Dalmia Cement to hive off sugar division

Dalmia Cement to hive off sugar division
13 October 2005

Dalmia Cement (Bharat) Ltd, which has interests in cement and sugar, plans to restructure itself into companies that deal with these two businesses separately. It has floated a subsidiary, Ramnagar Chini Mills Ltd, to undertake sugar manufacturing activities. The company now plans to hive off its sugar division to this new company, for which it will seek its shareholders approval through a postal ballot.

According to Dalmia Cement, it is in the process of examining various options to convert itself into pure play companies focussing on cement and sugar businesses. Apart from these two businesses, Dalmia Cement also has a project to produce dead burnt magnesite in Salem in Tamil Nadu, besides other divisions such as wind farms and travel.

A company official said the company was only seeking shareholders approval for an enabling resolution, as the restructuring of the business activities may involve transferring the company’s sugar unit.

Dalmia Cement (Bharat) is expanding its cement manufacturing capacity by about 2Mta, at its existing plant at Dalmiapuram in Tamil Nadu. The expansion, which would cost about Rs 365 crore, will take the company’s cement manufacturing capacity to 3.5Mta. Besides the expansion, the company is also putting up a 29MW captive thermal power plant. The expansion was to have been completed by July 2005, but would now be finished only by early December, the official said.

Published under Cement News