The Hindu Business Line : Sujana Universal mulls demerger of 4 biz units

Hyderabad, Oct. 2 Sujana Universal Industries Ltd (SUIL) is considering demerging its four business units — appliances division, castings division, LEC Division (which deals in manufacture of bearings) and trading division.

“The whole process might take another two months but within the next one month, we should be ready with the concrete plan, that is, if we go ahead with the demerger process or continue the present system of operations,” Mr V.S.R Murthy, Group Director, Sujana Group of Companies, told Business Line.

The company, which is part of the Sujana Group, is taking a cue from the de-merger of the towers division of another group company, Sujana Metal Products Ltd, into a separate entity, Sujana Towers Ltd. Mr Murthy said that prior to the de-merger, the company recorded a net profit of only Rs 39 crore but post-process, the net profit for the year ended June 30, 2008 was at Rs 54 crore.

The appliances division of the company manufactures fans under the brand name Padmini. “Until now, we hadpresence in only the four southern States, but now, we plan to expand into other parts of the country by either opening new manufacturing facilities or by acquiring companies in the area,” he said.

It currently has two facilities located in Jeedimetla, on the outskirts of Hyderabad, to manufacture stator winding, rotor die casting, cover making and electro plating.

Mr Murthy said that the turnover of the appliances division was Rs 23.9 crore for the year ended June 2008 (company follows a July to June financial year).

More Stories on : Restructuring | Diversified

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sujana Universal mulls demerger of 4 biz units

Trivitron Medical acquires Vision Engineering

Metso to invest Rs 165 crore to set up industrial park

Essar Algoma Steel investing in capacity expansion

Maruti Suzuki to launch A-Star by month-end

Volkswagen eyes CV market in India