To exploit the opportunities offered by economic growth, the Rs.2500 crore Yash Birla Group is restructuring its business spread across four core sectors – engineering, auto textile and power.
The restructuring would involve the group’s six listed and 14 unlisted entities and will see five mergers, formation of six holding companies, acquisitions, investments of Rs.1,000 crore, sale of non-crore businesses and overseas listing of the restructured entity.
In the first phase, four auto companies – Birla Kennametal, Dagger Forst, ITM and Birla Peruccini will be merged into a large auto company. In textile segment, Birla Transasia Carpets and Birla Cotsyn will be merged.
Similarly, in power business, Birla Power and Birla Electrical will be merged while in the engineering segment, Zenith Birla and Tunghabhadra Holding will go for a merger.
The education arm of the group, Shloka Infotech will merged with itself six subsidiaries Shloka Academy, Shloka Graphics, Shloka Peripheral, Shloka Finance Consultancy, Shloka Software, and Shloka Publications.
The group is also entering the growing segments of lifestyle, retail, healthcare, real estate and infrastructure businesses. It also recently exited from 3M India.
As a result of this news, the shares of listed group companies are witnessing good buying. [via]