Bombay Burmah exits non-core business

Ness Wadia (41), the elder son of billionaire business tycoon Nusli Wadia, is driving change at group company Bombay Burmah Trading Corp Ltd to consolidate its position in the core business of tea and coffee plantation. In a surprise move in April this year Ness was shifted to Bombay Burmah as managing director (MD) and since then he has taken steps to rid this Wadia Group company from non-core businesses and two such businesses have been sold off within a month.

Earlier, Ness was deputy MD in group flagship Bombay Dyeing, which is sitting on a gold mine of prime real estate in the heart of Mumbai. Jeh Wadia, Ness' younger brother, has now taken charge at Bombay Dyeing as MD.

On Wednesday, Bombay Burmah board agreed to sell its BCL Springs division to NHK Spring Co Ltd, Japan, for Rs 180.5 crore. NHK has been associated with Bombay Burmah in this business for several years. This division is engaged in the business of manufacturing and marketing springs of various kinds for use in the automotive industry and the plant is located at Aurangabad, Maharashtra.

BCL is the second largest maker of precision springs and it deals with 1,400 types of springs and caters to major automobile and industrial giants around the world. NHK Automotive Components India Pvt Ltd, a wholly-owned subsidiary of NHK Spring Co would take over the springs business as a going concern on a slump sale basis. Both parties have signed a business transfer agreement, detailing the conditions for the takeover, which is subject to the approval of shareholders and regulators.

NHK Spring Co is engaged in springs business and operates in various countries, including India. On August 10, Bombay Burmah had decided to sell off its Sunmica division to AICA Laminates India Pvt Ltd, an arm of AICA Kogyo Ltd, Japan, for Rs 100.30 crore. This division is engaged in the business of manufacturing and marketing decoratives and industrial laminates. The plant is located at Rudrapur in Uttarakhand.

Courtesy: Mail Today