Dalmia Group continues its journey of segregation of businesses by way of demerger

Recently Dalmia Group announced yet another restructuring of one of its group companies Dalmia Bharat Refractories Limited.

- ANIRUDHA JAIN

After selling its core business last year to RHI Magnesita, Dalmia Bharat Refractories Limited was trying to evaluate various opportunities.

Dalmia Bharat Sugar and Industries Limited is incorporated in 1951 under the provisions of the Indian Companies Act, 1913, having its registered office at Dalmiapuram, District Tiruchirappalli, Tamii Nadu ("DBSIL" or "Demerged Company").

The equity shares of DBSIL are listed on BSE Limited and National Stock Exchange of India Limited.

DBSIL is engaged in manufacturing of sugar, generation of power and manufacturing of industrial alcohol. DBSIL has a refractory unit i.e. Dalmia Magnesite Corporation ("DMC Unit") which is engaged in the business of manufacturing of refractories. DBSIL also has a separate business unit named as Govan Travels ("GT Unit"), which is engaged in the business of providing tour and travel services.

Dalmia Bharat Refractories Limited is incorporated in 2006 under the provisions of the Companies Act, 1956, having its registered office at Dalmiapuram, District Tiruchirappalii, Tamil Nadu ("DBRL" or "Resulting Company"). The equity shares of DBRL are listed on Calcutta Stock Exchange Limited and Metropolitan Stock Exchange of India Limited.

In 2023, DBRL sold its refractory business through a slump sale to RHI Magnesita Limited for a consideration equivalent to - 14.38% equity stake in RHI Magnesita Limited. Currently the key assets of DBRL are: 14.38% stake in RHI Magnesita, - ~0.85% Stake in Dalmia Bharat Limited  - Other investments such as Birla Tyres Limited, Veeda clinical Research Limited, Hippostores Technologies Private Limited etc. - Immovable properties