GHCL made another step toward separating its textiles and chemicals divisions into independent businesses. The textile business will be demerged into a new company as part of a reorganisation plan in March 2020, and both operations will be listed as independent corporate entities.

The company’s secured creditors have now accepted the transaction, which was already authorised by shareholders and unsecured creditors in April. The demerger is intended to allow each company sector to pursue more focused growth plans, as well as a more narrowly defined emphasis on operations and customers.

According to R S Jalan, GHCL’s managing director, this is a significant step toward the organization’s next phase of expansion.

“The demerger will go a long way toward improving prospects, focus, and business synergies for both companies. It would also enable us better respond to the various demands of our diversified companies and create value for our stakeholders,” he added.