Emami reveals ‘Restructuring Plan’ for FMCG & Reality Business

Emami reveals ‘Restructuring Plan’ for FMCG & Reality BusinessPersonal care products maker Emami Limited is presently looking to consolidate its FMCG and realty business.

In a latest development, the group has decided to bring its FMCG business under group flagship Emami Ltd and, realty business under a separate company, Emami Infrastructure.

Further, as per a composite scheme of arrangement, the FMCG business of its recently acquired Zandu Pharmaceutical will be merged into Emami. The move is expected to help consolidate the FMCG business of both Emami and Zandu into one entity.

Once the FMCG business is demerged, Zandu Pharmaceutical Works will be left with properties only and hence, will be renamed as Zandu Realty.

Simultaneously, the realty undertaking of Emami will be spun off into a separate company to be called Emami Infrastructure Ltd.

Under the terms of proposed deal, Emami shareholders will receive 1 share of Rs 2 each of Emami Infrastructure for every 3 shares held by them. While, Zandu Pharmaceutical shareholders will receive 14 shares of Emami of Rs 2 each for every 1 share of Rs 100 each held by them.

Besides this, existing Zandu shareholders shall continue to hold shares in Zandu which will be renamed as Zandu Realty.

Market experts believe that proposed scheme will not only help Emami and Zandu stakeholders in unlocking value, but also enable it to further grow its FMCG business and real estate business.