Murli Industries draws buyer interest for cement, paper biz
Murli Industries Ltd (MIL), which is facing bankruptcy proceedings in the National Company Law Tribunal (NCLT), has drawn interest from several bidders for the company’s cement and paper assets, according to two people directly aware of the proceedings.
Nagpur-based MIL’s cement division has received bids from Ambuja Cement, Shree Cement, Bharat Dalmia and Sagar Cement, the people cited above said on condition of anonymity.
The paper division, which produces newsprint, writing and printing paper, has drawn interest from West Coast Paper Mills Ltd and JK Paper Ltd, they said.
Spokespersons for Bharat Dalmia and Sagar Cement declined to comment, while emails sent to Shree Cement and Ambuja cement remained unanswered.
A spokesperson for JK paper declined to comment while an email sent to West Coast remained unanswered till the time of going to press.
A spokesperson for Edelweiss Asset Reconstruction Co., which is MIL’s largest lender said “bids have been invited by the Resolution Professional (RP) and we understand that there is good interest in the asset”.
The lenders had approached NCLT againstthecompanyin April following which the tribunal had appointed a RP.
Consulting firm Deloitte was hired to assist the RP in the resolution process. There is no reserve price on the assets but bids are expected in upwards of ₹500 crore for the assets, according to the people cited above.
“The deadline for the bids expires on August 18 following which the company’s committee of creditors will meet to decide the next course of action,” said one of the two people cited above.
Promoted by the Maloo family, Murli Industries owes close to ₹1,800 crore to a group of lenders led by Edelweiss Asset Reconstruction, which owns 60% of the debt.
The company’s other lenders include Bank of Baroda, which owns 25% of the debt, while the rest is owned by smaller lenders.
Murli Industries began operations with a solvent extraction plant in the early 90’s and diversified into paper products in 1997 after going public in 1993.
The group entered the cement business in 2010 and has an integrated cement manufacturing facility with a capacity of 3 MTPA and a clinker unit with a capacity of 2 MTPA.
The group’s paper business comprises newsprint, duplex board and printing paper units with an overall capacity of 745 tonnes per day.
The company’s debt piled up following its entry into the cement business owing to cash flow mismatches, the first person cited above said, adding that the company has been in talks to sell its assets for the past four years.