Steel-pipe producer, Welspun-Gujarat Stahl Rohren would hive-off the company's Plate-cum-Coil mill into a 100% subsidiary.
With a capacity to produce plate and coils of largest size and diversified grades, the Plate-cum-Coil mill is one of the only three mills of its kind in the world. Apart from catering to the pipe industry, the mill aims to target shipping, wind energy, boiler, heavy construction like bridges and other specialised industries. The mill currently has plate orders worth Rs 500 crore in its kitty.
"This will allow better financial control, better fiscal efficiencyby rationalisation of various applicable taxes, duties and create an independent identity of high-end steel business," the company said.
Following the demerger , a separate team with independent board and management would be structured, the company said. The demerger is subject to regulatoryapprovals and is likely to take about a four months' time.
