Emami’s Solar Unit Demerges from its Cement Business
The Kolkata bench of the National Company Law Tribunal (NCLT) has approved the request made by Indian conglomerate Emami Group to demerge its solar power business (Emami Power) from the cement business (Emami Cement Limited). The Emami Group had diversified into the renewable energy sector with a goal to achieve more than 300 MW of installed solar power capacity. Since then, the solar division has developed around 47 MW of solar power projects in the states of Karnataka, Gujarat, Tamil Nadu, and Uttarakhand. In a proposal filed at the NCLT, the company expressed that by demerging the solar business, they will be able to strengthen their operations by increasing focus on each business individually. In addition, the company expects that this demerger will help them achieve economies of scale and allow faster decision making, subsequently reducing operating efforts.
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