ABCL posts Rs 14.61 cr net profit; approves 15% dividend

New Delhi, Sep 28 (UNI) Amrit Banaspati Company Ltd (ABCL) today posted 199 per cent growth in its net profit at Rs 14.61 crore for the year ended March 31, 2006, as against Rs 4.88 crore during the corresponding period last year.

On account of excellent results, ABCL also announced a 15 per cent dividend to its shareholders.

To create focused entities for each of its businesses, the company's board has approved the restructuring proposal to demerge its paper business into its wholly-owned subsidiary, ABC Paper Ltd and edible oil business with its associate company, Amrit Enterprises Ltd.

''The restructuring proposal is aimed to position our diversified businesses as focused and independent entities to tap future growth opportunities and take on the challenges in the market,'' ABCL Chairman NK Bajaj said.

The flagship brand 'Gagan' would be retained by the company to leverage its strength across business segments.

The swap ratio for the proposed restructuring would be as two shares would be allotted to the shareholders of the company in ABC Paper for every four shares held by them in the company.

The shareholders would also get one share in Amrit Enterprises Ltd for every four shares held in the company. Subsequent to restructuring, the shareholders of ABCL would retain one share in ABCL for every four shares held.

ABCL is a diversified conglomerate manufacturing and distributing wide range of FMCG products, namely, vanaspati, refined oils, table margarine, bakery shortening, rice and salt, dairy milk and dairy mixes and writing and printing paper.

UNI SBA DKS RN1707