Sterlite Technology today said it has completed demerger of its power business and will now focus on its telecom business.
“Today we have successfully completed demerger of power business from Sterlite Technology. Now, we will focus completely on telecom business. Over last 5 years our telecom business has grown about 28 per cent annually,” Sterlite Technologies CEO Anand Agarwal told PTI.
The demerger scheme was earlier approved by the High Court of Mumbai on April 22, 2016 post approval by all relevant stakeholders of Sterlite Tech on December 15, 2015.
The power entity has been named as Sterlite Power Transmission Ltd and will he headed by Pratik Agarwal.
Sterlite Power has parted with debt of Rs 5,500 crore out of total debt of Rs 6,500 crore that was in the books of Sterlite Technologies.
“Sterlite Technologies has retained 1500-1600 people while about 700 employees are with Sterlite Power,” Anand Agarwal said.
Both, Sterlite Technologies and Sterlite Power, will be controlled by business tycoon Anil Agarwal’s Volcan Investments. Volcan Investments is also the parent company of Vedanta Group.
Sterlite Power has assets in Silvasa, Haridwar and Jharsuguda. Sterlite Technology has retained optical fibre cable manufacturing plant in Silvasa and Brazil and optical fibre plant in Aurangabad and China.
Sterlite Technology also completed merger of telecom services billing technology provider Elitecore Technologies
Shares of Sterlite Technologies closed at Rs 85 apiece, down by 4.33 per cent compared to previous close, at BSE today.