Siddharth Shriram-controlled Mawana Sugars Ltd (MSL) has 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 or around ($1.36 million), as per a stock market disclosure.
With this acquisition, MFL is no more a subsidiary of MSL with effect from June 29, 2013.
According to Mawana Sugars’ website it is into customised sugar sachets business. It clocked revenues of Rs 157 crore for the 18-month period ended September 30, 2012.
This was a little less than 10 per cent of the parent’s consolidated revenues of Rs 1,802 crore in same period. The parent firm is into commodity sugar business, besides packaged sugar, edible oil among others.
It originally held 100 per cent stake in MFL (Siel Edible Oils Fund) which was diluted to 65.03 per cent due to issuance of fresh shares to Usha International, a privately held firm of Siddharth Shriram.
Usha International is a manufacturer of household appliances, including electric fans, sewing machines, engines and electrical motor pump sets, cook tops, cooker hoods, drinking water coolers and dispensers and auto products.
Last August, Usha International sold its 3.16 per cent stake in Greater Noida-based Honda Siel Cars India Ltd to Honda Motor Co Ltd for $32.73 million.
(Edited by Joby Puthuparampil Johnson)