New Delhi: After having won a controlling stake in Guviso Holdings Pvt. Ltd, the holding company for Mirc Electronics Ltd, Gulu Mirchandani is all set to merge it with Mirc.
In a board meeting, Mirc, the company that markets consumer electronic products under the Onida brand, decided to constitute a committee of directors who will examine the proposed amalgamation of the two companies.
“The three-member committee will study the proposal of amalgamation of Guviso and Mirc and a decision is likely in the next couple of days,” said Mirchandani, chairman of Mirc.
Guviso had no business of its own other than its 53% holding stake in publicly listed Mirc. Mirchandani and his brother, Sonu Mirchandani, fought a fierce battle for a controlling stake in Guviso. The duo, along with Gulu Mirchandani’s brother-in-law Vijay Mansukhani, held equal stakes in the company. Sonu Mirchandani’s 33.3% stake was in his wife Soni Mirchandani’s name.
The name Guviso comprises the first two letters of the names of the three partners — Gulu, Vijay and Sonu.
Last month, Gulu Mirchandani bought Sonu Mirchandani’s stake for Rs85.6 crore, which was at a 24% discount to what the two brothers had initially agreed upon.
According to a person close to the development, Gulu Mirchandani has since transferred his entire 66.6% share in Guviso to another holding company, Gulita Securities.
After the merger, Mansukhani will also be accorded shares in Mirc in accordance with his stake in Guviso, said the person. He didn’t want to be identified.
Mansukhani is currently the managing director of Mirc. The company sells colour televisions, LCDs, DVD players, home theatre systems, air conditioners, and washing machines among other products. It has two manufacturing plants in India. Besides, it also exports several products to West Asia.
Meanwhile, Mirc reported an 11% increase in its net profit at Rs8.80 crore for quarter ended 30 June against Rs7.90 crore in the corresponding period last year. The total income of the company, however, declined to Rs391.6 crore from Rs446.52 crore.
“Total sales went down because of the fall in demand for air conditioners during the quarter,” said Mirchandani. “Net profit went up because of increase in the sales of high-margin products.”