GHCL, India’s leading chemical and textile company, post its board meeting recently, has approved the scheme of demerger of its inorganic chemicals and textiles businesses. The textile business shall be demerged into a separate company through a Scheme of Arrangement U/s 230-232. Both companies shall be listed separately post NCLT approval.
“The demerger is intended to deliver various operational and strategic benefits to each business segment as separate listed entities such as focused growth, concentrated approach, business synergies and increased operational and customer focus. In addition, it will address independent business opportunities with efficient capital allocation and attract different set of investors, strategic partners, lenders and other stakeholders, thus expected to result in enhanced value creation for stakeholders,” said R S Jalan, managing director, GHCL.
GHCL Limited has established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major raw material for detergents & glass industries and Sodium Bicarbonate (baking soda). Its textiles operation is an integrated set up which commences right from spinning of fibre (yarn), weaving, dyeing, printing till the finished products, like sheets & duvets, which are primarily exported worldwide. Consumer products operation is another business for GHCL where it is manufacturing and selling edible salt, industrial grade salt and markets jujube honey, spices and blended spices in the country under the brand name of i-Flo.
At GHCL Ltd, sustainability is a core element of its business strategy as defined under the aegis of ‘GHCL Way’ which has four pillars i.e Responsible Stewardship, Social Inclusiveness, Promoting Relationship and Adding Value.
Reference: https://www.fibre2fashion.com/news/textile-chemical-dye-news/ghcl-to-demerge-inorganic-chemicals-textiles-businesses-265842-newsdetails.htm
