India Foils to get new owner

Calcutta, Sept. 9: Ess Dee Aluminium Ltd is set to gain control of ailing India Foils in the next seven days. At present, Madras Aluminium Company (Malco) of the Vedanta group is the owner of India Foils. Owned by first generation Bengali entrepreneur Sudip Datta, Ess Dee Aluminium has fully repaid the debts of India Foils. The Board for Industrial and Financial Reconstruction (BIFR) has approved a rehabilitation scheme for India Foils, and Ess Dee, within a period of time, will effectively hold 90 per cent of the company. Calcutta-based India Foils has three plants in Bengal. While the Hoyera and Taratola units are closed, the Kamarhati unit is operational. The company has an annual production capacity of 7,000 tonnes and employs 1,000. Ess Dee wants to revive the Hoyera plant first. Earlier this year, Malco and Ess Dee joined hands to revive India Foils and presented a scheme to the BIFR. The scheme involves writing down of equity by 90 per cent and the infusion of Rs 225 crore in the form of equity and quasi-equity. Besides debts worth Rs 45 crore will be converted into non-convertible preference shares. India Foils’ net worth will turn positive after the financial recast and it expects to come out of the BIFR ambit within a month. However, Ess Dee, which makes aluminium foils for pharmaceutical and food processing units, has put its fresh investment plans on hold following the Singur crisis. The company is closely watching the developments before taking any call, a source said. Ess Dee faces the challenge of improving India Foils’ productivity as well as reduce its existing workforce. It has plans to expand capacity to 18,000 tonnes if the industrial scenario remains favourable.