Buildings material and textile manufacturer Grasim Industries has entered into a share transfer agreement for the divestment of its 100% holding of its wholly owned subsidiary, Grasim Bhiwani Textiles, to the Mumbai-based textile company, DonearBSE 3.36 % Group.
“The move is part of the business portfolio review, an exercise that takes place from time to time and is aimed in the direction of consolidation and greater focus on the core businesses of the company,” Grasim said in a release.
Grasim Bhiwani Textiles that is engaged in the business of manufacturing and marketing of polyester viscose fabric constitutes a fairly small proportion of Grasim’s consolidated financials and has a share of less than 1% in the revenue and EBITDA of the parent company. Owing to its small share and the size of Grasim’s total operations, the divestment will have a negligible impact on the company’s financials, the release said.
Source: Economic Times