"Andrew Yule owns 27.71 per cent in Tide Water Oil and Oil and Natural Gas Corporation will take over lubricant maker for Rs 37 crore (Rs 370 million)," sources said.
Apart from Tide Water Oil, which is under its management control, Andrew Yule will sell its stake in Phoenix Yule and Dishergarh Power Supply Company.
The revival plan cleared by the BRPSE, will require the nod of the cabinet before it is implemented.
In Phoenix Yule, which makes convyer belts, Andrew Yule has 26 per cent stake while the management control is with a German Company Phoenix BV, which is a part of the Continental Group.
"The German company has agreed to buy the stake held by Andrew Yule in the company," sources added.
The company also plans to sell its 7.50 per cent stake in DPSC Ltd.
The disinvestment of stake in the three companies is likely to fetch Rs 46.21 crore (Rs 462.1 million) for the revival of Andrew Yule, which will cost around Rs 213.27 crore (Rs 2.13 billion).
The company will raise around Rs 20 crore (Rs 200 million) through bonds while the government will have to chip in with Rs 147 crore (Rs 1.47 billion).
As per the revival plan, the government will subscribe to preference shares by giving Rs 117.06 crore (Rs 1.17 billion) while Rs 30 crore (Rs 300 million) will come from plan funds.
Apart from cash infusion, the government will have to convert part of loan into equity and waive interest. The revival plan for Andrew Yule consists of business restructuring also.
The company plans to consolidate operations of its electrical divisions in Chennai and Kolkata and spinning off its electrical and engineering division into 100 per cent subsidiaries.
Andrew Yule has 12 tea gardens in West Bengal and Assam.
As there has been a sharp decline in tea prices and fall in exports, the cmpany is planning to get in to packet tea business.
The company proposes to sepnd around Rs 41.38 crore (Rs 413.8 million) for establishing the brand in packaged tea business over the next five years.
The revival plan for Andrew Yule also involves rationaliation of manpower, which is expected to cost Rs 34 crore (Rs 340 million).
According to the plan, if the revival package is cleared by the government then the company will start making profit before tax from the first year itself.
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