Metrochem Industries to restructure operations

Metrochem Industries Ltd has announced that the Board of Directors of the Company has passed a resolution in its meeting held on June 09, 2007 to restructure its operations which are located at Ahmedabad and Vadodara for economical operations, better management control and efficient working in the present Scenario. It is decided to de merge the Manufacturing facilities located at Village: Umraya, Taluka: Padra, Dist: Vadodara unit into a separate corporate entity which would be subsidiary of the Company. This would also facilitate entering into strategic business alliance, equity / financial participation by outside parties and also divest the ownership of the so demerged entity to maximise gains of the Shareholders of MCIL.

A Scheme of Arrangement is proposed to be submitted to the Hon'ble High Court of Gujarat for giving effect to the above.

Further the Company has informed that, it is also proposed to workout strategic business plan for Ahmedabad operations which should facilitate proposed restructuring and objectives defined therein.

Source : Equity Bulls

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