Triveni Engg to list demerged turbine unit by 2010-end

Triveni Engineering and Industries Ltd, engaged in manufacturing mechanical equipment, today said it will list the demerged entity Triveni Turbine on the domestic bourses by the end of 2010.

"We will list Triveni Turbine by the end of the current calendar year. The listing will be in the automatic route, subject to the approval of the court," Triveni Engineering and Industries Chairman and Managing Director Dhruv Sawhney told PTI here.

In March, the company's board had approved the demerger of Triveni Turbine into a wholly-owned subsidiary, effective October 2010 at a 1:1 swap ratio to unlock shareholders value and focus on the business, which has huge potential.

Triveni Turbine, which has a manufacturing facility in Bangalore, had contributed Rs 260 crore to the company's total turnover of Rs 1,081 crore in the first half of the current fiscal. The company follows October-September period as its accounting year.

Triveni Turbine is the domestic market leader, with a market share of over 75 per cent for range up to 20 MW and is one of the largest global manufacturers of high and low pressure turbines up to 20 MW.

The unit presently produces turbines up to 30 MW and has already achieved a market share of over 25 per cent.

Triveni Engineering started manufacturing of turbines since 1968 and has sold over 2,500 turbines since then.

The order book of the unit stood at Rs 565 crore as on March 31, which is a growth of seven per cent over the previous quarter and nine per cent over the corresponding period of previous year.

Triveni Turbine has a joint venture with GE Oil and Gas to manufacture and sell steam turbines, ranging between 30 MW and 100 MW. The joint venture -- GE Triveni Ltd -- will operate from the company's Bangalore facility and cater to both domestic and global markets.

Triveni Engineering and Industries that also manufactures sugar, reported 60 per cent decline in its net profit at Rs 14.88 crore for the second quarter ended March 2010, mainly due to losses in its sugar business. Net sales, however, rose by 30 per cent to Rs 593.85 crore during the quarter from Rs 457.58 crore in the comparable period last year.