Chemplast Sanmar To Demerge Shipping Arm

Chennai, January 23: | Updated: Jan 24 2003, 05:30am hrs
The Chennai-based Chemplast Sanmar Ltd, part of the Sanmar Group of companies, on Thursday said that it is planning to demerge its shipping arm, Sanmar Shipping Ltd, as part of its business restructuring exercise. The company has called for a meeting of its board of directors on January 25th to consider the issue.

Company managing director, PS Jayaraman, when contacted told FE that the proposal to demerge the shipping business from the core business of PVC and chlorochemicals manufacturing forms part of the companys ongoing initiative to emerge as a focussed business group with well built firewalls among different lines of operations. According to the initial thinking, the shipping business would be hived-off to Sanmar Properties, a subsidiary which acts as an investment arm for the Group.

The Sanmar Group, it may be recalled, had decided to bring focus to its business plans by bringing its entire business operations under five core areas; PVC and chlorochemicals, speciality chemicals, engineering, shipping and insurance. The move was conceived against the backdrop of the Groups initiative to spruce up its PVC production capacity by setting up a greenfield plant, which has now shifted to Andhra Pradesh from Tamil Nadu.

Incorporated in September 1994, Sanmar Shipping Ltd (SSL) operates a clutch of bulk carriers in both the the territorial waters and in the international waters.