Looking for BIFR nod to hive off fertilizer biz: Duncan Ind

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Looking for BIFR nod to hive off fertilizer biz: Duncan Ind

GP Goenka, chairman of Duncan Ind said that they will hive off the fertilizer company as soon as they get a nod from the BIFR. “Duncans would thereafter remain as tea company with no debts” he added.

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On the 30th of this month, Duncan Industries is set to attend a hearing on the BIFR issue. "We have provided the clarifications needed by them, and hopefully we should get their consent" said Gouri Prasad Goenka, Chairman of the company in an exclusive interview to CNBC-TV18.

In case they get do get the approval, Goenka said that they will hive off the fertilizer company. "Duncans would thereafter remain as tea company with no debts" he added.

Goenka also indicated that once the fertilizer company is hived off, the joint venture between JP Associates and the Duncan Goenka group, for which the discussions started in June 2010, will come on stream.

Below is an edited transcript of his interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: We understand that there is a hearing on the 30th August on the BIFR issue. Could you tell us what is exactly going to be discussed and what is it that you are hoping to hear?

A: In our last hearing, the BIFR has sought some clarifications. Those are being furnished to the bench on 30th and hopefully we should be getting their consent.

Q: What clarifications were sought and what is your response to that? How have you addressed it?

A: There were a couple of objections which were filed to which they needed some further clarification. It has been provided and the BIFR will take a call on it on 30th.

Q: If in case this hearing on August 30th is in favor of Duncans, what would it mean for the company?

A: If their consent is received, the fertilizer division will become a subsidiary and will be hived off immediately. Duncans would thereafter remain as tea company with no debts.

Q: Just explain to us the hive off of the fertilizer company. Would the deal that was struck with JP Associates back in June 2010 come on stream?

A: Yes that will come on stream. It will be a joint venture between JP and the Duncan Goenka group, rather than Duncan Industries.

Q: So after this, if you do get the BIFR approval, will there be any more regulatory hurdles or can you go ahead and start production?

A: No, the BIFR has overriding powers for giving approvals.

Q: How soon can capacity come on-stream once you do get the approval?

A: As far as the subsidiary is concerned, it would mean a fair amount of injections for the subsidiary of Duncan Industry. That company will be up and running anywhere around 4-5 months. All the consultants are in place. So it's just a question of getting the nod and we press the trigger.

Q: What would you do with the tea business? Is that something which you would possibly look at hiving off as well or may be getting a JV?

A: No far from it. We have reached an ambitious plan for growing the tea business and we'll spell it out as soon as we are out of this problem that we are being going around.