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The Textile Magazine
MAY 2012
PRIL will demerge its Pantaloons Format business
through a court scheme of arrangement. It will transfer
the net assets of its business, its apportioned debt of
Rs. 800 crores and debentures of Rs. 800 crores to the
resulting entity. After the demerger, the debentures will
be converted into equity shares of the resulting entity.
ABNL will make an open offer of a minimum 26 per
cent to the shareholders of the resulting entity. After
the listing of the resulting entity and on conversion of
debentures into equity, ABNL’s holding in the resulting
entity post-open offer shall be a minimum of 50.01 per
cent. The resulting entity will become a subsidiary of
ABNL.
The proposed transaction is likely to be completed
within 8 to 10 months, subject to the finalisation of the
Scheme of Arrangement, due diligence and statutory and
other requisite approvals.
Aditya Birla Nuvo is a $4 billion conglomerate. Over
the years, it has made successful ventures into sunrise
sectors like financial services (life insurance, asset
management, NBFC, private equity, broking, wealth
management and general insurance advisory), telecom,
fashion and lifestyle and IT-ITeS. Its focus on manufac-
turing businesses has made it a leading player in agri-
business, carbon black, insulators, rayon and textiles.
It is part of the Aditya Birla Group, a $35 billion
Indian multinational operating in 36 countries across the
globe with a workforce of 133,000 employees belonging
to 42 nationalities and deriving more than 60 per cent of
its revenue from its overseas operations.
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Grasim reports
improved performance
Grasim Industries Ltd. of the Aditya Birla Group
has reported higher revenue and profit for the fourth
quarter ended March 31, 2012. Revenue was higher
by 17 per cent at Rs. 25,244 crores against Rs. 21,550
crores in the previous year. PBIDT for the year was
at Rs. 6,320 crores (Rs. 5,395 crores), reflecting a
growth of 17 per cent. Net profit increased by 16 per
cent from Rs. 2,279 crores to Rs. 2,647 crores.
Sales volumes for the quarter at 94,904 tonnes
increased by 11 per cent, led by higher exports. This
was despite the slowdown in the Eurozone, which
impacted textile demand and addition of new capaci-
ties in China.
Average realisations for the quarter were lower
by 16 per cent on y-o-y basis as prices were at their
peak, in line with competing fibres’ prices in the cor-
responding quarter of last year. Lower realisations,
coupled with increase in the prices of caustic soda and
coal, resulted in lower profitability. The impact of ris-
ing caustic prices was offset by higher profitability of
chemical business.
The VSF (120,000 TPA) and chemical (182,500
TPA) greenfield projects at Vilayat in Gujarat and
brownfield expansion (36,500 TPA) of VSF at Hari-
har, Karnataka, are progressing as scheduled. The
Vilayat project is slated for commissioning towards
the end of the current financial year, while the Harihar
project is expected to be commissioned in two phases
during the current year.
In VSF, stability in the Eurozone and macro-
economic policies will influence demand. In cement,
despite 8 per cent projected growth in demand, the
surplus scenario is likely to continue for three years.
In the present context, rising energy costs pose a chal-
lenge to both the businesses.
Capacity expansions under implementation in both
VSF and cement will provide additional volumes
leading to rapid growth and further consolidation of
market leadership.
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