A top source in the BM Khaitan controlled group told The Indian Express that the plans will take final shape only after a suitable buyer is found. Negotiations are yet to begin. The source emphasised that it will not be a distress sale.

Over the last two years, the group has been identifying non-core areas and selling them outright.

Kilburn Engineering, which has factories at Bhandup in Maharashtra and Baroda in Gujarat has been badly affected by the recession in the capital goods industry. Orders have dwindled and capacities are lying underutilised, resulting in losses during 1997-98. It had earlier reported that the lower order position in 1997-98 had led to a considerable imbalance in working capital resources.

Kilburn Engineering had made a successful entry in alkali systems butits prospects are now bleak as the caustic soda industry is in a downturn.The company makes dryers and drying systems, heat transfer equipment and conveying systems. It has developed considerable expertise in project management and construction, and also procures technologies for pollution control and specialised equipment for power generation.

The Magor group had earlier decided to sell WPIL, the erstwhile Worthington Pump, but the due diligence is being done and the deal is yet to be sealed. The deal to sell India Foils Ltd has reportedly turned sour with a number of issues yet to be sorted out.