New Delhi: Hinduja Group firm Gulf Oil Corp on Tuesday announced the restructuring of its explosive division by demerging the business into its wholly owned subsidiary, IDL Explosives Ltd.
Gulf Oil currently has four autonomously managed divisions, namely lubricants, explosive and contract mining (21% of revenue).
Besides the real estate segment is now being developed into a major revenue earner for the future.
“It was decided that the industrial explosives comprising of packaged explosives, bulk explosives and metal cladding business be demerged into a wholly owned subidiary of Gulf Oil Corp, named IDL Explosives Ltd,” the company said in a statement here.
The turnover of the planned demerged business areas last year was around Rs 220 crore from seven manufacturing plants located at Rourkela, Singrauli, Korba, Rajrappa, Ramagundam, Dhanbad and Udaipur.
Gulf Oil’s turnover last fiscal was Rs 1,066 crore. “It was felt that the business model of the company needed to be reviewed to allow growth for the various business segments,” it said.
The company said steps for the scheme for the demerger of the business into a 100% wholly owned subsidiary along with necessary approvals are being taken and will be completed over the next few months.
“The subsidarisation of the packaged and bulk explosives business will allow the company to have a level playing field with majority of competition who are focused on the explosives business,” it added.