Rathi Steel and Power today said its Board has decided to hive off the facilities in Odisha and Ghaziabad in a bid to enhance the firm’s long term viability.
The company’s CEO Udit Rathi has also resigned from his post with effect from May 17, 2016, it said in a regulatory filing.
“The Board at its meeting held on June 9, 2016, inter alia, has considered and approved the demerger/or hiving of both the Ghaziabad and Orissa Units of the Company on slump sale basis to unlock the value and to arrive at long term viability solutions,” it added.
This will be subject to requisite approval by stakeholders including lenders and all concerned statutory authorities, it said.
“Further, Board has also approved the resignation of Rathi from the CEO of the company with effect from May 17, 2016,” it added.
Its Ghaziabad unit consists of steel rolling mills having an installed capacity of 1.25 lakh tonnes per annum (LTPA), a wire rod mill and steel melting shop with 40,000 TPA installed capacity comprising for manufacturing high end value added stainless steel and alloy steel products.
The Odisha plant comprises of facilities for manufacture of 1.50 LTPA sponge iron, a steel melting shop of 1.50 LTPA and captive power plant of 20 MW.
Rathi Steel And Power is a part of the Delhi-based P C Rathi Group.