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Zuari Group is set to gain representation on the board of MCFL after gaining controlling stake in the Vijay Mallya-led UB Group promoted fertiliser firm.
In May, Zuari Group had acquired an additional 36.56% stake in Mangalore Chemicals and Fertilizers Ltd (MCFL) and had become a majority shareholder in the firm with 53.03% stake.
Zuari was competing with Deepak Fertilisers for taking control of MCFL since July 2013, but the latter withdrew from the race and has been selling shares of MCFL via the open market since December 2014.
The board meeting of MCFL is scheduled to take place on Tuesday.
"Three nominees of Zuari group have been nominated for the election in the upcoming AGM -- Akshay Poddar, Kapil Mehan and myself," Zuari Gloabal Managing Director N Suresh Krishnan told PTI.
UB Group, the original promoter of Mangalore Chemicals and Fertilizers Ltd (MCFL) along with Zuari Group has successfully staved off a takeover bid by rival Deepak Fertilisers. UB Group holds nearly 22%.
Ritu Mallya, step-mother of Vijay Mallya is also on the board of the company.
As per the shareholding pattern on BSE, both Zuari Group and UB Group are in the list of promoters. Together, they have 75% stake in MCFL.
Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) has approved continuation of production of urea from MCFL units that use naphtha as feedstock till availability of gas through pipelines or any other means.
MCFL had posted a net loss to Rs 211.56 crore in the first quarter of the current fiscal compared with Rs 9.76 crore in the year ago period.
MCFL has an urea plant near Mangalore port with an annual capacity to produce about four lakh tonnes of urea and about three lakh tonnes of phosphatic fertilisers. Zuari has a fertiliser plant in Goa.
