Godrej Foods on restructure path
The businesses of the Rs 406-crore Godrej Foods Ltd (GFL) are being demerged. The manufacturing business along with its marketing, sales, finance and other related divisions of GFL is being merged with Godrej Industries Ltd (GIL). Postmerger, GFL will be left with the trading business. The boards of the two companies which met today, decided on a share swap ratio of one share (face value Rs 6) of GIL for every 15 shares (face value Rs 10) of GFL. The face value of GFL will stand reduced to Re 1 per share.
Jindal to shutter Bangalore unit
Jindal Aluminium Ltd, which has alleged favouritism by the Union Finance Ministry in fixing the import duty for aluminium, has decided to close down its factory in Bangalore. The company said it would be unviable to run the factory with the high cost of raw material. Disclosing this at a press conference here on Saturday, the Chairman and Managing Director, Dr S.R. Jindal, said the factory would be closed from August 16 and the notice for closure was sent to the Karnataka Government on July 25.
BILT agrees to take Thapar stake in Sinar Mas
Stung by the criticism that the L.M. Thapar family would end up becoming the sole beneficiaries of the recent acquisition of Sinar Mas Pulp & Paper, the Board of Ballarpur Industries Ltd (BILT) on Friday in-principle agreed to acquire either the entire 87 per cent or part of the equity holding of BILT Paper Holdings in Sinar Mas (now called BILT Graphic Papers Ltd). BILT Paper Holdings is the privately-held Thapar family concern through which Sinar Mas was acquired in May this year in partnership with ICICI Ltd, which now holds 13 per cent of the equity in the acquired company.