Construction baron Shapoorji Pallonji is consolidating his interests in the Forbes Gokak group.

The Shapoorji Pallonji group has made an open offer to the shareholders of FAL Industries, the outsourcing arm for Eureka Forbes.

Sterling Investment Corporation (the acquirer) and Shapoorji Pallonji & Co and Cyrus Investments (persons acting in concert) have made an open offer to acquire up to 20 per cent of the equity share capital, aggregating to 9.11 lakh (Rs 911,000) fully paid up equity shares, of FAL Industries at a price of Rs 25 per share payable in cash.

The offer opens on November 25 and closes on December 24.

The Mistrys hold about 39.26 per cent in FAL Industries, mostly through the diversified Forbes Gokak. Mistry came to control Forbes Gokak when the Tatas decided to sell the company in 2001 as part of the group's recast.

Mistry holds about 70.47 per cent in Forbes Gokak. Sterling Investment is a Pallonji Mistry group company.

As on June 30, 2003, institutional investors held 10.12 per cent, the Tatas (through Tata Investment Corporation, Tata Chemicals and Tata Tea) held 20.65 per cent, and others held 29.97 per cent in FAL Industries.

FAL Industries has a joint venture with the US-based Nypro Inc called Nypro Forbes Products, a injection moulding company.

For the quarter ended June 30, 2003, FAL Industries reported net sales of Rs 13.17 crore (Rs 131.7 million) and a loss of Rs 12.50 lakh (Rs 1.25 million).

FAL Industries' vacuum cleaners are marketed by Eureka Forbes, a 60:40 joint venture between Forbes Gokak and the Swedish white goods giant AB Electrolux.

Forbes Gokak was planning to hike its holding in Eureka Forbes.

However, the deal fell through because of the issue of the transfer of brand rights. Electrolux owns the brands used by the Eureka Forbes, namely Aquaguard, EuroClean and EuroAir.