Two Contenders Vie For Control In Meltron Board

Meltron, a wholly-owned Maharashtra government undertaking, had advertised on July 10, inviting bids to takeover the corporation. About 30 companies including BPL, Videocon, Usha Ispat and Atlas Telecom had purchased the bid documents. But none of them bid for the company except the two.

On the poor response to the corporation's advertisement, Meltron's managing director, A Ramkrishnan maintained that the response was good as the bidders are companies of repute in the electronics industry.

However, this privatisation process is being strongly opposed by the corporation's union and it may move the Mumbai High Court.

Negotiations are currently on with the Maharashtra government. If the negotiations fail we will carry out our threat, stated A D Ghumare, president of Meltron Employees Welfare Association.

 

Meltron manufactures telephone systems, EPABX, wireless equipment, professional studio equipment and defence equipment. It has manufacturing bases at Mumbai, Pune, Nagpur and Aurangabad.

The decision to privatise Meltron was taken since it was unable to face the challenges of the liberalised era.The reduction in tariffs of raw material and finished electronic goods had put pressure on the company's bottomline. The withdrawal of government support in the form of purchase orders too had added to its woes.

The company's turnover slid from Rs 85 crore in 1993-94 to Rs 60 crore in 1995-96.