Profile: Eloquent Silence In The Face Of A Raid

Arun Kumar Churiwal

CMD, BSL Ltd

It is not easy to remain tight-lipped when your company is being raided. But Arun Kumar Churiwal, one of Kolkata's most articulate businessmen, has done just that.

Mum's the word ever since the Kolkata-based Sarda family surprised the corporate world by acquiring 12 per cent stake in BSL, the flagship of the Bhilwara Synthetics-LNJ group.

The 52-year-old Churiwal is known for setting up new textile mills at low costs and completing them ahead of schedule--skills that have contributed substantially to the growth of the group's textile business. Textile traders praise the company for always being among the first to come up with new products, and also for judging demand swings well. An exporter who buys the company's fabrics, said, "When fashion demands change, BSL is one of the first to bring it to market. It also leads in fabric finishes."

Churiwal is clearly under pressure. The raider is formidable, with deep pockets and good political connections. At the same time, the conservatism of the BSL group makes it an ideal target for a raid.

BSL is vulnerable because of its large asset base, and sales of Rs 151 crore on a capital base of only Rs 7.3 crore. Rewards to shareholders have always been paltry, so the price-to-earnings ratio is low and the scrip quotes at Rs 51-52. It will cost the raider little to upset the applecart.

There are also rumours of internal rumblings within the group, with other promoters said to be unhappy with the narrow focus of the business and the way the situation went out of control. Enough to make a man feel hot under the collar.