The Rs 3,450-crore Godrej group has decided to restructure the businesses of Godrej Foods. The manufacturing business alongwith other key functions will be demerged into Godrej Industries. However, the trading business will continue to be carried out by Godrej Foods.
The boards of Godrej Industries and Godrej Foods have decided that every shareholder of the latter will be issued one share of Godrej Industries (par value of Rs 6) for 15 shares of Godrej Foods (par value of Rs 10). The par value of each share of Godrej Foods stands reduced to Re 1. However, Godrej Foods will continue to be listed on the stock exchanges.
Over the last couple of years, the processed foods and edible oils manufacturing activity of Godrej Foods has witnessed declining profit margins, resulting in significant erosion in its net worth.
Godrej Foods has manufacturing facilities at Wadala, Bhopal and Mysore. It is involved in the manufacture and marketing of edible oils and fruit drinks under the brand name Jumpin and Xs. The company
