Kamdhenu to de-merge its paint division

Kamdhenu, the manufacturer of branded TMT Bars, is planning to de-merge its paint division into a separate mirror image shareholding company, it said in a BSE filing. "Our board has recommended a hive-off of the paint division through a de-merger into a separate mirror image shareholding company. This would result in independent and better management focus on both the businesses, better operational efficiencies and unlocking value by listing both as different companies,” said Satish Kumar Agarwal, chairman & managing director of the company. During the first half of 2018, company's revenues in the paint segment grew by 28% to Rs 105 crore and EBIT grew by 90% to Rs 2 crore. "Growth was led by increased sales of value added products," said Agarwal. Currently, the paint division contributes 14.3% of company's overall revenue. In Q2 FY19 the revenue from the segment was Rs 55.33 crore, the company said in the BSE filing. The de-merger plan is subject to approval of shareholders.