GHCL, India’s leading Chemical & Textile Company, announced that the secured creditors have approved the scheme of demerger of GHCL’s Inorganic Chemicals and Textile businesses. The shareholders and unsecured creditors had already approved the scheme of demerger in a meeting held in April earlier this year. With this the company will now approach the honorable NCLT for their approval.
As part of the restructuring which was announced in March last year, the textile business shall be demerged into a separate company and both businesses shall be listed as separate business entities. The company expects this demerger to deliver various operational and strategic benefits to each business segment 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.
Commenting on the development, Mr. R.S. Jalan, Managing Director, GHCL, said: “This is an important step towards the next phase of growth for the organisation as a whole. The demerger will go a long way in facilitating better opportunities, focus and business synergies for both businesses. It will also help us cater to the different needs of the diverse businesses in a better way and aid value creation for our stakeholders”.