Ultratech, Grasim deals to help reduce CTIL's debt: Kumar Managalam Birla

Century Textiles and Industries' decision to demerge the cement business into UltraTech Cement and transfer the viscose filament yarn business to Grasim will help it reduce the debt and focus on textiles, pulp and paper and real estate businesses, a top company official said. Century Textiles and Industries (CTIL) in May this year announced plans to demerge its cement business into Aditya Birla group firm UltraTech Cement. The company last year also entered into a deal with Grasim Industries to manage and operate its viscose filament yarn (VFY) business for a period of 15 years. The agreement would provide Grasim the right to use the relevant assets of CTIL, however, the ownership of assets to remain with CTIL. Grasim would be paying Rs 600 crore royalty and a refundable security deposit of Rs 200 crore, to be done through internal accruals.