Kolkotta-based Nicco Corporation Ltd. (NCL), a power cable maker, sold a majority stake in the project division of its engineering procurement and construction business to Oriental Manufacturers Pvt Ltd. for an undisclosed sum, the company informed the Bombay Stock Exchange.
Shiv Siddhant Narayan Kaul, director of Nicco Corp and MD of Nicco Engineering Services Ltd said that the sale will help increase NCL’s focus on its cables business.
“The division had a negative net worth and was unable to participate projects tenders,” said Indranil Mitra, general manager and company secretary at Nicco Corporation Ltd., over the phone from Kolkatta. He declined to reveal the deal size.
Oriental, which executes turnkey projects for companies that makes chemicals and medicines, will be able to integrate its business with Nicco’s execution skills for steel, oil and gas companies.
Nicco reported a loss of Rs2.35 crore for the quarter ending 31 March 2011. Share price of NCL fell 4.01% to close at Rs 2.87 a piece on Wednesday afternoon.
Aveek Datta also contributed to the article.