New Delhi: C K Birla Group firm Orient Paper and Industries Limited (OPIL) on Monday said that its board has approved demerger of its consumer electric division into a new entity, Orient Electric.
"The board of directors of the company has decided to demerge the consumer electric business of the company by transferring the same on a going concern basis to a newly formed wholly-owned subsidiary namely 'Orient Electric Ltd," Orient Paper and Industries informed the BSE.
The scheme would be applicable from March 1, 2017 subject to regulatory approvals.
The move would "enable a dedicated management focus and accelerate the growth of the consumer electric business unlocking significant value for the shareholders of the company and access to varied sources of funds for the rapid growth of both business".
It further said that there will be no change in the shareholding pattern of the company.
The demerged company will issue one share of Re 1 each for every share held in OPIL, it added.
Orient Electric would manufacture and distribute consumer appliances such as fans, lighting products, home appliances and switchgears.
"The turnover of the demerged business division is Rs 1,301.83 crore. Percentage of the turnover of the demerged division to the total turnover of the company is 71.51 per cent," it added.
Orient Paper and Industries has a manufacturing capacity of about 85,000 tonnes.
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
