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Monday, 19 July 2010 |
The Wadias of Bombay Dyeing are looking to restructure their group business. Part of the plan
includes selling the polyester staple fiber (PSF) business at Patalganga. PSF has not been making money for the last several quarters. According to sources, Reliance Industries (RIL) may compete with Indo Rama and JBF Industries to buy the loss-making plant from Bombay Dyeing, which is on its way out of a business that led to a spectacular public fight in the ’80s with Reliance founder Dhirubhai Ambani. If RIL is successful in its bid, it would end the bittersweet rivalry between the two big business families in India -- Wadias and the Ambanis.
Bombay Dyeing and Manufacturing Co, born as The Spring Mills in 1903, may seek shareholders’ nod next month to sell the plant that can produce 1.65 lakh tonnes a year. Although petrochemicals and textiles contribute about two-thirds of Bombay Dyeing’s revenues, they lost more than Rs 100 crores in fiscal 2010. The polyester unit is now valued at about Rs 300 crores. Bombay Dyeing, established in 1879, is the flagship company of the Wadia Group, engaged mainly in the business of textiles. Bombay Dyeing is one of India's largest producers of textiles. |
