Astral Approves Chemicals Business Demerger and Merger of Al-Aziz Plastics

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INDIA: Astral Ltd. has approved a composite scheme of arrangement to demerge its chemicals business into a new company, Astral Chemie Limited, while simultaneously merging its wholly owned subsidiary, Al-Aziz Plastics, with Astral Ltd. Subject to regulatory approvals, Astral Chemie will be listed on both the NSE and BSE, with the chemicals business being transferred as a going concern. 

The restructuring will establish two independent business platforms—plumbing under Astral Ltd. and chemicals under Astral Chemie—enabling each entity to operate with dedicated management, focused capital allocation, and independent growth strategies. 

Astral's chemicals portfolio has expanded significantly to include adhesives, PVA, cyanoacrylates, and solvent cements, leading the company to consolidate these businesses under a specialized platform with sector-focused leadership. The separation is expected to allow both the plumbing and chemicals businesses to pursue targeted investments, capacity expansion, and operational initiatives. Meanwhile, the merger of Al-Aziz Plastics into Astral Ltd. is aimed at improving supply chain efficiencies, integrating complementary product offerings, and reducing operational costs.

Source: Astral