Calcined Petroleum Coke manufacturer Rain Commodities Limited is planning to hive off its cement business into a wholly owned subsidiary. The company is engaged in the production of Calcined Petroleum Coke, and cement. It is the World's largest producer of CPC with a total capacity of 2.49 million tonne per annum (MTPA).
In an interview with CNBC-TV18, T Srinivasa Rao, VP-Finance, Rain Commodities spoke about the company's business plans.
Here is a verbatim transcript of the interview. Also watch the accompanying video.
Q: What is your plan to hive off your cement business? Can you tell us what the plan of action for this is?
A: We released our financial results for CY09 yesterday. In spite of difficult global conditions, we have delivered a PAT of Rs 404 crore. Inspite of a revenue decline of about 18%, our PAT has increased by about 10%.
With regard to hiving off our cement operations, we are operating in two verticals, cement and calcine petroleum coke. In both the businesses we expect a lot of growth opportunities in the future.
To pursue those growth opportunities we are hiving off the cement business into a wholly owned subsidiary. By hiving off we would be able to induct any strategic investors into our cement operations. We can also pursue value accretive acquisitions without adding substantial debt to our balance sheet.
