CALCUTTA, March 16: Indian Aluminium Company Ltd (Indal) said on Monday that Canadian associate Alcan Aluminium is committed to its Indian business in which it plans to inject almost Rs 1,000 crore over the next two years by way of various plans and projects.Addressing a press conference in Calcutta, Indal's vice-chairman and managing director Tapan Mitra said: "An investment of this amount would not only enhance Indal's position but would increase shareholder value." With the open offer made by Sterlite Industries for a 20 per cent stake in Indal closing on May 18, Mitra said he was confident of the commitment of Indian financial institutions, which hold a 36 per cent stake in Indal between them. "Selling of the FI stake can be seen in terms of arithmetic or signals. I cannot say what signals would be sent if the FIs sell their stake in Indal," he said.
Criticising Sterlite's unsolicited offer, Mitra said the company has made several "tall claims" not substantiated by facts, and Indal will not gain byway of technology and enterpreneural or managerial skills from the partnership.
Mitra said the Alcan board is not averse to an Indian partner as is evident from its participation with the Tatas or Indal in the Utkal Alumina project, but a Sterlite partnership will add to no value far as quality, corporate governance, values, employment relations, or a technology match is concerned.
This is the general feeling at Indal, he said.
"Alcan plans to bring in investments of a considerable amount through a 20 per cent share in Utkal Alumina, a commitment of Rs 105 per share for 1.4 lakh shares and almost Rs 800 crore under its strategic plan," said Mitra. "Moreover, a continuous supply of technology by Alcan has made Indal one of the biggest companies in rolled products," he added.
Noting the Sterlite offer, Mitra said that there were four points that could be taken into consideration: principles and values, facts as regards the amount of disclosures by Indal, prices of shares of Sterlite and Alcan, whereIndal does not have a say and an overall policy decision."
Commenting on why Alcan had not increased its shareholding earlier, Mitra said, in spite of the being the parent company Alcan never considered Indal as its subsidiary.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
