Having bought out the stake held by the Birlas, the B. M. Khaitan group is planning to firm up its holding in McNally Bharat Engineering Company Ltd (MBE), a focus company now.
Dipak Khaitan who has recently transited to the post of Executive Chairman (from Vice-Chairman) told reporters that as and when the price was right, the Khaitans would increase their equity holding which stood at 35 per cent on July 29. “One is always under threat from predators which may include foreign investors,” he said.
He said the company, which is mainly into engineering project and construction, had recently added a new vertical of construction as a standalone activity and planned to scale up this ‘new business horizon' so as to get 25 per cent of the total turnover from this segment. The just retired divisional head of L&T has joined the company's construction team which already has 200 heads now.
To questions on imminent change in the equity holding pattern of its Indian subsidiary McNally Sayaji Engineering Ltd, Mr. Khaitan said that a private equity group EIG held a stake in the company which would go up to 23 per cent if they converted warrants held by them. However, a dilution of the Khaitans' stake to anywhere below 60 per cent (from 73 per cent now) is not foreseen.
Mr. Khaitan said the company now had 10 subsidiaries abroad which were either held directly or through its overseas subsidiaries which it had acquired.
MBE closed the first quarter of 2011-12 with a 28 per cent increase in total income and a 24 per cent increase in post-tax profit. Mr. Khiatan said that he had recently resigned from the position of Vice-Chairman and Managing Director of Eveready Industries and taken up new responsibilities at MBE.
