Deepak Mining Services and STL will be 100 per cent owned subsidiaries of DFPCL. STL would now focus only on the Crop and Nutrition Business (CNB).
Deepak Fertilisers and Petrochemicals (DFPCL) has announced a demerger of its mining chemicals and fertiliser businesses. The company said the demerger was aimed at simplification of the corporate structure and reduction of multiple entities carrying on similar businesses. This would also result in economies of scale for all the business verticals, including a reduction of overhead and administrative costs, company mentioned.
The board of Smartchem Technologies (STL), a wholly owned subsidiary of Deepak Fertiliser, approved the corporate restructuring plan. Under the Composite Scheme of Arrangement, the TAN business would be demerged from STL to Deepak Mining Services (DMS), another wholly owned subsidiary of DFPCL.
Deepak Mining Services and STL will be 100 per cent owned subsidiaries of DFPCL. STL would now focus only on the crop and nutrition business (CNB). STL manufactures NPK and specialty fertilisers in India. Mahadhan Farm Technologies, a wholly owned subsidiary of STL that manufactures water-soluble fertilisers, would be merged with STL.
Sailesh C Mehta, chairman and managing director, DFPCL, said the proposed corporate restructuring would help create strong independent business platforms within the larger DFPCL brand umbrella and enhance stakeholders’ value over time.
