The future of Alstom Ltd, the electrical equipment maker operating since 1910, has become uncertain with the French promoter, Alstom SA, putting its worldwide transmission and distribution business up for sale.
Alstom Ltd, the 67 per cent subsidiary of Alstom SA of France, earned 83 per cent of its revenues in 2001-02 from T&D operations. Resuls for 2002-03 were yet to be released.
The balance 17 per cent was generated from the industrial products segment comprising rotating machines (motors and fans) and trading activities.
A top source at Alstom confirmed that the foreign principal was looking for a buyer for its T&D business worldwide.
He, however, could not comment on the possible effect of the proposed sale on the fate of Alstom in India on the plea that "it is too early to comment."
The French promoter, in a note sent to executives of Alstom Ltd, has stated that Nexan and two merchant bankers bidding for their clients were in the race for acquisition.
The deal was expected to be clinched by July. The note was sent by the global T&D president Phillippe Joubert.
Alstom's T&D business group operated countries like France, Germany, the United Kingdom, United States, India, United Arab Emirates, Mexico, Brazil, Singapore and China.
Experts said sale of main money spinner could affect survival of the company. Going by the figures of 2001-02, the industrial products segment business would be worth around Rs 70 crore (Rs 700 million) or 17 per cent of the year's total sales of Rs 425 crore (Rs 4.25 billion).
The foreign principal may find it too small to retain it as an independent entity, an expert tracking the company said.
The foreign promoter might amalgamate the industrial products segment with other Alstom group companies.
He said the second option could be spinning off the industrial product division and bringing it under the umbrella of other group companies. It would convert Alstom Ltd into a shell company.
Alstom's name and ownership has undergone several changes since its birth in India. Earlier General Electric Company, it was merged with English Electric. The merged entity later became GEC Alsthom. After a change in foreign promoter, it became Alstom Ltd.
Its customers include utilities like power producers, transmission and distribution system operators and retailers, besides industrials like buildings, railways, process industries and manufacturing, and value-added resellers like electrical engineering contractors and panel builders.
