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The board of directors of Kesoram Industries Ltd (KIL) on Monday considered the proposal of demerging its rayon, transparent paper and chemical business under its wholly-owned subsidiary Cygnet Industries into a separate company. It has set up a demerger committee to evaluate the proposal. The BK Birla Group company, in a notification to the stock exchanges, said a demerger committee would be set up to “especially evaluate the proposal, engage relevant professionals and to do all such acts, deeds and things as necessary and expedient to give effect thereto.”
According to P Radhakrishnan, CEO, Kesoram, once demerged, it would look to list the company on stock exchanges. “The demerger will help the company get the necessary capital for growth and it will be a win-win both for Kesoram, which can now focus on its cement business, and Cygnet,” Radhakrishnan told BusinessLine.
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