The study, being done by valuers, is expected to be completed in the next three to four months and would consider the compensation ALIL would get from the sale of the business to Tetra Pak India Ltd (TPIL).

ALIL managing director Satish Tandon said ALIL would continue to manufacture the components even if the sale comes through, although direct orders would not be placed on them. He admitted that ALIL could get a one-time compensation. But, he declined to put a figure to it since the process of evaluation is underway.

ALIL, which has a presence in the oils (vegetable) and proteins, marine and breweries segments, achieved a net profit of Rs 38 lakh during the period April-June 1998, as against a Rs 3.3 crore loss for the corresponding period lastyear. Tandon was confident of remaining profitable during the first half as well, for the period ending September 1998.

Internationally, the group is set on an acquisition spree, Alfa Laval AB, Sweden, executive vice-president Jos Bellinkx said. He added that this would be done with the aim of adding those companies which add to Alfa Laval's business. The Swedish group has also signed an agreement to acquire the French company, Vicarb, a major player in the heat exchanger business. The acquisition is awaiting clearance from the anti-trust committee of the European Union (EU).

For India, Bellinkx said they would be careful in their spending and would certainly think twice before doing so due to the political uncertainty. He pointed out the Italian model, where business and industry has learned to live with changes in government, with business following its own independent agenda. Bellinkx admitted that the long-term potential in India was huge.

The impact of the proposed European Monetary Union (EMU),with the introduction of the Euro from January 1999 would lead to a reduction in costs, Bellinkx said. He said this could range up to as much as 7 per cent in Europe, with the relaxation of barriers and simplification of administration.

ALIL, which successfully implemented a voluntary retirement scheme (VRS) at Pune for 80 of its workers last year, continues to offer the scheme with the addition of medical benefits to the package. ALIL's package ranges between Rs 4.5 lakh to Rs 6 lakh for employees over the age of 45 years.

No share buyback

Alfa Laval India Ltd, the only listed company in the group, will not go in for a buy back of its shares. ALIL managing director Satish Tandon said the investment required for such a move, about Rs 65 crore, would not be justified, especially since the investment would raise the promoters' stake only to 74 per cent, not 100 per cent. The Swedish group is a privately-held one, by a single family.