MUMBAI, MARCH 6: The financial institutions have agreed to subscribe to fully convertible debentures (FCDs) worth Rs 130 crore of the Goyals-controlled Enkay Texofoods. The company will pledge its popular Onjus and Life brands as collaterals to the institutions for subscription to FCDs."The next head of institutions' meeting will approve the case," said a top institutional source. A senior Enkay official said 50 per cent of the issue will be subscribed by IDBI,ICICI and the rest will be distributed among other institutions.Enkay Texofoods has recently reached an agreement with the Mumbai-based Adinath Filaments for the sale of its textile division for Rs 70 crore. This has been done after the institutions scuttled an original plan of hiving off the textile division. The textile division has an annual installed capacity of 10,128 spindles.
The restructuring exercise will enable the company to focus on the profit-making food business. Enkay Texofood is currently in the process of expanding its retail outlet network spanning over 302 towns covering 2.6 lakh retail outlets. It is planning to expand the reach to 600 towns targeting around five lakh retail outlets. The expansion will target mainly B-class towns and villages.
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