Voltas to sell Sermo Perfect to French ally

Voltas, the diversified engineering-to-consumer durables company from the Tata stable, is exiting Sermo-Perfect Moulds India (formerly known as Perfect Moulds Ltd) by divesting its 50 per cent stake in favour of its joint venture partner, the France-based Sermo Montaigu. The stake will be sold for Rs 5.21 crore.

At present Sermo Montaigu holds the balance 50 per cent stake in Sermo-Perfect Moulds India. With Voltas' exit, Sermo-Perfect will become a wholly owned subsidiary of the overseas outfit.

Sermo-Perfect Moulds India, located at Pune, is engaged in the design and manufacture of precision plastic injection and compression moulds. The move is part of Voltas' strategy to exit non-core areas.

Sermo, one of the leading mould manufacturers for the automotive sector in Europe, wants to consolidate its holding in its Indian venture, as part of its expansion plans.

At present the Rs 13 crore paid-up capital of Sermo Perfect Moulds India is held in equal proportion of Rs 6.5 crore representing 65 lakh equity shares of Rs 10 each by Voltas and Sermo.

Sermo had initially picked up a 35 per cent stake in Sermo Perfect Moulds India, and had later hiked its stake to 50 per cent.

Sermo now wants to expand its equity base in Sermo Perfect Moulds India and has proposed to purchase the balance 50 per cent stake held by Voltas.

Voltas has been on a restructuring drive for the last few years after it posted losses in 1996-97. It has sold several businesses including the thermostat division and white goods business to Electrolux. It has also got out of other unremunerative joint ventures.