India“s GHCL is demerging its businesses into three separate firms which will all be listed entities. The company“s interests in soda ash, home textiles and retailing will be split and existing GHCL…
India“s GHCL is demerging its businesses into three separate firms which will all be listed entities. The company“s interests in soda ash, home textiles and retailing will be split and existing GHCL investors will get shares in the three firms. Sources said an announcement to this effect is expected shortly. GHCL, on a consolidated basis, has an annual global turnover of around USD 700 million or INR 28,000 million. This includes the parent company, which has revenues of around INR 10,000 million from its soda ash and home textile manufacturing business in the Indian market. This apart, it has five international firms which were acquired over the past two years. Even though the GHCL demerger was expected given the diversification of the firm into home textile retailing, sources say the decision to demerge it into three firms was taken recently. The soda ash business has robust margins but profitability in the home textile manufacturing unit is much lower, as per the standalone results of the parent company.