 "Sintex Industries")
Sintex Industries, one of the leading players in the plastic processing and fabric manufacturing industries, has decided to transfer its custom moulding business and prefab business to Sintex-BAPL and Sintex Infra Projects, respectively. The decision of demerger of two businesses was taken by the board of directors of the company yesterday.
Post-demerger, there will be two companies Sintex Industries (having predominantly textile and spinning businesses) and Sintex Plastics Technology Limited, which will also have two subsidiaries - Sintex-BAPL and Sintex Infra Projects. While Sintex Industries is already listed, Sintex Plastics Technology will also be listed eventually.
At present, textiles accounts for about 10-15 percent of Sintex’s revenue, with 50 percent and 35-40 percent revenues coming from custom moulding and prefab & monolithic, respectively. The group expects the demerger to assist it in managing businesses and operations for the two companies more efficiently and also help them develop & execute growth plans and strategies effectively.
“The proposed arrangement will streamline various businesses developed by the group, thereby creating focused leadership and management attention. Each of the businesses have significant growth and profitability potential, which this demerger will enable us to explore,” said Sintex in BSE filing yesterday.
