Emami gets NCLT’s Approval to Demerge Solar Assets from Cement Company

National Company Law Tribunal (NCLT) allowed Emami Group to demerge its solar power assets from its cement company.

The assets will be consolidated under Emami Power, which will allow Emami Cement to focus solely on its core business.

“Proposed demerger is being undertaken with a view to consolidate the power production business in Emami Power while allowing our company to focus on its cement manufacturing operations,” the cement company disclosed before approval of the proposal, which was filed in July.

Emami Power which earned a profit Rs 2.36 crore crore in fiscal 2018, will now have around 43 mw of capacity at Karnataka, Gujarat, Tamil Nadu and Uttarakhand with an aim to achieve 300 mw aggregate capacity in near future.

The sale of solar power contributed INR266.8m (US$3.8m) to Emami Cement’s total revenue in FY18.

“EPL is participating in various tenders under State & Central schemes of National Solar Mission besides going for acquisition route to achieve its goal of +300 MWp in Solar Power,” the company said.