The management of Oudh Sugar Mills and Upper Ganges Sugar Industries - the brands under Birla Sugar have decided to go for a business restructuring by which, the two brands would go through a process of liquidation, followed by a merger, and the replacement of the same by four new listed entities. The idea behind the process is to house the businesses of the company, mainly tea and sugar, under different heads.
“We are pleased to announce this restructuring exercise and are hopeful that this will bring out the desired results. The proposed restructuring would entail liquidation of OSML and UGSIL through the process of merger and replacement of the same with four new listed entities,” press release by the company said.
The process would also put the Uttar Pradesh and Bihar Sugar manufacturing facilities in two separate new entities, since the dynamics of the sugar industry in Bihar and Uttar Pradesh are vastly different, according to a press release by the company.
“The Food Processing, Tea and other business have different dynamics and have matured significantly over a period of time therefore it is intended to house them into separate entities to facilitate future growth and monetization of these businesses,” said a press release from the company.
