Mather & Platt (I) demerges three divisions into separate companies

Geeta Nair

Pune, Oct 31: Mather & Platt (India) Limited, part of MR Chhabria’s Jumbo Group, has demerged its three divisions into three separate companies. "There is no other game plan behind the demerger other than getting value for money on the investments," Mr Chhabria said.

The pumps division, fire securities and process machinery division have now become separate companies. "With the pumps business doing well, I see a potential for it to grow into a global company. So the focus will be on expanding range of pumps and growing the business. We are looking at acquisitions for the pumps company and are already negotiating with an Indian company," he said.

"We are interested in the engineering business and have no desire of disinvesting the companies," Mr Chhabria said. Explaining the rationale behind the demerger, he said, the combination of the business divisions was coming in the way of possible collaborations and joint ventures. The pumps business has been making money but the fire detection and protection systems was perennially in loss which was pulling down the company, Mr Chhabria said. The MPIL’s capital of Rs 18.90 crore will be split into Rs 11.50 crore towards the pumps company, Rs 3.48 for the fire business and Rs 75 lakh for the process machinery. For every 100 shares of the former MPIL, the shareholders will get 60 shares of the pump, 18 of the fire and four of the process machinery.