Vinyl Chemicals plans to sell unit to Pidilite

New Delhi, Mar 19 (UNI) Vinyl Chemicals India Ltd today said its board will meet on March 21 to consider selling its Maharashtra manufacturing unit to adhesive maker Pidilite Industries Ltd (PIL), its prinicipal promoter.

A panel appointed to review Vinyl's operations following losses in five consecutive quarters recommended the sale.

''Following continuing losses for five consecutive quarters, the Committee appointed by the Board of Directors of the company recommended that Vinyl's manufacturing unit at Mahad be demerged into PIL from April 1, 2007,'' a statement from Vinyl said.

PIL being the principal buyer of the company's product (VAM) being manufactured at the Mahad facility opined that that VAM plant of the company is of strategic importance to it and that there is good probability of the unit becoming profitable sometime during 2008.

However, the merger is subject to further approval of the shareholders as also the High Court at Mumbai in compliance with the provisions of the foregoing sections of the Companies Act, 1956.

UNI