WBIDC seeks consultant to sell off unviable units

West Bengal Industrial Development Corporation (WBIDC) is in the process of appointing consultants for selling eight companies currently under its management.

Several applications for the position have been filed with WBIDC following a tender advertisement inviting consultants to respond.

This is the first time the industry development arm of the West Bengal government is selling companies.

Some months ago, WBIDC had floated the idea of selling some enterprises which appeared unviable.

Sources in WBIDC said eight merchant bankers had applied to act as consultant. These were Sumedha Financial Services, K C Sarkar & Company, Suvidha Consultancy, Srei Capital Markets, Roy and Ghosh, Dhandhania & Associates and Ghosh Surveyors and Valuers.

The advisors were likely to be appointed before October 31.

The shortlisting of consultants would be completed before pujas. According to sources, WBIDC was expecting to raise around Rs 40 crore from sale of holdings in unviable outfits.

When contacted, the executive director of WBIDC, T Kumar, said the industry development body would try to get maximum value out of the proposed sale of the entities.

"WBIDC is appointing consultants with at least five years of experience in valuation, strategic sale and related matters to optimise returns. The valuation of assets as well as identification of strategic buyers would be the duty of the consultant. There could be more than one consultant," he said.

Kumar said WBIDC had tried to revive the organisations for some years but the revival process failed. It then decided to sell the organisations. However, he refused to name the organisations up for sale.

Sources in WBIDC said the companies up for sale included Mettalica Karsons (producing metal and leather goods), Astonex Export Import (in food processing), Blue Plant Extrusions, Rock Pet Chem Ltd (making PET bottles), Cellulose Containers Ltd (laminated composite container producer), Winman Industries (a decorative laminates maker) and Green Field Fodder Industries (manufacturer of cattle feed).

The consultants would get the assignment for six months. "WBIDC wants to wind up the matter by the end first quarter of the next financial year," said sources.