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Aarti Industries
Source Name: Aarti Industries

Aarti Industries Ltd Board In-Principally Approves Demerging its Pharmaceutical and Home & Personal Care Segment Into Separate Entities in FY 15-16

Sep 23, 2014   17:37 IST 
Mumbai, Maharashtra, India

Aarti Industries Limited (AIL), a leading company in the field of Indian chemical industry, in its Board meeting on September 22, 2014 has in-principally recommended to demerge its Pharmaceutical and Home & Personal Care segment into separate entities in FY 15-16.

 

The Company’s business is classified into three segments, viz Chemicals, Pharmaceuticals and Home & Personal Care Segment. The brief financials of these segments are as below:

(` in Lakhs)

 

 

Sr. No Particulars 3 Months ended
30th Jun 2014
Year ended
31st Mar 2014
 
   1 Segment Revenue    
  a) Speciality Chemicals 61419 221696
  b) Pharmaceuticals 6745 24898
  c) Home & Personal Care Chemicals 5813 16683
  Total 73977 263277
   2 Segment Results Profit / (Loss)    
  (Before Tax and Interest)    
  a) Speciality Chemicals 9771 33262
  b) Pharmaceuticals 625 2975
  c) Home & Personal Care Chemicals 259 411
  Total 10655 36648
   3 Capital Employed    
  a) Speciality Chemicals 137304 140134
  b) Pharmaceuticals 38420 37720
  c) Home & Personal Care Chemicals 9959 8747
  d) Unallocated Capital 4412 4187
  Total 190095 190788

 

 

These segments are distinct and have independent operations by itself and don’t have any inter-segment linkages with the other segments. The Manufacturing operations, production process, Customer Profile etc for each of these segments are also separate. All these segments require different strategy for long term growth.

AIL has been investing in these segments for various expansion and debottlenecking activities, and all these segments are expected to grow. The demerger shall facilitate special attention to each of these segments.

 

The Manufacturing units of Pharmaceuticals are located at Tarapur, Dombivali in the State of Maharashtra and Vapi in the State of Gujarat, while the manufacturing units of Home & Personal Care Segment are located in the Union Teritorry of Silvassa and at Pithampur in the State of Madhya Pradesh.

 

Thus the Board expects that the proposed demerger would lead to more focused approach for the growth and success of these three segments and thus would also facilitate increase in shareholders’ value.

 

About Aarti Industries Ltd (NSE Symbol: AARTIIND; BSE Scrip Code: 524208):

Aarti Industries Ltd (www.aartigroup.com), incorporated in the year 1984 and listed on stock exchanges in 1992, is a well known name in the field of Chemical Industry and is a leading supplier to global manufacturers of Dyes, Pigments, Agrochemicals, Pharmaceuticals & rubber chemicals.

 

Aarti Industries Ltd (AIL) is also a leading domestic player in nitrochlorobenzene (NCB) based specialty chemical business with the largest domestic manufacturing capacity of 60,000 tonnes per annum. The company offers over 150 products and is the market leader in more than 75% of its top 50 products. AIL has 16 manufacturing units spread across Gujarat, Maharashtra, Madhya Pradesh and Silvassa.

 

AIL is among the largest producers of benzene based basic and intermediaries in India. It is also among the largest integrated manufacturers of dimethyl sulphate (DMS), an organic specialty chemical which uses methanol and sulphur as feedstock

 

AIL has a diversified end-user base for its products with application into end-user industries such as dyes, pigments, FMCG, agrochemicals, pharmaceuticals, polymers etc. It has wide customer base of over 1,000 customers spread over 60 countries across the globe with major presence in USA, Europe, Japan and India.


 
 
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