You are aware that Amrit Banaspati Company Limited had been engaged in
four business activities, namely, edible oils & FMCG commodities,
writing & printing paper, dairy milk & milk products and real estate.
As a part of long term business planning, the management had been
considering avenues for faster and more profitable growth. Business
imperatives demand that we pay focused management attention and impart
competitive strengths to each of our businesses from our core
competence. We believe that all our businesses have considerable growth
potential and we will continue to focus all our energies on these
businesses thereby securing for our shareholders and other associates
the fair rewards of the growth.
To put the growth strategy in place, the management has restructured
the businesses by segregation and consolidation under separate legal
entities with a view to have focused management attention and
leadership as each of the businesses have different business dynamics
and growth drivers and require different strategies for growth. To
achieve the restructuring objective, a Scheme of Arrangement between
Amrit Banaspati Company Ltd. (name now changed to Amrit Corp.
Limited) and ABC Paper Ltd. and Amrit Enterprises Ltd. has been
formulated which has been sanctioned by the honble High Courts of
Allahabad, Delhi & Chandigarh.
In terms of the above Scheme, the paper business has been transferred
to and vested in ABC Paper Ltd. and the edible oils & FMCG commodities
business has been transferred to and vested in Amrit Enterprises Ltd.
The residuary businesses, namely, dairy milk & milk products and real
estate will continue to vest in Amrit Corp. All the three entities will
be listed companies. As a part of the Scheme, the name of Amrit
Enterprises Ltd. will be changed to Amrit Banaspati Company Ltd.
We believe that the above arrangement is both suitable and appropriate
to all the businesses. The restructuring will lead to increasing the
scale of operations and better utilization of common resources which,
in turn, will enhance the overall shareholders value. Post
restructuring, all the companies will emerge stronger and more
successful and all our shareholders and other associates will gain from
the growth and prosperity emanating from the demerger & consolidation.
Thanking you and with regards,