MMTC Ltd, State Trading Corporation (STC) and Project Equipment Corporation (PEC) are considering merging their businesses to form a $10 billion (Rs 43,000 crore) Navratna-status company.
MMTC Ltd, the largest of the three companies, is seeking approval for the merger from its 2,000-odd employees this week, and State Trading Corporation and PEC will launch a similar exercise next month.
The merger, recommended by management consultancy McKinsey, will create a behemoth of over 3,000 employees, with a combined turnover of more than Rs 27,000 crore (2005-06 figures).
The merger is part of a larger exercise to improve the profitability of these companies that currently have overlapping areas of operation, which sees them eat into each other’s margins. A “navratna” is a profit-making public sector company with significant financial autonomy.
Read more in The Business Standard article.
Showing posts with label Project Equipment Corporation. Show all posts
Showing posts with label Project Equipment Corporation. Show all posts
Tuesday, April 10, 2007
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