United Breweries Group Chairman Vijay Mallya on Tuesday said the group has no plans to sell its stake in Mangalore Chemicals and Fertilisers (MCF).
"There are some media reports saying that I am selling and in advanced talks with Reliance Industries for selling stake in Mangalore Chemicals and Fertilisers. Neither I have met with them, nor holding talks," Mallya, also the Chairman of MCF, told PTI here.
Mallya, who called on Agriculture Minister Sharad Pawar on Tuesday, said that MCF would make fresh investment to increase capacity in the fertiliser unit, the only one in Karnataka, but declined to divulge details.
The UB group holds 30.44 per cent stake in MCF.
When contacted, a RIL spokesperson said that the company would not comment on market speculation.
However, an industry source said that RIL is waiting for the government's renewed policy on urea, likely to be notified in the next 2-3 months, for venturing into the sector.
"Acquisition of stakes in a company like MCF would help RIL to get a strong foothold in the sector. It will certainly provide the Mukesh Ambani-owned firm a ready-made dealers' network, known brand and so on," the source, who prefers not to be quoted, said.
MCF had recorded Rs 2,081 crore revenue in 2009-10, down 16.21 per cent from Rs 2,484.73 crore in 2008-09. In 2002-03, net sales of the company stood at Rs 562.79 crore.
MCF's lone manufacturing facility is based at Panambur, near Mangalore city. The company has capacity to manufacture 2,17,800 tonnes of ammonia, 3,79,500 tonnes urea, and 2,55,500 tonnes phosphatic fertilisers, 33,000 tonnes sulphuric acid and 15,330 tonnes ammonium bi-carbonate annually.
MCF's wholly-owned subsidiary MCF International provides consultancy and plant management services.