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Aarti Industries Board approves the Scheme of Demerger


August 30, 2012: The Board of Directors of Aarti Industries Limited, a leading manufacturer and exporter of Chemicals and Pharmaceuticals, today approved the scheme for arrangement for demerger of manufacturing business undertaking of Anushakti Chemicals and Drugs Ltd (Anushakti) into Aarti Industries Ltd (Aarti).

The Board of Director during its meeting held today approved the share entitlement ratio of 3:5. Under the said scheme, shareholders of Anushakti would be entitled to get 3 (Three) equity shares for Rs 5/- each in Aarti for every 5 (Five) equity shares of Rs 10/- each held in Anushakti. The determination of share entitlement ratio is as per the valuation report submitted by M/s SSPA & Co, Chartered Accountants, the valuers appointed for the said purposes, on which the Fairness opinion was provided by M/s Ernst & Young Merchant Banking Services Pvt. Ltd.

Anushakti is an associate company of Aarti, with Aarti holding 49.6% equity stake in Anushakti.

Anushakti is mainly engaged into manufacturing of various speciality chemicals with applications into end-user segments of performance chemicals, agrochemicals and pharmaceuticals. The company has its manufacturing units at in the state of Gujarat and Maharashtra & a Pharma R&D Centre in the State of Maharashtra.

Commenting on the development, Mr Rajendra V Gogri, Chairman and Managing Director, Aarti Industries Ltd, said “In an endeavour to consolidate our operations and as a part of our overall corporate restructuring, we have proposed to demerge the manufacturing operations of our Associate Company M/s Anushakti into Aarti w.e.f 1st April 2012. Apart from synergies derived in respect of common products, the said restructuring shall also help to increase volumes of existing range of products and will also facilitate addition of newer products with diversed end usage into Fuel Additives, etc having high growth possibilities.”

For the financial year ended March 31, 2012, Anushakti’s manufacturing division had posted a turnover of Rs 339.5 crore (of which exports were Rs 99.2 crore) and profit before tax for FY2011-12 has been Rs 39.2 crore. Gross block and net block as at March 31, 2012 were Rs 165 crore and Rs 96.3 crore, respectively.
  
About Aarti Industries Ltd (NSE Symbol: AARTIIND; BSE Scrip Code: 524208)

Aarti Industries Ltd (http://www.aartigroup.com), incorporated in the year 1984 and listed on stock exchanges in 1992, is a well known name in the field of Chemical Industry and is a leading supplier to global manufacturers of Dyes, Pigments, Agrochemicals, Pharmaceuticals & rubber chemicals.

Aarti Industries Ltd (AIL) is also a leading domestic player in nitrochlorobenzene (NCB) based specialty chemical business with the largest domestic manufacturing capacity of 60,000 tonnes per annum. The company offers over 150 products and is the market leader in more than 75% of its top 50 products. AIL has 16 manufacturing units spread across Gujarat, Maharashtra, Madhya Pradesh and Silvassa.

AIL is among the largest producers of benzene based basic and intermediaries in India. It is also among the largest integrated manufacturers of dimethyl sulphate (DMS), an organic specialty chemical which uses methanol and sulphur as feedstock

AIL has a diversified end-user base for its products with application into end-user industries such as dyes, pigments, FMCG, agrochemicals, pharmaceuticals, polymers etc. It has wide customer base of over 1,000 customers spread over 60 countries across the globe with major presence in USA, Europe, Japan and India.

For the financial year ended March 31, 2012, Aarti Industries Ltd’s consolidated Net Profit increased to Rs 103.26 crore, up 26.71%, as against Rs 81.49 crore for the financial year ended March 31, 2011. Consolidated Total income for the financial year 2011-12 stood at Rs 1,673.31 crore, registering a growth of 15.16%, as compared to Rs 1,453 crore of 2010-11. Out of which export stood at Rs 726.73 crore for the financial year 2011-12 against Rs 582.43 crore for FY 2010-11.

For more information on the release, please contact:                
                     
Ms. Mona Patel/Mr. Chetan Gandhi
Mr. Siddharth Kumar/ Mr. Parin Narichania
Aarti Industries Ltd
Adfactors PR
022-6797 6666
Cell:  9833933447/ 9930025733

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