India Inc take demerger route to unlock value

Splitting Up

- VIVEAT SUSAN PINTO

SOME OF THE country's top corporate houses are opting to split their operations in a bid to unlock value.

The move also comes as some companies look to strengthen their core or primary businesses, hiving off and listing non-core operations into a separate unit.

Some see sense in giving investors an opportunity to partake of growth in an allied business, as ITC sought to do with the demerger of its hotels business from the parent firm, according to experts.

Apart from ITC, FY25, saw firms such as Hindustan Unilever (HUL), Raymond, Aditya Birla Fashion and Retail (ABFRL), Siemens and Vedanta take the demerger route.

Experts say that FY26 may see the trend persist as companies continue to unlock value of their businesses in a bid to streamline operations.