The state government has started the divestment process in Chitali Distilleries. It has demerged the firm from Western Maharashtra Development Corporation, the holding company.
Even as the process is going on, two out-of-state firms, Vam Organics and Laxmi Organics, have evinced a interest in acquire the government stake in the distillery. Chitali Distilleries possesses licences to produce Indian-manufactured foreign liquor and country liquor.
Vishwas Dhumal, secretary for industries, said: "The roadmap for the divestment of Chittale Distilleries involves the demerger of the company from WMDC. UTI Securities has been appointed as consultant."
He added that effecting the demerger of a government asset from its parent organisation (WMDC in this case) was a first time situation in Maharashtra's divestment history.
A government resolution issued on January 30, 2003, (a copy of which is available with Business Standard) states that: "Chitali Distilleries, as a government company, has been sent to the Registrar of Companies for name availability. This company would principally be involved in the manufacture of alcohol and alcohol-based products."
The demerged company will have a share capital of Rs 10 crore (Rs 100 million), which would be provided through a grant by WMDC.
The company would be headed by: the development commissioner, managing director of SICOM, and the joint director, industries (Mumbai). They would function as directors in the new company.
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