Siddharth Shriram-controlled Mawana Sugars Ltd (MSL) has entered into a definitive agreement to sell 5 per cent stake in its joint venture firm Ceratizit India Pvt Ltd for Rs 16 crore ($2.7 million), as per a stock market disclosure. It did not disclose whether it has sold the stake to its Luxembourg-based partner Ceratizit or to another buyer.
Founded in 1996, Kolkata-based Ceratizit India is engaged in manufacturing and trading of tungsten carbide tips, tools and inserts. Early this year, it announced plans to expand its presence with the establishment of a new production unit in the industrial area of Uluberia in West Bengal which will add 200 more jobs.
It currently employs about 180 people and is involved in the development, production, marketing and selling of cutting tool inserts and tool holders.
Ceratizit is separately also reinforcing its sales and service offering in Indian cutting tool industry through its subsidiary WNT India.
The European firm is known for hard material products for wear protection and cutting tools. It has presence in more than 50 countries around the world providing services to customers in the automotive industry, mechanical engineering, oil industry, medical systems, electronics and tools and mould construction. It has 5,500 employees globally.
In another development, Mawana Sugars said it has accepted resignation of its managing director Sunil Kakria. Kakria has over three decades of experience in the field of strategy, operations, projects and marketing (both domestic and international). Prior to joining Mawana Sugars, he was the CEO of Samtel Color Ltd. In March this year, the firm had re-appointed Kakria for another four year term ending June 2017.
Two weeks ago, the firm had sold its entire 65.03 per cent stake in its subsidiary Mawana Foods Ltd (MFL) to its own promoters' firm Usha International Ltd for Rs 8.1 crore.
(Edited by Joby Puthuparampil Johnson)