Vinyl Chemicals appoints Committee for a long term review of company

Mumbai, Mar 19 (UNI) Vinyl Chemicals India Ltd has informed BSE that following continous losses for five consecutive quarters, the Board of Directors has appointed a Committee of the Board for a long term review of the Company's operations.

The Committee, with the assurance of support by Pidilite Industries Ltd (PIL), the principal promoter of the Company, recommended to the Board of Directors of the Company that the Company's manufacturing unit at Mahad be demerged with PIL, as from April 01, 2007, PIL being the principal buyer of the Company's product (VAM) being manufactured at Mahad.

This recommendation is to be considered by the Board of Directors of the Company as also of PIL at their respective meetings convened on March 21, 2007.

In the event, at the foregoing meetings, the respective Boards agreed to the foregoing recommendation for demerger, the same will be processed under Section 391 and 394 of the Companies Act, 1956, which, inter-alia, require the approval of the shareholders and the High Court at Mumbai in compliance with the provisions of the foregoing sections of the Companies Act, 1956.

UNI