ITC Ltd, the Rs 8,816 crore cigarette and hotels company, has decided to merge its subsidiary, the Rs 623 crore ITC Bhadrachalam Paperboards Ltd, with itself. The ITC move follows the dramatic turnaround in fortunes at the paperboard maker, which has been transformed from a ailing venture to one of the most efficient producers in the world in the financial year ended March 31, 2001.
Confirming the development, ITC sources said the board would meet on September 21 to consider the merger proposal.
The source, however, declined to comment further on the proposed merger on the plea that there was nothing to share with the media before the ITC board took a final decision on the issue.
Analysts said the merger will help both the companies. ITC's topline will grow straight by Rs 611 crore (ITC Bhadrachalam
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