Modern Food To Appoint Global Agent For Selloff Soon

The formal agreement to appoint ANZ Grindley's Bank as the global agent for the 50 per cent disinvestment of Modern Food Industries (India) Ltd (MFIL) is likely to be signed this month. The company has a total equity of Rs 13.18 crore.

According to MFIL chairman-cum-managing director Mahesh C Jain, all major programmes for expansion and diversification of product base have been put on hold till the new partners are in place.

The MFIL management has proposed to pay 8.5 per cent dividend for 1997-98, amounting to nearly Rs 90 lakh, excluding 10 per cent tax.

This proposal is, however, yet to be approved by the board before it is taken up at the annual general meeting to be held towards the month-end.

Jain said the company's gross turnover had risen to Rs 181 crore this fiscal from Rs 166 crore in the previous year.

However, the net profit after taxes fell from Rs 9.29 crore in 1996-97 to Rs 4.84 crore this year largely due to a higher wage bill following the implementation of the 5th Pay Commission recommendations.

He said a recent consumer survey of the Modern Food's products, notably Modern bread and biscuits, has re-confirmed their popularity and acceptability.

This has strengthened people's faith in the products manufactured by the profit-making public sector unit.

He also asserted that there were no complaints regarding the quality of products like bread and biscuits being supplied to the Delhi Municipal Corporation for the mid-day meal scheme.

The company has recently started marketing cashew nuts in the Capital, which are currently being sold only in south Delhi.

The other areas will be covered gradually, he said.

The manufacture and marketing of its fruit-based beverage `Rasika' continued to be low key.

The proposal for selling Rasika in tetrapacks is no longer being pursued, he added.