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Borosil merges five entities into two to simplify group structure

Under the merger, two shares of Gujarat Borosil will fetch one share each in Borosil Glass Works and Borosil.

Borosil | merger

Press Trust of India  |  Mumbai 

Photo: Shutterstock

The Group, which runs the flagship kitchen and dining ware business under the brand names of and Larah, is amalgamating its two listed group and three promoter-held

Following the merger, for which it has received the necessary statutory approvals, the promoters' holding in Gujarat will come down to 70.5 per cent from 74.95 per cent now, the group said in a statement on Wednesday.

Amalgamation envisages of Gujarat Borosil, Vyline Glass Works and Fennel Investment & Finance into Borosil Glass Works and also demerger of consumer and scientific businesses of Borosil Glass Works into Borosil, the group said.

The is to simplify group structure by eliminating cross holdings and will give Borosil Glass Works shareholders direct proportional shareholding in the Gujarat Borosil business to reduce related party transactions to create more administrative efficiencies.

Under the merger, two shares of Gujarat Borosil will fetch one share each in Borosil Glass Works and Borosil.

Shreevar Kheruka, chief executive of Borosil, said the will unlock value for shareholders as it will eliminate cross holdings.

The resultant structure will separate the ownership of the solar glass business from the consumer and scientific ware business completely.

Borosil Glass Works, which will now house the solar glass business, will be renamed as Borosil Renewables and will continue to be publicly traded.

Simultaneously, their current holding of 72.85 per cent in the erstwhile Borosil Glass Works will come down to 70.5 per cent in Borosil, which will now house the consumer goods and scientific products business.

Borosil Glass Works currently houses the leading kitchen and dining ware business under the brand name Borosil, a market leader that boasts of a legacy of high-quality microwaveable kitchen and table ware.

The company also markets leading brand of laboratory glassware.

In addition, Borosil conducts business through two subsidiaries -- Borosil which manufactures and markets opalware products under the brand name Larah and Klasspack, an 80 percent subsidiary that manufactures and markets primary pharmaceutical packaging products.

Vyline Glass Works, manufacturing laboratory glassware and glass serving products, will merge into Borosil Glass Works.

Gujarat Borosil is the sole manufacturer and marketer of solar glass and is a publicly listed company with a revenue Rs 216.76 crore and an operating profit of Rs45.36 crore, while Fennel Investment & Finance is an NBFC owned by the group.

The group's consumer and scientific ware businesses had recorded revenue of Rs 546 crore in FY19 and an operating profit of Rs 94.7 crore.

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First Published: Wed, January 29 2020. 20:10 IST