Modern Foods may become profitable this year: Banga

Modern Foods is expected to achieve break-even this fiscal. This was stated by Hindustan Lever chairman M.S. Banga. &nbsp...

Modern Foods is expected to achieve break-even this fiscal. This was stated by Hindustan Lever chairman M.S. Banga.

	Confident of legal position in inside trading case
NEW DELHI: HLL is confident of its ‘legal and moral’ position in the case relating to alleged insider trading by it and five of its directors. HLL chairman M.S. Banga said: “We are confident of our legal and moral position on the issue.” He however declined to comment further with the matter being subjudice. Following a High Court directive, a metropolitan magistrate of Mumbai has taken cognisance of a criminal complaint filed by Sebi against HLL regarding allegations of insider trading and, earlier this week issued summons to the company and its five former directors. The summons issued by the Mumbai Metropolitan Magistrate have been made returnable on October 18. The respondents are the then chairman K. B. Dadiseth, former chairman S.M. Datta, the then director (personnel), A. lahiri, the then director (legal) and existing vice chairman M.K. Sharma and former vice chairman R. Gopalkrishnan. (ENS)

“We are satisfied with the progress Modern Foods has made since we took it over. Sales have more than doubled. We hope it will turn around this year,” he said on the sidelines of CII’s Leadership Summit in the Capital.

On disinvestment, he said: “You cannot say that the disinvestment process has derailed because of certain issues. But then the pace of reforms needs to be accelerated.’’ HLL is expecting at least 20 per cent hike in sales this fiscal and net profit in another two years. Besides pushing the main product —bread—Modern Foods is also expected to generate a healthy balance sheet by foraying into associated products like jam, cakes and pastries.