Shaw Wallace Planning Merger Of Its Skol And Charminar Breweries
Shaw Wallace group has proposed to merge two of its brewery companies.
As a part of this proposal, the Hyderabad-based Charminar Breweries' board of directors is scheduled to meet on July 2 to consider the amalgamation of the company with Skol Breweries Ltd. Both the companies are subsidiaries of Shaw Wallace.
Charminar Breweries was acquired by Shaw Wallace in 1995. At present, the group holds about 54.8 per cent stake in Charminar Breweries, which has a brewery unit near Hyderabad with a capacity of 25.64 lakh cases per annum.
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For the year ended March 2001, Charminar Breweries has recorded a net profit of Rs 2.17 crore on a turnover of Rs 46 crore. It has a paid-up capital of Rs 8.37 crore. Recently, the company had announced its plan to double the capacity with an investment of Rs 20 crore as the existing unit is working with 100 per cent capacity utilisation.
Skol Breweries has got a brewery unit in Uran, Maharashtra. Though both the companies are listed on stock exchanges, shares are not traded frequently.