Listed public sector unit Andrew Yule Company Ltd. (AYCL) is planning to sell off the land at its existing power transformer factory on Old Mahabalipuram Road in Chennai and relocate it to a new site near Sriperumbudur.
Rs.150 cr investmentCompany Chairman Kallol Dutta said around Rs.150 crore would be invested in plant and machinery at the new unit whose capacity would be enhanced to 5,000 MVA from 1,200 MVA now with technical collaboration of a Russian company. The BIFR-listed company, which has wiped off its accumulated losses plans to sell off the 10 acre that it now has at the old unit.
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Mr. Dutta announced that AYCL also returned to the dividend list in 2014-15 after 21 years. The board of directors, at its meeting held on May 30, 2015, has recommended a dividend of at 5 % on the paid up capital of equity shares (face value Rs.2 per share) for 2014-15. The company went to BIFR in September 2004. However, it crafted a turnaround surmounting the hurdles posed by the initial unwillingness of the bankers’ consortium to accept the terms of recast of long-term loans. While on the one hand, the business operations were strengthened through modernisation, upgrades and product development, on the other hand AYCL repaid the Rs.87 crore loan extended by the government for its revival by divesting its group companies — Dishergarh Power and Phoenix Yule, a conveyor belting company.
AYCL is now engaged in making transformers, switchgears, industrial fans and air pollution control equipment. It is also engaged in tea cultivation with gardens in Darjeeling, Dooars and Assam.
Mr. Dutta said that from a position of a negative networth of Rs.1,56.9 crore and an accumulated loss of Rs.431.9 crore in 2006-07, it now had a net worth of Rs.224.1 crore and a cumulative profit of Rs.20.38 crore for AYCL standalone.
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It has four group companies engaged in making automotive lubricants, fibre optic communication systems, loan syndication and printing. Group turnover stood at Rs.1,454.1 crore in 2014-15. It continues to remain in the BIFR-fold pending the resolution of certain issues including the payment of capital gains tax (out of the sale of units) and also a dispute over PF. It expects these matters to be settled soon.