Financial Daily from THE HINDU group of publications
Thursday, Sep 16, 2004
Financial Daily from THE HINDU group of publications Thursday, Sep 16, 2004 |
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Corporate
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Restructuring Sagar Cements plans to hive off grinding unit C.R. Sukumar
Hyderabad , Sept. 15 SAGAR Cements Ltd (SCL) is planning to hive-off its grinding unit at Bayyavaram in Anakapalle taluk of Visakhapatnam district. The grinding unit is engaged in producing cement by grinding the surplus clinker made available from the company's main cement manufacturing facility at Mattampally in Nalgonda district here. According to SCL officials, since the operating results of the grinding unit were not encouraging, the company undertook a comprehensive review of its operations and found increasing input costs and financial charges to be major reasons for the state of affairs. The officials informed the stock exchanges that the board felt that it does not foresee any reversal of this trend in the near future. With a view to avoiding further burden on the overall profitability of the company, it suggesting the hiving off. The board has decided to sell, lease or otherwise dispose of the grinding unit and make alternative arrangements for grinding the surplus clinker at its present cement-manufacturing unit. It has also decided to seek the approval of its shareholders through postal ballot and to announce the results of the ballot at the ensuring annual general meeting.
More Stories on : Restructuring | Cement
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