Board nod for Nahar demerger, real estate entry

The board of directors of Ludhiana-based Nahar Spinning Mills Ltd (NSML), a subsidiary of the Nahar Group, has approved the company's plan to venture into the real estate business.

After getting approval from the shareholders, the company will foray into real estate under Nahar Spinning Mills Ltd. This was stated by NSML Managing Director Dinesh Oswal.

NSML is a consolidated textile entity having 300,000 spindles for spinning yarn; a knitted garment manufacturing facility with a capacity of 12.5 million pieces per annum; a mercerising yarn-manufacturing plant with a capacity of 2,040 tonnes per annum; and a processing/finishing house with a capacity of 12,600 metres for yarn and fabrics.

Talking to Business Standard, NSML Managing Director Dinesh Oswal said, "The board of directors in a meeting today gave its nod, and after getting approval from our shareholders, we will venture into the real estate business."

Moreover, in order to tap the emerging opportunities in textiles worldwide and consolidate the textile business under a single umbrella, the board of directors of NSML & Nahar Exports Ltd, both belonging to the Nahar Group of companies, proposed a composite scheme of demerger, which has received nod from the BSE and NSE. Subject to approval by the Punjab High Court, the scheme provides for the demerger and transfer of the investment business of Nahar Spining Mills to Nahar Capital and Financial Services, a new company formed for the purpose of taking over the investment business in two segments--industrial business and investment and financial business.

Both the companies have filed a joint petition before the High Court for approval. As per the decision of the Court, the meetings of the shareholders, creditors (secured and unsecured) will be held on October 7 to approve the merger.

Dinesh Oswal said, "It is evident that the restructuring of the business will enable the company to emerge as one of the largest integrated textile mills, which will strengthen its leadership in the domestic as well as overseas markets. The restructuring will also unlock the value of each business segment and will help in realising the potential of each business segment." The company is exporting to internationally known brands.

Commenting upon the scheme, Company Secretary Brij Sharma said, "The scheme provides for the demerger and transfer of the investment business of Nahar Spinning Mills to Nahar Capital & Financial Services. This will draw a line between two segments, industrial (textile) business and investment and financial business.