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Soletron may buy stake in PCL hardware unit

The Gurgaon facility was recently hived off as a 100 per cent subsidiary of Altos, the group's hardware manufacturing arm. PCL Limited is the marketing and servicing arm of the over Rs 13.5 billion group.

PCL is also negotiating with ING Baring's equity fund to pick up an equity

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stake in the company.

The PCL group's plan is to use the cash generated through equity sale to finance its working capital needs, acute shortage of which has forced the company to drastically slash the production of PCs.

At the same time, financial institutions including IDBI and ICICI are preparing a debt restructuring package for the company which is likely to be finalised soon. The Gurgaon unit has piled up debts worth nearly Rs 250 million.

Leading management consultants Arthur Andersen, appointed to evaluate the business prospects of Altos Limited, has made an indicative valuation of the Gurgaon unit at Rs 900 million to Rs 1.2 billion.

Sources indicated that besides investing in the equity, the Us company, which is the second largest contract manufacturing outfit in the world, is also interested in management of the Gurgaon Electronic Hardware Technology Park facility.

Soletron is also considering a proposal to establish its global training facility at Gurgaon and has asked for more time from the PCL group to work out the details of the plan.

The 100 per cent subsidiary undertakes contract manufacturing jobs using the sophisticated surface mounted technology to make PC motherbords for leading OEMs.

- Compiled from the Indian media

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