Welspun Gujarat to demerge its Plate-cum-Coil mill into separate entity
Steel-pipe producer, Welspun Gujarat Stahl Rohren Ltd has announced the demerger of its Plate-cum-Coil mill into a 100% subsidiary.
A senior company executive commenting on latest situation said, "The move will allow better financial control, better fiscal efficiency by rationalization of various applicable taxes, duties and create an independent identity of high-end steel business."
Following the demerger, a separate team with independent board and management would be structured, he added.
It should be noted that with a capacity to produce plate and coils of largest size and diversified grades, the Plate-cum-Coil mill is one of the only three mills of its kind in the world. Apart from providing services to the pipe industry, the mill aims to target shipping, wind energy, boiler, heavy construction like bridges and other specialized industries.
The mill currently has plate orders worth Rs 500 crore in its basket.
However, the demerger is subject to statutory/regulatory approvals, which includes Shareholders, Creditors and High Court. The whole process is likely to take about 4 months time.