Financial Daily from THE HINDU group of publications
Tuesday, Aug 09, 2005
Financial Daily from THE HINDU group of publications Tuesday, Aug 09, 2005 |
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Corporate
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Restructuring HLL sells bio-polymers unit to Riddhi Siddhi Our Bureau
Mumbai , Aug 8 HINDUSTAN Lever Ltd (HLL) has sold its functional bio-polymers unit to Ahmedabad-based Riddhi Siddhi Gluco Biols Ltd. Details of the value of the transaction were not known. This move by HLL is yet another to exit non-core business. The FMCG major had hived off the functional bio-polymers unit to its subsidiary with the intent to eventually sell it. HLL had obtained approval of its shareholders through postal ballot in December 2004 for the divestment of its functionalised biopolymer business. The functional biopolymer business comprises manufacture and marketing of tapioca and corn based specialty modified starches mainly for the paper industry. The unit was set up in Pondicherry in 1991. "The business pioneered the concept of wet-end starch use in paper making in India and enjoys a dominant market share in the high-end paper starch segment," a press release from HLL said. The transfer of business to Riddhi Siddhi is on a slump sale/going concern. It would include the manufacturing facility at Pondicherry together with employees directly relevant to the business with continuity of service and full protection to existing terms and conditions of service. "With a sales turnover of Rs 15 crore, the impact of disposal of this business is insignificant for HLL both in terms of sales and profits," HLL said. The business has a market share of 65 per cent in the country in the high-end paper starch segment, a news release from Riddhi Siddhi said.
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