New Delhi [India], Sept 7 (ANI-BusinessWire India): Ruchi Soya Industries Limited (Ruchi Soya) announced that in its meeting held on Wednesday, the Board of Directors gave consent to explore an internal corporate restructuring exercise which will allow the company to consider various options such as subsidiarisation or de-merger of its business units into separate entities.
This initiative will result in independent businesses, which would operate in the areas of edible oil refining and brands, palm plantations, oil seed crushing and foods, and renewable energy.
A committee has been constituted to oversee the planning and execution of this exercise and a consultant will be appointed for proposing various options followed by a detailed scheme to the board whilst ensuring a high standard of corporate governance, transparency and fairness.
"The primary aim of undertaking this exercise is to unlock the value of our diverse businesses. This process would allow the management to focus on the respective businesses with flexibility in fund raising for future growth and expansion. Each business would be free to explore opportunities for strategic partnerships and investors. We believe that this will enhance value for our stakeholders while providing fresh momentum for growth," said Dinesh Shahra, Managing Director, Ruchi Soya.
"This exercise will help Ruchi Soya to successfully overcome the issues that have developed over a period of time largely due to macro-economic conditions much beyond the control of the company. The unlocking of value through this restructuring will help come up with a timely and effective solution to resolve our outstanding issues benefiting all our stakeholders including banks and financial institutions," he added. (ANI-BusinessWire India)