Bajaj Hindusthan revises merger scheme; excludes Bajaj Aviation

NEW DELHI: The country's largest sugar maker Bajaj Hindusthan today approved a modification in the draft merger scheme as per which only Bajaj Eco-Tec Products will be merged with it.

The proposed amalgamation excludes Bajaj Aviation. In a BSE filing, Bajaj Hindusthan said the board has "approved modification in the draft scheme of amalgamation by excluding the proposed amalgamation of Bajaj Aviation Pvt Ltd with the company from the scope of the scheme of amalgamation as approved at its meeting on March 13, 2012."

The company, however, did not disclose the reason behind exclusion of Bajaj Aviation from the new scheme.

Last month, Bajaj Hindusthan had announced amalgamation of Bajaj Eco-Tec Products (a wholly-owned subsidiary of the company) and Bajaj Aviation (a wholly-owned subsidiary of Bajaj Eco-Tec) with the company.

The merger of these two subsidiaries with parent company was aimed at consolidating the businesses to reduce overheads and other costs.

Bajaj Eco-Tec Products manufactures particle boards used in the building and construction industry, while Bajaj Aviation has one aircraft that is being run on lease.

Bajaj Hindusthan has 14 sugar mills with a cane crushing capacity of 1.36 lakh tonnes per day.

Shares of the company today closed 3.15 per cent down at Rs 30.70 apiece on BSE.