BPL may raise $20 million from Deutsche Bank

Trims debt burden to Rs 435 crore from Rs 1,500 crore

BPL Limited is likely to raise $20 million from Deutsche Bank during the current quarter. The company is resorting to this route of fund raising for the much-needed working capital for operations.

Ajit Nambiar, CMD, BPL Limited, said the company was in the final stages of tying up with a foreign financial investor for working capital, which in all probability would be available during the third quarter of the current year.

"With that in place, I am sure, BPL would be in a position to achieve its business plans," he told shareholders at the firm's recent AGM. Nambiar was not available for comment on Deutsche Bank and the quantum of investment.

BPL, after having hived off its mainstay colour television business into a 50:50 joint venture with Sanyo, has now identified healthcare, mould design and manufacture, and plastic injection moulded parts as the specific businesses which need to be funded.

"We are closely studying further business opportunities and the prospects of the PCB and alkaline battery businesses and a decision would be taken soon," Nambiar added in his statement to shareholders.

He further added that the debt burden which was at Rs 1,500 crore was now down to Rs 435 crore including a zero per cent loan and zero per cent preference share capital aggregating Rs 294 crore.

The $70 million BPL Limited got from hiving off its CTV business has been utilised towards settlement of secured creditors in pursuance of the scheme of arrangement approved by the High Court of Kerala. "Annual interest burden is also now down to Rs 12 crore from Rs 220 crore as a result of these measures," he noted.

It is understood that the BPL Group is once again trying to revive its interest in power generation.

"One of our key investments in the past has been in the area of thermal power generation. We had an agreement to set up a 520-Mw coal-fired thermal power plant and a power purchase agreement is in place with the Andhra Pradesh government. It is our intention to push this initiative forward to fruition," added Nambiar.