Date:13/07/2006 URL: http://www.thehindubusinessline.com/2006/07/13/stories/2006071300160300.htm

Back BM Khaitan Group to sell stake in WPIL to Hindustan Udyog

Our Bureau

Stake sold to Hindustan Udyog Group

Kolkata , July 12

The BM Khaitan Group has decided to divest its entire residual stake of 17.5 per cent in WPIL Ltd, which was earlier known as Worthington Pumps India Ltd, to the Hindustan Udyog Group belonging to Mr V.N. Aggarwal.

The Khaitans were holding this stake through three group companies:Williamson Magor & Co Ltd, McLeod Russell Ltd and Metal Centre.

Company sources said that the decision was taken on last Friday and the matter was informed to the stock exchanges on Wednesday. In 2002, the Khaitans divested a controlling stake of around 44 per cent in WPIL as a part of its restructuring policy.

Registered Office

The flagship company of the Hindustan Udyog Group is Hindustan Sheet & Metals — a producer of high and low alloy steel, stainless steel castings for pumps and valves for earth-moving equipment.

The registered office of WPIL would soon be shifted out of Four Mangoe Lane, the famous headquarter of the BM Khaitan Group. After acquiring 44 per cent stake in WPIL, the Hindustan Udyog Group made the mandatory open offer to the minority shareholders for another 20 per cent stake during 2003.

For the year ended March 31, 2006, WPIL registered a sales of Rs 73 crore and net profit of Rs 52.50 lakh.