Mumbai, India -- The Aditya Birla Group is restructuring its activities, including the Indian Rayon group. Although the move is primarily financial, it will result in Indian Rayon becoming one of the largest private sector companies in India, with sales of around Euro 750 million.
The new company will be called Aditya Birla Nuvo and wil be headed by the current managing drector of Indian Rayon, Sanjeev Aga. The carbon black activity will continue to be led by Dr. Rakesh Jain.
Under the new arrangement, Aditya Birla will merge the activities of Indian Rayon and Industries Limited (Indian Rayon), Indo Gulf Fertilisers Limited (Indo Gulf) and Birla Global Finance Limited (Birla Global).
Kumar Mangalam Birla, chairman, Aditya Birla Group said, "This restructuring is an important step in shareholder value creation. It creates a company that captures opportunities in the evolving Indian economy through leadership in focussed value businesses i.e., carbon black, VFY, textiles and fertilisers, and driving high growth businesses viz., garments, IT / ITES, financial services and telecom."
Indian Rayon makes rayon for the textile industry and carbon black through two companies, Hi Tech Carbon, which makes furnace black at Renukoot in Uttar Pradesh and Birla carbon black which makes tyre grades at Gummidipoondi, near Chennai, in Tamil Nadu.
Internationally, the Group also has carbon black facilities at its Alexandria Carbon Black unit in Egypt and Thai Carbon Black Public Company Ltd in Thailand and the recently acquired Liaoning Carbon Black unit in China.