Mangalam Timber Merges With Mangalam Cement

As mentioned in the Board Resolution passed for approving the scheme, Mangalam Cement will give loan of INR 5 crores to Mangalam Timber Products.

- Padam Singh

The BK Birla group-controlled Mangalam Cement Ltd and Mangalam Timber Products Ltd have been merged to attain value of scale. The consolidation will help inefficient utilization of their resources, reduction in overheads and other expenses and improvement in other parameters.

Mangalam Timber Products Limited (MTPL), a listed company primarily engaged in the manufacture of Medium Density Fibre Board (MDF) and sells its products under the brand name “DURATUFF”. MDF is used in making furniture, Particleboard, Doors and all kind of carpentry all kinds of carpentry work.

Mangalam Cement Limited (MCL), a listed company having a registered office in Kota Rajasthan. A well-established cement manufacturing company having two cement manufacturing plants located at Morak, Rajasthan, and Aligarh, Uttar Pradesh producing Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) and marketed under the brand name of "Birla Uttam". MCL has also set up two Captive Thermal Power Plants of 17.5 MW each. Apart from this, MCL also owns 13 (Thirteen) Wind Mills at Jaisalmer, Rajasthan with an aggregate capacity of 13.65 MW generation per day. Recently, the Company has invested approximately Rs.100 Crores in a Waste Heat Recovery unit (WHR) with a capacity of 11 MW at Morak plant which is scheduled to be commissioned in October 2019.

MCL holds a 3.55% equity stake & all 7.5% Non-Cumulative preference shares of MTPL worth INR 25.96 crores since February 2012. Both MTPL & MCL are part of BK Birla Group companies and hence are under common management.

The Transaction:

With the appointed date for the same is 1st April 2019, subject to regulatory approvals, MTPL will merger with MCL.