Orient Paper & Industries to demerge its consumer electric division

Orient Paper & Industries has received an approval to demerge its consumer electric division. The board of directors at its meeting held on September 15, 2016 has approved for the vertical demerger of its consumer electric division. This step will facilitate both paper and consumer electric businesses to focus on their core competencies and to pursue their independent strategies.

The company would also issue fresh equity in the form of a rights issue worth Rs 50 crore to reduce debt and for general corporate purposes. The proceeds from the rights issue shall be used to reduce debt of the company and for general corporate purposes.

Orient Paper & Industries, which has manufacturing capacity of about 85,000 tonnes of paper, also produces fans, lightings, appliances and switch gears in the consumer electric segment.