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Deepak Fertilisers and Petrochemicals Corp. Ltd, under its new corporate restructuring plan, is aiming to put in place a transformative strategy for all of its three business -- industrial chemicals, fertilisers, and mining chemicals.
In an interview with CNBC TV-18, the company’s chairman and managing director Sailesh Mehta said that the company is looking at a demerger in which each business can be housed in each corporate entity.
Mehta said that the company is looking to transform itself from a commoditised to a specialty business.
Without giving any specific timelines, Mehta said that the process should begin in the next fiscal year as “NCLT (National Company Law Tribunal) timelines are roughly 6-9 months.”
Deepak Fertilisers announced the demerger of its mining chemicals and fertilisers business. The scheme of arrangement between its two wholly-owned subsidiaries would involve the demerger of its mining chemicals business into Deepak Mining Services Pvt. Ltd. (DMSPL).
The demerger will be in effect retrospectively from January 1, 2022.
Listing of the other two businesses will happen at an "opportune time," according to Mehta.
Mehta also said that a large portion of the company’s debt would be housed in the mining business after the split, indicating the number to be roughly Rs 3,000-3,500 crore.
The mining business contributed nearly 44 percent to the company's overall topline.
Hinting at the entry of new strategic partners, Mehta said that the demerged businesses would be open for investments and value addition going ahead.