Century Plyboards, a diversified company, is moving towards de-merger of its cement and ferro-alloy businesses into two separate entities. It also plans to reorganise captive coal-based power generating units of cement and ferro-alloy units.
Mr Sajjan Bhajanka, Managing Director of the company, confirmed to Business Line that the proposals for hiving off two businesses into separate entities were on the drawing board. The next meeting of the board of directors would consider the proposal and appoint a consultant for appropriate schemes, he said.
“The broad plan is to retain the ply boards and logistics businesses under the existing listed entity and to create two new entities – one for cement and limestone mining ventures and the other one for ferro-alloy and power generation business. The entities will also be listed to unlock values for the shareholders,” the Managing Director said.
Currently the cement business is run through a 70.5 per cent subsidiary. “So, the majority holding of the company in the cement subsidiary would have to be transferred to a holding new company to implement the separation,” he explained.