Murli Industries Negotiating Cement Plant Sale with 4 Potential Buyers


About four companies – Sagar Group Based out there in Hyderabad, Dalmia Bharat and two other companies -  are bidding to acquire Murli Industries 3 million tonne capacity integrated cement plant located in Nagpur, sources monitoring the development revealed to Moneycontrol.

The creditors have made several efforts in the past to sell the distressed assets of the company to recover their investment in the company, which is promoted by Nagpur’s Maloo family
Murli Industries, based in Nagpur’s Chandrapur district, has been shut down for over a year and includes a 2 MTPA cement grinding unit.

Murli Industries, with interests in pulp manufacturing, power paper and solvent, is currently indebted to lenders to the tune of Rs 1,800 crores. Murli Industries had filed for bankruptcy and had their case admitted by the Mumbai bench of the National Company Law Tribunal way back in April.

An anonymous source had revealed that “One of the two companies has placed a bid for the entire business of the company whereas the others including Dalmia Bharat are interested only in the cement operations of Murli.”

An expert in insolvency resolution from Deloitte Touche Tohmatsu, India, is presently working with Murli Industries and the debtors to see if this financial mess could be resolved. Murli Industries presently has very little cash flow.

In the 2015-2016 financial year, Murli had reported a net loss of Rs 412. Net sales were a trifling Rs. 6.85 crores. The company’s last quarterly report that is available publicly is January-March of 2016.

According to a cement analyst, the cement unit had never worked beyond 70% load since it was commissioned in 2009-2010. Several attempts had been made to sell off the integrated cement plant in the past; all of these efforts were futile.

According to the BSE website, trading on Murli Industries' shares was suspended because of “penal reasons”. Murli Industries is indebted to the following companies: Bank of Baroda, State Bank of India,  Punjab National Bank, IDBI Bank, Central Bank of India, Allahabad Bank, Edelweiss Asset Reconstruction Company, Allahabad Bank among several others. These lenders are alleging that the company finances were syphoned by the promoters of the enterprise.

In response to a query from Dalmia Bharat spokesperson “We would like to inform you that these are speculations and we would not like to comment on it.” Inorganic expansion has been fingered as the main reason for the 25 million tonnes Dalmia’s growth strategy as an integrated cement plant.

Establishing a new cement plant takes about 5 – 7 years for a 420 million tonne. India is the world’s second largest cement market, after China.

Murli Industries, in about five years, had acquired Bokaro Jaypee Cement and Adhunik Cement, Odisha Cement to become the fourth biggest cement company in India.

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