MUMBAI, NOV 19: The government plant to disinvest 74 per cent stake in Modern Foods Industries (India) seems to be heading for a controversy with trade unions alleging that the public sector company is being sold off at a throw-away price.Modern Food Industries Karmachari Sangh has disputed the value of the current assets of Modern Foods at Rs 109 crore fixed by an evaluator appointed by the government. ``The total assets of Modern Foods is around Rs 2,000 crore. The government is going to transfer these assets of Modern Food at around 10% of its present value. This is sabotage committed by government officials on the state exchequer,'' the union said.The committee set up by the government to finalise the strategic partner for Modern Foods has shortlisted four bidders - Hindustan Lever, Britannia, Evergreen and Nestle - for selling of the government stake. Earlier ten companies had put in bids to acquire 74 per cent stake in the public sector firm.According to the the Sangh, the valuation of Rs 109crore arrived at by the government-appointed valuer is ``baseless and grossly undervalued.'' ``The total value of the factory land itself works out to Rs 500 crore. Apart from this the company has a number of flats, real estates, buildings, machinery and other assets. The value of these assets works out to Rs 2,000 crore,'' it said.The company has 21 manufacturing units located in different part of the country producing fruit juice, fruit pulp, energy food, buns, cakes and bread. Out of four bidders shortlisted, Hindustan Lever has quoted the highest figure of Rs 226 crore.The government had recently drawn flak for selling the shares of Gas Authority of India Ltd (GAIL) in the overseas markets at a discount to the domestic market. While GAIL was quoted at Rs 79 on Indian stock exchanges, the government sold GAIL shares at Rs 70 per share to overseas investors.
