Binny Splits into Three
25 Mar 2010
The three promoters of Binny -- M Ethurajan, M Nandagopal and V R Venkatachalam, havedecided to part ways amicably. They will manage three different entities arising out of the demerger of Binny, which is listed on the stock exchanges. The trio had acquired Binny in 1987 when the sick company with its cotton and silk mills in Chennai and Bangalore was at the peak of its crisis. They infused nearly Rs 300 crores over the years as a part of the revival effort. Consumers identify with Binny as a well known suiting and shirting brand. The company is involved in diverse businesses.
S V Global Bill will go to M Ethurajan (now executive chairman of Binny) and his son M E Shanmugam, Binny Mills to V R Venkatachalam (son of the late N P V Ramaswamy Udayar) and the existing Binny Ltd will go to M Nandagopal, who is brother of Ethurajan. S V Global will get Binny’s prime properties in Chennai (Armanian Street HQ), 28 acres near Bangalore railway station besides Binny Engineering in Chennai and the lands near the city. The Ethurajan family also manages the closely held Thirumgal Mills and S V Sugars.
The other new entity, Binny Mills (with its 27.76 acre of B & C Mills in Perambur in North Chennai), will go to V R Venkatachalam. He will also get the lands in Andhra Pradesh and Kochi. Son of the late N P V Ramasamy Udayar, he heads Sri Ramachandra Deemed Medical Varsity. He also manages the listed chemical company TCP.
M Nandagopal, who heads the IMFL producing firm, Mohan Breweries, will get the existed listed company, Binny Ltd at Perambur. He and Venkatachalam will have the right over using the Binny brand.
In each of the three entities, the respective promoters will have a 75 per cent stake and the rest with the public. The demerger and separation will lend greater focus to the operation of each of the diverse businesses of Binny and attract fresh capital and new investors. It will lead to better and specialized management of the individual businesses by the respective entities. It will also unlock the value of shares.