Parakash Industries Ltd (PIL) is demerging its PVC pipes business into a separate entity to focus on market-specific strategies and unlocking the potential value of the segment for shareholders, the Indian industrial giant announced 14 Feb.
Describing it a “more pureplay” company, PIL said the new business will follow a focused and sector specific growth strategy.
This, it said, will counteract the ‘conglomerate discount’ and enhance the value of the business while protecting from risks posed by other industries.
Going by the continuous growth trajectory in the sector and improving prospects in the agricultural and housing sectors the PIL has projected that the PVC Pipe industry will have “tremendous growth potential”.
During the nine months ended 31 December 2016, PIL said the turnover and EBIDTA of its PVC pipe business grew by 14.22% and 20.40% respectively as compared to the corresponding period the year before.