Exide To Merge Chloride

Exide Industries Ltd (EIL) will seek the permission of its shareholders to merge Chloride International Ltd (CIL), a subsidiary of Exide Products Ltd (EPL), into the parent company. EPL in turn is a subsidiary company of EIL, the mother company of the Rs 984 crore batteries and related products manufacturer.

Chloride International, formerly known as Macneill International Ltd (MIL), was in the business of marketing caplamps and batteries manufactured by Exide Industries. However, it had ceased operations in the financial year ending March 31, 2002.

As a result, its gross income shrank from Rs 5.7 crore in financial year ending March 31, 2001, to just Rs 10 lakh in fiscal ending March 2002. The company had long been loss making and noting this, the directors decided that the long term interest of Chloride International lay in merger with its holding company Exide Products.

If the shareholders approve of the merger, the company will seek the statutory permission from the Kolkata High Court for the formal merger. Similarly, Exide Products shareholders will be asked to approve the merger as the process would lead to the emergence of a stronger and more resilient company