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GHCL plans to demerge textile business

GHCL plans to demerge its textiles business. The chemical maker’s inorganic chemicals and textiles businesses will be separately listed companies, after the National Company Law Tribunal approves the scheme of arrangement, according to an exchange filing.

The demerged textile business will be listed on the exchanges at a later stage with its currently-listed business being the chemicals, the filing said. The textile business will cease to be the company’s subsidiary after the restructuring.

Textiles constitute 35.5 percent to the chemical maker’s total revenue, as per its FY19 earnings. It consists of manufacture and sale of textiles including, but not limited to, yarn manufacturing along with weaving, processing, cutting and sewing of home textiles products.

The restructuring will maximise value for all stakeholders, leading to a better focus on the demerged business.