The board of Duncans Industries, the flagship company of the Duncan-Goenka group, today approved inducting Jaypee Associates as a strategic partner for its closed fertiliser unit.
"The board has approved Jaypee Associates as a strategic partner for the fertiliser unit," Goenka group chairman G P Goenka told PTI.
He said that Jaypee would pick up 50 per cent stake in the unit while the rest would be held by Duncans.
Goenka said that a joint venture would be formed for the fertiliser unit located in Kanpur.
Jaypee would also shoulder the liabilities of the unit which totalled Rs 550 crore.
To a query, he said that the new JV would also repay the fixed depositors of Duncans.
"It is a win-win situation for both," Goenka said. He added that the JV would be formed once BIFR approves the draft rehabilitation scheme for Duncans which is likely to be submitted within a few days.
Post this, Duncans would be engaged only in tea business.
Duncans was referred to the BIFR in 2006.
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