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Apr 30, 2009

Story of SIV ends ...


he Madras High Court on Wednesday permitted the Kolkata-based Fairdeal Supplies to remove the movable properties from SIVIndustries, which is under liquidation.Earlier this month, Fairdeal Supplies, part of Frontline Group emerged as a successful bidder for buying land, building and machinery belonging to SIV Industries, located at Sirumugai Village in Mettupalayam, near Coimbatore.

Then, the Fairdeal made an earnest money deposit (EMD) of Rs 12 crore. The deal materialised after five bidding calls from the Madras High Court. The company’s winning bid was for Rs 101 crore.It is said few days after Fairdeal Supplies made an EMD, Annappuran Steels, a Kerala-based company increased the bid for the same property to Rs 102 crore. The court had given the Kerala company time till Wednesday to pay the total amount, but it failed to make it.

Since, Fairdeal also paid the first installment of Rs 43 crore before April 23, it staked the claim for removal of scrap. "Madras HC passed orders in favour of Fairdeal Supplies to remove machineries from the SIV Industries factory on Wednesday," said sources at Official Liquidator office in Chennai.In all, Fairdeal has paid Rs 55 crore to the court, which is more than the upset price fixed for the plant and machinery (Rs 53 crore). The company plans to dismantle and sell the scrap.

Fairdeal Supplies director Mahesh B Gor told ET that the total quantity of scrap inside the factory is around 60,000 tonnes. "It will take us at least one year to dispose of the scrap," he added.Also, the company’s technical unit has arrived in Coimbatore to study the prospects for setting up a Sponge Iron manufacturing unit at the SIV complex utilising the available scrap.

"We already have Sponge Iron unit in Raigad in Madhya Pradesh and we are looking at the feasibility of setting up a unit in Sirumugai," Mr Gor said.It is also proposed to team up with security equipment manufacturers abroad for manufacturing security equipment products."After clearing the scraps, we plan to set up a unit for manufacturing security equipment. Products like baggage scanner, mail scanner, long-range explosives and narcotic detective devices, wafer tracers and liquid tracers would be manufactured there," Mr Gor said.

He said the 253-acre land parcel has 13-lakh sq ft of buildings and one-fourth of it is enough to start a new business. "We have lot of plans for utilising the remaining space and would finalise them after we complete the takeover of the assets ," Mr Gor added. The company has to pay the remaining Rs 46 crore before June 2009.Currently, one arm of Fairdeal Supplies imports specialty security devices from Canada, US and UK. The company is also the exclusive dealer in India for five products that deal with narcotic explosive detective machines.

The SIV industries, which was engaged in manufacture of viscose fibre is said to be one of the biggest industrial land parcel to come for sale in Coimbatore in recent times.

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