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July 30, 2001
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Money > Business Headlines > Report July 30, 2001 |
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Godrej Foods retains trading business only after demergerBS Corporate Bureau The Rs 34.50-billion Godrej group has decided to restructure the businesses of Godrej Foods. The manufacturing business along with other key functions will be demerged into Godrej Industries. However, the trading business will continue to be carried out by Godrej Foods. The boards of Godrej Industries and Godrej Foods have decided that every shareholder of the latter will be issued one share of Godrej Industries (par value of Rs 6) for 15 shares of Godrej Foods (par value of Rs 10). The par value of each share of Godrej Foods stands reduced to Re 1. However, Godrej Foods will continue to be listed on the stock exchanges. Over the last couple of years, the processed foods and edible oils manufacturing activity of Godrej Foods has witnessed declining profit margins, resulting in significant erosion in its net worth. Godrej Foods has manufacturing facilities at Wadala, Bhopal and Mysore. It is involved in the manufacture and marketing of edible oils and fruit drinks under the brand name Jumpin and Xs. The company's brands will now be owned by Godrej Industries. Godrej Industries reported a 22 per cent decline in net profit at Rs 111.8 million for the quarter ended June 30, 2001, as against Rs 144 million in the year-ago period. Income from operations stood at Rs 1.05 billion in the first quarter against Rs 1.99 billion in the same period last year, which included Rs 1.04 billion from the consumer products business. Other income was lower at Rs 1.1 million, against Rs 7 million in the first quarter of the previous year. The consumer products business of the company (formerly Godrej Soaps) was demerged into Godrej Consumer Products with effect from April 1, 2001, pursuant to the scheme of arrangement approved by the Bombay high court. The figures for 2000 include the results of the consumer products business. Therefore, the first-quarter results of the present financial year were not comparable with those of the same period last year. Powered by YOU MAY ALSO WANT TO READ:
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