Star Ferro and Cement Ltd plans to demerge its cement and ferro alloy divisions and consolidate its cement business under its subsidiary Cement Manufacturing Co Ltd, Sajjan Bhajanka, promoter and director of the company, has said. Star Ferro and Cement currently holds 70 per cent in Cement Manufacturing Co.
"Star Ferro and Cement will cease to exist. We will rename it as Shyam Century Ferros Ltd. The cement operations will go to Cement Manufacturing Co Ltd," Bhajanka told Cogencis in an interview.
Star Ferro also has Megha Technical & Engineers Pvt Ltd, Star Cement Meghalaya Ltd, Meghalaya Power Ltd and NE Hills Hydro Ltd as its subsidiaries which will also come under Cement Manufacturing once the restructuring is complete.
Earlier this year, under a separate demerger scheme, the ferro alloy and cement divisions of Century Plyboards were hived off into Star Ferro and Cement.
Cement Manufacturing Co is now looking to set up a plant in Siliguri, West Bengal, as part of its drive to expand outside the northeast of India, Bhajanka added. The company is planning a 1Mta plant and is currently awaiting environmental land clearance for the project. The expansion would lift Cement Manufacturing Co's total capacity to 4Mta.
