By IANS
Kolkata : Riding a boom in the infrastructure sector, Kolkata-based state-run giant Andrew Yule & Co Ltd plans to spin off its electrical and engineering businesses and expects to report a profit this financial year.
Andrew Yule chairman and managing director Kallol Datta Wednesday said the company would form separate wholly owned subsidiaries – Yule Electrical Ltd and Yule Engineering Ltd – by 2009 to run the two businesses.
“We will look for joint venture partners to run the two businesses or may hive those off in future,” he said.
The boom in the infrastructure sector will help the company report marginal profits in 2007-08 after a loss of Rs.900 million in 2006-07, Datta said.
Andrew Yule wants to retain the core tea business under the parent company, he said.
The company with accumulated losses of Rs.4 billion will implement a Rs.4.90 billion financial revival package approved by the central government, he said.
Andrew Yule will appoint consultants to identify buyers for 26.22 percent stake in Tide Water Oil Co (I) Ltd, he said.
“We hope to raise Rs.1.51 billion by unlocking investments and bond issues.”