Ruchi Soya May Enter Renewable Energy Business

Leading agri and food FMCG company Ruchi Soya Industries today announced it is looking at restructuring its business units as part of an overall corporate strategy.

In a meeting held today, the board of directors has given consent to explore an internal corporate restructuring exercise which will allow the company to consider various options such as subsidiarisation or de-merger of its business units into separate entities, a company statement said here.

This initiative will result in independent businesses, which would operate in the areas of edible oil refining and brands, palm plantations, oil seed crushing and foods, and renewable energy.

A committee has been constituted to oversee the planning and execution of this exercise. A consultant will be appointed for proposing various options followed by a detailed scheme to the board whilst ensuring a high standard of corporate governance, transparency and fairness, it said.

“The primary aim of undertaking this exercise is to unlock the value of our diverse businesses. This process would allow the management to focus on the respective businesses with flexibility in fund raising for future growth and expansion.

“Each business would be free to explore opportunities for strategic partnerships and investors. We believe that this will enhance value for our stakeholders while providing fresh momentum for growth,” Ruchi Soya managing director Dinesh Shahra said.

“This exercise will help the company to overcome the issues that have developed over a period of time largely due to macro-economic conditions much beyond the control of the company.

“The unlocking of value through this restructuring will help come up with a timely and effective solution to resolve our outstanding issues benefiting all our stakeholders including banks and financial institutions,” he said. PTI AP RSY BAS

This is unedited feed from the PIB