Mittal brothers Pramod and Vinod, promoters of the Ispat group informed that they are likely to exit the textiles business. The promoters are likely to hive off their textile business to focus on steel manufacturing, their core activity.
The Ispat group has interests in textiles through GPI Textiles, which has a unit based in Nalagad, Himachal Pradesh.
Himachal Pradesh based GPI Textiles is a part of the Ispat Group and has the pride of establishing India's one of the largest and most modern spinning unit under one roof.
A GPI textile was earlier a part of Gontermann Peipers India that manufactures rollers used in making value-added steel. GPI was later sliced off in to a separate subsidiary. According to sources, the textiles business will be sold off to a suitable buyer.
The group has also appointed consultants for this purpose. Ispat director (finance) Anil Sureka said the group is looking at various options to move towards higher profitability and value creation.
Ispat group also informed that it has decided to focus only on core activities and business related to steel. This implies that the company will continue to have Gontermann and Balasore Alloys in its portfolio while divesting GPI Textiles.
After incurring losses earlier, GPI Textiles has just managed to make cash profits in fiscal '04-05. The group has also looked at options to revive GPI Textiles.
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