Williamson Arms Fairlie Place, Dirai To Merge With Parent

The two wholly owned subsidiaries of Williamson Magor & Co Ltd, Fairlie Place Services Ltd (FPSL) and Dirai Invesments Ltd (DIL), will be merged with the parent company.

Highly placed officials in Williamson Magor told Business Standard that the merger will result in economies of scale, reduction in overheads and administrative and procedural work. The group will be able to access productive utilisation of various resources and optimise productivity, they said.

FPSL and DIL are engaged in the business of investing and dealing in shares and securities and providing finance. Calcutta High Court has directed FPSL, DIL and Williamson Magor to hold their respective extraordinary general meetings (EGM) on December 5 to obtain the approval of the shareholders.

 

According to the notice for the extraordinary general meeting (EGM), the amalgamation, which is to be effective from April 1, 1997, will enable the undertakings and businesses of the subsidiaries to obtain greater facilities possessed by one large company compared to a number of small companies for raising capital, securing and conducting trade on favourable terms and other benefits.

For DIL, the authorised and paid up share capital are Rs 10 crore and Rs 9 crore respectively, while for FPSL, the authorised and paid up equity is Rs 4 crore.

Williamson Magors authorised share capital stands at Rs 25 crore, while its paid up equity is Rs 10.95 crore. Besides, it has issued 1,00,000 18.5% non-convertible debentures of Rs 100 each by way of private placement with the Unit Trust of India.

Williamson Magor achieved a total income of Rs 42.73 crore and a net profit of Rs 3.03 crore in 1996-97.

However, the Magor group, which had recently bought 950 ha. Mathura tea estate, is on the lookout for acquisition of more estates. Eveready Industries, the associate company of Magor had given the company greater presence in the packet tea market, said company sources.

Before the merger of McLeod Russel and Eveready, the company had only 10 per cent market share in packet tea, which has now gone up to 25 per cent. It is exporting 35 per cent of its production. Hence the company would require to increase production.

Its brand Tez, initially launched only in Uttar Pradesh and Tamil Nadu, has been gradually launched in Punjab, Haryana, Rajasthan and Madhya Pradesh.