Orient Paper to spin-off cement business, India

Orient Paper to spin-off cement business, India
Published: 28 July 2011

Kolkata-based Orient Paper and Industries Ltd. said it will separate its cement business and turn it into a new entity called Orient Cement Ltd, which will be listed by April.

"We have undertaken the restructuring exercise to try and enhance shareholder value," Orient Paper’s chairman C.K. Birla said Wednesday.

The cement business accounted for 60% of the company’s revenue for the quarter ended June 30, while its electricals and the paper division accounted for 30% and 10%, respectively.

"Creation of a pure-play cement company will allow us to focus on the cement business and achieve faster growth," said the company’s managing director, M.L. Pachisia.

Shareholders will receive one share of Orient Cement for every share of Orient Paper they hold, the company said.