Mumbai : DIL Ltd. (BSE: DIL) announced the merger of its subsidiary, Fermenta Biotech Ltd. (FBL), one of the leading Vitamin D3 manufacturers globally, with DIL.
Pursuant to applications made by DIL and FBL to the National Company Law Tribunal, Mumbai (NCLT) for approval of the scheme of amalgamation of FBL with DIL, the NCLT has approved the said merger vide its Order dated 19th September, 2019.
The order of the NCLT has been uploaded on its website www.nclt.gov.in on 25th September, 2019. The intimation to BSE Limited regarding the Order has also been done subsequently on 25th September, 2019. The copy of the said intimation is also available on www.dil.net.
As per the approved scheme of amalgamation, post merger, the name of the combined entity will be ‘FERMENTA BIOTECH LIMITED’. The merger took place purely in the interest of business growth, in order to combine resources of both companies, effectively manage operations, focus on business priorities and maximisation of stakeholders’ benefits.
The merger is also anticipated to bring greater efficiency in cash management and unfettered access to cash flows generated by the combined business. Further, cost savings are expected to flow from more focused operational efforts, standardization of business processes and rationalization of administrative expenses.
Commenting on the development, Mr. Krishna Datla, Managing Director said, “The amalgamation represents a major milestone for us in carrying forward our legacy of over six decades. It is expected to combine the synergies of both companies that will enhance our operational efficiencies. Further, it will enable us to focus our resources to bring in value-added formats in the nutraceutical ingredients space in order to diversify our product portfolio.”
FBL caters to over 300 customers across 50 countries, with a worldwide distribution network across applications such as pharmaceuticals, food, dietary and nutritional supplements, feed, veterinary and rodenticides. Apart from Vitamin D, FBL is a pioneer in the enzyme technologies space, offering enzymes for antibiotic synthesis and industrial applications. Moving forward, the combined entity shall augment its focus on the nutrition sector, by means of organic and inorganic growth opportunities.