Mumbai, January 28, 2002                  

Foods division created in Godrej Industries Ltd

The de-merger of the manufacturing business of Godrej Foods Limited (GFL), together with its marketing, sales, finance and other related functions into Godrej Industries Limited (GIL), has now been completed with the scheme having received the approval of the high courts at Mumbai and Jabalpur. The scheme had already received the approval of the shareholders of both the companies. Under the scheme, every shareholder of GFL will be issued one share of GIL (par value of Rs 6) for 15 shares of GFL (par value of Rs 10). The shareholder will in addition retain his shares in GFL, the face value of which has been reduced to Re 1 consequent to the demerger. The appointed date for the de-merger is June 30, 2001.

With this, a new foods division has been created in GIL, which will be headed by Mr M P Pusalkar, who was earlier with GFL as executive director. This division will take care of the manufacturing, marketing, sales and distribution of the brands such as Jumpin & Xs fruit beverages, Cooklite and Godrej brand vegetable oils, vanaspati and bakery fats.

GFL will retain the oil-trading business of the erstwhile company. As part of the scheme, the paid-up share capital of GFL of Rs 28,36,88,370, i.e. 2,83,68,837 equity shares of the face value Rs 10 each, will be reduced to Rs 2,83,68,837, i.e. 2,83,68,837 equity shares of the face value of Re 1 each.

GIL is a leading manufacturer of surface-active agents and oleochemicals. The company employs more than 1,500 persons and has two modern manufacturing facilities at Mumbai (Maharashtra) and Valia (Gujarat). Associate companies include Godrej Consumer Products Ltd, Godrej Sara Lee Ltd, Godrej Foods Ltd, Godrej Agrovet Ltd and Godrej Properties & Investment Ltd.