Bayer Global Recast Not To Affect Indian Operations

Mumbai, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
The global restructuring exercise undertaken by the Bayer group globally is unlikely to have an impact on the Indian operations, at least in the short term. Globally, Bayer Chemicals (excluding HC Starck and Wolff Walsrode) is to be combined with certain parts of the polymers business in a new company (NewCo). The aim of this new company would be to list on stock market under a new name, latest by early 2005, a Bayer AG release said.

Bayer Indias chemical business in India is minuscule at Rs 108 crore for year ended December 2002, in the overall context of its total turnover of Rs 1,700 crore. A decision pertaining to the Indian operations would be taken at the appropriate time, a Bayer India spokesperon said.

According to analysts, the decision indicates a move to de-risk the existing business model.

Following its successful reorganisation, the Bayer group globally intends to maintain its focus on its core businesses and in the future concentrate on health care, nutrition and innovative materials, the release said.

"Both Bayer and NewCo will benefit from the split, because a stock market listing will be highly attractive for both shareholders and employees," Bayer CEO Werner Wenning said.

"Following the separation, Bayer - with sales of around EUR 22 billion - will be able to focus more closely on core businesses," he added. Bayer group has altogether ten entities in India including Bayer (India) and Bayer CropScience which are listed on bourses.

Board Meet Tomorrow To Discuss Assets Transfer

The board of Bayer India is scheduled to meet on November 12, to consider an item relating to transfer of technical and such other assets and related manpower of the company to Bayer Polychem (India) Ltd, its wholly owned subsidiary.