Arun Bajoria, Texmaco express interest in Burn Standard pie

Bajoria said his flagship firm, Hooghly Mills Ltd, has started due diligence to acquire controlling stake from Bharat Bhari Udyog Nigam Ltd (BBUNL), the holding company of Burn Standard. Bajoria controls one-third of the jute market while Texmaco is a leading wagon maker.

Texmaco president R C Maheswari confirmed the submission of EoI. He said Texmaco was also keen to acquire Braithwaith, another engineering company up for disinvestment.

Bajoria said the huge real estate of Burn Standard would fetch the government a "good price" provided the liabilities were written-off. "The company gets orders for 12,000 wagons a year. This takes care of expenditure. Proper utilisation of real estate can help the company prosper," he said.

Texmaco officials said the intention of the Birla company to take over Burn Standard was natural since both were into wagon making.

P K Ruia, chairman of Ruia group which has just bought up the sick public sector unit Jessop, said the group was interested to acquire Burn Standard as it wanted to grow in the engineering business. "The acquisition of Jessop was the beginning . We want to make a mark in the country's engineering business in the years to come," he said.

The total liabilities of Burn Standard stood at nearly Rs 300 crore. Paid up capital was Rs 107 crore with accumulated losses at Rs 420 crore.