The Board of Directors of Smartchem TechnologiesLimited (STL), a wholly owned subsidiary of Deepak Fertilisers andPetrochemicals Corporation Limited (DFPCL), at its meeting held recently, approveda Corporate Restructuring Plan with the objective of unlocking growth potentialof each of the businesses. As per the ‘Composite Scheme of Arrangement’, theTAN Business (Mining Chemicals) will be demerged from STL to Deepak MiningServices Private Limited (DMSPL).

Commenting on this development, Sailesh C.Mehta, Chairman and Managing Director said, “The proposed corporate restructuringshall considerably help create strong independent business platforms within thelarger DFPCL brand umbrella, hence enhancing stakeholders' value over time.”

Earlier, DFPCL Group’s strategy was primarilyfocused on production, cost optimization, capacity utilisations, and efficiencyimprovement. Following extensive deliberation to deliver an outward consumerfocus, a specified ‘Transformation Strategy’ with the following fundamentaldrivers has been executed:

-         Focus on customised specialty in place ofCommodity.

-         Move from volume focus to value/premium end-userfocus.

-         Shift from competition pricing to value pricing.

This radical shift in strategy was deemednecessary to significantly improve customer experience, enhance market share,and build a sustainable brand.

This draft Scheme of demerger is subject tocustomary, statutory, and regulatory approvals including approvals ofrespective shareholders and creditors, NCLT and all other regulators as may berequired.