Bata to rejig board for second time in 2 years

Bata India Ltd (BIL) has decided to restructure its board once again after just two years, under which its present managing director Steve Davies being replaced by Marcello Villagran Bravo and two new independent directors as well as a new finance director will be inducted.

The company has also decided to retire around Rs 10 crore of high cost debt from the proceeds of the rights issue and would inject fresh funds for restructuring its Faridabad manufacturing facility.

Sources said BIL's earlier plan to demerge its Faridabad and Mokamaghat units were shelved and it was now trying the revive the units with priority being accorded to the Faridabad unit.

"We are trying to revive the manufacturing facilities of Faridabad unit," said P M Sinha, chairman, BIL while talking to reporters after an EGM that was convened to pass its rights issue and enhancement of authorised capital proposals today.

Sinha also said that the company would initiate its second round of VRS which was aiming to separate around 1,000 employees in 2005. There were around 2,800 employees as of now at BIL.

Meanwhile, BIL has inducted Shaibal Sinha as its new finance director while P K Nag who was the finance director as well as the deputy managing director would now oversee the company's financial functions, and will continue to focus on the implementation of strategic projects, including the rights issue.

Sinha is a chartered accountant and was with Reckitt Benckiser in UK and India, where he has worked for the last eight years.

The company has also decided to induct N Sankar, a chemical Engineer from Illinois Institute of Technology, USA, and chairman of Sanmar Group as an independent director. Amit Mitra, a well-known economist has also agreed to join BIL's board.

"Bravo, on the other hand is a Bata veteran with more than thirty-four years with Bata and is currently running one of the most successful companies, Bata Chile. Bravo would BIL's fourth managing director in a span of four years.

Meanwhile, Icra has downgraded the fixed deposit programme and the Rs 40 crore commercial paper issue of Bata.