The Hindu : Business : GMR hives off ferro alloys division to separate unit

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Tuesday, Aug 15, 2006

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Business

GMR hives off ferro alloys division to separate unit

Special Correspondent

Subsidiary Bharat Sugar Mills to be merged with parent

MUMBAI: GMR Industries, the manufacturing arm of the GMR group, on Monday hived off its ferro alloys division to a separate company, GMR Ferro Alloys and Industries Ltd., and merged Bharat Sugar Mills Ltd (BSM) with itself.

This decision was taken by the board of directors, "with a view to focussing on our core competency in sugar related businesses,'' the GMR group stated in a press release.

"The shareholders of GMR Industries would be holding shares in the new company (GMR Ferro Alloys and Industries Ltd) in the same ratio as they hold in GMR Industries Ltd,'' the release added.

Every preference shareholder, holding 100 shares in GMR Industries, would be getting 38 preference shares in the new company (GMR Ferro Alloys and Industries) and 62 new preference shares in GMR Industries in cancellation of his or her existing 100 preference shares. Every equity shareholder, holding 100 shares in GMR Industries, would be getting 38 equity shares in the new company and 62 new equity shares in GMR Industries in cancellation of his or her existing 100 equity shares.

All the assets and liabilities pertaining to the ferro division would be transferred to the new company at the book value. The effective date of demerger and merger is April 1.

Bharat Sugar Mills, now a subsidiary of GMR Industries, is registered in Karnataka. It is implementing a project for construction of an integrated sugar complex with 3,500 tonnes crushing per day (tcd) capacity, expandable to 5,000 tcd, a cogeneration plant with 24 MW capacity and a distillery of 45 kld capacity at a cost of Rs. 274 crore. The registered office is being shifted to Andra Pradesh.

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