and potash fertilisers along with a wide range of industrial chemicals.

The company has a good marketing network spread all over the country. Apart from the plants, the company’s real estates at Trombay and Thal in Maharashtra are currently valued at more than Rs 5,000 crore.