Jain Irrigation to sell food unit to its subsidiary
Jain Irrigation will sell its food business unit to Jain Farm Fresh Foods to create strategic focus on the fast-growing business
Mumbai: Jain Irrigation Systems Ltd, Asia’s largest irrigation equipment maker, will sell its food business unit to its subsidiary to create strategic focus on the fast-growing food business.
Jain Irrigation, which began selling micro-irrigation systems in 1986, has approved the sale of its food business by way of “slump sale” to Jain Farm Fresh Foods Ltd, an effective wholly-owned subsidiary of the company “to create strategic focus on fast growing food business and consequent value creation opportunities”, the company said in a filing to BSE.
Slump sale means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to individual assets and liabilities.
“The food business of the company comprises food manufacturing units at Jalgaon (Maharashtra), Vadodara (Gujarat) and Chittoor (Andhra Pradesh) besides the indirect subsidiaries carrying on food business activities namely: SQF2009 Ltd of UK and Cascade Specialities Inc, USA,” Jain Irrigation said.
The company’s board has also formed a sub-committee comprising three directors to take all decisions regarding the transaction referred above.
Jain Irrigation is engaged in manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs since the last 34 years.
Editor's Picks »
- Future Retail’s Q2 result shows improvement in same-store sales
- Private insurance firms grow at the expense of LIC stuck with a sick bank
- Page Industries’s lofty valuations get a reality check in Q2
- Q2 results: Grasim’s Vodafone Idea stake is proving costly
- How Vodafone Idea’s $3.5 bn fundraising will impact telecom in India