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Macmillan drafting blueprint for takeovers

Our Bureau

CHENNAI, Sept. 6

MACMILLAN India Ltd (MIL) is undertaking an `overall strategic review' that would prepare the blueprint for the company's future path in the areas of acquisition.

Speaking to Business Line after the company's annual general meeting, Mr. Rajiv Beri, Managing Director, said that one of the `big five' global consultants have been mandated to review the overall strategy (he declined to divulge the consultant's name). The study is expected to be completed by December this year and would largely focus on the areas of acquisition of companies operating in niche areas of publishing.

Earlier, Mr. A. Soar, Chairman of the company, told the shareholders that the company was in the process of setting up an e-business division. The division would sell publishing materials throughout the world via the Internet. MIL's parent, Macmillan of the UK, which holds around 61 per cent in the Indian arm, would also source these materials apart from other global buyers.

He said that the company was in the process of setting up educational portals. Mr. Beri said that the first portal on English language teaching would be launched in December.

Mr. Soar said that the UK parent was in the process of expanding the operations of the dedicated MIL office in London. He said that there were plans to open an office in New York to cater to the US market.

Mr. Soar assured the shareholders, ``your company continues to do well and overall, barring unforeseen circumstances, we can look forward to another satisfactory year''.

During 1999-2000, MIL had reported a profit of Rs. 21.99 crores as against Rs. 21.29 crores. The dividend pay out was up to Rs. 9 per share as against Rs. 7.50 per share in the previous year.

Commenting on the performance, Mr.Richard Charkin, Chief Executive Officer (CEO) of Macmillan, UK, and a director of MIL said, ``Macmillan India is a jewel in the crown of Macmillan group''. He said that his group would continue to support MIL in a `big way'.

Mr. Charkin added that the group would use the strategic advantage that India has in the area of information technology. ``We might ask MIL to set up Web portals in Australia and ask them to fulfill the design and maintain the back office for these porta ls,'' he said. He lauded the company by saying, ``your company has made fantastic contributions to the group''.

`Listing in bourses likely next year'

Trx>HE listing of shares of Macmillan India Ltd at the Bombay Stock Exchange/National Stock Exchange would take some more time. While replying to shareholders query, Mr. A. Soar, Chairman, said that the listing would happen early next calender year.

He said that an overall strategic study has been commissioned and the company would act upon the listing at the exchanges based on the recommendations.

A section of shareholders have been demanding a listing at BSE/NSE for a while now. The printed copy of the Chairman's speech did not contain any reference to the listing at BSE/NSE. The Chairman made remarks about the listing on requests from institutio nal shareholders.