Radico Khaitan and four other firms are in the fray for Maharashtra government's equity in Chitali Distillery Division.

The distillery, which was earlier a subsidiary of the Western Maharashtra Development Corporation, is currently under the process of demerger to facilitate its divestment.

The Maharashtra Board for Restructuring State Enterprises is overseeing the divestment process.

In all, 11 expressions of interest were received by UTI Securities Ltd, the advisors to assist MBRSE in the disinvestment process. After demerger, CDD would have the capacity to manufacture 1.50 crore bulk litres of alcohol and alcohol-based products from molasses annually.

The four other companies shortlisted are Gwalior Distillers Ltd, Jubilant Organosys Ltd, Laxmi Organic Industries Ltd.(in consortium) and Tinna Oils and Chemicals Ltd (in consortium).

A government resolution issued on January 30, 2003, said: "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 roadmap for the eventual divestment of CDD would involve a confidentiality agreement between the five shortlisted bidders and the state government.

This would be followed by company visits and a final conference of all the bidders before the tender process is initiated. CDD possesses licenses to produce Indian made foreign liquor and country-made liquor. Once the demerger is completed, the company will have a share capital of Rs 10 crore (Rs 100 million).

The company will be headed by the development commissioner (industries) and the managing director of Sicom till the divestment process is completed.