Edible oil major Ruchi Soya Industries Ltd announced on Wednesday that it would demerge its business to make separate entities of its edible oil refining brand and other businesses comprising palm plantations, oil seed crushing, food and renewable energy.
The decision was taken after the company's Board of Directors met on Wednesday to consider various options, including creating subsidiaries for its individual business units.
The company has constituted a committee to oversee the planning and execution of this exercise and a consultant will be appointed for proposing various options followed by a detailed scheme to the board. The consultant has also been asked to ensure a high standard of corporate governance, transparency and fairness while working out alternative solutions for the firm.
"The primary aim of undertaking this exercise is to unlock the value of our diverse businesses. This process would allow the management to focus on the respective businesses with flexibility in fund raising for future growth and expansion. Each business would be free to explore opportunities for strategic partnerships and investors. We believe that this will enhance value for our stakeholders while providing fresh momentum for growth," said Dinesh Shahra, Managing Director, Ruchi Soya Industries.