GHCL announces demerger of textiles biz

GHCL, India’s leading Chemical & Textile Company, post its board meeting today, announced an Interim Dividend of Rs 3 per equity share for the financial year 2019-20.The record date for the purpose of Interim Dividend is fixed on March 26, 2020.

The Board of the company also 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.

Commenting on the same, RS Jalan, Managing Director, GHCL said, “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.”

GHCL 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 and glass industries and Sodium Bicarbonate (baking soda). Its textiles operation is an integrated set up which commences right from spinning of fiber (yarn), weaving, dyeing, printing till the finished products, like sheets & duvets, which are primarily exported worldwide.