SRF's recast gets board nod

By Our Special Correspondent

NEW DELHI, JULY 27. The directors of SRF have approved a scheme of restructuring that envisages the merger of Tyrecord Fabrics, acquired from DuPont, with the company and demerger of smaller businesses into a new company. This step will strengthen SRF's capability in the tyrecord fabrics business, stated a company release.The smaller businesses comprising polyester films, fishnet twine and engineering plastics, constituting about 15 per cent of sales, are being demerged and will be part of a newly formed company. This is being done to provide focus that these businesses need in order to grow to their potential, added the release.

The restructuring should lead to greater shareholder value by creating focussed entities, consolidating similar businesses, lower tax liability and better investor perception.

SRF has been making moves of this kind over the past five years in the face of changing environment. These include enhancement of process through IT and TQM, and financial managerial, organisational and business portfolio restructuring. The company consolidated its tyrecord fabrics and refrigerant gases businesses and divested from smaller activities.

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Section  : Business
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