AMRIT CORPORATION LIMITED
(FORMERLY AMRIT BANASPATI COMPANY LIMITED)
ANNUAL REPORT 2006-2007
You are aware that Amrit Banaspati Company Limited had been engaged in four
business activities, namely, edible oils & FMCG commodities, writing &
printing paper, dairy milk & milk products and real estate. As a part of
long term business planning, the management had been considering avenues
for faster and more profitable growth. Business imperatives demand that we
pay focused management attention and impart competitive strengths to each
of our businesses from our core competence. We believe that all our
businesses have considerable growth potential and we will continue to focus
all our energies on these businesses thereby securing for our shareholders
and other associates the fair rewards of the growth.
To put the growth strategy in place, the management has restructured the
businesses by segregation and consolidation under separate legal entities
with a view to have focused management attention and leadership as each of
the businesses have different business dynamics and growth drivers and
require different strategies for growth. To achieve the restructuring
objective, a Scheme of Arrangement between Amrit Banaspati Company Ltd.
(name now changed to 'Amrit Corp. Limited') and ABC paper Ltd. and Amrit
Enterprises Ltd. has been formulated which has been sanctioned by the
hon'ble High Courts of Allahabad, Delhi & Chandigarh.
In terms of the above Scheme, the paper business has been transferred to
and vested in ABC Paper Ltd. and the edible oils & FMCG commodities
business has been transferred to and vested in Amrit Enterprises Ltd. The
residuary business, namely, dairy milk & milk products and real estate will
continue to vest in Amrit Corp. All the three entities will be listed
companies. As a part of the Scheme, the name of Amrit Enterprises Ltd. will
be changed to 'Amrit Banaspati Company Ltd'.
We believe that the above arrangement is both suitable and appropriate to
all the businesses. The restructuring will lead to increasing the scale of
operations and better utilization of common resources which, in turn, will
enhance the overall shareholders' value. Post restructuring, all the
companies will emerge stronger and more successful and all our shareholders
and other associates will gain from the growth and prosperity emanating
from the demerger & consolidation.
Thanking you and with regards,
Chairman & Managing Director