HSIL awaiting regulatory approvals for demerger

Sanitary ware player HSIL hopes to complete the demerger of its consumer products and building materials businesses soon and is awaiting necessary regulatory approvals.

The company recently announced demerger of consumer products distribution and marketing businesses into a new entity called Somany Home Innovation (SHIL).

It also demerged its furniture and home decor retail business into SHIL as also the distribution and marketing business relating to building products into new entity called Brilloca which is a wholly-owned subsidiary of SHIL.

"Normally it takes six-eight months for a merger/ demerger process to get completed. So we are awaiting BSE and NSE approvals and also from the Sebi.

"Then we will move to the NCLT. I think there is still four to five months to go for the demerger to take place," HSIL vice-chairman and managing director Sandip Somany told PTI.

The company had said April 1 would be the cut-off date for the demerger scheme to become effective.

On the rationale for creating two new entities, he said, "Since we are into many products/categories, we wanted to sharpen our focus and better align the businesses to our end-consumers. We also wanted to improve competitiveness and operational efficiencies."